Test_2_Study_Guide - Purchasing strategies/development...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Purchasing strategies/development Types of Strategies Supply Base Optimization, TQM of Suppliers, Global Sourcing, Long-Term  Supplier Relationship, Early Supplier Design Involvement, Supplier Development Total Cost of Ownership and E-Reverse Auctions (e-RAs) Development Process Step 1: Define Business Unit Requirements Step 2:  Define the Strategic Importance of the Purchasing Requirement (Portfolio Analysis Exhibit 6.4)  Transaction/Price Quadrant (MRO)  Bottleneck/Problem Quadrant  Leverage Quadrant             Strategic Quadrant Step 3:  Determine Business and Purchasing Requirements and Conducting  Supply Management Research Step 4:  Set Goals and Conduct Gap Analysis Step 5:  Develop Sourcing Strategy Objectives Step 6:  Execute the Strategy Step 7: Monitor Results and Review Performance Evaluation of supplier’s capabilities/criteria of selection Quiz question – “One of the most important processes that organizations perform is the  evaluation, selection and continuous measurement of suppliers .” Quiz question – “Regardless of the approach employed, overall the objective of the evaluation  process should be to reduce purchase risk and  maximize overall value to the purchaser .” The Supplier Evaluation and Selection Process Quiz question – “no exceptions” 1. Recognize the need for supplier selection. 2. Identify key sourcing requirements. 3. Determine sourcing strategy.  Single versus multiple sources, short-term versus long-term purchase contracts, selecting  suppliers that provide design support versus those that lack design capability, full services  versus non-full service suppliers, domestic versus foreign suppliers and expectation of a  close working relationship versus arm-length purchasing 4. Identify potential supply sources. Current, sales representatives, information databases, experience, trade journals, trade directories, trade shows, second-party or indirect information, internal  sources and internet searches 5. Limit suppliers in selection pool. Financial risk analysis, evaluation of supplier performance, and evaluation of supplier- provided information   6. Determine method of supplier evaluation and selection. Evaluation of supplier-provide information, supplier visits, use of preferred suppliers and  external or third-party information
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
            7. Select supplier and reach agreement. Evaluation Criteria Quiz question – “not limit suppliers in selection pool” Management Capability, Employee Capabilities, Cost Structure, Total Quality Performance,  Systems and Philosophy, Process and Technological Capability, Environmental Regulation 
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern