Please enable JavaScript.
Coggle requires JavaScript to display documents.
Chapter1: Purchasing supply chain management - Coggle Diagram
Chapter1: Purchasing supply chain management
Why Purchasing is important
Increasing value and savings
Building relationships and driving
innovation
Improving quality and reputation
Reducing time-to-market
Managing supplier risk
Generating economic impact
Contributing to competitive advantage
Language of Purchasing and SCM
Purchasing
5 Right
Time
Price
Quantity
Source
Quality
Activity
Buying
Negotiation
Supplier identification and selection
Contracting
Supply market research
Supplier measurement and improvement
Definition
A functional group (i.e., a formal entity
on the organization chart) as well as a
functional activity (i.e., a formal entity
on the organization chart)
SCM
Definition
A strategic approach to planning for and acquiring the organization’s current and future needs through effectively managing the supply base, utilizing a process orientation in
conjunction with cross-functional teams to achieve the organizational mission.
Supply Management
Strategic responsibilities
Process approach
Managing the supply base
Cross-functional
Supply Chain
Process
Definition
Set of 3 or more organizations linked directly by 1 or more of upstream or downstream flows of products, services, finances, and information from a source to a customer
Subset of the value chain
Value chain
Compare Procurement and Purchasing
Procurement
Strategic process
Value than cost
End goal: Identify
Long-term
Competitive
Purchasing
Cost than value
Short-term
Reactive process
Less competitive
End goal: Buy
