OM337_Session 4_09062011

OM337_Session 4_09062011 - Click to enter Subtitle...

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Unformatted text preview: Click to enter Subtitle information More Subtitle info Procurement and Supplier Management Session 4 Chapter 5 6 September, 2011 § In the news § Chapters 3&4 (as far as we can get) 22 Today Chapter Overview § Purchasing’s position within the organizational structure § Factors affecting purchasing’s position § Organizing the purchasing function § Placement of purchasing authority § Organizing for supply chain management § Using teams § Creating the organization of the future 3 Formal Organization Structure § Shows the assignment of work along with its accompanying authority § Helps define how a firm communicates and integrates decision making § Why is purchasing’s position in the organizational structure important? 44 To Whom Does Purchasing Report? § Upper-level function reporting to an executive vice president § Mid-level function reporting to an executive one level below an executive vice president § Lower-level function reporting at least two levels below an executive vice president § What are the scenarios when these are the best options? 55 Organizing the Purchasing Function § Specialization within purchasing § Sourcing and negotiating § Purchasing research § Operational support and order follow-up § Administration and support 66 Purchasing Department Activities § Buying § Expediting § Inventory control § Transportation § Managing countertrade arrangements § Insourcing-outsourcing § Value analysis § Purchasing research § Material forecasting § Supply management § Other 77 § Other Department Activities § Receiving and warehousing § Managing travel expenses § Production planning and control § Commodity futures trading § Global transportation and materials management § Economic forecasting § Subcontracting Strategic vs. Operational Sourcing Strategic Sourcing Activities • Manage relationships with critical suppliers • Develop electronic purchasing systems • Implement companywide best practices • Negotiate companywide supply contract • Manage critical commodities Operational Activities • Manage transactions with suppliers • Use e-systems to obtain standard or indirect items through catalogs • Source items that are unique to the operating unit • Generate and forward material releases • Provide supplier performance feedback 88 Placement of Purchasing Authority § Centralized § Decentralized § Hybrid combination § When do these options work best?...
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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 4_09062011 - Click to enter Subtitle...

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