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MANAGEMENT
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
2005 Thomson Business and Professional Publishing
Introduction
PurchasingObtaining merchandise, capital equipment; raw materials, services,
or maintenance, repair, and operating (MRO) supplies in exchange
for money or its equivalent.
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
2005 Thomson Business and Professional Publishing
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
2005 Thomson Business and Professional Publishing
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
2005 Thomson Business and Professional Publishing
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
2005 Thomson Business and Professional Publishing
Time savings
Cost savings
Communication anytime
Flexible due to communication enhancement
Trackability
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
2005 Thomson Business and Professional Publishing
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
2005 Thomson Business and Professional Publishing
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
2005 Thomson Business and Professional Publishing
Focus on core-business
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
2005 Thomson Business and Professional Publishing
10
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
2005 Thomson Business and Professional Publishing
11
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
2005 Thomson Business and Professional Publishing
12
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
2005 Thomson Business and Professional Publishing
13
Supplier Selection
The process of selecting suppliers, is complex and should
be based on multiple criteria:
Product and process
technologies
Willingness to share
technologies and
information
Quality
Cost
Reliability
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
2005 Thomson Business and Professional Publishing
14
Need capacity
Spread risk of supply
interruption
Create competition
Information
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
2005 Thomson Business and Professional Publishing
15
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
2005 Thomson Business and Professional Publishing
16
Advantages- Decentralization
Closer knowledge of
requirements
Local sourcing
Less bureaucracy
17
International Purchasing/Global
Sourcing
Global sourcing Opportunity to improve quality, cost, and delivery performance.
Requires additional skills and knowledge to deal with
international suppliers, logistics, communication, political
environment, and other issues.
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
2005 Thomson Business and Professional Publishing
18
Questions to be asked
Why are small value purchase orders problematic?
Do you prefer manual or e-procurement? Discuss the
reasons
Centralized VS Decentralized purchasing
Select any organization/product and discuss how many
suppliers to use? Single supplier vs multiple supplier
Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan.
2005 Thomson Business and Professional Publishing
19