SCM 355 Important Concepts Chapter 5

SCM 355 Important Concepts Chapter 5 - Strategic Versus...

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SCM 355 Important Concepts Chapter 5 (Purchasing and Supply Chain Organization) Purchasing Position within the Organizational Structure: Factors include: history type of industry, value of goods and services: other factors include philosophy of founder, type of material purchased, and ability to influence performance. To Whom Does Purchasing Report? (See Exhibit 5.1) Organizing the Purchasing Function Specialization within Purchasing Sourcing and Negotiating Research Operational Support and Order Follow-up Administration and support Purchasing Department Activities Buying Expediting Inventory control Transportation Managing Counter Trade Arrangements In sourcing/Outsourcing Value analysis Purchasing research/Material forecasting Supply management Other responsibilities
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Unformatted text preview: Strategic Versus Operational Purchasing ( See Exhibit 5.3) Placement of Purchasing Authority Advantages of Centrally Led Purchasing Coordinate purchasing volumes Reducing duplication of purchasing effort Ability to coordinate purchasing plans and strategy Ability to coordinate and manage companywide purchasing systems Developing expertise Managing companywide change Advantages of decentralized purchasing Speed and responsiveness Understanding unique operational requirements Product development support Ownership Combination Structure (Exhibit 5.4) Supply Chain Management Structure (Exhibit 5.5) The Organization of the Future: Movement away from a vertical to horizontal structure (Exhibits 5.7-5.9)...
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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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