Purchasing and supply management: with 50 supply chain cases
Saved in:
| Format: | Book |
|---|---|
| Language: | English |
| Published: |
Boston [u.a.]
McGraw-Hill
2006
|
| Edition: | 13. ed. |
| Series: | The McGraw-Hill/Irwin series operations and decision sciences
|
| Subjects: | |
| Online Access: | Inhaltsverzeichnis |
| Physical Description: | XIX, 564 S. graph. Darst. |
| ISBN: | 0072873795 9780072873795 |
Staff View
MARC
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Record in the Search Index
| _version_ | 1804135972210737152 |
|---|---|
| adam_text | 1 Purchasing and Supply
Management 1
2 Supply Organization 27
3 Supply Processes 58
4 Information Systems and
Technology 90
5 Quality, Specification, and
Service 115
6 Quantity and Inventory 148
7 Transportation and Delivery 178
8 Price 197
9 Cost Management, Discounts,
and Negotiation 234
10 Supplier Selection 255
11 Investment Recovery 290
12 Supply Law and Ethics 308
13 Research and Metrics 342
14 Global Supply 370
15 Public Supply Management 398
16 Capital Goods 422
17 Services 447
18 Make or Buy, Insourcing,
and Outsourcing 475
19 Supplier Relations 493
20 Strategy in Purchasing and
Supply Management 523
INDEXES
CaseIndex 547
Subject Index 548
Chapter 1
Purchasing and Supply Management 1
Purchasing and Supply Management 3
Definitions 4
Supply and Logistics 5
The Size of an Organization s Spend and Financial
Significance 6
Supply Contribution 8
The Operational versus Strategic Contribution
of Supply 9
The Direct and Indirect Contribution of Supply 9
Decision Making in the Supply Management
Context 13
The Differences between Commercial and
Consumer Acquisition 14
Supply Qualifications and Associations 14
Challenges Facing Purchasing and Supply
Management over the Next Decade 17
Technology 17
Supply Chain Management 17
Measurement 17
Growth and Influence 17
Effective Contribution to Corporate
Success 18
The Organization of This Text 18
Conclusion 19
Questions for Review and Discussion 19
References 19
Addresses 20
Cases 21
/ / Custom Equipment 21
1 2 Roger Gray 23
1 3 Cottrill Inc. 24
Chapter 2
Supply Organization 27
Objectives of Supply Management 29
viii
Organizational Structures for Supply
Management 32
Small and Medium Sized Organizations 32
Specialization within the Supply Function 32
Large Organizations 36
Centralized Supply Structure 36
Decentralized Supply Structure 36
Hybrid Supply Structure 36
Structure for Direct and Indirect Spend 38
Managing Organizational Change in Supply 39
Organizing the Supply Group 40
The Chief Purchasing Officer (CPO) 40
Profile of the CPO 41
CPO Trends 41
Reporting Relationship 42
Supply Activities and Responsibilities 42
What Is Acquired 42
Supply Chain Activities 43
Type of Involvement 43
Involvement in Corporate Activities 44
Influence of the Industry Sector on Supply
Activities 45
Supply Teams 45
Leading and Managing Teams 46
Cross Functional Supply Teams 46
Teams with Supplier Participation 48
Teams with Customer Participation 48
Co location of Supply with Internal Customers 48
Co location of Suppliers in the Buying
Organization 48
Supplier Councils 48
Supply Councils 49
Consortia 49
Conclusion 50
Questions for Review and Discussion 51
References 51
Cases 52
2 1 Duchess University 52
2 2 Roger Haskett 54
Chapter 3
Supply Processes 58
The Supply Management Process 60
Strategy and Goal Alignment 60
Ensuring Process Compliance 61
Steps in the Supply Process 61
1. Recognition of Need 62
2. Description of the Need 62
Types of Requisitions 63
Flow of the Requisition 64
Early Supply and Supplier Involvement 65
3. Identification of Potential Sources 65
Issuing an RFx 65
Linking Organizational and Category Strategy 66
4. Supplier Selection and Determination
ofTerms 67
5. Preparation and Placement of the Purchase
Order 67
Format and Routing 67
6. Follow Up and Expediting 71
Cost and Benefits 73
7. Receipt and Inspection of Goods 73
Eliminating or Reducing Inspection 74
8. Invoice Clearing and Payment 74
Aligning Supply and Accounts Payable 75
Cash Discounts and Late Invoices 75
Streamlining the Receiving, Invoicing, and
Payment Process 76
9. Maintenance of Records and Relationships It
Linking Data to Decisions 77
Managing Supplier Relationships 77
A Supply Process Flowchart 77
Rush and Small Value Orders 79
Rush or Emergency Orders 79
Small Value Orders and Efficiency Tools 79
Policy and Procedure Manual 81
Conclusion 83
Questions for Review and Discussion 83
References 83
Cases 84
3 1 Mike Wesley 84
3 2 UIL Inc. 86
3 3 Southeastern University 87
Table of Contents ix
Chapter 4
Information Systems and Technology 90
Information Management 92
Information Systems 92
Information System Technology Use in
Supply Management 94
Software 94
Commonly Used Technology Tools 95
Electronic Communication 96
Electronic Data Interchange (EDI) 96
extensible Markup Language (XML) 97
Intranets and Extranets 98
E Marketplaces 99
Electronic or Online Catalogs 99
REID 100
Online Auctions 101
Reverse A uctions 102
When to Use Reverse Auctions 102
Conducting Reverse Auction Events 102
Ethical Issues with Reverse Auctions 103
Potential Problems with Using Online
Auctions 104
Implications for Supply 105
Conclusion 106
Glossary of Terms 106
Questions for Review and Discussion 108
