Professional Documents
Culture Documents
The purchasing
organization
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Organizational
structures
Why structure?
Coordination
Control
Planning
Implementation of objectives
Types of structures
Entrepreneurial small firms
Functional
Divisional
Matrix
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Entrepreneurial
Entrepreneur
Informal
Boss owns decisions
No hierarchy
Subordinates
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Functional Structures
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Divisional
Products/territories
Divisions have functions within
Empowerment
Customer focus
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Matrix structures
Math
Humanities Science
MA Degree
Msc Degree
Mphil Degree
Lead buyer
Business partnering
Head of purchasing
Purchasing manager
Senior purchasing manager
Supplier manager
Contracts manager
Purchasing analyst
Expediter
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Head of purchasing
Strategic (long-term)
Overall responsibility and accountability for purchasing
Responsibility over 3rd party expenditure (???)
depends on power structures, culture and paradigms
in organization
Overall direction, policies and strategy or procurement
Promote role of purchasing across peers and other
functions
Stakeholder management, leadership, communication
Some organizations refer to role as purchasing
director, chief purchasing officer, vice president of
purchasing
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Purchasing manager
Operational (day-to-day)
May be
Senior purchasing
manager
Supplier manager
Supplier development
Contracts manager
Purchasing analyst
Support function
Data gathering
Data analysis
Market research
Financial analysis
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Expediter
Chase orders
Ensures delivery schedules are followed
Track deliveries
Important where raw material input is
critical to company value chain
Where inventories are critical for working
capital hence need for JIT
What is the future of this role with advances
in supply chain mgt especially technology
interfaces?
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Part-time purchasing
responsibilities
Staff from other divisions may be involved in
managing spend beyond the purchasing
function. Why?
Part-time purchasing
responsibilities
Disadvantages
Centralise or
decentralise?
Generally
Functional structures centralised
Divisional structures decentralised
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Centralise or
decentralise?
Arguments for
centralisation
Decisions easier to
communicate and coordinate
Session 8
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Supply markets
Supplier dominance
Occurs when
many buyers, demand exceeds supply
Few suppliers
Low competition
Single participant
Examples???
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Few participants (2 6)
Monopsony
Restricted buyer market
E.g. OPEC
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Supply chains
Supply chain - system of organizations, people, technology,
activities, information and resources involved in moving a
product or service from supplier to customer. Supply chain
activities transform natural resources, raw materials and
components into a finished product that is delivered to the
end customer http://en.wikipedia.org/wiki/Supply_chain
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Level2:Thedyadicsupplychain
Level3:Theexternalsupplychain
Level4:Thenetwork
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SCM benefits
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Innovation shortened lead-times
an enabler
Supply chain
modeling.
The Global Supply Chain Forum (GSCF)
Supply networks
Every organization has multiple suppliers, who
in turn have their own multiple suppliers...
Characteristics of a supply networks
Supply networks
Network sourcing
Prof Peter Hines (1994)
Network sourcing
Supplier development
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Supplier tiering
Supplier tiering
(Diagram from workbook by Mike
Fogg)
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Provides a service
Market experts