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PurchasingMidterm study guide

PurchasingMidterm study guide - There are a total of 11...

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There are a total of 11 Sections to respond to, and there are 6 group members. Everyone should be responsible for 2 sections of questions. Also, everyone should include page numbers or where you got your info to reference their answers What is Supply Management? (1/4/12), Chapter 1 & 3 What is the true role and responsibility of sourcing/supply management? Supply management is the heart and soul of supply chain interaction since “the chain” starts with finding, selecting and managing effective and efficient suppliers of materials, equipment and services. The goal is to create a value network. book pages 6-7. To purchase the right item or service, in the right quality, in the right quantity, at the right price, and at the right time. They must have a wider scope of all activities because they must understand all supply-chain related costs (TCO). (class notes) How does supply management “fit” within an organization? Supply management can affect a firm’s bottom line positively as much as or more than any other business function; specifically sales, revenue, and costs. Must be a core competency of the firm. More dollars are spent for purchases of materials and services than for all other expense items combined (p. 9). It helps to enhance the quality of a firm’s products, ensure on- time performance, reduce time to market, and enable the inflow of technologies. It focuses on the total cost of ownership. Every function of the company has to do with the 5 M’s namely: machines, manpower, material, money, and management. SM “fit”s namely into materials as this is the life blood of every organization without materials they can not sell anything to the consumer. What is the Institute for Supply Management (ism.ws)? When was it founded? How has it changed? Founded in 1915, called National Association of Purchasing Managers, name changed b/c purchasing managers do a lot more than just buy today (they manage supply) What is a C.P.M.? An A.P.P? A C.P.S.M? Certified Purchasing Manager = C.P.M. no longer offered but you can take bridge exam; Accredited Purchasing Practitioner = A.P.P no longer offered but you can renew it; Certified Professional Supply Manager = C.P.S.M. requires a bachelor’s degree and 3 years experience Once a month, a purchasing manager’s index is released by the ISM. What does it mean? Why should you care? The PMI is a report that helps purchasing managers see the trends of products in the market and allows them to make decisions appropriately. How has the sourcing professional evolved? Purchasing and supply management’s focus has shifted from the procurement of materials to the procurement of services ranging from legal and marketing services to manufacturing by outside suppliers (outsourcing). p. 8 Gone from very reactive focus to a strategic focus. Shifted from simply lowest unit cost to looking at the total cost of ownership.
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What key factors have driven that evolution?
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