...lOMoARcPSD Summary: Book " Purchasing and Supply Chain Management ", Arjan J. van Weele Purchasing Management (Maastricht University) Distributing prohibited | Downloaded by Paulina Gali?ska (p.s.galinska@gmail.com) lOMoARcPSD No one cares if you are fair or not. Use this summary, share it with you friends and good luck studying for your exam. Summary Purchasing and Supply Chain Management – Van Weele 6th Edition Jonas Heller Distributing prohibited | Downloaded by Paulina Gali?ska (p.s.galinska@gmail.com) lOMoARcPSD Summary: Purchasing and Supply Chain Management 10/19/14 TABLE OF CONTENT Chapter 1: The Role of Purchasing in the Value Chain ............................................................................................................... 5 The role of Purchasing and in the Value Chain (P.5) .............................................................................................................. 5 Main differences between buying for primary activities and buying for support activities (P. 7): ........................................ 6 Definition of the concepts (p.7) ............................................................................................................................................. 6 Importance of Purchasing to Business (P.12): ....................................................................................................................... 7 Classification of purchasing goods (p. 15): ........
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...on the area of the effect of e-purchasing on quality products. The researcher will source the information from articles and extracts appearing on the business journals, textbooks, newspapers, magazines and projects from the library. 2.2. Review of theoretical literature According to chartered institute of purchasing and supplies (CIPS) the combined use of information and communication Technology helps acquire inputs of goods and services from external suppliers or providers. Many organizations accept credit card payment for their goods and services. (William cats-Baril and Ronald Thompson, 2005). They continue to say that many decisions are highly structured and can be automated. Automating decisions through the use of information technology can help streamline the internal operations of organizations among them, online purchasing. This can in turn improve the quality of services and products required and those offered to the market. Quality products and services tie up internal customers and attract new ones. Cats-Baril and Thompson (2005) factored out that management should be encouraged to think of ways to link customer into the firms operations so that the customer will find switching to another supplier difficult. The type of services provided to customers using internet technologies generates customer loyalty. James A. O’Brien,(2003) cited that the information systems must be designed to produce a variety of information and product quality to meet the changing needs of...
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...Materials Management / 1 CHAPTER I Materials Management Introduction Materials Management is simply the process by which an organization is supplied with the goods and services that it needs to achieve its objectives of buying, storage and movement of materials. Materials Management is related to planning, procuring, storing and providing the appropriate material of right quality, right quantity at right place in right time so as to co-ordinate and schedule the production activity in an integrative way for an industrial undertaking. Most industries buy materials, transport them in to the plant, change the materials in to parts, assemble parts in to finished products, sell and transport the product to the customer. All these activities of purchase of materials, flow of materials, manufacture them in to the product, supply and sell the product at the market requires various types of materials to manage and control their storage, flow and supply at various places. It is only possible by efficient materials management. The materials requirements planning, purchasing, inventory planning, storage, inventory control, materials supply, transportation and materials handling are the activities of materials management. They will be discussed in details in various chapters to follow. About 20-25 years ago, there was no cut-throat competition in the market to sell the various consumer items manufactured by different industrial undertakings and the availability of materials to manufacture...
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...Chapter 1--Introduction to Purchasing and Supply Chain ManagementChapter 1--Introduction to Purchasing and Supply Chain Management Student: ___________________________________________________________________________ 1. The development of progressive purchasing approaches and strategies can only help a company maintain its competitive position. True False 2. Global sourcing is no longer a requirement and is a luxury for most firms. True False 3. Sophisticated customers, both industrial and consumer, no longer talk about price increases; they demand price reductions. True False 4. An abundance of competitors and choices have conditioned customers to want higher quality, faster delivery, and products and services tailored to their individual needs albeit at a higher total cost. True False 5. The availability of low-cost domestic supplier alternatives has led to the shift away from outsourcing and offshoring. True False 6. Competition today is no longer between firms; it is between the supply chains of those firms. True False 7. In the manufacturing sector, the percentage of purchases to sales averages 55%. True False 8. The traditional approach to purchasing and supply management is to build relations with suppliers to jointly pull costs out of the product or service and expect suppliers to contribute innovate ideas that continually add value to a firm's products and services. True False 9. Virtually all of...
