week 3 purchasing n supply management 2003
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TRANSCRIPT
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THE ROLE OF PURCHASING AND SUPPLY CHAIN MANAGEMENT
IN BUSINESS
THE ROLE OF PURCHASING AND SUPPLY CHAIN MANAGEMENT
IN BUSINESS
WEEK 3WEEK 3
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PERSPECTIVE ON PURCHASING PERSPECTIVE ON PURCHASING
PURCHASING AS A FUNCTIONPURCHASING AS A FUNCTION
PURCHASING AS A PROCESSPURCHASING AS A PROCESS
PURCHASING AS A SUPPLY CHAINPURCHASING AS A SUPPLY CHAIN
PURCHASING AS A DISCIPLINEPURCHASING AS A DISCIPLINE
PURCHASING AS A PROFESSIONPURCHASING AS A PROFESSION
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PERSPECTIVE ON PURCHASING PERSPECTIVE ON PURCHASING
PURCHASING AS A FUNCTIONPURCHASING AS A FUNCTION
PURCHASING AS A PROCESSPURCHASING AS A PROCESS
PURCHASING AS A SUPPLY CHAINPURCHASING AS A SUPPLY CHAIN
PURCHASING AS A DISCIPLINEPURCHASING AS A DISCIPLINE
PURCHASING AS A PROFESSIONPURCHASING AS A PROFESSION
DEFINED AS A UNIT OR DEPARTMENT IN WHICH PEOPLE USE SPECIFIC SKILLS, KNOLEDGE AND RESOURCES TO PERFORM SPECIALED TASK.
DEFINED AS A UNIT OR DEPARTMENT IN WHICH PEOPLE USE SPECIFIC SKILLS, KNOLEDGE AND RESOURCES TO PERFORM SPECIALED TASK.
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PERSPECTIVE ON PURCHASING PERSPECTIVE ON PURCHASING
PURCHASING AS A FUNCTIONPURCHASING AS A FUNCTION
PURCHASING AS A PROCESSPURCHASING AS A PROCESS
PURCHASING AS A SUPPLY CHAINPURCHASING AS A SUPPLY CHAIN
PURCHASING AS A DISCIPLINEPURCHASING AS A DISCIPLINE
PURCHASING AS A PROFESSIONPURCHASING AS A PROFESSION
IT IS A SET OF SUBPROCESS STAGES DIRECTED TO ACHIEVING AN OUTPUT.IT IS A SET OF SUBPROCESS STAGES DIRECTED TO ACHIEVING AN OUTPUT.
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PERSPECTIVE ON PURCHASING PERSPECTIVE ON PURCHASING
PURCHASING AS A FUNCTIONPURCHASING AS A FUNCTION
PURCHASING AS A PROCESSPURCHASING AS A PROCESS
PURCHASING AS A SUPPLY CHAINPURCHASING AS A SUPPLY CHAIN
PURCHASING AS A DISCIPLINEPURCHASING AS A DISCIPLINE
PURCHASING AS A PROFESSIONPURCHASING AS A PROFESSION
IT IS A PART OF ACTIVITIES IN SEQUENCE PROCESS AS PROCUREMENT, PRODUCTION, WAREHOUSING & TRANSPORTATION.
IT IS A PART OF ACTIVITIES IN SEQUENCE PROCESS AS PROCUREMENT, PRODUCTION, WAREHOUSING & TRANSPORTATION.
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PERSPECTIVE ON PURCHASING PERSPECTIVE ON PURCHASING
PURCHASING AS A FUNCTIONPURCHASING AS A FUNCTION
PURCHASING AS A PROCESSPURCHASING AS A PROCESS
PURCHASING AS A SUPPLY CHAINPURCHASING AS A SUPPLY CHAIN
PURCHASING AS A DISCIPLINEPURCHASING AS A DISCIPLINE
PURCHASING AS A PROFESSIONPURCHASING AS A PROFESSIONIT IS THE DEPARTMENT OF KNOWLEDGE.CLEARLY FOCUS ON MATHEMATIC, & ACCOUNTING, ECONOMIC, LAW, OPERATION, ETHIC, INFORMATION TECHNOLOGY & PSYCHOLOGY.
IT IS THE DEPARTMENT OF KNOWLEDGE.CLEARLY FOCUS ON MATHEMATIC, & ACCOUNTING, ECONOMIC, LAW, OPERATION, ETHIC, INFORMATION TECHNOLOGY & PSYCHOLOGY.
