SCM371Notes (1) - SCM 371 Notes - Procurement and Supply...

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Unformatted text preview: SCM 371 Notes - Procurement and Supply Management procurement - tactical, operation, day-to-day activities purchasing - sourcing - long term, strategic supply management - can mean any of the above--- End of Day 1 ------ Day 2 --- Introduction to Procurement and Supply Management Why is procurement and supply management important? The evolution of procurement and supply management Supplier Summit - annually- keeps suppliers informed on the company’s goals and initiatives for the next year- passes on best practices to supplier and encourages same best practices to supplier’s suppliers Resource-Based View (RBV) of the firm Valuable Rare Inmitable Non-substitutable strategic alignment cross-functional strategic orientation Supply base management process-driven approach Enablers- HR- Organizational Design purchasing has more and more of a higher-level standing in the hierarchy as it’s goals become strategic- IT- measurement Why is procurement and supply management important? ● managing, reducing cost ● negotiating ● Their Purchase and Disposition (1887) ● 1900-1947 ○ purchasing important for wars ● 1947-1960s ○ neglected stepchild of the company ● 1970-1980 ○ commodity shortages, oil crisis, inflation ○ quantity → creative approaches ○ standards, norms were developed ● 1980s shorter product life cycles ● 1990s offshoring, outsourcing ● 2000s IT, recession Evolution of Supply Chain Management Objectives of PSM ● Supply continuity ● Manage the purchasing process efficiently and effectively ● Develop the supply base ● Develop aligned goals with internal functional stakeholders ● Develop integrated purchasing strategies that support organizational objectives Supply Continuity: right product/specifications right supplier right internal customer right quantity right quality right time effectiveness - value efficiency - cost spend analytics Develop the Supply Base opportunities for supply chain restructuring, cutting out wholesaler/distributor intermediaries 3PL’s Develop Aligned goals with internal functional stakeholders Develop integrated purchasing strategies that support organizational objectives--- End Day 2 ------ Day 3 --- Responsibilities of Purchasing and Supply Management (PSM) ● Evaluate and select suppliers ● Review specifications ● Act as the primary contact with suppliers ● Determine the method of awarding purchase contracts The Impact of PSM on ROI The Context of PSM ● Megatrends affecting PSM ● Pressures affecting procurement and supply management ● Tactical vs. strategic purchasing (two views) ISO 14000 homeshoring savings leakage - not spending within the contract--- End Day 3 ---...
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This note was uploaded on 12/29/2011 for the course SCM 371 taught by Professor Tobias during the Fall '11 term at Michigan State University.

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SCM371Notes (1) - SCM 371 Notes - Procurement and Supply...

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