References 108
Cases 109
1 4 1 Cable and Wireless pic (A) 109
4 2 Establishing E Business Standards at
Deere Company 110
4 3 Hemingway College 113
Chapter 5
Quality, Specification, and Service 115
Determination of Need 116
Early Supply and Supplier Involvement 117
Methods of Description 118
Description by Brand 119
Or Equal 119
Description by Specification 119
Description by Engineering Drawing 121
Miscellaneous Methods of Description 121
Combination of Descriptive Methods 122
Sources of Specification Data 122
Standardization and Simplification 123
Quality, Suitability, and Best Buy 124
Quality 124
Suitability 125
Reliability 125
Quality Dimensions 125
Best Buy 126
Determining the Best Buy 126
The Cost of Quality 126
Continuous Improvement 129
ISO 9000 Quality Standards and the Malcolm
Baldrige Award 130
Total Quality Management (TQM) 131
Quality Function Deployment (QFD) 131
Inspection and Testing 132
Testing and Samples 132
Inspection 133
Quality Assurance and Quality Control 134
Process Control 135
Adjustments and Returns 139
Supplier Certification 140
Service 140
Conclusion 141
Questions for Review and Discussion 141
References 142
Cases 142
5 7 Bright Technology International 142
5 2 Air Quality Systems Inc. 144
5 3 Synergy Metals Inc. 145
Chapter 6
Quantity and Inventory 148
Inventory Management 149
Functions and Forms of Inventories 150
The Functions of Inventory 150
The Forms of Inventory 153
Inventory Function and Form Framework 153
Managing Supply Chain Inventories 155
ABC Classification 156
Costs of Inventories 158
Forecasting 160
Forecasting Techniques 160
Determining Order Quantities and Inventory
Levels 161
Fixed Quantity Models 161
Fixed Period Models 163
Probabilistic Models and Service Coverage 163
Buffer or Safety Stocks and Service Levels 164
Material Requirements Planning (MRP) 166
MRP Inputs 166
MRP Lot Sizing 166
Modern MRP Systems 167
Supply Implications of MRP 168
Lean Supply and JIT 168
Kanban Systems 170
JIT and Inventory Management 171
JIT Implications for Supply Management 171
Conclusion 172
Questions for Review and Discussion 172
References 172
Cases 173
6 1 Connecticut Circuit Manufacturers 173
6 2 Abbey Paquette 175
6 3 Sedgman Steel 176
Chapter 7
Transportation and Delivery 178
Organization for Logistics Decisions 180
FOB Terms and Incoterms 180
Transportation 182
Supply s Involvement in Transportation 183
Transportation Regulation and Deregulation 183
Transportation Carriers 184
Motor Carriers 184
Rail Carriers and Intermodal 185
Air Carriers 185
Water Carriers 185
Pipelines 185
Selection of Mode and Carrier 186
Rates and Pricing 187
Other Transportation Service Providers 188
Documentation in Freight Shipments 189
FreightAudits 191
Expediting and Tracing Shipments 191
Developing a Transportation and Logistics
Strategy 191
Conclusion 192
Questions for Review and Discussion 193
References 193
Cases 194
7 1 Great Western Bank 194
7 2 Geo Products 194
7 3 Penner Medical Products 195
Chapter 8
Price 197
Relation of Cost to Price 198
Meaning of Cost 199
How Suppliers Establish Price 201
The Cost Approach 201
The Market Approach 201
Government Influence on Pricing 202
Legislation Affecting Price Determination 202
Types of Purchases 203
Raw Materials/Sensitive Commodities 204
Special Items 205
Standard Production Items 205
Small Value Items 206
The Use of Quotations and Competitive
Bidding 207
Firm Bidding 208
Determination of Most Advantageous Bid 209
Collusive Bidding 210
The Problem of Identical Prices 210
Provision for Price Changes 211
Contract Cancellation 213
Forward Buying and Commodities 214
Forward Buying versus Speculation 214
Organizing for Forward Buying 215
Control of Forward Buying 215
The Commodity Exchanges 216
Limitations of the Exchanges 217
Hedging 217
Sources of Information Regarding Price
Trends 219
Conclusion 219
Questions for Review and Discussion 220
References 220
Cases 221
8 1 MasTech Inc. 221
8 2 Chevron Corporation: The PC Selection
Team (Abridged) 222
5 5 Commodity Purchasing Game 226
8—4 Price Forecasting Exercise 232
Chapter 9
Cost Management, Discounts,
and Negotiation 234
Cost Management 235
Total Cost of Ownership 23 7
Target Pricing 238
The Learning Curve or Manufacturing
Progress Function 239
Activity Based Costing 240
Discounts 241
Cash Discounts 241
Trade Discounts 242
Multiple Discounts 242
Quantity Discounts 243
The Price Discount Problem 243
Quantity Discounts and Source Selection 244
Cumulative or Volume Discounts 245
Negotiation 246
Negotiation Strategy and Practice 246
Framework for Planning and Preparing
for Negotiation 248
Conclusion 250
Questions for Review and Discussion 250
References 251
Cases 251
9—1 Deere Cost Management 251
9 2 McMichael Inc. 253
Chapter 10
Supplier Selection 255
The Supplier Selection Decision 256
Decision Trees 257
Identifying Potential Sources 258
Information Sources 259
The Evaluation of Potential Sources 263
Technical, Engineering, and Manufacturing
and Distribution Strengths 263
Management and Financial Evaluation 264
Supplier Evaluation Methods 265
Informal and Semiformal Evaluation
and Rating 266
Formal Supplier Evaluation and Rating 267
Linking Sourcing with Strategy 269
Single versus Multiple Sourcing 270
Manufacturer versus Distributor 272
