Purchasing & Supply Chain Management: Analysis, Strategy, Planning and Practice

by Van Weele, Arjan

• ISBN13: 9781844800247
• ISBN10: 1844800245
• Edition: 4th
• Format: Paperback
• Copyright: 2004-11-18
• Publisher: Cengage Learning EMEA Higher Education

Summary

Purchasing and supply chain management provides a highly structured and comprehensive approach to the fundamental principles and practice of purchasing and supply chain management. It adopts a rigorous managerial perspective on the process of purchasing and analyses its role, position and importance within business processes. The book is logically structured into three distinct sections: analysis, strategy and planning, and practice. Learning objectives, varied and interesting case studies, thought provoking discussion questions, chapter summaries and the use of a highly accessible style and language reinforce the reader?s understanding of the core management issues and concepts.

Table of Contents

Acknowledgements	xiv
Preface	xv
Guided Tour	xviii
Online Teaching and Learning Resources	xx
Introduction	xxi
SECTION I ANALYSIS	1	(114)
The Role of Purchasing in the Supply Chain	3	(22)
Introduction	4	(1)
Changes in the business context	5	(2)
Impact on business strategies and structures	7	(2)
The role of purchasing in the value chain	9	(3)
Definition of concepts	12	(4)
Importance of purchasing to business	16	(2)
Purchasing, cost reduction and technological innovation	18	(1)
Classification of purchasing goods	19	(1)
New developments in purchasing	20	(3)
Summary	23	(2)
Industrial Buying Behavior: Decision Making in Purchasing	25	(21)
Introduction	26	(1)
Organizational buying behavior: basic characteristics	26	(2)
The purchasing process	28	(4)
Major bottlenecks and problems	32	(1)
The role of the purchasing department in the purchasing process	33	(3)
Models of industrial buying behavior	36	(4)
Buying behavior considered as an interactive process	40	(4)
Summary	44	(2)
The Purchasing Process: The Buyer's Role	46	(18)
Introduction	46	(1)
First step in the buying process: determining the purchase order specifications	47	(2)
Second step in the buying process: supplier selection	49	(5)
Third step in the buying process: the purchasing contract	54	(3)
Steps four and five: ordering and expediting	57	(5)
Step six: follow up and evaluation of the buying process	62	(1)
Summary	62	(2)
Markets and Products	64	(17)
Introduction	65	(1)
Markets and market structures	65	(5)
Purchase of goods	70	(9)
Summary	79	(2)
The Purchasing Management Process	81	(18)
Introduction	82	(1)
Primary tasks and responsibilities	82	(2)
Policy principles	84	(1)
Purchasing management process	85	(7)
How purchasing and supply management develops over time	92	(4)
Summary	96	(3)
Purchasing Intelligence and Market Research	99	(16)
Introduction	100	(1)
Why purchase market research?	100	(1)
Purchasing market research: definition	101	(1)
How to structure purchasing market research	102	(5)
Subjects of purchasing market research	107	(2)
Purchasing market research and information technology	109	(1)
Organizing for purchasing market research	110	(2)
Summary	112	(3)
SECTION II STRATEGY AND PLANNING	115	(152)
Outsourcing and Risk Management	117	(20)
Introduction	118	(1)
Outsourcing as a business concept	118	(1)
Definitions	119	(2)
Rationales for outsourcing	121	(2)
Success of outsourcing as a business strategy	123	(1)
The outsourcing process	124	(8)
Risk assessment	132	(2)
Critical success factors of outsourcing	134	(1)
Summary	135	(2)
Purchasing and Business Strategy	137	(20)
Introduction	138	(1)
Purchasing and competitive strategy	138	(3)
Cost leadership and differentiation: consequences for manufacturing and purchasing strategy	141	(1)
Lean manufacturing	142	(2)
Integrating purchasing into company policy	144	(2)
Towards leveraged purchasing strategies	146	(2)
Purchasing portfolio-analysis	148	(7)
Summary	155	(2)
Sourcing Strategy: Getting Better Results from Suppliers	157	(11)
Introduction	158	(1)