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PERSPECTIVE ON PURCHASING PERSPECTIVE ON PURCHASING
PURCHASING AS A FUNCTIONPURCHASING AS A FUNCTION
PURCHASING AS A PROCESSPURCHASING AS A PROCESS
PURCHASING AS A SUPPLY CHAINPURCHASING AS A SUPPLY CHAIN
PURCHASING AS A DISCIPLINEPURCHASING AS A DISCIPLINE
PURCHASING AS A PROFESSIONPURCHASING AS A PROFESSIONIT PROVIDE A JOB OPPORTUNITY WITH THE SEQUENCE PROCESS.IT PROVIDE A JOB OPPORTUNITY WITH THE SEQUENCE PROCESS.
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CHANGES IN THE BUSINESS CONTEXT
CHANGES IN THE BUSINESS CONTEXT
GLOBALIZATION OF TRADEGLOBALIZATION OF TRADE
THE INFORMATION SOCIETYTHE INFORMATION SOCIETY
CHANGING CONSUMER PATTERNCHANGING CONSUMER PATTERN
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CHANGES IN THE BUSINESS CONTEXT
CHANGES IN THE BUSINESS CONTEXT
GLOBALIZATION OF TRADEGLOBALIZATION OF TRADE
THE INFORMATION SOCIETYTHE INFORMATION SOCIETY
CHANGING CONSUMER PATTERNCHANGING CONSUMER PATTERN
• COMPETITION IN MANY INDUSTRIES• EMERGING POSITION OF CHINA AS A LOW COST COUNTRIES.• INTERCULTURAL HOMOGENIZATION• FORMING TRADE REGIONS (NAFTA & EEC)• IMPROVED TRANSPORTATION FACILITIES.• NEW TECHNOLOGY IN COMMUNICATION.
• COMPETITION IN MANY INDUSTRIES• EMERGING POSITION OF CHINA AS A LOW COST COUNTRIES.• INTERCULTURAL HOMOGENIZATION• FORMING TRADE REGIONS (NAFTA & EEC)• IMPROVED TRANSPORTATION FACILITIES.• NEW TECHNOLOGY IN COMMUNICATION.
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CHANGES IN THE BUSINESS CONTEXT
CHANGES IN THE BUSINESS CONTEXT
THE INFORMATION SOCIETYTHE INFORMATION SOCIETY
CHANGING CONSUMER PATTERNCHANGING CONSUMER PATTERN
• ECONOMIC VALUE FROM GENERATING, USING, AND SELLING INFORMATION IS GROWING FAST.
• DETAILED INFORMATION ABOUT BUYING PATTERN & CONSUMER PROFILES IS READY AVAILABLE.
• ADVANCED RETAIL INFORMATION SYSTEMS ENABLE AN EFFICIENT TRACING AND TRACKING OF GOOD FLOW AND DETAIL ED MONITORING OF SUPPLIER PERFORMANCE.
• ECONOMIC VALUE FROM GENERATING, USING, AND SELLING INFORMATION IS GROWING FAST.
• DETAILED INFORMATION ABOUT BUYING PATTERN & CONSUMER PROFILES IS READY AVAILABLE.
• ADVANCED RETAIL INFORMATION SYSTEMS ENABLE AN EFFICIENT TRACING AND TRACKING OF GOOD FLOW AND DETAIL ED MONITORING OF SUPPLIER PERFORMANCE.
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CHANGES IN THE BUSINESS CONTEXT
CHANGES IN THE BUSINESS CONTEXT
CHANGING CONSUMER PATTERNCHANGING CONSUMER PATTERN
• CUSTOMER ARE DEMANDING QUALITY PRODUCTS. • HIGHLY EDUCATED CONSUMERS.• CONSUMERS TAKE CHARGE IN PRODUCT & SERVICE.
• CUSTOMER ARE DEMANDING QUALITY PRODUCTS. • HIGHLY EDUCATED CONSUMERS.• CONSUMERS TAKE CHARGE IN PRODUCT & SERVICE.
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THE CLASSIC DEFINATION THE CLASSIC DEFINATION
“ TO OBTAIN MATERIALS OF THE RIGHT QUALITY IN THE RIGHT QUANTITY FROM THE RIGHT SOURCE, DELIVERED TO THE RIGHT PLACE AT THE RIGHT PRICE”
“ TO OBTAIN MATERIALS OF THE RIGHT QUALITY IN THE RIGHT QUANTITY FROM THE RIGHT SOURCE, DELIVERED TO THE RIGHT PLACE AT THE RIGHT PRICE”
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THE CLASSIC DEFINATION THE CLASSIC DEFINATION
PURCHASING AS PROCUREMENTPURCHASING AS PROCUREMENT
IT IS THE PROCESS OF OBTAINING GOODS OR SERVICES IN ANY WAY INCLUDING BORROWING AND LEASING.
