Proactive purchasing in the supply chain : the key to world-class procurement / David N. Burt, Sheila Petcavage, Richard Pinkerton.

Format:

Book

Author/Creator:

Burt, David N.

Contributor:

Petcavage, Sheila D.

Pinkerton, Richard L.

Series:

McGraw-Hill's AccessEngineeringLibrary

Language:

English

Subjects (All):

Business logistics.

Genre:

Electronic books.

Physical Description:

1 online resource (xxxi, 736 p. ) ill.

Edition:

1st ed.

Place of Publication:

New York : McGraw-Hill Professional, c2012.

Language Note:

English

Summary:

This professional guide focuses on implementation over academics with emphasis on certification, the green procurement process, return on investment, logistics, risk management, and social responsibility. Transform purchasing operations from reactive to proactive supply management Written for purchasing managers, Proactive Purchasing in the Supply Chain reveals how to use the latest and best procurement practices to help your organization maximize the effectiveness and efficiency of its supply chain. The ability of purchasing to dramatically increase return on investment, reduce costs, improve quality, and shorten time to market is highlighted throughout this practical guide. Essential topics such as legal issues, green purchasing, negotiation, ethics, price-cost analysis, production-inventory control, purchasing risk management, sourcing, and demand-logistics management are addressed. Real-world case studies in each chapter demonstrate the strategies presented in the book. A detailed planning model for implementing these world-class procurement methods is also contained in this definitive resource. The authors combine extensive industry, educational, research, and consulting experience to cover topics such as: The latest "best-in-class" purchasing methods, tools, procedures, and systems Price-cost analyses and how to fight price increases How to organize the purchasing department to achieve maximum value added in the supply chain Green purchasing Purchasing risk management programs and procedures How to separate strategic from tactical buying Step-by-step checklists for major purchasing functions How to overcome obstacles Forecasting methods for demand management How to transform the purchasing department from a cost center to a value-added operation Social responsibility and ethical issues Planning steps and basic management skills Preparation for relevant certification programs Transform purchasing operations from reactive to proactive supply management Written for purchasing managers, Proactive Purchasing in the Supply Chain reveals how to use the latest and best procurement practices to help your organization maximize the effectiveness and efficiency of its supply chain. The ability of purchasing to dramatically increase return on investment, reduce costs, improve quality, and shorten time to market is highlighted throughout this practical guide. Essential topics such as legal issues, green purchasing, negotiation, ethics, price-cost analysis, production-inventory control, purchasing risk management, sourcing, and demand-logistics management are addressed. Real-world case studies in each chapter demonstrate the strategies presented in the book. A detailed planning model for implementing these world-class procurement methods is also contained in this definitive resource. The authors combine extensive industry, educational, research, and consulting experience to cover topics such as: The latest "best-in-class" purchasing methods, tools, procedures, and systems Price-cost analyses and how to fight price increases How to organize the purchasing department to achieve maximum value added in the supply chain Green purchasing Purchasing risk management programs and procedures How to separate strategic from tactical buying Step-by-step checklists for major purchasing functions How to overcome obstacles Forecasting methods for demand management How to transform the purchasing department from a cost center to a value-added operation Social responsibility and ethical issues Planning steps and basic management skills Preparation for relevant certification programs

Contents:

Cover

Contents

Foreword

Acknowledgments

Introduction

Chapter 1 Purchasing: The Foundation of the Supply Chain

Supply Management and the Bottom Line

Increased Sales

Lower Total Cost of Ownership

Supply Management and Return on Investment (ROI)

The Progression to Strategic Supply Chain Management

Supply Chains

The Supply and Value Networks: The Next Phase of Supply Chain Management

Implementing Strategic Supply Chain Management

The Roles of a Supply Management Professional

Summary

Appendix: An Overview of the Mechanics of Supply Management

Endnotes

Suggested Reading

Chapter 2 Organizational Issues

Placement of Supply Management Within the Organization

Other Factors Impacting Organizational Structure

Classification of Responsibilities and Activities

Operational vs Strategic Responsibilities

Organizational Authority

e-Commerce

Organizational Structures

The Materials Management Organization

The Supply Chain Management Structure

Organizing with Cross-Functional Teams

Budgeting and Staffing

Appendix A

Benefits Resulting from Cross-Functional Teams

Challenges and Problems with the Cross-Functional Approach

Prerequisities to Successful Cross-Functional Teams

Team Development and Training

Appendix B: The Professional Organizations of Supply Chain Management

Chapter 3 Supply Management: An Organization Spanning Activity

Supply Management's Relations with Other Departments

Supply Management and Engineering

Supply Management and Manufacturing and Operations

Supply Management and Quality

Supply Management and Marketing

Supply Management and Finance

Supply Management and Information Technology (IT)

Supply Management and Logistics

Supply Management and Accounts Payable.

Supply Management and Lawyers

Supply Management in Non-Manufacturing Organizations

Supply Management in Government

Supply Management and the External Environment

Business Relationships

Monitoring the Supply Environment

Completing the Supply Chain Linkage: Supplier Integration with the Customer

Chapter 4 A Portfolio of Relationships

A Transformation in Relationships

Transactional Relationships

Collaborative and Alliance Relationships

Collaborative Relationships

Supply Alliances

Which Relationship Is Appropriate?

