P320-Ch2-Purchasing%2BProcess-revised

P320-Ch2-Purchasing%2BProcess-revised - PURCHASING &...

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CENGAGE LEARNING Monczka – Handfield – Giunipero – Patterson The Purchasing Process Chapter 2
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Chapter Overview § Purchasing objectives § Responsibilities of purchasing § Types of purchases § Improving the purchasing process § E-procurement and the procure to pay process 2
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Purchasing Objectives § Supply continuity § Manage the purchasing process efficiently and effectively § Develop supply base management § Develop strong relationships with other functional stakeholders 3
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Purchasing Objectives § Support organizational goals and objectives § Develop integrated purchasing strategies that support organizational strategies 4
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Supply Continuity § Buy products/services at the right price § Buy them from the right source § Buy them at the right specification that meets users’ needs § Buy them in the right quantity § Arrange for delivery at the right time § Require delivery to the right internal customer 5
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Manage the Purchasing Process § Determining staff levels § Developing and adhering to budgets § Providing professional training and growth opportunities § Introducing procure to pay systems 6
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Develop Supply Base Management § Select competitive suppliers § Identify new suppliers with high potential and build closer relationships § Improve existing suppliers § Develop new suppliers who are not currently competitive 7
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Develop Strong Internal Relationships § Internal customers as stakeholders § Strong two-way communication § Cross-functional coordination and collaboration § Positive, problem-solving relationships 8
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Support Goals and Objectives § Congruency of functional goals with organizational goals § Mutually-supportive, not counter- productive § Purchasing’s substantial impact on the organization’s bottom line § Purchasing as a strategic core competency 9
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Supply Market Intelligence § Monitoring supply markets and trends § Identifying critical materials and services § Supporting new product development § Developing supply options and contingency plans § Supporting a diverse and globally competitive supply base 10
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Purchasing Responsibilities § Evaluate and select suppliers § Review specifications § Act as primary contact with suppliers § Forecast and plan requirements § Clarify requisitioner’s needs 11
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Procure to Pay Systems § Improved spending visibility § Efficient invoicing and payment § User satisfaction 12
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Procure to Pay Process Map 13 Start End Supplier Need Fulfillment Internal Customers Projects Operations Enablers: Finance, Legal, Human Resources, Information Technology
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This note was uploaded on 11/15/2011 for the course BUS-P 320 taught by Professor Peggy during the Spring '11 term at IUPUI.

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P320-Ch2-Purchasing%2BProcess-revised - PURCHASING &...

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