Geographical Location of Sources 272
Supplier Size 273
Social, Political, and Environmental Concerns 274
Joint Purchasing with Supplier 2 78
Purchasing for Company Personnel 2 78
Risk Assessment 279
Strategy Development 280
Conclusion 282
Questions for Review and Discussion 282
References 282
Cases 283
10 1 Quotech Inc. 283
10 2 Bid Evaluation 285
10 3 Somers Office Products Inc. 288
Chapter 11
Investment Recovery 290
North American Environmental Initiatives 292
ISO 14000 Environmental Standards 293
Benefits of Effective Disposal 294
Categories of Material for Disposal 295
Excess or Surplus Materials 296
Obsolete Material or Equipment 296
Rejected End Products 296
Scrap Material 297
Waste 297
Hazardous Waste 298
Responsibility for Material Disposal 299
Keys to Profitable Disposal 300
Disposal Channels 300
Disposal Procedures 302
Selecting the Right Disposal Partner 303
Conclusion 304
Questions for Review and Discussion 305
References 305
Cases 306
11 1 Miltec Inc. 306
U 2Ornex 306
Chapter 12
Supply Law and Ethics 308
Legal Authority 309
Personal Liability 311
Authority of Suppliers Representatives 312
The Uniform Commercial Code 312
The Purchase Order Contract 313
Acceptance of Orders 314
Purchases Made Orally—Statute of Frauds 315
Inspection 316
Acceptance and Rejection of Goods 317
Warranties 318
Title to Purchased Goods 319
Protection against Price Fluctuations 319
Cancellation of Orders and Breach of Contract 320
Common Law and the Purchase of Services 321
E Commerce and the Law 321
Electronic Signatures 322
Uniform Electronic Transactions Act 323
Antitrust and E Marketplaces 323
Intellectual Property Laws 324
Copyright Law 324
Patents 325
Trademarks 326
Industrial Design 326
Geographical Indication 326
Product Liability 326
Alternative Dispute Resolution 327
Commercial Arbitration 328
Mediation 328
Internal Escalation 329
The Sarbanes Oxley Act 329
Ethics 329
Perceptions and Conflict of Interest 332
Gifts and Gratuities 332
Promotion of Positive Relationships with
Suppliers 334
Reciprocity 335
Social Responsibility 335
Conclusion 337
Questions for Review and Discussion 337
References 338
Cases 338
12 1 Brassco 338
12 2 Lancaster Life Insurance Co. 339
Chapter 13
Research and Metrics 342
Organizing for Supply Research 343
Full Time or Part Time Research Positions 345
Cross Functional Teams 345
Supply Research Opportunities 346
Purchased Materials, Products, or Services 347
Value Analysis 347
Target Costing 349
Commodities 350
Suppliers 351
Relationship Classification 353
Supply Processes 353
Assessing Research Results 354
Supply Planning Process 354
Supply Budgets 354
Performance Measurement Systems 355
The Value of Supply Metrics 355
The Challenges 356
Measuring Supplier Performance 357
Key Supplier Performance Indicators 357
Supply Management Performance Metrics 357
Establishing Metrics 359
Efficiency Metrics 359
Effectiveness Metrics 359
Operating Reports 359
Validating Results 361
Appraising Team Performance 361
Supply Performance Benchmarking 361
Conclusion 363
Questions for Review and Discussion 363
References 363
Cases 364
13 1 City ofGranston 364
13 2 Industrial Products Corporation (IPC) 366
Chapter 14
Global Supply 370
The Importance of Global Supply 371
Reasons for Global Purchasing 372
Potential Problem Areas 374
Incoterms 380
Information Sources for Locating and
Evaluating International Suppliers 383
Global Sourcing Organizations 384
Intermediaries 386
Countertrade 386
Barter/Swaps 387
Offset Arrangements 387
Counterpurchase 387
Buyback/Compensation 387
Switch Trade 388
Foreign Trade Zones 389
Foreign Trade Zones Compared with
Bonded Warehouses 391
Maquiladoras 391
TIBs and Duty Drawbacks 391
Free Trade Agreements 392
Conclusion 392
Questions for Review and Discussion 393
References 393
Cases 394
14 1 Global Pharmaceuticals Ltd. 394
14 2 Andrew Morton 395
Chapter 15
Public Supply Management 398
Characteristics of Public Supply 400
Source of Authority 400
Budgetary Restrictions/Limitations 401
Outside Pressures 401
Government Programs 401
Interest Costs 402
Inspection 403
Transportation and Logistics 403
Past Performance and Switching Cost 403
Transparency and Confidentiality 404
Importance of Specifications 404
Acquisition Procedures 405
The Bid Process 405
Military Supply 409
Firm Fixed Price (FFP) Contract 410
Cost Plus Fixed Fee (CPFF) Contract 410
Cost No Fee (CNF) Contract 410
Cost Plus Incentive Fee (CP1F) Contract 410
State, Local, and Municipal Supply 411
Cooperative or Consortium Purchasing 411
Governmentwide and Cooperative Contracts 412
Local Bidder Preference Laws 412
Model Procurement Code 413
Public Supply Changes 414
Use of Electronic/Internet Based Systems 414
Involvement in Services Spend 414
Multiyear Contracts 414
Privatization 414
Simplified Acquisition Procedures 415
Commercial Practices 415
Conclusion 415
Questions for Review and Discussion 416
References 416
Cases 417
15 1 TriCity 417
15 2 Fairview School Board 419
Chapter 16
Capital Goods 422
The Challenge of Procuring Capital Assets 423
New Technology—New Equipment 424
Equipment Classification 425
Challenges of Equipment Buying 426
Sourcing and Supply Issues 427
Design and R D Considerations 427
Engineering Service 428
Importance of Cost Factors 428
