...With the development of business, we can easily find that the role of purchasing and supply management has become increasingly important. Over the past years, as a discipline, purchasing and supply management has largely changed many companies. The significance of supply chain management is mainly due to the large cost on supply chain. ()On average, fully 70% of a firm’s sales revenues are spent on supply chain-related activities from material purchases to the distribution and service of finished products on the final customer. Other than that, there are several factors resulting in the evolution of supply chain management. First of all, in order to gain more market share, it is vital for companies, especially for multinational companies, to focus on building stable and effective supply chain as each segment of supply chain are likely to influence the products or service of companies. Moreover, the development of communications and transportation technologies, such as mobile communication and Internet, have forced the evolution of supply chain management. The purpose of this essay is to explore the influence of supply chain management on companies. Also, both sustainability and risk management are crucial in supply chain management, Objectives Through journals, monographs and related theories and articles on the website of the search, organize and summarize, discussed the importance of the supply chain in the contemporary business. In addition, based on the case of Adidas...
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...model of global apparel brands within its ethical purchasing and supply chain management functions have been critically analysed to evaluate their effectiveness and value they add throughout their supply chain and in overall organisational operation. This report has emphasised on three key areas such as general sourcing model and its components in the context of global buyer’s perspective i.e. Transnational Corporations, a clear scenario about current ethical situation of Bangladesh’s apparel sector, and relevant supply chain theories and its implications related to ethical purchasing in apparel industries. At the end, a proper conclusion has been given by evaluating all the three sections critically based on the theoretical lens of purchasing and supply chain management. Table of Contents Executive Summary 1 Introduction 3 Section-1: General Discussion on Sourcing and its Components 4 Sourcing and its Role in Supply Chain 4 Sourcing Needs of the Companies and its Impact on Supply Chain 4 Steps of Making Sourcing Decisions by Transnational Corporations 5 Ethical Sourcing 6 Ethical Sourcing by TNCs in Apparel Sector 6 Importance of being Ethical in Sourcing 8 Section-2: Current Situation of Bangladeshi Apparel Sector and its Ethical Perspectives 9 Section-3: Supply Chain Theories and its Implications Related to Ethical Purchasing in Apparel Industries 11 Theory of Value Chain and Global Value Chain 11 Corporate Social Responsibility Perspective 14 ...
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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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...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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...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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...Understanding 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...
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...CHapter 15 supply chain management Teaching Notes It is important to emphasize that Supply Chain Management involves the entire range of production and distribution processes. Students need to understand the trade offs involved in supply chain function related to JIT, inventory management purchasing and delivery lead times and quality. Supply Chain Management requires a broad view of the entire flow from purchasing to final delivery to the customer. Supply Chain Management is becoming increasingly more important due to the following factors: 1. Implementation of JIT systems. 2. Emphasis in reduction in inventories. 3. Emphasis in reduced order cycles and reduced lead times. 4. Continuous and rapid change in products and product designs (shorter product life cycles). 5. Shorter product introduction and product development times. The importance of Supply Chain Management can not be underestimated because it ensures that the right materials are at the right place at the right time at a minimal cost and maximum quantity. In addition, supply chain management requires very careful coordination of activities between various business organizations on the chain. Integration of databases and sharing key pieces of information among the different business organizations on the supply chain not only provides timely and valuable information to companies on the supply chain, but also assists in improving the trust and the overall relationship between suppliers and their customers...
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...Supply Chain Management Certificate This “practical” interactive certificate series is designed to provide participants with a detailed look at global supply chain management with a focus on Purchasing, Inventory, and Warehousing. This certificate addresses issues in terms of today’s global supply chain and its supply chain streams and flow process, so practitioners can know how to make the most of this powerful tool. You will have the opportunity to explore a variety of global supply chain management areas in depth, extrapolate their logistics meanings, and apply the techniques needed to make it all work for your organization. Mastering the supply chain’s dynamics is no longer extraneous to survival in today's global environment—it's essential. Because logistics affects 30% or more of the value added to your product, it offers abundant areas of opportunity and exciting possibilities for lowering the bottom line. Where you may not be able to control the outside influences, ambiguities, and contradictions of the global economy at large, you can have a profound influence on controlling those internal logistics factors that substantially affect your profitability or cost containment efforts. Course Schedule Global Supply Chain Basics and Technology (Day 1) Global Logistics Basics and Functionality (Day 2) Essential Aspects of Purchasing (Day 3) Inventory ManagementPractices (Day 4) Mastering Warehouse Mechanics (Day 5) WHO SHOULD ATTEND • Logistics, supply chain, procurement...
