HW 3 - tasks must be completed immediately then strategic...

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David Lum SCM 406W 1/26/08 Homework 3 5. A benefit of centralized purchasing authority is having the ability to synchronize purchase volumes; this means the company is able to saving on cost of buying due to buying in bulk. This leads to consolidated purchasing efforts; it allows the company to have one copy of forms from all its different branches and reduces clutter and confusion. An advantage of decentralized purchasing authority is having the personnel understand the process, products and the suppliers on a local level this builds better relationships and familiarity. Decentralization can mean faster response time because there is no authority to hold them back or slow them down from making the decisions necessary. 8. Strategic purchasing is managing for the long-run whereas operational is for the short-run. If
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Unformatted text preview: tasks must be completed immediately then strategic is overlooked for the time being and operational takes over as the most important. Strategic includes managing a relationship with suppler for the long term and building a good relationship. Operational is about dealing with transitions with a supplier. 11. For each region, I would have a manager who would report directly to me. Under each of these managers would be the various personnel for operations, planning, logistics, and product planning. The different fields of purchasing would directly with the one other, while regional managers updated each other. There would be free f lowing communication between each region in order to work efficiently....
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