PURCHASING AND SUPPLY CHAIN MANAGEMENT
Part 1 Introduction
Chapter 1 Introduction to Purchasing and Supply Chain Management
Part 2 Purchasing Operations and Structure
Chapter 2 The Purchasing Process
Chapter 3 Purchasing Policy and Procedures
Chapter 4 Supply Management Integration for Competitive Advantage
Learning Objectives
Integration: What Is It?
Internal Integration
Supply Management’s Internal Linkages
External Integration
Supply Management’s External Linkages
Collaborative Buyer-Seller Relationships
Advantages of Closer Buyer-Seller Relationships
Obstacles to Closer Buyer-Seller Relationships
Critical Elements for Supplier Relationship Management
The Critical Role of Cross-Functional Sourcing Teams
Benefits Sought from the Cross-Functional Team Approach
Potential Drawbacks to the Cross-Functional Team Approach
When to Form a Cross-Functional Team
Improving Sourcing Team Effectiveness
Integrating Supply Management, Engineering, and Suppliers to Develop New Products and Services
Common Themes of Successful Supplier Integration Efforts
Supplier Integration into Customer Order Fulfillment
Supplier Suggestion Programs
Buyer-Seller Improvement Teams
On-Site Supplier Representative
Potential Benefits of On-Site Supplier Representatives
Conclusion
Discussion Questions
Chapter 5 Purchasing and Supply Management Organization
Learning Objectives
P/SM Organizational Structure
Location of Authority Centralized or Decentralized
Purchasing’s Position within the Organizational Structure
Scope of the Purchasing/Supply Management Job Function
Purchasing/Supply Management Job Tasks
Separating Strategic and Operational Purchasing
Using Teams as Part of the Organizational Structure
Supply Chain Management Structure
Future Trends in Organizational Design
Conclusion
Discussion Questions
Part 3 Strategic Sourcing
Chapter 6 Supply Management and Commodity Strategy Development
Learning Objectives
Aligning Supply Management and Enterprise Objectives
Integrative Strategy Development
Engaging Stakeholders to Build Category Strategy Objectives
What Is a Category Strategy?
Conducting a Spend Analysis
Spend Analysis Spreadsheet
Category Strategy Development (Strategic Sourcing)
Step 1: Build the Team and the Project Charter
Step 2: Conduct Market Research on Suppliers
Step 3: Strategy Development
Step 4: Contract Negotiation
Step 5: Supplier Relationship Management
Types of Supply Management Strategies
Insourcing/Outsourcing
Supply Base Optimization
Supply Risk Management
Global Sourcing
Longer-Term Supplier Relationships
Early Supplier Design Involvement
Supplier Development
Total Cost of Ownership
E-Reverse Auctions
Evolving Sourcing Strategies
Phase 1: Basic Beginnings
Phase 2: Moderate Development
Phase 3: Limited Integration
Phase 4: Fully Integrated Supply Chains
Observations on Supply Management Strategy Evolution
Conclusion
Discussion Questions
Chapter 7 Supplier Evaluation and Selection
Learning Objectives
The Supplier Evaluation and Selection Process
Identify Key Sourcing Requirements
Identify Potential Supply Sources
Use of Preferred Suppliers
External or Third-Party Information
Select Supplier and Reach Agreement
Key Supplier Evaluation Criteria
Management Capability
Employee Capabilities
Cost Structure
Total Quality Performance, Systems, and Philosophy
Process and Technological Capability
Sustainability and Environmental Compliance
Financial Stability
Production Scheduling and Control Systems
E-Commerce Capability
Supplier’s Sourcing Strategies, Policies, and Techniques
Longer-Term Relationship Potential
Developing a Supplier Evaluation and Selection Survey
Step 1: Identify Supplier Evaluation Categories
Step 2: Assign a Weight to Each Evaluation Category
Step 3: Identify and Weigh Subcategories
Step 4: Define a Scoring System for Categories and Subcategories
Step 5: Evaluate Supplier Directly
Step 6: Review Evaluation Results and Make Selection Decision
Step 7: Review and Improve Supplier Performance Continuously
Reducing Supplier Evaluation and Selection Cycle Time
Tools and Approaches
Map the Current Supplier Evaluation and Selection Process
Integrate with Internal Customers
Data Warehouse with Supplier Information
Third-Party Support
New Organizational Design Features
Preferred Supplier List
Electronic Tools
Predefined Contract Language and Shorter Contracts
Conclusion
Discussion Questions
Chapter 8 Supplier Quality Management
Learning Objectives
Overview of Supplier Quality Management
Factors Affecting Supply Management’s Role in Managing Supplier Quality
Supplier Quality Management Using a Total Quality Management Perspective
Pursuing Six Sigma Supplier Quality
Using ISO Standards and MBNQA Criteria to Assess Supplier Quality Systems
Basic Contents of a Supplier Quality Manual
Conclusion
Discussion Questions
Chapter 9 Supplier Management and Development: Creating a World-Class Supply Base
Learning Objectives
Supplier Performance Measurement
Rationalization and Optimization: Creating a Manageable Supply Base
Supplier Development: A Strategy for Improvement
Overcoming the Barriers to Supplier Development
Managing Supply Base Risk
Managing Sustainability in the Supply Base
Conclusion
Discussion Questions
Chapter 10 Worldwide Sourcing
Learning Objectives
Worldwide Sourcing Overview
Developing a Worldwide Sourcing Program
Moving to a Global Sourcing Philosophy
Conclusion
Discussion Questions
Part 4 Strategic Sourcing Process
Chapter 11 Strategic Cost Management
Chapter 12 Purchasing and Supply Chain Analysis: Tools and Techniques
Learning Objectives
Project Management
Learning-Curve Analysis
Value Analysis/Value Engineering
Quantity Discount Analysis
Process Mapping
Conclusion
Discussion Questions
Chapter 13 Negotiation and Conflict Management
Learning Objectives
What Is Negotiation?
