Chapter 1-Purchasing and Supply Management

Corporate Supply Challenges
-Increased outsourcing places great reliance on suppliers to respond to end customer needs.
-Greater dependence on suppliers for design and build responsibilities for complete subassemblies and subsystems.
-Increased global competition.
-Development of new product technology.
-Evolving information systems.
-Trend to single sourcing with fewer suppliers and strategic supplier relationships.

These are all examples of what?

Corporate Supply Opportunities
-Identify opportunities to reduce unit cost for products and services.
-Identify opportunities to increase revenue.
-Implement supply initiatives to improve customer satisfaction.
-Reduce total cost of ownership.
-Improve efficiency and effectiveness of the supply process.
-Maximize value of suppliers.
-Work with key suppliers to provide product and service innovations.

These are all examples of what?

Supply Chain Management
The design and management of seamless, value added processes across organizational boundaries to meet the real needs of the end customer. The development and integration of people and technological resources are critical to successful supply chain integration.
Integrated Strategic Procurement and Sourcing Function
Executive leadership, functional leadership, strategic positioning, and integration are all characteristics of what?
Executive Leadership
Executive committee support for integration across company and strategic business unit corporate plans.
Functional Leadership
Company wide customer focused leadership which drives supply base/ supplier management strategies companywide is a description of what?
Strategic positioning
-External/ internal customer focus
-Matrix management
-High level positioning

All of these are related to what?

Integration
-Cross functional/ cross location teaming
-Part of the technology, manufacturing, and SBU planning process.
Supply Base Strategy
Quality driven, design standardization, concurrent engineering, supply base optimization, and commercial strategy emerging are all related to what?
Measurement
Customer orientation, total value/ cost focused, and benchmarking with best in class are all related to what?
Supplier Management
Focused on supplier development, joint performance improvement efforts, value focused, total cost improvement, and supplier benchmarking are all related to what?
Systems
Global databases, Historical perfoormance data, strategy, and EDI, internet, EFT, CAD, and CAM are all related to what?
Operational
Trouble prevention relates to what supply chain contribution?
Strategic
Opportunity Maximization realtes to what supply chain contribution?
Directly
In what way does the bottom line impact the supply contributions?
Indirectly
In what way does does enhancing the performance of others impact the supply contribution?
Negative
Operationally deficient, strategically deficient, Directly deficient, and indirectly deficient impact supply contributions in what way?
Neutral
Operationally acceptable, strategically deficient, Directly acceptable, and indirectly deficient impact supply contributions in what way?
Positive
Operationally acceptable, strategically acceptable, Directly acceptable, and indirectly acceptable impact supply contributions in what way?
The Opportunities for Contribution of the Supply Function
Profit leverage effect, return on assets effect, information source, effect on efficiency, effect on competitor position and customer satisfaction, effect on organizational risk, effect on image, training ground, and management strategy and social policy are all examples of what?
Challenges facing purchasing
B2B Commerce, supply chain management, measurement, purchase of non traditional goods and services, contribution to corporate strategy, and recognition by senior management are all examples of what?