Chapter 3 - PURCHASINGANDNEW MANAGEMENT APPROACHES...

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PURCHASING AND NEW  MANAGEMENT  APPROACHES  ONBP 221:  Ch 3
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INTRODUCTION Look at concepts used as part of  purchasing and supply management Look at supply management, logistics and  purchasing and their nature
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STUDY OBJECTIVES  List the differences between supply management,  logistics management and supply chain management Draw up an implementation plan for supply chain  management Explain the term “systems approach” and its implications  for supply activities Critically discuss the differences between supply chain  management and logistics management Discuss the importance of cycle time in establishing a  competitive advantage for the firm Identify internal benchmarks for supply chain  management and logistics management 
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3.1  DEVELOPMENT OF NEW  CONCEPTS Globalisation plays a big role Management techniques such as JIT,  Kanban, quality circles Need to know what is happening world  wide Efficiency of purchasing MRP, MRP II, time-based competition and  benchmarking
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3.2  SUPPLY MANAGEMENT Ch 1 looked at differences between  purchasing and supply management – Ch  3 goes into more detail 
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3.2.1  THE NATURE OF SUPPLY  MANAGEMENT  Supply management is defined as  a systems  management concept employed by some organisations,  designed to optimise the factors of materials costs,  quality and service.  This is accomplished by  consolidating the following operating activities:   purchasing, transportation, warehousing, quality  assurance of incoming materials, inventory   management and internal distribution of materials.   These activities are normally combined in a single  department  Also defined as:   the process of identifying, evaluation,  selecting, managing, and developing suppliers to realise  supply chain performance that is better than that of  competitors
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Supply chain: Is cross-functional Features a long-term win-win relationship between  the buying company and specifically selected  suppliers Involves direct, concrete, on-site and frequent help to  suppliers in exchange for dramatic and continuous  performance improvements Is strategically involved in the enterprise as a whole 
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3.2.2  SUPPLY MANAGEMENT  STRATEGIES  Difference between purchasing function and supply  management is in the strategic focus  Perspectives on the depth of the strategic contributions:
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This note was uploaded on 06/02/2011 for the course ECON 211 taught by Professor Anon during the Spring '10 term at Rotterdam Business School.

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Chapter 3 - PURCHASINGANDNEW MANAGEMENT APPROACHES...

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