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...HOW SUPPLY CHAIN MANAGEMENT HAS CHANGED THEY WAY WE DO BUSINESS Marlie A. Selke Embry Riddle Aeronautical University WW LGMT 536 – Purchasing for Logistics & Supply Chain Management Professor Dr. Mohammed Arif September 30, 2013 TABLE OF CONTENTS Abstract 3 History of Supply Chain Management 4 Why is Supply Chain Management Important to Business 5 Innovation 7 How to Maintain a Competitive Advantage 8 Skill Set Requirements 11 Future of Supply Chain Management 13 Conclusion 16 References 17 TABLE OF FIGURES Figure 1.1 Creating Additional Value by Thinking Differently About Categories 14 Abstract This research paper addresses the effects that supply chain management has on businesses. Supply chain management is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. Supply chain activities include everything from product development, sourcing, production, information systems, as well as logistics. An effective supply chain management works with cross-functional teams (e.g. requirements form marketing or engineering) to achieve organizational goals through effective planning and management. This paper will take a look at the history of supply chain management, discuss why it is important to business, explore the latest innovations, discuss how to maintain a competitive advantage in a changing environment, address the required supply chain management skill set requirements...
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...supply chain management: critical research and a theoretical framework I. J. CHENy* and A. PAULRAJy Increasing global cooperation, vertical disintegration and a focus on core activities have led to the notion that firms are links in a networked supply chain. This strategic viewpoint has created the challenge of coordinating effectively the entire supply chain, from upstream to downstream activities. While supply chains have existed ever since businesses have been organized to bring products and services to customers, the notion of their competitive advantage, and consequently supply chain management (SCM), is a relatively recent thinking in management literature. Although research interests in and the importance of SCM are growing, scholarly materials remain scattered and disjointed, and no research has been directed towards a systematic identification of the core initiatives and constructs involved in SCM. Thus, the purpose of this study is to develop a research framework that improves understanding of SCM and stimulates and facilitates researchers to undertake both theoretical and empirical investigation on the critical constructs of SCM, and the exploration of their impacts on supply chain performance. To this end, we analyse over 400 articles and synthesize the large, fragmented body of work dispersed across many disciplines such as purchasing and supply, logistics and transportation, marketing, organizational dynamics, information management, strategic management, and operations...
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...How does purchasing activities influence the profitability of the foodservice establishment? In an organization such as the food service industry its major objective impacting the maximization of profit, one of the most vital role in an establishment striving towards success is being knowledgeable in the purchasing activities of on establishment. Conversely, the failure to properly control food costs can have a more devastating effect than overspending in most other cost categories. It is not surprising that the primary concern of many operators is their food cost. As costs increase, this concern grows. Rising food costs often force management to re-examine the operation's ordering / purchasing needs. However in the food service establishment after menu planning is completed, the Ordering / Purchasing control point is the next logical step to be addressed. In fact, the menu determines the ingredients to be purchased, the variety of products needed, and the relative amounts. One of the major objectives of Ordering / Purchasing is to obtain the right quality and quantity of items at the right price from the right supplier. The goals are to maintain quality and value, strengthen the establishment's competitive position, and also to minimize the investment in inventory. Therefore, cost avoidance in Ordering / Purchasing has potentially translated directly to the operation's bottom line of the establishment. To be successful, the buyer must possess many skills. Broadly speaking...
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...middle level assignments in Supply Chain Management and Logistics Operations with a reputable organization. PROFILE SUMMARY • A performance driven professional with nearly 9 years of total experience including nearly 7 years in Purchase Management, Quality Control and Logistics Operations. • Currently associated with El Sewedy Electrometer, Hangzhou, China as Purchasing Manager. • Deft at gathering requirement and administering the sourcing & purchase operations for ensuring cost & time effectiveness of the processes. • Dexterous in ensuring availability and delivery of right quality materials at the right time, price and terms. • Adept at coordinating and following up with the stakeholders for facilitating smooth running of the operations. • Proficient at implementing stringent quality measures including preparation / maintenance of necessary documents to ensure compliance with the various standards & requirements. • Equipped with good project management skills coupled with the ability to identify issues, obtain mutual agreements and implement changes, as required. • An analytical thinker with exceptional communication, planning & problem solving skills. CORE COMPETENCIES Sourcing/Procurement/Purchase Management • Developing and implementing key strategies for purchasing materials from various sources. • Managing & monitoring the preparation of Purchase Orders. Supply Chain Management • Ensuring availability and delivery of right quality materials at the right time, price and...