Why suppliers do not always think in the interest of their customers	158	(3)
Main elements of supplier management	161	(1)
Getting better results from suppliers	162	(3)
The myth of partnership	165	(1)
Summary	166	(2)
Purchasing and Supply Strategy: Electronic Marketplaces and E-Procurement	168	(15)
Introduction	169	(1)
Investing in e-procurement solutions	169	(2)
Electronic marketplaces and electronic procurement	171	(1)
Possible IT strategies for purchasing	172	(3)
Different purchasing solutions for different purchasing objectives	175	(6)
Agent technology and the Internet	181	(1)
Summary	181	(2)
Purchasing, New Product Development and Quality Control	183	(21)
Introduction	184	(1)
Purchasing and new product development	185	(3)
Benefits and risks related to early supplier involvement	188	(3)
Purchasing and quality control	191	(2)
The costs of quality	193	(2)
Supplier quality assurance	195	(3)
Assessing supplier quality: diagnostic methods	198	(3)
Implementing supplier quality assurance: consequences for purchasing	201	(1)
Summary	201	(3)
Purchasing and Supply Chain Management	204	(23)
Introduction	205	(1)
Purchasing and supply chain management: definitions	205	(3)
Materials requirements planning	208	(3)
Basic logistics structures	211	(2)
Just-in-time management (JIT)	213	(5)
Consequences for suppliers	218	(4)
Scheduling problems between purchasing and logistics	222	(3)
Summary	225	(2)
Getting Organized for Purchasing	227	(23)
Introduction	228	(1)
Purchasing organization structure	229	(2)
Factors influencing the location of purchasing in the organization	231	(1)
Levels of tasks, responsibilities and authority	232	(1)
Organizational structures within purchasing	233	(15)
Summary	248	(2)
Purchasing Performance Measurement	250	(17)
Introduction	251	(1)
Factors influencing purchasing performance measurement	251	(2)
Why measure purchasing performance?	253	(1)
Problems in measuring and evaluating purchasing performance	254	(1)
What should be measured?	254	(5)
Purchasing audit as a management tool	259	(3)
Establishing a purchasing performance evaluation system	262	(2)
Summary	264	(3)
SECTION III PRACTICE	267	(86)
Supplier Assessment: Cost Approaches and Techniques	269	(15)
Introduction	269	(1)
How is the purchase price determined?	270	(4)
Pricing methods	274	(2)
The learning curve	276	(2)
Supplier assessment	278	(4)
Summary	282	(2)
Negotiating Techniques and Rules of Conduct	284	(13)
Introduction	285	(1)
Characteristics of negotiations for industrial purchases	285	(1)
Recognizing negotiating situations	286	(1)
Factors which can weaken the negotiating position	287	(1)
Preparing for negotiations	288	(1)
Planning negotiations	288	(2)
Tactics in purchasing negotiations	290	(1)
Stages in purchasing negotiations	291	(1)
Trust, purchasing ethics and rules of conduct	292	(3)
Summary	295	(2)
Buying for Retail Companies	297	(20)
Introduction	298	(1)
Definitions	299	(1)
Role and importance of purchasing in trade and retail companies	300	(1)
Main differences with industrial companies	301	(1)
Structure and organization of the purchasing process	302	(4)
Developments in trade and retail companies	306	(1)
Sourcing and supply chain strategy trends	307	(8)
Summary	315	(2)
Facilities Management and Buying of Services	317	(22)
Introduction	318	(1)
Trends and developments in the service sector	319	(1)
Purchasing and facilities management	320	(3)
Towards more effective purchasing in a facilities environment	323	(6)
Buying services: definitions and typology	329	(3)
What can we learn from the way services are being sold?	332	(1)
Purchasing services: service level agreements	333	(3)
Summary	336	(3)
Public Procurement and EC Directives	339	(14)
Introduction	340	(1)
Purchasing policy of governmental institutions	341	(2)
EC directives on public procurement	343	(3)
EC procurement procedures	346	(2)
Government procurement agreement	348	(1)
Consequences for procurement professionals	348	(2)
Summary	350	(3)
Bibliography	353	(6)
Index	359