The Supplier's Perspective

Questions to Be Addressed Before Proceeding

Developing and Managing Collaborative and Alliance Relationships

Situations Wherein Alliances May Not Be Appropriate

The Role of Power

A Portfolio Approach

New Skills and Attitudes Required

e-Commerce and the "Right" Type of Relationship

Relationships of the Future

Appendix

Institutional Trust

Supply Management in Action

Chapter 5 New Product Development

Overview

The Design Process

The Investigation or Concept Formation Phase

The Development Phase

Value Engineering vis-à-vis Value Analysis

The Production Phase

Engineering Change Management

How to Expand Supply Management's Contributions

Design or Project Teams

Materials Engineers

Co-Location

Supply Management Professionals Who Interface Successfully with Engineers

Chapter 6 Purchasing Descriptions and Specifications

Specifications and Standardization

Purposes of Specifications

Collaborative Development

Categories of Specifications

Simple Specifications

Complex Specifications

Combination of Methods

Development of Specifications

Organizational Approaches.

Supply Management Research

Writing Specifications

Common Problems

Standardization

History of Standardization

Types and Sources of Standards

Benefits of Standardization

Simplification

Developing a Standardization Program

Standards Team

Importance of Supply Management

Materials Catalog

Electronic Materials Catalog

Chapter 7 Managing for Quality

Evolution of Quality Management

Philosophies of the Gurus

W. Edwards Deming

Philip Crosby

Masaaki Imai

Genechi Taguchi

Joseph Juran

Management Approaches

Total Quality Management

Continuous Improvement

Six Sigma

DMAIC Cycle

Quality Management System

Tools and Methodologies

Terminology and Usage

Implications for Supply Management

Common Tools

Costs of Quality

Loss to Society

Process Capability Analysis

Statistical Process Control

Quality Movement Support

Organizations

Standards

Awards

Supply Management Issues

Requirements Development

Supplier Quality Analysis

Inspection Dependence

Defect Detection System

Supplier Development

Certification

Chapter 8 Purchasing Equipment

The Nuances of Capital Equipment Procurement

Nonrecurring Purchases

Nature and Size of Expenditure

Building the Foundation

Identify the Need for a Procurement

Project Management

Selection of an Equipment Sourcing Team

Build and Train the Team

Identify Objectives and Estimate Costs

Identifying Objectives

Used Equipment

Spares

Estimating Acquisition Costs and the Total Cost of Ownership (TCO)

Develop Specifications and Initiate Sourcing, Pricing, and TCO Analysis

Develop Specifications

Sourcing

Develop Updated Acquisition Cost and TCO Estimates

Meet Budget and TCO Objectives?.

Top Management Approval

Negotiation

Leased Equipment

Types of Leases

Factors Favoring Leasing

Factors Weighing Against Leasing

To Lease or to Buy?

Initiate Lease or Contract

Post-Award Activities

Chapter 9 Purchasing Services

Hidden Opportunities

The Statement of Work

Four Formats for Statements of Work

Planning the Statement of Work

Writing the Statement of Work

Artificial Intelligence

Tips on Writing an Effective Statement of Work

Selecting Service Contractors

Tips from a Professional

The Ideal Services Supplier

Pricing Service Contracts

Professional Services

Technical Services

Operating Services

Third Party Contracts

So, Your Services Contract Is About to Expire

Contract Administration

Services Purchases and the Internet

Construction Services

Conventional Method

Design and Build, Firm Agreed Price Method

Design and Build, Cost-Reimbursable Method

Building Team

The Owner as a Contractor

Construction Purchasing Entails Unique Problems

Performance Contracting

The Special Case of Contracting Consultants

Qualifying the Consultants

Chapter 10 Production and Inventory Control

PART I: THE FUNDAMENTALS OF PRODUCTION PLANNING

Modern Production Planning Systems

Aggregate Planning and Master Scheduling

Material Requirements Planning

Capacity Requirements Planning

Control of Production Activities

Two Management Considerations

Evolution of MRP and MRP II Systems

Impact on Purchasing and Supply

Just-in-Time Production Planning

A JIT Illustration

JIT's Impact on Purchasing and Supply

ERP Systems

Radio Frequency Identification System (RFID)

PART II: THE FUNCTION OF INVENTORS.

Definition of Inventories

Inventory Analysis

Inventory Catalog

ABC Analysis-The 80-20 Concept

Dependent and Independent Demand

Costs Associated with Inventories

Carrying Costs

Acquisition Costs

Economic Order Quantity (EOQ) Concept

Other Uses of the EOQ Concept

The Weaknesses of the EOQ Formula

Types of Inventory Control Systems

Cyclical or Fixed Order Interval System

The Just-in-Time (JIT) Approach

Material Requirements Planning (MRP) System

Order Point or Fixed Order Quantity System

Appendix: The Fundamentals of Inbound Transportation

Chapter 11 Demand Management and Logistics

The Key to Supply Chain Management

The SCM Triangle

Evolution to Strategic SCM

Strategic Demand Management

The Bullwhip Effect

Evolution of Strategic Demand

Forecasting Demand

Forecasting Fundamentals

Planning with Time Fences

Strategic Logistics Management

Logistics Defined

The Role of Logistics in Supply Chain Management

Eliminate the Warehouse, If Possible

Chapter 12 Outsourcing

Outsourcing: A Growth Industry

Strategic Issues

Core Competencies

Supplier Dominance

The Creation of Strategic Vulnerabilities

The Dangers of Vertical Integration

Horizontal Integration

New Product Development and Outsourcing

Lean Manufacturing

Tactical Decisions

Factors Influencing Make-or-Buy Decisions

Cost Considerations

Control of Production or Quality

Technology Risk and Maturity

Unreliable Suppliers

Suppliers' Specialized Knowledge and Research

Small-Volume Requirements

Limited Facilities

Work Force Stability

Multiple-Source Policy

Managerial Control Considerations

Procurement and Inventory Considerations.

Netsourcing.

Notes:

Formerly CIP.

Includes bibliographical references and index.

Description based on publisher supplied metadata and other sources.

ISBN:

1-283-45376-2

0-07-177062-3

9786613453761

OCLC:

1024243502