The Negotiation Framework in Supply Management
Negotiation Planning
Power in Negotiation
Concessions
Negotiation Tactics: Trying to Reach Agreement
Win-Win Negotiation
International Negotiation
Selected Countries
The Impact of Electronic Media on Negotiations
Conclusion
Discussion Questions
Chapter 14 Contract Management
Learning Objectives
Introduction
Elements of a Contract
How to Negotiate and Write a Contract
Types of Contracts
Long-Term Contracts in Alliances and Partnerships
Nontraditional Contracting
Settling Contractual Disputes
Conclusion
Discussion Questions
Chapter 15 Purchasing Law and Ethics
Learning Objectives
Legal Authority and Personal Liability of the Purchasing Manager
Contract Law
The Uniform Commercial Code
Patents and Intellectual Property
Other Laws Affecting Purchasing
Purchasing Ethics
Corporate Social Responsibility
Conclusion
Discussion Questions
Part 5 Critical Supply Chain Elements
Chapter 16 Lean Supply Chain Management
Learning Objectives
Understanding Supply Chain Inventory
The Right Reasons for Investing in Inventory
The Wrong Reasons for Investing in Inventory
Creating the Lean Supply Chain
Six Sigma
Approaches for Managing Inventory Investment
Delivering the Perfect Customer Order
Conclusion
Discussion Questions
Chapter 17 Purchasing Services
Learning Objectives
Transportation Management
Outsourcing Logistics to Third-Party Logistics Providers
Purchasing Services and Indirect Items
Sourcing Professional Services
Conclusion
Discussion Questions
Chapter 18 Supply Chain Information Systems and Electronic Sourcing
Learning Objectives
Evolution of E-SCM Systems
An Overview of the E-Supply Chain
Drivers of New Supply Chain Systems and Applications
Internal Information Systems—Enterprise Resource Planning (ERP)
Purchasing Databases and Data Warehouses
Electronic Data Interchange (EDI)—Pioneering External Electronic Communication
E-Sourcing Basics
E-Sourcing Suites—General
E-Sourcing Suites—Supplier Relationship Management (SRM)
Internal and External Systems Integration
Information Visibility in SCM
Conclusion
Discussion Questions
Chapter 19 Performance Measurement and Evaluation
Learning Objectives
Purchasing and Supply Chain Performance Measurement and Evaluation
Purchasing and Supply Chain Performance Measurement Categories
Developing a Performance Measurement and Evaluation System
Performance Benchmarking: Comparing Against the Best
A Summary of Purchasing Measurement and Evaluation Characteristics
Conclusion
Discussion Questions
Part 6 Future Directions
Chapter 20 Purchasing and Supply Strategy Trends
Supply Chain Integration Becomes a Reality
Expanding the Mission, Goals, and Performance Expectations
Developing Category Strategies Will Become Broader and More Complex
Developing and Managing Suppliers as a Truly Extended Part of the Organization
Designing and Operating Multiple Supply Networks to Meet Customer Requirements
Leveraging Technology Enablers Takes on Additional Focus
Collaborating Internally and Externally Will Grow in Strategic Importance
Attracting, Developing, and Retaining Supply Management Talent Will Become a Key Differentiator for Success
Managing and Enabling the Future Supply Management Organization and Measurement Systems
Twelve High-Impact Sourcing and Supply Chain Strategies for 2010–2015
Conclusion
Discussion Questions
Cases
Discussion Questions
Why are more top managers recognizing the importance of purchasing/supply management?
What is the difference between purchasing and supply management? What is the difference between a supply chain orientation and supply chain management?
What is the difference between a supply chain and a value chain?
Do you think organizational purchasers should behave like entrepreneurs? Why or why not?
What are some of the factors that might influence how important purchasing is to the success of an organization?
What knowledge and skills do you feel are required for a purchasing professional?
Why does the collective behavior of supply managers have such an impact on economic trends?
Why are supply base innovation and risk management two future areas that will consume more of the supply manager’s day?
Discuss the four enablers of purchasing and supply chain excellence.
What is the relationship between the growth in worldwide competition and the evolution of the supply chain concept?
Briefly discuss each of the seven periods in the evolution of purchasing and supply management. What do you forecast for the future?