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...The Impact of Purchasing Capabilities on Delivery Performance Astrid Hanghøj Risskov, Denmark, astridhanghoej@gmail.com This article aims to integrate capability-based theory into purchasing management. The research model presented in the article focuses on the effect of supplier evaluation capability and risk management capability on delivery performance. Further, the article explores the moderating effect of demand and technological uncertainty. The methodology relies on a multiple informant survey design with responses from purchasing and production managers in Danish manufacturing companies. Hypotheses are tested using regression analysis based on data collected from 197 firms. Risk management capability is found to increase delivery performance. Unexpectedly, supplier evaluation capability was found to decrease delivery performance. Demand uncertainty has a negative effect on delivery performance. Technological uncertainty had no effect on delivery performance. The results are discussed in detail in the final section of the article. Keywords: purchasing capabilities, delivery performance, environmental uncertainty Supply Chain Forum An International Journal © Copyright KEDGE BS ISSN print 1625-8312 ISSN online1624-6039 Supply Chain Forum An International Journal Purchasing and supply management (PSM) continues to become an increasingly more important activity for firms. Purchasing managers need to demonstrate that they make a...
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...ABOUT PURCHASING PORTFOLIOS: AN ASSESSMENT OF SUSTAINABLE SOURCING MARK PAGELL York University ZHAOHUI WU Oregon State University MICHAEL E. WASSERMAN Clarkson University Kraljic is widely viewed as a driving force behind the concepts of supply management and purchasing portfolios. Kraljic proposed that supply management professionals needed to engage in a new approach, embracing globalization, technology and risk. This article marked a critical juncture for supply chain management. Almost three decades later, it is evident that the purchasing portfolio concept has been widely adopted as an effective practitioner tool and a well-accepted tenet in the supply chain management literature. However, a recently completed study yielded interesting evidence of a potential shift in supply chain management, specifically, in sustainable sourcing. We recently observed that a number of leaders in sustainable supply chain management (SSCM) were not organizing purchasing portfolios in the manner suggested by Kraljic. We found organizations buying what would traditionally be leveraged commodities in a manner more appropriate for strategic suppliers. This unexpected observation suggests that the supply chain field may face another critical juncture, this time related to SSCM. This manuscript describes the observed phenomena and then, using an inductive approach, enhances the existing theory to explain what was observed. The end result is a modified sustainable purchasing portfolio...
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...1 Chapter One Chapter Outline Purchasing and Supply Management Supply Management Terminology Supply and Logistics The Size of the Organization’s Spend and Financial Signifi cance Supply Contribution The Operational versus Strategic Contribution of Supply The Direct and Indirect Contribution of Supply The Nature of the Organization Supply Qualifications and Associations Challenges Ahead Supply Chain Management Measurement Risk Management Sustainability Growth and Infl uence Effective Contribution to Organizational Success The Organization of This Text Conclusion Questions for Review and Discussion References Cases 1–1 Qmont Mining 1–2 Erica Carson 1–3 Southeastern University Purchasing and Supply Management 2 Purchasing and Supply Management Key Questions for the Supply Decision Maker Should we • Rethink how supply can contribute more effectively to organizational goals and strategies? • Try to find out what the organization’s total spend with suppliers really is? • Indentify opportunities for meaningful involvement in major corporate activities? How can we • Align our supply strategy with the organization’s strategy? • Get others to recognize the profit-leverage effect of purchasing/supply management? • Show how supply can affect our firm’s competitive position? Every organization needs suppliers. No organization can exist without suppliers. Therefore, the organization’s approach to suppliers, its acquisition processes and policies, and its relationships with...
