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Road To "A" in TIØ4175 Purchasing and Logistics Management 2021…

- - - - Reconceiving products and markets
      - Redefining productivity in the value chain
      - Enabling local cluster development
    - - creating economic value that also creates value for society. Business must reconnect company success with social progress
    - - Energy use and logistics
      - Resource use
      - Procurement
      - Distribution
      - Employee productivity
      - Location
  - - - Conduct joint improvement activities
      - Share information intensiveely but selectivly
      - Develop suppliers' technical capabilities
      - Supervise your suppliers
      - Turn supplier rivalry into opportunity
      - Understand how your suppliers work
  - - - Difficult to specify logistical needs
      - Limited number of capable suppliers
    - - Defenition of competences/ strategy
      - Assessment of costs
      - Analysis of suppliers/ competitors
      - Search ends as soon as a satisfactory solution is found
    - - Determine what to outsource
      - Selecting a suppplier
      - Project completion
      - Supplier management
  - - - Make or buy. What needs to be controlled internally and what resources should be accessed externally form suppliers? (not discussed)
      - How the buyer can access
        suppliers' resources
        (discussed)
        
        Types of interfaces:
        
        Standardized: Knowledge of Use and Produce and Unrelated
        
        Specified: Buyer's and seller's resources are to some extent adapted to each other
        
        Translation: Buyer's direction is based on the function of the product in its users's context
        
        Interactive: Joint learning. Develop the specifications together thought sharing user- and producer contexts.
        
        Differentiations between
        these interfaces:
        
        Cost associated
        
        Benefits provided
        
        Productivity
        
        Innovatively
        
        Three conclusions:
        
        The buyer needs a variety of interfaces
        
        Interfaces are interdependent
        
        The choice of interfaces must take dynamic features into account
        
        Three managerial implications:
        
        Preserve variety amongst your set of supplier or customer interfaces
        
        Understand the interdependence amongst interfaces
        
        Avoid the dangers of focusing too narrowly in core competencies
  - - - Advantages:
        
        Lower purchasing prices
        
        Higher quality
        
        Lower transection costs
        
        Reduced workloads
        
        Reduced supply risks
        
        Learning from each other
      - Disadvantages:
        
        Set-up costs
        
        Coordination costs
        
        Losing flexibility
        
        Losing control
        
        Supplier resistance
        
        Possible interference by anti-trust legislation
      - Very useful in public organizations (mutual trust, no competition)
    - - Piggy-backing
        
        Share purchasing info with other orgs in large network
        
        Reduced transection cost, purchasing prices
        
        May cost host
        
        Orgs may not be aware of option or it is illegal(?)
      - Third-party
        
        Involve long term piggy backing
        
        Host discussions for making contracts for common products
        
        No high involvement relationship with each other
        
        Common in US healthcare products/services
      - Lead buying
        
        Items are purchased by most suitavle group
        
        Members specialize in purchasing specific items
      - Project
        
        Intensive form of cooperative purchasing
        
        One time purchasing group for the project
      - Program
        
        Members are highly involved, have a lot of influence
        
        Members share admin work and focus on reducing cost
    - - Extent of the costs and gains for the members
      - Influence by all members in the activities of the group
      - Number of different activities for the group
      - Organizational structure of the group
      - Member characteristics
      - Size of the group
      - Life span of the group
  - - - Structural: How the relationships
        are in terms of importance to companies (age/time)
        
        Continuity
        
        Complexity
        
        Symmetry
        
        Informality
      - Process: How the nature of the interaction processes within the relationships develop and decay, and what effects they have on the parties involved
        
        Adaptations
        
        Cooperation and conflict
        
        Social interaction
        
        Routinization
      - Texture of
        interdependencies:
        
        Technology
        
        Knowledge
        
        Social interaction
        
        Routinization
        
        Legal ties
        
        Formal cooperation agreements (Joint ventures ect)
        
        Procurement rules (protectionism, x% locally)
        
        Connectedness: Relationships that affect each other.
  - - - Architect
      - Lead operator
      - Caretaker
    - - Steering committees
      - Sign-off/approval procedures
      - Informal mutual adjustments
      - Plans and controls
    - - Flexible
      - Hollow
      - Virtual
      - Value-added
    - - Taking an operations management perspective, supply network actors and resources can be considered ‘inputs’ to the process of ‘operating a network’
      - Operating a network involves transforming resources into goods and services which are ‘outputs’ of the supply network
      - This operation a supply network involves a range of tangible and less tangible activities
      - Supply networks operate in different network contexts
      - Networking activities should be appropriate to the network context.
  - - - Size and shape of base
      - Reduction of base
      - Conditions/qualifications of suppliers
      - Organization of base
      - Buyer-supplier relationships
      - Changes in relationships over time
    - - Purchasing policy
      - Relationship-driven changes
      - Technical modifications
    - - Interconnected relationships
      - Network structure
      - Initiation/creation/management/change processes
  - - - Learning routine: regular pattern of interactions among individuals that permits the transfer, recombination, or creation of specialized knowledge
    - - Motivate network partners to share knowledge
      - Deal with free-riders
      - Reduce cost of getting knowledge in network
    - - Information exchange between member companies and Toyota
      - Mutual development and training among member companies
      - Socializing events
    - - Preliminary inspection
      - Diagnosis experimentation
      - Presentation
      - Follow-up/evaluation
    - - Supplier association
      - Knowledge transfer consultants
      - Small-group learning teams
      - Stages/Phases
        
