Chapter 2 - ONBP 221 Ch 2: The task of purchasing and...

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Unformatted text preview: ONBP 221 Ch 2: The task of purchasing and supply management INTRODUCTION Management can be defined as the process whereby human, financial, physical and information resources are employed for the attainment of the objectives of an organisation Look at the management process in the purchasing and supply function OBJECTIVES Differentiate between the management of the traditional purchasing function and the management of the new integrated approach Illustrate, explain and give examples of the different levels of purchasing planning and objectives Illustrate and explain purchasing and supply as part of organisational strategy development Identify and explain the basic principles of implementing the supply chain management strategy Summarise purchasing and supply planning on a tactical and operational level Create a centralised purchasing and supply organisational structure for a large firm and point out the advantages of the structure Create a decentralised purchasing and supply organisational structure for a large firm and point out the advantageous of the structure Illustrate a combined (centralised / decentralised) organisational structure to show reporting lines Explain the organisation of supply chain management and the virtual organisation Explain the increasing use of cross-functional teams in purchasing and supply management Summarise co-ordination as a management task in purchasing and supply management, and point out why it is becoming more important Explain the purpose of performance evaluation, pointing out the problems relating to performance evaluation of the purchasing and supply function Summarise and illustrate the process of performance evaluation Identify and explain the three different levels of performance evaluation Classify measures and norms on three levels of the performance evaluation of purchasing and supply management 2.1 PURCHASING AND SUPPLY MANAGEMENT AS PART OF BUSINESS MANAGEMENT Planning Organisational structure (organising) Co-ordination Control 2.2 PLANNING FOR PURCHASING AND SUPPLY MANAGEMENT 2.2.1THE NATURE OF PURCHASING AND SUPPLY MANAGEMENT Planning can be defined as the basic management task that entails a systematic and intelligent exposition of the direction to be followed to attain predetermined goals Planning should precede all activities involved in purchasing and supply management 2.2.2 LEVELS OF PURCHASING AND SUPPLY PLANNING AND OBJECTIVES 3 levels in the organisation Organisational planning (strategic planning) Functional / tactical planning (middle-management) Operational planning (low-level management) Formulate objectives (ch 1) Figure 2.1 hierarchy of purchasing objectives Table 2.1 examples of how strategic objectives can be subdivided into more feasible objectives at operational level 2.2.3 STRATEGIC PURCHASING AND SUPPLY PLANNING Plan proactively Following factors will determine whether the purchasing...
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Chapter 2 - ONBP 221 Ch 2: The task of purchasing and...

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