Exam 2 Flashcards
What is most important for purchasing
The right supplier
What might interrupt the flow of supply
Natural disasters, supplier quality issues, logistics interruptions, financial issues
What 4 area are supply managers experts in?
L-resources: they have to know everything about product suppliers = category analysis
2. Suppliers- can they meet buying needs and location
3. Processes - the buying, manufacturing, t logistics process
4. Technologies available
Why supply management is important
Keeps mechanisms of supply demand operating smoothly so people have aces s to goods/services
Why is procureremst important
Plays a critical role in controlling costs, minimizing financial risky and improving financial performance
Ensures organization obtains the right goods and services at the right price and quality
How can purchasing help top of the line
Helping with innovation, using capabilities of its supply base in a way that brings in the best ideas
What is wish mitigation?
Uninterrupted flow of goods
What must a procurement function first do
Understand what it is buying in order to develop appropriate strategies for each category
Where is the supply function in the supply chain
Upstream
Why is supply management important
Strategic approaches in order to make relevant value
What makes up spend analysis
Purpose, categories
How does procurement affect supply chain rush
Fire, storm, breakdown, power out
What are the strategic souring process steps
- market research
- Spend analysis 3. Portfolio analysis 4. Contract negotiation 5. Supplier relationship management
Supply portfolio analysis non critical
Focus on low cost
Spa botthenech
Ensure supply continuity
Spa strategic
Form partnership wi suppliers
Spa leverage
Maximize commercial advantage
