Purchasing Relationships
Table of Contents
1) Introduction 2
2) The Purchasing Department 3
3) The Sales & Marketing Department
3.1) Roles & Responsibilities 4
3.2) Sales & Marketing’s Relationship with Purchasing 4
4) The Accounts & Finance Department
4.1) Roles & Responsibilities 5
4.2) Accounts & Finance’s Relationship with Purchasing 5
5) The Human Resource Department
5.1) Roles & Responsibilities 6
5.2) Human Resource’s Relationship with Purchasing 6
6) The Production Department
6.1) Roles & Responsibilities 7
6.2) Production’s Relationship with Purchasing 7
7) The Logistics Department
7.1) Roles & Responsibilities 8
7.2) Logistics’ Relationship with Purchasing 8
8) The Information Technology Department
8.1) Roles & Responsibilities 9
8.2) Information Technology’s Relationship with Purchasing 9
9) Purchasing’s Relationship with Suppliers 10
10) Conclusion 11
11) References 12
1) Introduction
There are many reasons that contribute to the success of a supply chain. One of them is clearly defined functions of the various departments, and strong inter-department relationships between them.
The concept of the value chain was introduced and defined in Michael Porter’s book as a “collection of activities that are performed to design, produce, market, deliver, and support an organization’s products” (Porter, 1985, p. 36).
The value chain categorizes the value-adding activities of each department in an organization into primary and support activities as shown in the diagram below: http://logisticsglobal.blogspot.com/2011/08/analysis-value-chain-porter-model.html
Primary activities include Logistics, Sales & Marketing and Operations, while support activities include Accounts, Human Resource and Purchasing.
This report aims to establish the roles and responsibilities of the different departments, and to focus on the relationship of the Purchasing Department with the other departments in an organization. This will aid in the understanding of why integration of the
1) Introduction 2
2) The Purchasing Department 3
3) The Sales & Marketing Department
3.1) Roles & Responsibilities 4
3.2) Sales & Marketing’s Relationship with Purchasing 4
4) The Accounts & Finance Department
4.1) Roles & Responsibilities 5
4.2) Accounts & Finance’s Relationship with Purchasing 5
5) The Human Resource Department
5.1) Roles & Responsibilities 6
5.2) Human Resource’s Relationship with Purchasing 6
6) The Production Department
6.1) Roles & Responsibilities 7
6.2) Production’s Relationship with Purchasing 7
7) The Logistics Department
7.1) Roles & Responsibilities 8
7.2) Logistics’ Relationship with Purchasing 8
8) The Information Technology Department
8.1) Roles & Responsibilities 9
8.2) Information Technology’s Relationship with Purchasing 9
9) Purchasing’s Relationship with Suppliers 10
10) Conclusion 11
11) References 12
1) Introduction
There are many reasons that contribute to the success of a supply chain. One of them is clearly defined functions of the various departments, and strong inter-department relationships between them.
The concept of the value chain was introduced and defined in Michael Porter’s book as a “collection of activities that are performed to design, produce, market, deliver, and support an organization’s products” (Porter, 1985, p. 36).
The value chain categorizes the value-adding activities of each department in an organization into primary and support activities as shown in the diagram below: http://logisticsglobal.blogspot.com/2011/08/analysis-value-chain-porter-model.html
Primary activities include Logistics, Sales & Marketing and Operations, while support activities include Accounts, Human Resource and Purchasing.
This report aims to establish the roles and responsibilities of the different departments, and to focus on the relationship of the Purchasing Department with the other departments in an organization. This will aid in the understanding of why integration of the
References: Best Logistics Guide, 2012. The Logistics Department – Supporting the Entire Operation. [ONLINE] Available at: http://www.bestlogisticsguide.com/logistics-department.html. [Accessed 10 March 2012]. Christian, T., Ralf, W., Michael, Q., 2006. The role of information technology in procurement in the Top 200 companies in Switzerland. Switzerland: Competence Center E-Business Basel at the University of Applied Sciences Northwestern Switzerland. Epiq Technologies, 2010. Supplier Relationships. [ONLINE] Available at: http://www.epiqtech.com/supplier_relationship_management.htm. [Accessed 20 March 2012]. Global Logistics, 2012. Analysis The Value Chain Porter Model Example. [ONLINE] Available at: http://logisticsglobal.blogspot.com/2011/08/analysis-value-chain-porter-model.html. [Accessed 28 February 2012]. HRmarketer, 2011. The Human Resource Marketplace. [ONLINE] Available at: http://www.hrmarketer.com/home/hcm_main.php [Accessed 16 March 2012] Pagell, M., 2004. Understanding the factors that enable and inhibit the integration of operations, purchasing and logistics, Journal of Operations Management, Vol. 22, No. 5, pp. 459-487 Porter, M.E., 1985. Competitive Advantage. New York: The Free Press. Supply, Cost & Procurement Management, 2012. Marketing and procurement – fight! fight! | Supply, Cost & Procurement Management. [ONLINE] Available at: http://blog.procurement-excellence.com/marketing-and-procurement-fight-fight/. [Accessed 02 April 2012].