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Strategic management & purchasing (:<3: Definitions (Sourcing (It…
Strategic management & purchasing
:<3: Definitions
Sourcing
It is finding the rights supplier
Purchasing
It is a process of going from sourcing to establishing a relationship with suppliers
Procurement
Covers both sourcing and purchasing, it's strategic
Replenishment
It is just reordering and managing the flow purchases
Stategic managment
Its deals with high level concepts
Business model
Value
Resourcing
Supply chain
Production
Inventory management
Money is sleeping
Control
Managing warehouses
Distribution
Reverse logistics
Purchasing
Budgeting
Planning
Measuring perfomances
Analysing + explaining variance to budget and taking corrective actio
Operational management
Included in supply chain function
Indicateurs (KPI : Key Performance Indicator)
EOQ
Economic Order Quantity
Formula
Resolves the conflict between ordering and holding
Can be integrated in ERP
OTIF
On time and in full
Concerning delivery
INVT
Inventory turnover
Ratio
It's showing how many times a compagy has sold and replaced inventory during a given period
TCO
Total cost of ownership
Includes
Purchasing department costs
Delivery costs
Set-up costs if you are making the product in-house
Base purchase price
Holding costs in warehouses
VMI
Vendor management inventory
Solution for high volume consumption
Negociation of consignment stock
Pay only when you use it
OEM
Original equipment manufacturer
Organization that makes devices from component parts bought from other organizations
Purchasing
Negociations
Controls
Stadards of supplier performance
TCO
Focus on 80/20 (purchaser)
Adapted to different industries with different priorities
Demonstrate that we take environmental regulations and issues into account
Focused on reorganising a Purchasing function to bring it up to best bractice
Focused on key skills for buyers of critical supplies for a sensitive industry
Measurement
Essential in
Strategic management
Operational management
Marketing BtoB
Industrial marketing
Focuses on analysing
Sector
Personal relations
Opportunities
With major, Key Account Customers.
Panels of suppliers
Reliable service
Price
Innovation
Flexibility or reputation for superior quality and safety of products
Notes
Purchasing is the reverse of Sales
Purchasing is outsourced manufacturing or subcontracting
Internal Production= purchasing from close partners who are your colleagues
Abreviations
CRM
Customer relationship management
Everything aimed at
Creating loyalty
Maximizing the turnover or the margin per customer
Optimizing the quality of the customer relationship
SRM
Social Relationship Management
Set of practices aimed at
Through social networks
Developing a customer or prospect relationship
Phases to building a complete strategy
Build the plan
Manage performance
Develop a strategy
Determine position