43 Matching questions
- Several factors have elevated the importance of procurement to the firm
- Pretransaction components
- Supplier Certification
- Supplier Selection and Assessment
- Bottleneck purchases
- A buyer's activities to improve a supplier's performance and/or capabilities based on the following approach:
- Supplier Recognition Programs
- Implications to decisions made in the following dimensions of procurement strategy
- Describe some examples of Supplier Performance Metrics...
- Low level of supply risk
- Procurement Focuses on Several Issues related to the Firms' Supply Base
- Alternative procurement strategies
- Transaction components
- Volume Consolidations
- Value Management
- Supplier Evaluation:
- Where does procurement look
- Postransaction components
- Electronic Data Interchange (EDI)
- Internet-based communications offer
- Backward Vertical Integration
- ISO 14000
- A segmented approach is used to
- ISO (International Organization for Standardization)
- Leverage purchases
- Purchasing was historically
- Supplier selection considerations
- Total cost of ownership
- Spend analysis -
- Outsourcing -
- JIT delivery
- Procurement is an organizational capability that
- Routine purchases
- Forward Vertical Integration -
- ISO 9000
- Operational Integration
- High level of supply risk
- Pareto Principle:
- High value
- User Buy
- Is make or buy strategic?
- Low value
- Critical purchases -
- a JIT delivery
More frequent delivery of smaller quantities
Close cooperation and communication
Integration of suppliers into manufacturing processes
Procurement of logistics services
- b Critical and Leverage purchase
- c Purchased goods and services are among the largest cost elements for most firms: 55 cents of every sales dollar
The growing emphasis of outsourcing has expanded the supply base of organizations
This added complexity requires more management attention on the organizational interfaces with suppliers
- d Refers to acquiring customer's operations.
- e Supplier audits
E-commerce and procurement
-Electronic data interchange (EDI)
- f Buying materials and components from suppliers instead of making them in-house. The trend has moved toward outsourcing.
- g unique procurement problems. Supply risk is high and availability is low. Small number of alternative suppliers.
- h -Building partnerships
-Sharing information and knowledge
-Identifying linked processes and shared opportunities for improvement
- i 1.) Identifying need
2.) Investigating sources
4.) Adding supplier to internal systems
- j Product & process technologies
Willingness to share technologies and information
Early supplier involvement (ESI)
Concurrent engineering (CE)
Cost - Total cost of ownership or acquisition
Order system & cycle time
- k Yes
- l prioritize resources for purchasing
The most procurement effort goes to the most critical supplies/suppliers
- m 1.) Pretransaction components
2.) Transaction components
3.) Posttransaction components
- n Routine and Bottle neck
- o 1.) Price
7.)Return of parts
- p -Purchasing was historically perceived as just a buying function for manufacturing, repair materials, and supplies
-Purchasing agents tried to get the lowest price possible for the most acceptable quality
-Transactional focus led to getting the best possible "deal" today
Did not focus on future transactions
No concept of supply chain
Purchasing seldom looked beyond the first-tier supplier
Purchasing simply responded to the demands of the production group
- q Routine and Leverage purchase
- r Allow users in the organization to doing the routine buying of items considered to be too insignificant to warrant further consideration.
- s Commodity items where many alternatives of supply exist and supply risk is low. Spend is high and there are potential procurement savings
- t 1.) Line fallout
2.)Defective finished goods rejected before sale
4.)Repair/replacement in field
5.) Customer goodwill/reputation of firm
6.)Cost of repair costs
7.) Cost of maitnence and repairs
- u What types of metrics might I use to rate my suppliers?
What about metrics for transportation providers?
- v "An organization's process for evaluating the quality systems of key suppliers in an effort to eliminate incoming inspections."
Institute for Supply Management
- w User buy
- x - Refers to acquiring sources of supply
- y Bottleneck and Critical
- z Three Attributes:
1.)Companies should recognize & celebrate the achievements of their best suppliers.
2.)Award winners exemplify true partnerships continuous improvement, organizational commitment, & excellence.
3.)Award-winning suppliers serve as role models for other suppliers.
- aa Increasing procurement leverage by reducing the total number of suppliers while continuing to minimize risk
- ab An independent, non-governmental membership organization and the world's largest developer of voluntary International Standards. Made up of 162 member countries, with a Central Secretariat based in Geneva, Switzerland.
- ac a small percentage of items account for a large percentage of the dollars spent
For example, "A" items in an ABC inventory classification system
Purchasing processes should be tailored to the value and/or criticality of the materials needed
- ad Procurement looks up and down the entire supply chain for impacts and opportunities
Goods and service account for 55 cents of every sales dollar
- ae strategic items and services that involve a high level of expenditure and are vital to the firm's success.
- af several opportunities for making product information available while overcoming compatibility issues between computer systems
Electronic catalogs allow rapid access to product info, specifications, pricing and ordering
Buying exchanges allow sellers or buyers of specific goods or services to find each other on a common web site
- ag Identify critical products & services
Identify critical suppliers
Form a cross-functional team (usually lead by Procurement)
Meet with top management of selected supplier(s)
Identify key projects to drive performance improvements
Develop and define details of a formal agreement
Monitor status & modify strategies
- ah Extends beyond buyer-seller operations
Involving the supplier early in product design
- ai is the electronic transmission of data between a firm and its suppliers
Shares information and knowledge such as order entry, planning/scheduling, tracking, delivery, billing and payment
- aj ensures the firm is positioned to implement its strategies with support from its supply base
-Focuses on building relationships with suppliers (Tier 1 and beyond)
-Involvement with outsourcing includes more than just purchasing raw materials and parts
-Also includes finding alternate sources for manufactured products or services to help manage demand
- ak identifies how much is being spent on each type of product or service across all locations in the firm
- al A process to identify the best & most reliable suppliers
Sourcing decisions are made on facts and not on perception
Frequent feedback can help avoid surprises & maintain good relationships.
Suppliers should also be allowed to provide constructive feedback to (you) the customer
- am A series of quality standards that provide basic definitions for quality assurance and quality management .
Companies wanting to sell in the global market seek ISO 9000 certification.
- an items that involve a low percentage of the firms' total spend and involve very little supply risk.
- ao Volume consolidation
Importance and implications of supplier selection, supplier qualification, and supplier management
- ap A series of standards for environmental management measuring a firm's environmental impact.
The benefits include reduced energy consumption, environmental liability, reduced waste & pollution, and improved community goodwill.
- aq Ensuring Continuous Supply
Minimizing Inventory Investment
Quality Improvement of Supply
-Building supplier relationships
-Supplier continuous improvement
Lowest Total Cost of Ownership