SCM 355 Important Concepts Chapter 3

SCM 355 Important Concepts Chapter 3 - SCM 355 Important...

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SCM 355 Important Concepts Chapter 3 (Purchasing Policy and Procedures) Policy Overview: the term policy includes all the directives, both explicit and implied, that designate the aims and ends of an organization and the appropriate means used in their accomplishment. Policy refers to the set of purposes, principles, and rules of action that guide an organization. Rules of action refer to standards of operating procedures along with any rules and regulations. Polices can be written, unwritten or informal. Informal polices usually become part of an organizations culture. Advantages and Disadvantages of Polices: clarify top managements objectives, communicate its leadership, view and guidance (rules and procedures) to employees as well as a framework for consistent decisions and actions. What Makes an Effective Policy? Action oriented, relevant and unambiguous, concise, timely and current and guides problem solving and behavior. Purchasing Polices—Providing Guidance and Direction:
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This note was uploaded on 06/24/2008 for the course SCM 355 taught by Professor Pearson during the Spring '08 term at ASU.

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SCM 355 Important Concepts Chapter 3 - SCM 355 Important...

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