Life Cycle Costing or Total Cost of
Ownership 429
Budgeting Procedures 429
Sourcing and Selection 430
Legal Issues 430
Disposition of Obsolete or Replaced
Equipment 431
Reasons for Buying Used Equipment 431
Sales Contract Terms 432
Leasing Equipment 432
Advantages and Disadvantages of Leasing 433
Types of Leases 434
Categories of Leasing Companies 434
Lessor Evaluation 436
The Acquisition of Technology 436
The Acquisition of Construction 437
Risks in the Construction Process 438
Approaches to Construction Acquisition 438
On Site Considerations in Construction 440
Sustainable Building 440
Supply s Involvement in Construction 441
Conclusion 442
Questions for Review and Discussion 442
References 442
Cases 443
16 1 MarkAppleton 443
16 2 Casson Construction 443
Chapter 17
Services 447
Services 448
Significance of Services Spend 449
What Makes Services Different? 449
Supply Involvement 450
A Framework for Analyzing Services 451
Value of the Service 452
Degree ofRepetitiveness 452
Degree ofTangibility 452
Direction of the Service 453
Production of the Service 453
Nature of the Demand 454
Nature of Service Delivery 454
Degree of Standardization 454
Skills Required for the Service 455
The Acquisition Process for Services 455
Need Recognition and Description 455
Analysis of Supply Alternatives 457
The Purchase Agreement 460
Service Contract Administration 461
Developing a Services Sourcing Strategy 463
Outsourcing and Managing Third party
Service Providers 463
Expanding Supply s Involvement 463
Process Steps 466
Conclusion 467
Questions for Review and Discussion 467
References 467
Cases 468
/ 7 1 Erica Carson 468
17 2 Talbot County School Board 468
17 3 Hampton Manor 469
Chapter 18
Make or Buy, Insourcing,
and Outsourcing 475
Make or Buy 476
Reasons for Make Instead of Buy 477
Reasons for Buying Outside 478
The Gray Zone in Make or Buy 479
Subcontracting 479
Insourcing and Outsourcing 480
Insourcing 481
Outsourcing 482
Outsourcing Purchasing and Logistics 483
Purchasing s Role in Outsourcing 484
Conclusion 485
Questions for Review and Discussion 485
References 485
Cases 486
18 1 B L Inc. 486
18 2 Rondot Automotive 487
18 3 Huson Manufacturing 488
Chapter 19
Supplier Relations 493
Purchaser Supplier Relations 496
Supplier Goodwill 496
The Purchaser Supplier Satisfaction Matrix 497
Tools and Techniques for Moving Positions 499
Purchaser Supplier Relationship
Management 500
Supplier Ranking 500
Partnerships 502
SEMATECH s Partnering Perspective 503
Early Supplier Involvement (ESI)/Early Purchasing
Involvement (EPI) 503
Partner Selection 504
The Longer Time Perspective 504
Co location/In plants 505
Strategic Alliances 505
Concerns about Partnerships 506
Reverse Marketing/Supplier Development 507
Supply Chain Management 509
Supply Networks 510
Conclusion 512
Questions for Review and Discussion 513
References 513
Cases 514
19 1 Plastic Cable Clips 514
19 2 Loren Inc. 517
Chapter 20
Strategy in Purchasing and
Supply Management 523
Levels of Strategic Planning 524
Major Challenges in Setting Supply Objectives
and Strategies 526
Strategic Planning in Purchasing
and Supply Management 526
Major Supply Strategy Areas 526
Risk Management 527
Supply Interruptions and Delays 527
Changes in Prices 528
Reputational Risk 528
Managing Supply Risks 528
The Corporate Context 529
Strategic Components 530
What? 530
Quality? 530
How Much? 532
Who? 532
When? 533
What Price? 533
Where? 533
How? 533
Why? 533
What is Happening in Purchasing
and Supply Management 534
Conclusion 536
Questions for Review and Discussion 537
References 537
Cases 538
20 1 Spartan Heat Exchangers Inc. 538
20 2 Sabor Inc. 540
20 3 Iowa Elevators 542
Indexes
Case Index 547
Subject Index 548
|
| adam_txt |
1 Purchasing and Supply
Management 1
2 Supply Organization 27
3 Supply Processes 58
4 Information Systems and
Technology 90
5 Quality, Specification, and
Service 115
6 Quantity and Inventory 148
7 Transportation and Delivery 178
8 Price 197
9 Cost Management, Discounts,
and Negotiation 234
10 Supplier Selection 255
11 Investment Recovery 290
12 Supply Law and Ethics 308
13 Research and Metrics 342
14 Global Supply 370
15 Public Supply Management 398
16 Capital Goods 422
17 Services 447
18 Make or Buy, Insourcing,
and Outsourcing 475
19 Supplier Relations 493
20 Strategy in Purchasing and
Supply Management 523
INDEXES
CaseIndex 547
Subject Index 548
Chapter 1
Purchasing and Supply Management 1
Purchasing and Supply Management 3
Definitions 4
Supply and Logistics 5
The Size of an Organization's Spend and Financial
Significance 6
Supply Contribution 8
The Operational versus Strategic Contribution
of Supply 9
The Direct and Indirect Contribution of Supply 9
Decision Making in the Supply Management
Context 13
The Differences between Commercial and
Consumer Acquisition 14
Supply Qualifications and Associations 14
Challenges Facing Purchasing and Supply
Management over the Next Decade 17
Technology 17
Supply Chain Management 17
Measurement 17
Growth and Influence 17
Effective Contribution to Corporate
Success 18
The Organization of This Text 18
Conclusion 19
Questions for Review and Discussion 19
References 19
Addresses 20
Cases 21
/ / Custom Equipment 21
1 2 Roger Gray 23
1 3 Cottrill Inc. 24
