TUTORIAL 3 : PURCHASING AND SUPPLY OBJECTIVES

Supply Chain Umbrella

A large set of activities besides purchasing is part of supply chain management each of these seemingly diverse activities has one important features in common. it is part of a network that will define how efficiently and effectively goods and information flow across a supply chain.

Supply Chain

a network between a company and its supplier to produce and distribute a specific product and the supply chain represent the step it takes to get the product or service to the customer

Supply Chain Management

A crucial process, because an optimized supply chain results in lower cost and faster production cycle

Inbound Logistics

Refers to the transport, storage and delivery of goods coming into business

Outbound Logistics

Refers to the same goods going out of the business

Right of purchasing

getting the right quality

at the right time

at the right quantity

for the right price

from the right source

Purchasing Objectives

develop supply base management

develop alligned goals with internal stakeholders

manage the sourcing process affectively

develop integrated purchasing strategies that support organizational goals and objectives

supply cotinuity

Supply Chain Objective

improve standardization

minimize total cost system

improve customers satisfaction