        Develop weak ties
        
        Develop strong ties with Toyota
        
        Develop strong ties among suppliers
  - - - Economic consequences are hard to assess
      - Can only exercise limited control over vendor
      - Uncertainty and ambiguity is high
      - Much interaction
      - The company can change
        
        Scope of suppliers
        
        Configuration of supplier base
        
        Postures of supplier relationships
        (different ways of dealing with different suppliers)
    - - Can handle costs related to the
        extent of involvement with the supplier
      - Cost benefits: Related to collaboration with suppliers
      - Revenue benefits: Economic consequences of supplier relationships related to income
      - Largest suppliers are not always best partners
    - - Coordination of activities
      - Adaptations of resources
      - Interaction among individuals
      - High involvement relationships are costly
        
        Higher relationship costs
        
        Higher supply handling costs
        
        Lower direct procurement costs
        
        Lower transaction costs
  - - - Expected value
      - Perceived trust
      - Perceived dependence
    - - The need for a resource
        the other party possesses
      - Availability of alternative sources
        (for example alternative suppliers)
    - - Buyer
        
        Cost reduction
        
        rime compression
        
        Innovation
        
        Access to new buyer(s)/supplier(s)
        
        Competency development
      - Supplier
        
        Price/volume
        
        Growth
        
        Access to new buyer(s)
        
        Competency development
  - - - Identify needs/specs
      - Formulate criteria
      - Call for tenders
      - Qualification
      - Final selection
      - Evaluate supplier performance
      - Green supplier strategy should be
        aligned with org/corp strategy
    - - Aligning supplier selection with an
        organization's overall green strategy
      - The role of decision-making tools and models in GSS
      - Considering GSS as a series of interrelated
        decisions and information processing activities
      - Considering the wider supply chain
        context in which GSS takes place
    - - Supply chain context
        
        Position of the focal organization in the supply chain
        
        The power that can be exerted by the focal organization under-taking the selection
        
        Inter-organizational issues of supplier selection (the degree of perceptual discrepancies between the focal organization and the suppliers regarding the meaning, importance and use of green criteria
      - Tools
        
        Financial performance
        
        Non-financial performance
      - Process
      - Alignment
  - - - Rationalization: purchasing's task to contribute to the firm's competitive strength by minimizing total costs of production, logistics, prices of inputs ect.
      - Structure: handlings of the firm's supplier network, especially in terms of the degree of dependency of the firm on specific suppliers.
      - Development: systematically align the firm’s technological develop with the development of suppliers and the supplier network.
    - - Development management: includes all the
        activities that set the stage for the other areas
        of the purchasing integration in product development
      - Determine which technologies to keep/develop
        in-house and which ones to outsource to suppliers
      - Formulating guidelines for the involvement
        of suppliers in product development
      - Formulating guidelines for purchasing-related activities of
        internal departments in product development
      - Communicating policies and procedures
        internally and externally
    - - Monitoring supplier markets for technical developments
      - Preselecting suppliers for product development collaboration
      - Motivating suppliers to build up/improve/maintain specific knowledge or develop certain products
      - Leveraging the technical capabilities of suppliers
      - Evaluating suppliers' development performance
    - - Project execution (also during project)
        Integrating development activities between
        
        Suppliers and manufacturer
        
        Different first tier suppliers
        
        First tier suppliers and second tier suppliers
      - Project planning
        
        Evaluating suppliers' development performance
        
        Leveraging the technical capabilities of suppliers
        
        Motivating suppliers to build up/maintain specific knowledge or develop certain products
        
        Preselecting suppliers for product development collaboration
        
        Monitoring supplier markets for technical developments
- - - - Strategic impact
      - achieving cost advantage
      - achiecing value advantage
      - supply chain structures (Omni channels)
      - measuring ligistics costs and performance
    - - Creating a responsive logistics sustem
      - Matching supply and demand characteristics
      - Role
      - Role of information
      - Collaboration
      - Redesign
    - - Risks
      - Complexity
      - Overcoming battiers to supply chain integration
      - Networks
      - Sustainable supply chains
  - - - Purchasing's role in the value chain
      - The purchasing process
      - Purchasing managment
    - - Strategic alignment
      - Portfolio approaches
      - Make-or-buy
      - Outsoursing
      - Innovation and supplier development
      - Organization
      - Performance measurement
      - Sustainability
    - - Supplier relationships and networks
      - Public procurement