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...Describe how the purchasing function and the evolution of supply management has changed over the last 20 years (1995 - 2015)? Purchasing in the mid 90’s began as a process used to carry out an organization’s mission within the workplace. Since then, the purchasing function has grown to include supply management used largely throughout the world. Early on when the purchasing process was identified and defined, people began to notice that the acquisition of goods and services was more difficult than expected. The knowledge of the purchasing function evolved within organizations and created an environment that incorporated more undertakings such as managing, stocking, and budgeting for those goods and services being acquired. Based on your research and readings, discuss how Supply Management and in particular Supply Chain Management benefits organizations in the public and private sectors. Supply Chain Management assists both the public and private sectors by increasing sales, reducing costs and creating a better quality of life for all parties involved (Helms). An organizations budget will be primarily disbursed to make purchases to generate inventory within itself. If an organization is able to control/decrease their spending, sales will most likely increase considerably. By strategically managing purchases and practicing operational efficiency will help largely to reduce costs and in turn build revenue. What are the salient factors that contribute to the successful...
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...INTRODUCTION BACKGROUND ON SUPPLY CHAIN The telecom industry’s drastic shift this year from a supply-driven marketplace to a demand-driven model has drastically impacted not only how carriers market and sell their products, but in what way they locating their own network equipment. In the present economic climate, achieving operational efficiencies and reducing cost has taken on paramount importance. To meet the current situation effective and efficient supply chain management is required. Let us first understand SCM. Stream of material flow from its source to destination customer thought all the different stages are known as supply chain. Supply chain includes various diversifications like manufacturing, purchasing, transportation, warehousing, customer service and finally to manage these supply chain management is required. Supply chain management is a oversight of information, material, and finance as they move through the supply chain. ELEMENTS OF SUPPLY CHAIN Today, supply chain management is a acknowledged term in our enterprise wordlist. It is complicated to find a standard design of supply chain management performing in the world of enterprise. Some enterprise will talk about and handle their supply organizations in a synchronized and all surrounding fashion, such as all of the sub places identified above. Others will include some components of the production chain, for example buying and strategies and call this supply chain management. Many will recommend conceptually...
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...of Purchase and Supply management INF 336 Instructor: Lori Deere In my time of jobs, I’ve had some experience of dealing with projects, vendors (suppliers) and some of the business. When I worked for Whole Foods, I dealt with different vendors and dabbed in some of the project aspect of the work. In later time, I became the bulk buyer and got more involved. At that time I really didn’t know how vital purchasing and supply management were in business. In an organization, buying supplies and keeping them in order is very important to help the business run correct. For this paper, I’ll discuss the aspects of purchasing and supply management and why it’s important. It will go over some of the important parts with explanation. In the process, I’ll do my best to give examples from my past experiences and other examples. SO that being stated, let’s go into what exactly is purchasing and supply management. “Supply management is focused on the acquisition process recognizing the supply chain and organizational contexts” (Johnson, P. F., Leenders, M. R., & Flynn, A. E. 2010). Purchasing and supply management is a complex matter that requires more than what most think. It’s stated that there is no easy way to organize the functions of supply, integrate suppliers correctly, and conduct the activities involved. It’s actually more of challenge of anything. In addition, each organization needs its own unique method. “It is also challenging because every supply decision depends...
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...May 2012 IJMT Volume 2, Issue 5 ISSN: 2249-1058 __________________________________________________________ ETHICS IN SUPPLY CHAIN Vipul Chalotra* __________________________________________________________ ABSTRACT: Today, supply chain management is a well recognised area of academic debate. It has an international presence, with both practitioners and academics alike recognising that it’s an important area of management. An ethical supply chain is paramount to the success of modern business. Through fair and ethical interaction with suppliers, wholesalers, retailers, customers and the industry at large, aims to promote ethical supply chain. Ethics may be considered as standards or norms that distinguish between right or wrong and good or bad. This paper aims to highlight the conceptual framework of ethical supply chain with its effective role in present business besides its importance in supply chain management. It also portrays the benefits derived by adopting ethics in supply chain management. Key Words: Ethics, Supply chain. * Assistant Professor, Department of Commerce, University of Jammu, Udhampur Campus. A Monthly Double-Blind Peer Reviewed Refereed Open Access International e-Journal - Included in the International Serial Directories Indexed & Listed at: Ulrich's Periodicals Directory ©, U.S.A., Open J-Gage, India as well as in Cabell’s Directories of Publishing Opportunities, U.S.A. International Journal of Marketing and Technology ...
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