OM337_Session 2_08302011

OM337_Session 2_08302011 - Click to enter Subtitle...

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Unformatted text preview: Click to enter Subtitle information More Subtitle info Procurement and Supplier Management Session 2, Chapters 1&2 Purchasing Process, Policy, and Procedures 30 August, 2011 OM 337.3 Procurement--Fall 2011 Todays objectives SCM and Procurement Overview Speak to a Procurement/supplier management issue in the news currently Remember ConocoPhillips Brief and Meet tonight 22 OM 337.3 Procurement--Fall 2011 OM 337.3 Procurement--Fall 2011 Chapter 1 Overview A new competitive environment Why purchasing is important Understanding the language of purchasing and supply chain management The supply chain umbrella Four enablers of purchasing and supply chain management 33 OM 337.3 Procurement--Fall 2011 OM 337.3 Procurement--Fall 2011 A New Competitive Environment Increasing numbers of world-class competitors Sophisticated customer base More performance at a lower cost Widely available information sources Balance of power between buyers and suppliers Greater outsourcing 44 OM 337.3 Procurement--Fall 2011 OM 337.3 Procurement--Fall 2011 Factors Driving SCM Low cost and wide availability of information more closely links the members of a supply chain Competition in domestic and international markets requires quickness, agility, and flexibility Customer expectations and requirements are more demanding Major disruptions require the ability of a supply chain to react rapidly Competition between supply chains, not just companies 55 OM 337.3 Procurement--Fall 2011 OM 337.3 Procurement--Fall 2011 Why Purchasing Is Important Purchased content is a significant part of the cost of goods sold ( 55%) Move from traditional, adversarial buyer-supplier relations to improve supply chain performance Purchased contents impact on product and service quality Participation in product and process design Use of cross-functional teams Early supplier involvement The supply chains impact on competitive advantage 66 OM 337.3 Procurement--Fall 2011 OM 337.3 Procurement--Fall 2011 Language of Purchasing and SCM Are supply chains and value chains the same? What is supply chain management? What is an extended enterprise? 77 OM 337.3 Procurement--Fall 2011 OM 337.3 Procurement--Fall 2011 Definitions Purchasing A functional group (i.e., a formal entity on the organization chart) as well as a functional activity (i.e., buying goods and services) Aka: procurement Supply Management A strategic approach to planning for and acquiring the organizations current and future needs through effectively managing the supply base, utilizing a process orientation in conjunction with cross- functional teams to achieve the organizational mission 88 OM 337.3 Procurement--Fall 2011 OM 337.3 Procurement--Fall 2011 ISMs Definition The identification, acquisition, access, positioning, and management of resources and related capabilities an organization needs or potentially needs in the attainment of its strategic objectives 99 OM 337.3 Procurement--Fall 2011 OM 337.3 Procurement--Fall 2011OM 337....
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This note was uploaded on 10/04/2011 for the course OM 337.3 taught by Professor Hasler during the Fall '11 term at University of Texas at Austin.

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OM337_Session 2_08302011 - Click to enter Subtitle...

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