FACULTY OF SOBE DEPARTMENT OF BAM KIBABII UNIVERSITY UNIT COURSE: PURCHASING AND SUPPLY MANAGEMENT COURSE UNIT CODE : BCP 209 LECTURER : MD. MAUREEN KIPLEN ACADEMEIC YEAR : 2015/2016 SEMESTER : TWO TASK GROUP DISCUSSION ASSIGNMENT EVOLUTION OF PURCHASING AND SUPPLIES Purchasing is one of the basic processes common to all organizations. It is the process of acquiring goods, services, and equipment from another organization in a legal 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. PERIOD STATUS
Late 1890s Purchasing rarely used as a different department except in the railroad. Early 1900s Purchasing considered clerical work World War I and II Purchasing function increased in importance due to the importance of obtaining raw materials, services, and supplies to keep the mines and factories running. 1950s and 1960s Continued to gain stature, processes more refined, and more trained professionals. Still considered order placing clerical in a staff-support position. Late 1960s– early 1970s Integrated materials systems introduced, materials became part of strategic planning, and importance of department increased. 1970 s Oil embargo and shortages of basic raw materials turned the focus of the business world to purchasing. 1980 s Advent of just-in-time with an emphasis on inventory control and supplier quality; quantity, timing, and dependability made purchasing a cornerstone of competitive advantage Early 1990s Value proposition of purchasing continued to increase; cost- savings became the buzzword. Late 1990s Purchasing evolved into strategic sourcing, contracts were more long term, and supplier relationship building and supplier relationship management started. 2000 s Purchasing 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.
- Winter '16
- MAUREEN KIPLEL
- Supply Chain Management, Complete Assignment, Purchasing and Supply Management