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...INTRODUCTION OF THE STUDY 1.1 Introduction This chapter introduces the material purchasing factors that impact on food production in hotel industry. The chapter also gives some background information about Ambassadeur Hotel; it outlines the statement of the problem, research objectives, research questions, significance, limitations, assumptions and scope 1.2 Background of the study Material purchase for food products is a function concerned with the search, selection, receipt, storage and final use of a commodity in accordance with the catering industry policy of the establishment. Business strategy literature is replete with evidence that indicate the purchasing methods of a firm have an impact on achieving a firm’s goals. The purchasing function can have an impact on the firm’s ability to achieve its chosen strategies because organizational buying is one of the forces that impact competition (Carr et al. 2000; Landeros and Monczka 1989). As hotels strive to achieve global competitiveness, effective purchasing has assumed great importance. According to Carter and Narasimhan (1996), firms need to recognize the strategic role of purchasing as well as the impacts that it exerts on organizations. The relevance of effectively managing the material resources of an organization to its competitive success has been observed by both practitioners and researchers in purchasing and supply management. As a result, purchasing has evolved in many firms from a low-skill, clerical function to a highly...
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...TEXTBOOK REVIEW Purchasing and Materials Management Textbooks A Review by Dan Reid Bowling Green State University The area of purchasing and materials management has entered a challenging era. In an effort to retain its competitive standing in the international marketplace, American industry has turned to purchasing and materials management for help. The importance placed on purchasing and materials management is highlighted in a forthcoming study done for the National Association of Purchasing Managers by Hahn and Kim which found that more than two hundred universities and colleges now offer courses in this area. General observations can be made about the textbooks available in this area. First, if purchasing and materials management is to remain a viable focal point for retaining the competitive edge, professionals in this area must interact successfully with engineers, production planners, vendors, quality assurance personnel, controllers, management information systems, and computers. The diversity of knowledge required is evident in the textbooks. Although a core of standard topics has been developed, the emphasis placed on each topic varies considerably according to the author's biases; the same can be said about the coverage of peripheral topics. Second, academic research in purchasing and materials management is in its infancy. Most of the research referenced or techniques used have 878 James M. McFillen Textbook Review Editor been done in peripheral areas. Because...
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...1. How does Mr. Honda’s history with suppliers relate to Honda’s current supply management strategy? The current supply chain management strategy reflects Honda’s long-term goal of manufacturing products where they are sold, and its determination of buying parts where it manufactures vehicles. A. Increased local content is due largely to purchases Honda makes from many of the other 3 Japanese automobile firms that were established during the late 80’s. B. Focusing on 4 regional markets has allowed Honda to develop strong sales, research and development, and manufacturing operations in each region to ensure that the product mix in each region is appropriate to the needs of the region. C. Suppliers are involved in the development process to the extent that they are asked and invited to submit suggestions about how certain designs could be made better, faster, with less weight, or less expensively. Today, purchasing is done by the Honda research and development department. 2. Why is purchasing so important to Honda? The International Purchasing Division of Honda Corporation has full responsibility for coordination between Honda and its overseas plants. Honda’s purchasing department carries out the localization strategy. This strategy involves: A. Finding and qualifying local suppliers B. Developing a second source when volume doubles, or when quality or on-time delivery problems occur. C. In situations in which the goals or the philosophies of the...
