Lecture 1

Question 1

What is the first objective for purchasing?

Answer 1

Assurance: that the materials are from the right source, bought for the right price, with the correct/needed specifications, in the right quantity and delivered at the right time

Question 2

What is the second objective for purchasing

Answer 2

Manage purchasing process efficiently and effectively: involves managing staff levels and within budgets, ensuring high utilization of facilities, design so that operations are highly efficient, and monitoring performance and seeking improvements

Question 3

What is the third objective for purchasing

Answer 3

Supplier performance: ensure suppliers are competitive, improve current suppliers, develop new potential suppliers who currently are not good enough to join

Question 4

What is the fourth objective for purchasing

Answer 4

develop aligned goals with internal stakeholders: strong two way communication, positive problem solving, having stakeholders as internal customers

Question 5

What is the fifth objective for purchasing

Answer 5

Develop integrated supply strategies that support business goals and objectives: align functional goals with organizational goals, be mutually supportive etc.

Question 6

What is TCO?

Answer 6

Is total cost of ownership, and it is ALL the costs involved in a company’s supply chain. Includes quality, delivery, ordering, reception, inspection and transportation

Question 7

What is the supply wheel?

Answer 7

Is a wheel that represents the 5 strategic elements of an organization and how they are interlinked

Question 8

What are the elements of the supply wheel?

Answer 8

Skills and competencies, organizational structure, strategic performance measures, cost benefit analysis and relationship portfolio

Question 9

What were the drivers for the evolution of purchasing?

Answer 9

Political, Economical, Social and Technological reasons.