supply chain managerment

Purchasing and Supply Chain Management

The Purchasing Process

Chapter 2
Chapter 2

Purchasing and Supply Chain Management, 3e Monczka/Trent/Handfield
Thomson Learning

Copyright 2005

1

Chapter Overview
This chapter address the following topics and ideas associated with achieving world class efficiency and effectiveness:
Purchasing objectives
Purchasing’s responsibilities
The purchasing process and role of eprocurement.
Types of purchases
Improving the purchasing process
Purchasing and Supply Chain Management, 3e Monczka/Trent/Handfield
Thomson Learning

Copyright 2005

2

Companies Look to
Purchasing to Add Value
• A world-class purchasing staff must provide cost-reductions, improve supply chain quality, gain access to new sources of technology, improve cycle time, involve suppliers in product and process development, and streamline processes.
Purchasing and Supply Chain Management, 3e Monczka/Trent/Handfield
Thomson Learning

Copyright 2005

3

Purchasing Objectives
“What makes a department world-class?”
• Objective 1: Support Operational
Requirements
– Uninterrupted flow of high-quality material.

• Objective 2: Manage the Purchasing Process
Efficiently and Effectively
– Limited resources necessitate best use of resources. Purchasing and Supply Chain Management, 3e Monczka/Trent/Handfield
Thomson Learning

Copyright 2005

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Purchasing Objectives
“What makes a department world-class?”
• Objective 3: Supply Base Management
– Develop reliable, high-quality sources of supply.

• Objective 4: Develop Strong Relationships with Other Functional Groups
– Strong cross-functional relationships must exist internally. Purchasing and Supply Chain Management, 3e Monczka/Trent/Handfield
Thomson Learning

Copyright 2005

5

Purchasing Objectives
“What makes a department world-class?”
• Objective 5: Support Organizational Goals and Objectives.
– Purchasing must follow organizational