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**PURCHASING AND SUPPLY IN THE BUSINESS ENVIRONMENT (Purchasing Activities…
**PURCHASING AND SUPPLY IN THE BUSINESS ENVIRONMENT
Purchasing Activities
Supplier Selection
Quality
Selection
Service
Delievery schedule
Dependability
Emergency order
Financing terms
Price
Maintain appropriate inventory
Proper amounts
Proper items
Conduct negotiations
Market survey
Determine requirements
Maintain supplier relation
Educate suppliers about needs
Purchase, receive, store and issue
Record keeping and controls
Supply Activities :
Plan
A plan or strategy must be developed to address how a given good or services will meet the needs of the customers. A significant portion of the strategy should focus on planning a profitable supply chain
Companies need a strategy for managing all the resources that go towards meeting customer demand for their product or services.
A big piece of SCM planning is developing a set of metrics to monitor the supply chain so that it is efficient, costs less and deliver high quality and value to customers.
Develop (Source)
involves building a strong relationship with suppliers of the raw materials needed in making the product the company delivers.this phase involves planning methods for shipping, delivery and payment as well.
Make
The product is manufactured, tested, packaged and scheduled for delivery. Supply chain managers schedule the activities necessary for production, testing, packaging, and preparation for delivery.
Helps companies to measure quality levels, production output and worker productivity.
Deliver
Customer orders are received and delivery of the goods is planned
This part also refers as logistic, where companies coordinate the receipt of orders from customers, develop a network of warehouses, pick carriers to get products to customers and set up an invoiving system to receive payments.
Return
At this stage, customers may return defective products. The company will address customer questions in this stage.
Supply chain planners have to create a responsive and flexible network for receiving defective and excess products back from their customers and supporting customers who have problem with delivered products
Business Environment
-- the combination internal and external factors that influence a company's operating situation.
External Environment
-Major external and uncontrollable factors that influence an organization's decision making and affect its performance and strategies.
Demographic
Economic
Political
Legal
Internal Environment
-Factors close to a business that have
a direct impact on its business operations and success.
Employees
Competitors
Marketing intermediaries
Suppliers
Customers
Purchasing and Supply Enviroment