Chapter 2
Supply Organization 27
Objectives of Supply Management 29
viii
Organizational Structures for Supply
Management 32
Small and Medium Sized Organizations 32
Specialization within the Supply Function 32
Large Organizations 36
Centralized Supply Structure 36
Decentralized Supply Structure 36
Hybrid Supply Structure 36
Structure for Direct and Indirect Spend 38
Managing Organizational Change in Supply 39
Organizing the Supply Group 40
The Chief Purchasing Officer (CPO) 40
Profile of the CPO 41
CPO Trends 41
Reporting Relationship 42
Supply Activities and Responsibilities 42
What Is Acquired 42
Supply Chain Activities 43
Type of Involvement 43
Involvement in Corporate Activities 44
Influence of the Industry Sector on Supply
Activities 45
Supply Teams 45
Leading and Managing Teams 46
Cross Functional Supply Teams 46
Teams with Supplier Participation 48
Teams with Customer Participation 48
Co location of Supply with Internal Customers 48
Co location of Suppliers in the Buying
Organization 48
Supplier Councils 48
Supply Councils 49
Consortia 49
Conclusion 50
Questions for Review and Discussion 51
References 51
Cases 52
2 1 Duchess University 52
2 2 Roger Haskett 54
Chapter 3
Supply Processes 58
The Supply Management Process 60
Strategy and Goal Alignment 60
Ensuring Process Compliance 61
Steps in the Supply Process 61
1. Recognition of Need 62
2. Description of the Need 62
Types of Requisitions 63
Flow of the Requisition 64
Early Supply and Supplier Involvement 65
3. Identification of Potential Sources 65
Issuing an RFx 65
Linking Organizational and Category Strategy 66
4. Supplier Selection and Determination
ofTerms 67
5. Preparation and Placement of the Purchase
Order 67
Format and Routing 67
6. Follow Up and Expediting 71
Cost and Benefits 73
7. Receipt and Inspection of Goods 73
Eliminating or Reducing Inspection 74
8. Invoice Clearing and Payment 74
Aligning Supply and Accounts Payable 75
Cash Discounts and Late Invoices 75
Streamlining the Receiving, Invoicing, and
Payment Process 76
9. Maintenance of Records and Relationships It
Linking Data to Decisions 77
Managing Supplier Relationships 77
A Supply Process Flowchart 77
Rush and Small Value Orders 79
Rush or Emergency Orders 79
Small Value Orders and Efficiency Tools 79
Policy and Procedure Manual 81
Conclusion 83
Questions for Review and Discussion 83
References 83
Cases 84
3 1 Mike Wesley 84
3 2 UIL Inc. 86
3 3 Southeastern University 87
Table of Contents ix
Chapter 4
Information Systems and Technology 90
Information Management 92
Information Systems 92
Information System Technology Use in
Supply Management 94
Software 94
Commonly Used Technology Tools 95
Electronic Communication 96
Electronic Data Interchange (EDI) 96
extensible Markup Language (XML) 97
Intranets and Extranets 98
E Marketplaces 99
Electronic or Online Catalogs 99
REID 100
Online Auctions 101
Reverse A uctions 102
When to Use Reverse Auctions 102
Conducting Reverse Auction Events 102
Ethical Issues with Reverse Auctions 103
Potential Problems with Using Online
Auctions 104
Implications for Supply 105
Conclusion 106
Glossary of Terms 106
Questions for Review and Discussion 108
References 108
Cases 109
1 4 1 Cable and Wireless pic (A) 109
4 2 Establishing E Business Standards at
Deere Company 110
4 3 Hemingway College 113
Chapter 5
Quality, Specification, and Service 115
Determination of Need 116
Early Supply and Supplier Involvement 117
Methods of Description 118
Description by Brand 119
"Or Equal" 119
Description by Specification 119
Description by Engineering Drawing 121
Miscellaneous Methods of Description 121
Combination of Descriptive Methods 122
Sources of Specification Data 122
Standardization and Simplification 123
Quality, Suitability, and Best Buy 124
Quality 124
Suitability 125
Reliability 125
Quality Dimensions 125
"Best Buy" 126
Determining the "Best Buy " 126
The Cost of Quality 126
Continuous Improvement 129
ISO 9000 Quality Standards and the Malcolm
Baldrige Award 130
Total Quality Management (TQM) 131
Quality Function Deployment (QFD) 131
Inspection and Testing 132
Testing and Samples 132
Inspection 133
Quality Assurance and Quality Control 134
Process Control 135
Adjustments and Returns 139
Supplier Certification 140
Service 140
Conclusion 141
Questions for Review and Discussion 141
References 142
Cases 142
5 7 Bright Technology International 142
5 2 Air Quality Systems Inc. 144
5 3 Synergy Metals Inc. 145
Chapter 6
Quantity and Inventory 148
Inventory Management 149
Functions and Forms of Inventories 150
The Functions of Inventory 150
The Forms of Inventory 153
Inventory Function and Form Framework 153
Managing Supply Chain Inventories 155
ABC Classification 156
Costs of Inventories 158
Forecasting 160
Forecasting Techniques 160
Determining Order Quantities and Inventory
Levels 161
Fixed Quantity Models 161
Fixed Period Models 163
Probabilistic Models and Service Coverage 163
Buffer or Safety Stocks and Service Levels 164
Material Requirements Planning (MRP) 166
MRP Inputs 166
MRP Lot Sizing 166
Modern MRP Systems 167
Supply Implications of MRP 168
Lean Supply and JIT 168
Kanban Systems 170
JIT and Inventory Management 171
JIT Implications for Supply Management 171
Conclusion 172
