Chapter 1.pptx - Chapter 1 Supply Management(SM ISMs...

Info icon This preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 1 Supply Management(SM): ISM’s leadership view
Image of page 1

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

View Full Document Right Arrow Icon
Term Definitions Purchase Price Variance – Difference between amount paid to a supplier and the actual cost to make the item Cash-to-Cash Cycle (Cash Conversion Cycle): - time it takes between when a firm pays its supplier and when it receives money from sales Payment terms To Suppliers From Customers Inventory levels
Image of page 2
Supply Management(SM): ISM’s leadership view One concept characterizes SM: integration SM is linked hand in hand with suppliers, other departments, and customers SM has a leadership role in taking initiative Find value for customers Deliver business performance
Image of page 3

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

View Full Document Right Arrow Icon
How Did SM get here? Pre-1970’s Purchasing has always been an underlying function Operational/Tactical Challenge: learn it, stabilize it and keep it on course Stable Environment
Image of page 4
Years of Development 1970’s/80’s - “Era of consolidation” Commodity shortages (Oil Embargo, etc.) Supplier Consolidation Industry Standardization of Specifications Shorter product life cycles Need for external input Expansion of purchasing’s scope/responsibilities Logistics, Supplier Activities, Internal & External Customer Service
Image of page 5

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

View Full Document Right Arrow Icon
Image of page 6
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