Coyle Chapter 13 PowerPoint Slides

Coyle Chapter 13 PowerPoint Slides - Chapter 13 Sourcing...

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Chapter 13 Sourcing Materials and Services Learning Objectives After reading this chapter, you should be able to do the following: Understand the role and nature of purchasing, procurement, and strategic sourcing in a supply chain context. Consider the importance of types and of items and services purchased to the sourcing and procurement processes. Understand the strategic sourcing process. Recognize principles and approaches for the effective management of sourcing and procurement activities. Appreciate the importance of companies having effective relationships with suppliers and understand the value of supplier organizations having certain certifications and registrations. Examine the issue of procurement price and the relevance of total cost of ownership (TCO). Be aware of contemporary advances in the areas of e-sourcing and e-procurement.
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Introduction Purchasing: The transactional function of buying products and services. In a business setting, this commonly involves the placement and processing of a purchase order. Procurement: Refers to the process of managing a broad range of processes that are associated with a company’s need to procure goods and services that are required to manufacture a product (direct) or to operate the organization (indirect). Strategic sourcing: Essentially, the strategic sourcing process is broader and more comprehensive than the procurement process. Strategic sourcing takes the process further, focuses more on supply chain impacts of procurement and purchasing decisions, and works cross-functionally within the business firm to help achieve the organization’s overall business goals .
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Types and Importance of Items and Service Purchased: Generics are low-risk, low-value items and services that typically do not enter the final product. Commodities are items or services that are low in risk but high in value. Basic production materials (bolts), basic packaging (exterior box), and
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This note was uploaded on 07/28/2011 for the course MRKT 4354 taught by Professor Nancyevans during the Summer '11 term at Virginia Tech.

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Coyle Chapter 13 PowerPoint Slides - Chapter 13 Sourcing...

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