Questions for Review and Discussion 172
References 172
Cases 173
6 1 Connecticut Circuit Manufacturers 173
6 2 Abbey Paquette 175
6 3 Sedgman Steel 176
Chapter 7
Transportation and Delivery 178
Organization for Logistics Decisions 180
FOB Terms and Incoterms 180
Transportation 182
Supply's Involvement in Transportation 183
Transportation Regulation and Deregulation 183
Transportation Carriers 184
Motor Carriers 184
Rail Carriers and Intermodal 185
Air Carriers 185
Water Carriers 185
Pipelines 185
Selection of Mode and Carrier 186
Rates and Pricing 187
Other Transportation Service Providers 188
Documentation in Freight Shipments 189
FreightAudits 191
Expediting and Tracing Shipments 191
Developing a Transportation and Logistics
Strategy 191
Conclusion 192
Questions for Review and Discussion 193
References 193
Cases 194
7 1 Great Western Bank 194
7 2 Geo Products 194
7 3 Penner Medical Products 195
Chapter 8
Price 197
Relation of Cost to Price 198
Meaning of Cost 199
How Suppliers Establish Price 201
The Cost Approach 201
The Market Approach 201
Government Influence on Pricing 202
Legislation Affecting Price Determination 202
Types of Purchases 203
Raw Materials/Sensitive Commodities 204
Special Items 205
Standard Production Items 205
Small Value Items 206
The Use of Quotations and Competitive
Bidding 207
Firm Bidding 208
Determination of Most Advantageous Bid 209
Collusive Bidding 210
The Problem of Identical Prices 210
Provision for Price Changes 211
Contract Cancellation 213
Forward Buying and Commodities 214
Forward Buying versus Speculation 214
Organizing for Forward Buying 215
Control of Forward Buying 215
The Commodity Exchanges 216
Limitations of the Exchanges 217
Hedging 217
Sources of Information Regarding Price
Trends 219
Conclusion 219
Questions for Review and Discussion 220
References 220
Cases 221
8 1 MasTech Inc. 221
8 2 Chevron Corporation: The PC Selection
Team (Abridged) 222
5 5 Commodity Purchasing Game 226
8—4 Price Forecasting Exercise 232
Chapter 9
Cost Management, Discounts,
and Negotiation 234
Cost Management 235
Total Cost of Ownership 23 7
Target Pricing 238
The Learning Curve or Manufacturing
Progress Function 239
Activity Based Costing 240
Discounts 241
Cash Discounts 241
Trade Discounts 242
Multiple Discounts 242
Quantity Discounts 243
The Price Discount Problem 243
Quantity Discounts and Source Selection 244
Cumulative or Volume Discounts 245
Negotiation 246
Negotiation Strategy and Practice 246
Framework for Planning and Preparing
for Negotiation 248
Conclusion 250
Questions for Review and Discussion 250
References 251
Cases 251
9—1 Deere Cost Management 251
9 2 McMichael Inc. 253
Chapter 10
Supplier Selection 255
The Supplier Selection Decision 256
Decision Trees 257
Identifying Potential Sources 258
Information Sources 259
The Evaluation of Potential Sources 263
Technical, Engineering, and Manufacturing
and Distribution Strengths 263
Management and Financial Evaluation 264
Supplier Evaluation Methods 265
Informal and Semiformal Evaluation
and Rating 266
Formal Supplier Evaluation and Rating 267
Linking Sourcing with Strategy 269
Single versus Multiple Sourcing 270
Manufacturer versus Distributor 272
Geographical Location of Sources 272
Supplier Size 273
Social, Political, and Environmental Concerns 274
Joint Purchasing with Supplier 2 78
Purchasing for Company Personnel 2 78
Risk Assessment 279
Strategy Development 280
Conclusion 282
Questions for Review and Discussion 282
References 282
Cases 283
10 1 Quotech Inc. 283
10 2 Bid Evaluation 285
10 3 Somers Office Products Inc. 288
Chapter 11
Investment Recovery 290
North American Environmental Initiatives 292
ISO 14000 Environmental Standards 293
Benefits of Effective Disposal 294
Categories of Material for Disposal 295
Excess or Surplus Materials 296
Obsolete Material or Equipment 296
Rejected End Products 296
Scrap Material 297
Waste 297
Hazardous Waste 298
Responsibility for Material Disposal 299
Keys to Profitable Disposal 300
Disposal Channels 300
Disposal Procedures 302
Selecting the Right Disposal Partner 303
Conclusion 304
Questions for Review and Discussion 305
References 305
Cases 306
11 1 Miltec Inc. 306
U 2Ornex 306
Chapter 12
Supply Law and Ethics 308
Legal Authority 309
Personal Liability 311
Authority of Suppliers' Representatives 312
The Uniform Commercial Code 312
The Purchase Order Contract 313
Acceptance of Orders 314
Purchases Made Orally—Statute of Frauds 315
Inspection 316
Acceptance and Rejection of Goods 317
Warranties 318
Title to Purchased Goods 319
Protection against Price Fluctuations 319
Cancellation of Orders and Breach of Contract 320
Common Law and the Purchase of Services 321
E Commerce and the Law 321
Electronic Signatures 322
Uniform Electronic Transactions Act 323
Antitrust and E Marketplaces 323
Intellectual Property Laws 324
Copyright Law 324
Patents 325
Trademarks 326
Industrial Design 326
Geographical Indication 326
Product Liability 326
Alternative Dispute Resolution 327
Commercial Arbitration 328
Mediation 328
Internal Escalation 329
The Sarbanes Oxley Act 329
Ethics 329
Perceptions and Conflict of Interest 332
Gifts and Gratuities 332
Promotion of Positive Relationships with
Suppliers 334
Reciprocity 335
Social Responsibility 335