IT IS THE PROCESS OF OBTAINING GOODS OR SERVICES IN ANY WAY INCLUDING BORROWING AND LEASING.
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THE RELATIONSHIP OF PURCHASING / PROCUMENT/ SUPPLY/ MNAGEMENT
ACTIVITIES
THE RELATIONSHIP OF PURCHASING / PROCUMENT/ SUPPLY/ MNAGEMENT
ACTIVITIES
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THE CLASSIC DEFINATION THE CLASSIC DEFINATION
PURCHASING AS AN ORGANISATIONAL BUYING
PURCHASING AS AN ORGANISATIONAL BUYING
THOSE BUYERS OF GOODS & SERVICES FOR THE SPECIFIC PURPOSE OF INDUSTRIAL OR AGRICULTURAL
PRODUCTION.
THOSE BUYERS OF GOODS & SERVICES FOR THE SPECIFIC PURPOSE OF INDUSTRIAL OR AGRICULTURAL
PRODUCTION.
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TYPE OF PURCHASING IN BUSINESS TYPE OF PURCHASING IN BUSINESS
1. PURCHASING FOR RESALE2. PURCHASING FOR
CONVERSION/ CONSUMPTION
1. PURCHASING FOR RESALE2. PURCHASING FOR
CONVERSION/ CONSUMPTION
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OBJECTIVE OF PURCHASING OBJECTIVE OF PURCHASING
“ TO OBTAIN MATERIALS OF THE RIGHT QUALITY IN THE RIGHT QUANTITY FROM THE RIGHT SOURCE, DELIVERED TO THE RIGHT PLACE AT THE RIGHT PRICE”
“ TO OBTAIN MATERIALS OF THE RIGHT QUALITY IN THE RIGHT QUANTITY FROM THE RIGHT SOURCE, DELIVERED TO THE RIGHT PLACE AT THE RIGHT PRICE”
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OBJECTIVE OF PURCHASING OBJECTIVE OF PURCHASING TO SUPPORT COMPANY OPERATIONTO SUPPORT COMPANY OPERATION TO BUY WISELY &
COMPETITIVELYTO BUY WISELY &
COMPETITIVELYTO KEEP INVENTORY INVESTMENTTO KEEP INVENTORY INVESTMENT
TO DEVELOP EFFECTIVE AND RELIABLE SOURCE OF SUPPLYTO DEVELOP EFFECTIVE AND RELIABLE SOURCE OF SUPPLY
TO HAVE A GOOD RELATIONSHIPWITH
SUPPLIER
TO HAVE A GOOD RELATIONSHIPWITH
SUPPLIER TO ACHIEVE MAXIMUM INTERGRATION
TO ACHIEVE MAXIMUM INTERGRATION
TO HANDLE PURCHASING & SUPPLY MANAGEMENT
FUNCTION
TO HANDLE PURCHASING & SUPPLY MANAGEMENT
FUNCTION
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WORLD CLASS PURCHASING WORLD CLASS PURCHASING
COMMITMENT TO TOTAL QUALITY MANAGEMENT
COMMITMENT TO TOTAL QUALITY MANAGEMENT
COMMITMENT TO JUST IN TIME
COMMITMENT TO JUST IN TIME COMMITMENT TO
TOTAL CYCLE TIME REDUCTIONCOMMITMENT TO
TOTAL CYCLE TIME REDUCTION
LONG RANGE STRATEGICLONG RANGE STRATEGICSUPPLIER RELATIONSHIPSUPPLIER RELATIONSHIP
STRATEGIC COST MANAGEMENT
STRATEGIC COST MANAGEMENT
PERFORMANCE MEASUREMENTPERFORMANCE MEASUREMENT
TRAINING AND PREFESIONAL DEVE LOPMENT
TRAINING AND PREFESIONAL DEVE LOPMENT
CORPORATE SOCIAL RESPONSIBILITY
CORPORATE SOCIAL RESPONSIBILITY
SERVICE EXCELLENCESERVICE EXCELLENCE LEARNINGLEARNING
MANAGEMENT & LEADERSHIPMANAGEMENT & LEADERSHIP
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PURCHASING IN THE FUTURE PURCHASING IN THE FUTURE