PURCHASING AND SUPPLIES MANAGEMENT ( BCP209) - FACULTY OF SOBE DEPARTMENT OF BAM KIBABII UNIVERSITY UNIT COURSE PURCHASING AND SUPPLY MANAGEMENT COURSE

PURCHASING AND SUPPLIES MANAGEMENT ( BCP209) - FACULTY OF...

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FACULTY OF SOBEDEPARTMENT OF BAMKIBABII UNIVERSITYUNIT COURSE: PURCHASING AND SUPPLY MANAGEMENTCOURSE UNIT CODE:BCP 209LECTURER :MD. MAUREEN KIPLENACADEMEIC YEAR : 2015/2016SEMESTER : TWOTASKGROUP DISCUSSION ASSIGNMENTEVOLUTION OF PURCHASING AND SUPPLIESPurchasing is one of the basic processes common to all organizations. It is the process of acquiring goods, services, and equipment from another organization in alegal and ethical manner.Purchasing was initially a tactical contributor to the organization, focusing on transactional relationships and low price. However, over time the role of the purchaser, and the purchasing department, has changed significantly and the function has become strategic to organizational competitiveness.Historically, since management has focused on research and development, purchasing and supplies has been subordinated to this function. In the evolution of purchasing, the following stages have been portrayed.PERIODSTATUS
Late 1890sPurchasing rarely used as a different department except in the railroad.Early 1900sPurchasing considered clerical workWorld War I and IIPurchasing function increased in importance due to the importance of obtaining raw materials, services, and supplies tokeep the mines and factories running.1950s and 1960sContinued to gain stature, processes more refined, and more trained professionals. Still considered order placing clerical in astaff-support position.Late 1960s–early 1970sIntegrated materials systems introduced, materials became part of strategic planning, and importance of department increased.1970sOil embargo and shortages of basic raw materials turned the focus of the business world to purchasing.1980sAdvent of just-in-time with an emphasis on inventory control and supplier quality; quantity, timing, and dependability made purchasing a cornerstone of competitive advantageEarly 1990sValue proposition of purchasing continued to increase; cost-savings became the buzzword.Late 1990sPurchasing evolved into strategic sourcing, contracts were more long term, and supplier relationship building and supplier relationship management started.2000sPurchasing shifted its myopic focus on cost to much broader terms. Some of the widely used developments: spend analysis, low-cost country sourcing, procurement technology evolved (ERP, e-sourcing), procurement outsourcing evolved (P2P), total cost of ownership, data mining and benchmarking, and lean purchasing.

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