Conclusion 337
Questions for Review and Discussion 337
References 338
Cases 338
12 1 Brassco 338
12 2 Lancaster Life Insurance Co. 339
Chapter 13
Research and Metrics 342
Organizing for Supply Research 343
Full Time or Part Time Research Positions 345
Cross Functional Teams 345
Supply Research Opportunities 346
Purchased Materials, Products, or Services 347
Value Analysis 347
Target Costing 349
Commodities 350
Suppliers 351
Relationship Classification 353
Supply Processes 353
Assessing Research Results 354
Supply Planning Process 354
Supply Budgets 354
Performance Measurement Systems 355
The Value of Supply Metrics 355
The Challenges 356
Measuring Supplier Performance 357
Key Supplier Performance Indicators 357
Supply Management Performance Metrics 357
Establishing Metrics 359
Efficiency Metrics 359
Effectiveness Metrics 359
Operating Reports 359
Validating Results 361
Appraising Team Performance 361
Supply Performance Benchmarking 361
Conclusion 363
Questions for Review and Discussion 363
References 363
Cases 364
13 1 City ofGranston 364
13 2 Industrial Products Corporation (IPC) 366
Chapter 14
Global Supply 370
The Importance of Global Supply 371
Reasons for Global Purchasing 372
Potential Problem Areas 374
Incoterms 380
Information Sources for Locating and
Evaluating International Suppliers 383
Global Sourcing Organizations 384
Intermediaries 386
Countertrade 386
Barter/Swaps 387
Offset Arrangements 387
Counterpurchase 387
Buyback/Compensation 387
Switch Trade 388
Foreign Trade Zones 389
Foreign Trade Zones Compared with
Bonded Warehouses 391
Maquiladoras 391
TIBs and Duty Drawbacks 391
Free Trade Agreements 392
Conclusion 392
Questions for Review and Discussion 393
References 393
Cases 394
14 1 Global Pharmaceuticals Ltd. 394
14 2 Andrew Morton 395
Chapter 15
Public Supply Management 398
Characteristics of Public Supply 400
Source of Authority 400
Budgetary Restrictions/Limitations 401
Outside Pressures 401
Government Programs 401
Interest Costs 402
Inspection 403
Transportation and Logistics 403
Past Performance and Switching Cost 403
Transparency and Confidentiality 404
Importance of Specifications 404
Acquisition Procedures 405
The Bid Process 405
Military Supply 409
Firm Fixed Price (FFP) Contract 410
Cost Plus Fixed Fee (CPFF) Contract 410
Cost No Fee (CNF) Contract 410
Cost Plus Incentive Fee (CP1F) Contract 410
State, Local, and Municipal Supply 411
Cooperative or Consortium Purchasing 411
Governmentwide and Cooperative Contracts 412
Local Bidder Preference Laws 412
Model Procurement Code 413
Public Supply Changes 414
Use of Electronic/Internet Based Systems 414
Involvement in Services Spend 414
Multiyear Contracts 414
Privatization 414
Simplified Acquisition Procedures 415
Commercial Practices 415
Conclusion 415
Questions for Review and Discussion 416
References 416
Cases 417
15 1 TriCity 417
15 2 Fairview School Board 419
Chapter 16
Capital Goods 422
The Challenge of Procuring Capital Assets 423
New Technology—New Equipment 424
Equipment Classification 425
Challenges of Equipment Buying 426
Sourcing and Supply Issues 427
Design and R D Considerations 427
Engineering Service 428
Importance of Cost Factors 428
Life Cycle Costing or Total Cost of
Ownership 429
Budgeting Procedures 429
Sourcing and Selection 430
Legal Issues 430
Disposition of Obsolete or Replaced
Equipment 431
Reasons for Buying Used Equipment 431
Sales Contract Terms 432
Leasing Equipment 432
Advantages and Disadvantages of Leasing 433
Types of Leases 434
Categories of Leasing Companies 434
Lessor Evaluation 436
The Acquisition of Technology 436
The Acquisition of Construction 437
Risks in the Construction Process 438
Approaches to Construction Acquisition 438
On Site Considerations in Construction 440
Sustainable Building 440
Supply's Involvement in Construction 441
Conclusion 442
Questions for Review and Discussion 442
References 442
Cases 443
16 1 MarkAppleton 443
16 2 Casson Construction 443
Chapter 17
Services 447
Services 448
Significance of Services Spend 449
What Makes Services Different? 449
Supply Involvement 450
A Framework for Analyzing Services 451
Value of the Service 452
Degree ofRepetitiveness 452
Degree ofTangibility 452
Direction of the Service 453
Production of the Service 453
Nature of the Demand 454
Nature of Service Delivery 454
Degree of Standardization 454
Skills Required for the Service 455
The Acquisition Process for Services 455
Need Recognition and Description 455
Analysis of Supply Alternatives 457
The Purchase Agreement 460
Service Contract Administration 461
Developing a Services Sourcing Strategy 463
Outsourcing and Managing Third party
Service Providers 463
Expanding Supply's Involvement 463
Process Steps 466
Conclusion 467
Questions for Review and Discussion 467
References 467
Cases 468
/ 7 1 Erica Carson 468
17 2 Talbot County School Board 468
17 3 Hampton Manor 469
Chapter 18
Make or Buy, Insourcing,
and Outsourcing 475
Make or Buy 476
Reasons for Make Instead of Buy 477
Reasons for Buying Outside 478
The Gray Zone in Make or Buy 479
Subcontracting 479
Insourcing and Outsourcing 480
Insourcing 481
Outsourcing 482
Outsourcing Purchasing and Logistics 483
Purchasing's Role in Outsourcing 484
Conclusion 485
Questions for Review and Discussion 485
