OM337_Session 3_09012011

OM337_Session 3_09012011 - Click to enter Subtitle...

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Unformatted text preview: Click to enter Subtitle information More Subtitle info Procurement and Supplier Management Session 3 Chapter 3 & 4 1 September, 2011 § In the news § Chapter 2 revisit § Chapters 3&4 (as far as we can get) 22 Today Chapter Overview § Policy overview § Policies provide guidance and direction: § Role of purchasing § Conduct of purchasing personnel § Social and minority business objectives § Buyer-supplier relationships § Operational issues § Purchasing procedures 33 The Term “Policy” § Refers to the set of purposes, principles, and rules of action that guide an organization § Standard operating procedures § Rules and regulations § Formal vs. informal policies § Part of organizational culture 4 Advantages of Using Policies § Opportunity to define and clarify top management perspectives § Means for executives to communicate its leadership views and beliefs § Provides a framework for consistent decision-making and action § Defines rules and procedures for all employees 55 Disadvantages of Using Policies § Often difficult to communicate within large organizations § Might substitute for effective management § Not a set of “how-to” instructions § May restrict employee innovation and flexibility 66 Effective Policy Characteristics § Action-oriented § Relevant § Concise § Unambiguous and well-understood § Timely and current § Guides problem-solving and behavior § Long, detailed policies are sure to be ignored 77 Policy Categories § Defining the role of purchasing § Defining the conduct of purchasing personnel § Defining social and minority business objectives § Defining buyer-supplier relationships § Defining operational issues 88 Role of Purchasing § Purchasing authority § Objectives of the purchasing function § Responsibilities of various buying levels § General or broad policy statement from which more detailed policies emanate 99 Purchasing Authority § Authority to conduct business and to represent organizational interests § Created by executive committee § Authority to delegate to other functional areas § Describes scope of and limits to authority 1010 Objectives of Purchasing Function § Select suppliers that meet requirements § Purchase materials and services that comply with appropriate standards § Promote buyer-supplier relations and to encourage supplier contribution § Treat all suppliers fairly and ethically § Work closely with other internal departments and employees § Conduct purchasing operations to enhance community/employee relations § Support all corporate objectives and policies § Maintain a qualified staff and develop its professional capabilities 1111 Corporate Purchasing Office § Carry out executive policies § Develop and publish purchasing policies and procedures § Coordinate strategy development § Evaluate purchasing effectiveness § Provide expert support at all levels § Perform other corporate level tasks and activities 1212 Policy Categories § Defining the role of purchasing...
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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.

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OM337_Session 3_09012011 - Click to enter Subtitle...

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