Reading lecture 1 Flashcards
Purchasing
everything a company gets an invoice for
direct purchasing
all components bought that will be part of the final product
indirect purchasing
all components bought for support activities
ordering
placing an order with a supplier and accepting his sales terms and conditions
buying
comparing different bids from suppliers and accepting the most attractive one
purchasing
asking for different quotations
challenges the specifications of the customer
procurement
looks at the acquisition price and total cost of ownership
sourcing
choose the best possible supplier for our requirements on a global scale
supply chain management
the management of the different parties involved in order to be efficient
value chain management
generate and mobilize the expertise of our suppliers to help us deliver better products
how to achieve purchasing excellence
- strategic management processes
- enabling processes
they have to be performed in a balance
strategic management processes
- insourcing/outsourcing
- develop commodity strategies
- establish a world class supply base
- supplier relationships
- integrate suppliers in new product development processes
- integrate suppliers in order fulfillment processes
- supplier development and quality management
- manage costs across the SC
enabling processes
- establish globally integrated supply chain strategies
- develop organization and teaming strategies
- deploy globalization
- develop purchasing and supply chain measurements
- develop and implement enabling IT systems
- establish HR development and training
procurement maturity
- it broadly refers to achieving the organizations goals
objectives of PSM
- rationalization
- development
- structure