DISCUSSION QUESTION

1. How can an effective purchasing department affect organizational performance?
2. Discuss the concept of the internal customer. Who are purchasing’s internal customers?
3. Discuss the contributions a purchasing department can make to the corporate strategic planning process.
4. List the areas typically considered within purchasing’s span of control. Explain why it is important that purchasing have authority over each of these areas.
5. Describe how purchasing becomes aware of purchase requirements.
6. How is anticipating a material requirement or need through purchasing’s involvement on a new-product development team different from reacting to a purchase need?
7. Why do some firms no longer rely only on competitive bidding when awarding purchase contracts?
8. Provide a list of the major documents that are covered in a suite of e-procurement software tools.
9. Discuss the advantages of electronically transmitting and receiving purchasing documents between a buyer and seller. What are the challenges involved in implementing e-procurement tools?
10. Why is it important to measure and monitor supplier performance improvement over time?
11. How does a just-in-time purchasing and production system reduce the need for certain purchasing documents?
12. Why is purchasing becoming increasingly involved in the purchase of transportation services and other nontraditional purchasing areas?
13. Discuss how the purchase of capital equipment differs from the purchase of routine supplies.
14. Develop a list of topics that nonpurchasing personnel should be allowed to talk about with their counterparts at suppliers. Develop a list of topics that only purchasing should be allowed to talk about with suppliers.
15. What is the difference between a purchase order and a blanket purchase order? What are the advantages of using blanket purchase orders?