References 485
Cases 486
18 1 B L Inc. 486
18 2 Rondot Automotive 487
18 3 Huson Manufacturing 488
Chapter 19
Supplier Relations 493
Purchaser Supplier Relations 496
Supplier Goodwill 496
The Purchaser Supplier Satisfaction Matrix 497
Tools and Techniques for Moving Positions 499
Purchaser Supplier Relationship
Management 500
Supplier Ranking 500
Partnerships 502
SEMATECH's Partnering Perspective 503
Early Supplier Involvement (ESI)/Early Purchasing
Involvement (EPI) 503
Partner Selection 504
The Longer Time Perspective 504
Co location/In plants 505
Strategic Alliances 505
Concerns about Partnerships 506
Reverse Marketing/Supplier Development 507
Supply Chain Management 509
Supply Networks 510
Conclusion 512
Questions for Review and Discussion 513
References 513
Cases 514
19 1 Plastic Cable Clips 514
19 2 Loren Inc. 517
Chapter 20
Strategy in Purchasing and
Supply Management 523
Levels of Strategic Planning 524
Major Challenges in Setting Supply Objectives
and Strategies 526
Strategic Planning in Purchasing
and Supply Management 526
Major Supply Strategy Areas 526
Risk Management 527
Supply Interruptions and Delays 527
Changes in Prices 528
Reputational Risk 528
Managing Supply Risks 528
The Corporate Context 529
Strategic Components 530
What? 530
Quality? 530
How Much? 532
Who? 532
When? 533
What Price? 533
Where? 533
How? 533
Why? 533
What is Happening in Purchasing
and Supply Management 534
Conclusion 536
Questions for Review and Discussion 537
References 537
Cases 538
20 1 Spartan Heat Exchangers Inc. 538
20 2 Sabor Inc. 540
20 3 Iowa Elevators 542
Indexes
Case Index 547
Subject Index 548 |
| any_adam_object | 1 |
| any_adam_object_boolean | 1 |
| building | Verbundindex |
| bvnumber | BV021997199 |
| classification_rvk | QP 530 |
| ctrlnum | (OCoLC)845829034 (DE-599)BVBBV021997199 |
| dewey-full | 658.72 |
| dewey-hundreds | 600 - Technology (Applied sciences) |
| dewey-ones | 658 - General management |
| dewey-raw | 658.72 |
| dewey-search | 658.72 |
| dewey-sort | 3658.72 |
| dewey-tens | 650 - Management and auxiliary services |
| discipline | Wirtschaftswissenschaften |
| discipline_str_mv | Wirtschaftswissenschaften |
| edition | 13. ed. |
| format | Book |
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| genre_facet | Lehrbuch |
| id | DE-604.BV021997199 |
| illustrated | Illustrated |
| index_date | 2024-07-02T16:10:56Z |
| indexdate | 2024-07-09T20:48:59Z |
| institution | BVB |
| isbn | 0072873795 9780072873795 |
| language | English |
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| physical | XIX, 564 S. graph. Darst. |
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| spelling | Purchasing and supply management with 50 supply chain cases Michiel R. Leenders ... 13. ed. Boston [u.a.] McGraw-Hill 2006 XIX, 564 S. graph. Darst. txt rdacontent n rdamedia nc rdacarrier The McGraw-Hill/Irwin series operations and decision sciences Administración de materiales Compras en la industria Gestión industrial Materialwirtschaft (DE-588)4037937-1 gnd rswk-swf Beschaffung (DE-588)4005988-1 gnd rswk-swf Supply Chain Management (DE-588)4684051-5 gnd rswk-swf (DE-588)4123623-3 Lehrbuch gnd-content Beschaffung (DE-588)4005988-1 s Supply Chain Management (DE-588)4684051-5 s DE-604 Materialwirtschaft (DE-588)4037937-1 s Leenders, Michiel R. Sonstige oth HBZ Datenaustausch application/pdf http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=015211864&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA Inhaltsverzeichnis |
| spellingShingle | Purchasing and supply management with 50 supply chain cases Administración de materiales Compras en la industria Gestión industrial Materialwirtschaft (DE-588)4037937-1 gnd Beschaffung (DE-588)4005988-1 gnd Supply Chain Management (DE-588)4684051-5 gnd |
| subject_GND | (DE-588)4037937-1 (DE-588)4005988-1 (DE-588)4684051-5 (DE-588)4123623-3 |
| title | Purchasing and supply management with 50 supply chain cases |
| title_auth | Purchasing and supply management with 50 supply chain cases |
| title_exact_search | Purchasing and supply management with 50 supply chain cases |
| title_exact_search_txtP | Purchasing and supply management with 50 supply chain cases |
| title_full | Purchasing and supply management with 50 supply chain cases Michiel R. Leenders ... |
| title_fullStr | Purchasing and supply management with 50 supply chain cases Michiel R. Leenders ... |
| title_full_unstemmed | Purchasing and supply management with 50 supply chain cases Michiel R. Leenders ... |
| title_short | Purchasing and supply management |
| title_sort | purchasing and supply management with 50 supply chain cases |
| title_sub | with 50 supply chain cases |
| topic | Administración de materiales Compras en la industria Gestión industrial Materialwirtschaft (DE-588)4037937-1 gnd Beschaffung (DE-588)4005988-1 gnd Supply Chain Management (DE-588)4684051-5 gnd |
| topic_facet | Administración de materiales Compras en la industria Gestión industrial Materialwirtschaft Beschaffung Supply Chain Management Lehrbuch |
| url | http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=015211864&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA |
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