Beruflich Dokumente
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Chapter 2
PURCHASING
MANAGEMENT
© 2019 Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or
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Principles of Supply Chain Management (5e)
CHAPTER OUTLINE
• Introduction
• Supply Chain Management Defined
• The Importance of Supply Chain Management
• The Origins of Supply Chain Management in the U.S.
• The Foundations of Supply Chain Management
• Current Trends in Supply Chain Management
© 2019 Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or
otherwise on a password-protected website or school-approved learning management system for classroom use.
Principles of Supply Chain Management (5e)
CHAPTER 2
LEARNING OBJECTIVES
You should be able to:
• Describe the role of purchasing and its strategic impact
on an organization’s competitive advantage.
• Describe the traditional purchasing process, e-
procurement, public procurement, and green purchasing.
• Recognize and know how to handle small value
purchase orders.
• Analyze and evaluate sourcing decisions and the factors
impacting supplier selection, including outsourcing,
make-or-buy, and break-even analysis.
© 2019 Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or
otherwise on a password-protected website or school-approved learning management system for classroom use. 3
Principles of Supply Chain Management (5e)
© 2019 Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or
otherwise on a password-protected website or school-approved learning management system for classroom use. 4
Principles of Supply Chain Management (5e)
CHAPTER OUTLINE
• Introduction
• A Brief History of Purchasing Terms
• The Role of Supply Management in an Organization
• The Purchasing Process
• Sourcing Decisions – The Make or Buy Decision
• Roles of Supply Base
• Supplier Selection
• How Many Suppliers to Use
• Purchasing Organization
• Global Sourcing
• Procurement for Government and Nonprofit Agencies
© 2019 Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or
otherwise on a password-protected website or school-approved learning management system for classroom use. 5
Principles of Supply Chain Management (5e)
© 2019 Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or
otherwise on a password-protected website or school-approved learning management system for classroom use.
Principles of Supply Chain Management (5e)
© 2019 Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or
otherwise on a password-protected website or school-approved learning management system for classroom use.
Principles of Supply Chain Management (5e)
© 2019 Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or
otherwise on a password-protected website or school-approved learning management system for classroom use.
Principles of Supply Chain Management (5e)
© 2019 Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or
otherwise on a password-protected website or school-approved learning management system for classroom use.
Principles of Supply Chain Management (5e)
© 2019 Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or
otherwise on a password-protected website or school-approved learning management system for classroom use.
Principles of Supply Chain Management (5e)
© 2019 Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or
otherwise on a password-protected website or school-approved learning management system for classroom use.
Principles of Supply Chain Management (5e)
Simplified Reduce
Profit & Material
Loss Costs by
Statement $20,000
Gross Sales/Net Revenue $1,000,000 $1,000,000
Cost of Goods Sold (Materials + Manufacturing $500,000 $480,000
Cost)
Gross Profits $500,000 $520,000
General & Administrative Expenses (45% of $450,000 $450,000
Gross Sales)
Profits Before Taxes $50,000 $70,000
© 2019 Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or
otherwise on a password-protected website or school-approved learning management system for classroom use.
Principles of Supply Chain Management (5e)
© 2019 Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or
otherwise on a password-protected website or school-approved learning management system for classroom use.
Principles of Supply Chain Management (5e)
© 2019 Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or
otherwise on a password-protected website or school-approved learning management system for classroom use.
Principles of Supply Chain Management (5e)
© 2019 Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or
otherwise on a password-protected website or school-approved learning management system for classroom use.
Principles of Supply Chain Management (5e)
Issue PO
Materials
Requisition
Purchase Purchase MR 1
Order Order MR 2
PO 1 PO 1 Accounting
PO 2 PO 2
PO 3 MR 2 Information
MR File Issue for charging the
PO 4
Materials
Materials + appropriate
department
DO 3
DO 2
Delivery PO File
Order PO 3
DO 1 MR File
DO 2
MR 2
Ship
Materials
MR 2
DO 2 + Accounts Payable
PO 2
Materials Materials +
PO 2
Delivery
Order Delivery
DO 1 Order
DO 1
INV 2
Invoice
INV 1 Invoice
INV 1
© 2019 Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or
otherwise on a password-protected website or school-approved learning management system for classroom use.
Principles of Supply Chain Management (5e)
© 2019 Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or
otherwise on a password-protected website or school-approved learning management system for classroom use.
Principles of Supply Chain Management (5e)
© 2019 Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or
otherwise on a password-protected website or school-approved learning management system for classroom use.
Principles of Supply Chain Management (5e)
© 2019 Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or
otherwise on a password-protected website or school-approved learning management system for classroom use.
Principles of Supply Chain Management (5e)
© 2019 Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or
otherwise on a password-protected website or school-approved learning management system for classroom use.
Principles of Supply Chain Management (5e)
© 2019 Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or
otherwise on a password-protected website or school-approved learning management system for classroom use.
Principles of Supply Chain Management (5e)
© 2019 Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or
otherwise on a password-protected website or school-approved learning management system for classroom use.