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...1. Discuss the concepts of centralized vs. decentralized purchasing authority, identify their relative advantages and disadvantages, and provide examples of when each may be appropriate. | | Centralized authority occurs when the supply management decision-making authority is the responsibility of a single person who is held accountable by top management for the proper performance of all purchasing activities. In a single-site operation, centralization of the purchasing function is necessary in order to attain both operating efficiency and to maximize profit. Some advantages of centralized purchasing include: ***Reduction of potential duplication of effort. ***Leveraging of volume purchases: The potential for volume discounts exists when all of the firm's orders for the same and similar materials are consolidated. ***Consolidation: With consolidation, the opportunity to standard and simplify parts is gained. ***Decrease in transportation costs: With the consolidation of orders and delivery schedules, money can be saved. ***Specialization: Purchasing specialists buy more efficiently than less trained individuals. ***Reduction of suppliers' costs: With consolidation, suppliers have fewer expenses (less shipments, less calls, less orders) and can offer better prices and better service due to the reduction. ***Improved inventory control: Because of company-wide knowledge of stock levels, material usage, lead times and prices, it is possible to have more effective inventory control...
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...Research Paper David A. Horvath INF 336 – Project Procurement Management Beverly Williams May 9, 2011 Purchasing and supply management holds a position of great importance to the business world. Within purchasing and supply management, there are the steps of the creation of project supply, service, and material budget from detailed requirements. It shows how to select the most qualified suppliers and strategies for negotiating prices. Along with this, there are also benefits and costs of outsourcing. This includes the growth of outsourcing. Various organizations will be evaluated on their benchmarks in purchasing and supply management, along with their best practices in this. There are specific companies out there that who show market leadership in purchasing and supply management. The term, “purchasing,” is often limited to what its actual definition is. It is limited to just buying and this refers to the location and selection of suppliers, learning of the need for whatever it is to be bought, price negotiation and any terms of agreement, and finally, the payment and delivery. In this particular case it is something much bigger this is not the definition that should be used for it. “Purchasing, supply management, and procurement are used interchangeably to refer to the integration of related functions to provide effective and efficient materials and services to the organization. Thus, purchasing or supply management is not only concerned with the standard steps in the procurement...
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...Cintadita | Presented to: Tim Parker Msc. Logistics and Supply Chain Management December 10 2015 | Role of purchasing has changed from year to year. Years ago, it was considered as a job to buy materials. Now, purchasing is an essential function, which is used as a strategy by companies (Monczka et al. 2010). There are many reasons leading to the changes, such as increase in competition between companies, rise in technology, and growth in customers request (Lysons and Farrington 2012). These changes make the relationship with suppliers more important and therefore transparency is needed. Nevertheless, new concepts are needed which involves technology to keep a track to organize a global supply chain (Monczka et al. 2011). Supply chains are mergers from all activities, processes, and functions, which involve all the suppliers to support organizations or companies to deliver the products and services that customers or consumers needed (Business Dictionary). As a function, purchasing took part in the process of supply chain and all the internal organizations that related with supply chain, such as engineering, manufacturing, marketing, finance, information technology, logistics, and legal. Firstly, engineering, purchasing can help the engineering to reduce the defect. For example, in one global electronic manufacturing company, the purchaser made a standard, which was right dimension and good quality for every pallet that the supplier would send. This had a good impact...
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...Purchasing management is the critical business function to every organization as no organization can exist without suppliers’ support. Traditionally, purchasing was viewed as a clerical activity that only did some documental work required by other departments. There was usually no communication between purchasing and other departments within the organization. Also, suppliers were usually selected based on price and availability only. However, purchasing management has undergone a great change since 1960s. Organizations began to realize that purchasing can become a profit-making activity rather than just a profit-taking activity. A study performed by Carr and Pearson (2002) shows that purchasing management has a positive impact on the organization’s financial performance, no matter the firm is small or large in scale. It always plays a major role in the organization’s efforts to improve the quality of products and, in turn, market share. An effective purchasing management can improve the overall productivity, profitability, and return on investment of an organization. Therefore, in modern organizations, purchasing is viewed as a vital element in gaining competitive advantage. Coordination with other departments, such as marketing, production and financial, was augmented. Purchasing professionals nowadays are required to work across functional boundaries, for example, working with the production department to plan the schedule for goods acquired and delivered. More importantly...
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