Chapter 23 - Chapter 23 SOURCING ACTIVITIES Oxford Chapter...

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Chapter 11: Strategic Leadership Chapter 23 © Oxford University Press Southern Africa, 2008. All rights reserved. SOURCING ACTIVITIES
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Chapter 11: Strategic Leadership CHAPTER CONTENT Opening case: Cooldrinks lose the fizz Introduction The purchasing and supply cycle Quality decisions as a purchasing and supply activity Deciding on purchasing and supply quantities The selection and management of suppliers Pricing decisions Timing of purchases The outsourcing decision Purchasing and supply research Negotiations in purchasing and supply © Oxford University Press Southern Africa, 2008. All rights reserved.
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Chapter 11: Strategic Leadership THE PURCHASING AND SUPPLY CYCLE Many businesses have computerised the purchasing and supply process. Computerisation expedites the process considerably and usually reduces the documentation involved. The steps in the purchasing and supply cycle can be divided into three main phases: The notification phase The order phase The post order phase
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Chapter 11: Strategic Leadership THE STEPS IN THE PURCHASING CYCLE The development and description of a need Choice of suppliers Determining prices Placing an order or concluding a contract Expediting and follow up Receipt, inspection and distribution Handling errors and discrepancies Paying for the order Closing the order
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Chapter 11: Strategic Leadership Steps in the purchasing and Supply cycle of a commercial business
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Chapter 11: Strategic Leadership THE ROLE OF QUALITY The four main factors in each purchasing and supply decision are: Quality Supplier service Delivery Price Quality is probably the most important. The quality of purchased products and services rests on the following considerations: Determining the right quality Describing quality Controlling quality
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Chapter 11: Strategic Leadership DETERMINING THE RIGHT QUALITY The right quality is quality that is purchased at the lowest price, which satisfies a specific need and performs the functions for which it was purchased. Attention needs to be given not only to technical considerations, but also to commercial considerations when determining the ‘right quality’. The end user or the marketing function also should provide an input on determining the ‘right quality’ product for a particular product.
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Chapter 11: Strategic Leadership DESCRIPTION OF QUALITY It should be possible to describe the desired quality. The description of quality serves as a measure
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This note was uploaded on 03/22/2011 for the course MNB 101D taught by Professor Unknown during the Spring '09 term at University of South Africa.

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Chapter 23 - Chapter 23 SOURCING ACTIVITIES Oxford Chapter...

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