Read the summary and the most important questions on Purchasing and Supply Chain Management | 9781408088463

• 1 The role of purchasing in the value chain

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• What are the 6 steps in the purchasing function?

  Determining specification, selecting supplier, contracting, ordering, expediting and evaluation, follow-up and evaluation.

• What is a category?

  A group of products which can be substituted for one another by a consumer

• What is a sourcing strategy?

  Identifies for a certain category from how many suppliers to buy, what type of relationship to pursue, contract duration, type of contract to negotiate for, and whether to source locally, regionally or globally.

• What is a partner?

  A (supplier) partner is defined as a firm with whom your company has an on-going buyer-seller relationship, involving a commitment over an extended period, a mural sharing of information and a sharing of risks and rewards resulting form the relationship.

• What are the three ways to improve the company's RONA?

  Through reduction of all direct materials costs, through a reduction of the net working capital employed by the company and through improving the company's revenue generating potential.

• What are the challenges and changes in the purchasing's context?

  1. Global sourcing
  2. Corporate social responsibility (CSR)
  3. Earlier supplier involvement (EVI)

• 2 Industrial buying behavior: decision-making in purchasing

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• What are important characteristics of industrial markets?

  1. Professional purchasing
  2. Derived demand
  3. Inelastic, fluctuating demand
  4. Geographical concentration
  5. Large order quantities and large amounts of money involved
  6. Limited number of customers

• What are the 6 steps of the purchasing process?

  1. Define specification
  2. Select supplier
  3. Contract agreement
  4. ordering
  5. Expediting
  6. Evaluation

• What are the parts of the purchase order specification?

  1. quality specification
  2. logistics specifications
  3. A maintenance specification
  4. legal and environment requirements
  5. a target budget

• 3 The purchasing management process

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• What are the primary tasks and responsibilities in purchasing?

  1. Operational excellence
  2. Cost control and reduction of all purchasing-related spend
  3. Risk management
  4. Continuous improvement