Principles of Supply Chain Management (5e)
© 2019 Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or
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Principles of Supply Chain Management (5e)
Find break-even point Q by setting total cost of both options equal and solving for Q:
25,000 + 5Q = 500 + 7Q
7Q − 5Q = 25,000 − 500
2Q = 24,500
Q = 12,250 units = Break-even point
© 2019 Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or
otherwise on a password-protected website or school-approved learning management system for classroom use.
Principles of Supply Chain Management (5e)
© 2019 Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or
otherwise on a password-protected website or school-approved learning management system for classroom use.
Principles of Supply Chain Management (5e)
© 2019 Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or
otherwise on a password-protected website or school-approved learning management system for classroom use.
Principles of Supply Chain Management (5e)
© 2019 Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or
otherwise on a password-protected website or school-approved learning management system for classroom use.
Principles of Supply Chain Management (5e)
Supplier Selection
• The process of selecting suppliers, is complex and should be based on
multiple criteria:
• Product and process technologies: supplier should have competent process
technologies to produce superior products at reasonable cost to enhance the
buyer’s competitive edge
• Willingness to share technologies & information: suitable with current trend
Early supplier involvement (ESI): supplier can assist new product
design and development through ESI to ensure cost- effective
design choices, develop alternative conceptual solutions, select
the best components and technologies…
• Quality: high and consistent- directly affect to quality of finished goods
• Reliability: quality level, financially stable, reliable delivery lead time …=>avoid
interupted production due to shortage of material
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Principles of Supply Chain Management (5e)
Supplier Selection
• Order system & cycle time: how easy is a ordering system? What is normal
order cycle time? How about delivery lead time? => small lot sizes can be
ordered on frequent basis to reduce inventory holding costs
• Cost
Total cost of ownership or acquisition: unit cost of item, payment
terms, cash discount, ordering cost, carrying cost, logistics cost,
maintenance cost, and other qualitative cost…
• Capacity: to fill order? Fill large orders?
• Communication capability
• Location: geographical location => impact delivery lead time, transportation,
logistic cost
• Service: supplier must be able to back up their products by providing good
services when needed
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Principles of Supply Chain Management (5e)
2. Cash Discount
n/30 $6,000,000 x 10% x 30/365 $49,315.07 $5,976,000 x 10% x 30/365 $49,117.81
1/10 N/A $5,976,000(10% x10/365+1%) $76,132.60
2/10 $6,000,000(10% x10/365+2%) $136,438.36 N/A
Largest discount ($136,438.36) ($76,132.60)
4. Transportation Cost
125miles x 12,000units x 22lbs x 100miles x 12,000units x
(22,000 lb LTL) $19,800.00 $15,840.00
$1.20/2000 22lbs x $1.20/2000
5. Ordering Cost 12,000 / 1,000 x $125 $1,500.00 12,000 / 1,000 x $125 $1,500.00
6. Carying Cost 1,000 / 2 x $500 x 20% $50,000.00 1,000 / 2 x $498 x 20% $49,800.00
8. Delivery Rating
Backorder (50%) 12,000 x 1% x 50% x $15 $900.00 12,000 x 2% x 50% x $15 $1,800.00
12,000 x 2% x 50% x $4,500 x
Lost Sales (50%) 12,000 x 1% x 50% x $4,500 x 18% $48,600.00 $97,200.00
18%
© 2019 Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or
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Principles of Supply Chain Management (5e)
© 2019 Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or
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Principles of Supply Chain Management (5e)
Purchasing Organization
Purchasing Organization is dependent on many
factors, such as market conditions & types of
materials required
• Centralized Purchasing – Single purchasing
department located at the firm’s corporate
office makes all the purchasing decisions
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Principles of Supply Chain Management (5e)
Advantages - Advantages -
Centralization Decentralization
• Concentrated volumes • Better knowledge
• Avoids duplication of requirements
• Specialization • Local sourcing
• Lower transportation • Less bureaucracy
costs
• No competition between
units
• Common supply base
© 2019 Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or
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Principles of Supply Chain Management (5e)
© 2019 Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or
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Principles of Supply Chain Management (5e)
Global Sourcing
Import Broker – Sales agent who performs
transactions for a fee (They do not take title to the
goods)
Import Merchant – Buys and takes title to the goods
and resells them to a buyer
Tariff – An official list showing the duties, taxes, or
customs imposed by the host country on imports or
exports
Non-tariff barriers – import quotas, licensing
agreements, embargoes, laws and other regulations
imposed on imports and exports
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Principles of Supply Chain Management (5e)
Potential Challenges –
Requires additional skills and knowledge to deal
with international suppliers, logistics,
communication, political environment, and other
issues
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Principles of Supply Chain Management (5e)
© 2019 Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or
otherwise on a password-protected website or school-approved learning management system for classroom use.
Principles of Supply Chain Management (5e)
© 2019 Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or
otherwise on a password-protected website or school-approved learning management system for classroom use.
Principles of Supply Chain Management (5e)
© 2019 Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or
otherwise on a password-protected website or school-approved learning management system for classroom use.
Principles of Supply Chain Management (5e)
© 2019 Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or
otherwise on a password-protected website or school-approved learning management system for classroom use.
Principles of Supply Chain Management (5e)
End of Chapter 2
© 2019 Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or
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