Purchasing and Supply Chain Management: Strategies and Realities

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Table of Contents Foreword .......................................................................................... viii Preface ...................................................................... ............................ ix Chapter I. Developments in Purchasing and Supply Chain Management and Logistics .................................................................................. 1 Procurement, Purchasing, Outsourcing, Supply Management and Supply Chain Management ......................................................... 1 The Sustainable Supply Chain ......................................................... 9 Resource-Based View and Competitive Advantage ........................ 10 Business Issues in the 21st Century ................................................. 13 Supply Chains into the Future ....................................................... 14 Supply Chain Education ................................................................ 16 Professional Competence: Food for Thought ................................ 19 Chapter II. Strategic Purchasing Management ................................................... 21 Corporate Planning ...................................................................... 21 Purchasing Planning and Purchasing Strategies ........................... 27 Corporate and Environmental Factors ......................................... 29 Strategic Planning ........................................................................ 29 Market Strategic Flexibility........................................................... 30 Objectives and Responsibilities ...................................................... 30 iv SWOT and Gap Analysis ............................................................... 32 Functions Involved in Corporate Planning .................................... 33 Functional Contribution to Corporate Strategy............................. 34 Monitoring Performance ............................................................... 35 Purchasing Needs and Corporate Strategies ................................. 36 Purchasing Strategies ................................................................... 38 Flexible Strategies......................................................................... 41 International Trade: Implications for Purchasing Management ............................................................................ 44 Ethical Purchasing ........................................................................ 47 Procurement Agencies .................................................................. 48 Food for Thought .......................................................................... 49 Chapter III. Purchasing Policy .............................................................................. 50 Policy Issues .................................................................................. 50 Selecting Overall Policy ................................................................ 53 Structure of Purchasing Organisation ........................................... 53 Structure of the Purchasing Function in Simple Organisations ...... 54 Division of Work amongst Buying Groups ..................................... 57 The Position of Purchasing Management in the Organisation ....... 59 Structure of the Purchasing Function in Complex Organisation .... 60 A Multilevel Structure for Purchasing Management ...................... 63 Other Methods of Achieving Coordination .................................... 65 The Selection of an Appropriate Structure for Particular Circumstances .......................................................................... 66 Multinational Supplies Structures .................................................. 67 Public Sector ................................................................................. 68 Benchmarking ............................................................................... 69 Materials Management.................................................................. 71 Exemplar Case Study: Procurement Business Strategy .................. 73 Chapter IV. Quality Management and Customer Service .................................... 89 Defining Quality ............................................................................ 89 Design and Conformance .............................................................. 92 The Costs of Quality...................................................................... 93 Efficient Consumer Response ........................................................ 99 Total Quality Management .......................................................... 100 Food for Thought ........................................................................ 103 v Chapter V. Supply Chain Management ............................................................. 104 The Role of Supply Chain Management ....................................... 104 The Supply Chain Mix ................................................................. 107 The Scope of the Supply Chain .................................................... 109 The Value Chain and Interlock Strategy ...................................... 113 Chapter VI. Managing the Supply Chain Function ............................................. 120 Staffing the Department .............................................................. 121 Operating Manuals...................................................................... 124 Qualities of Supply Chain Personnel............................................ 125 Recruiting Personnel ................................................................... 126 Managing the Department .......................................................... 130 Implications for Supply Chain Management ................................ 133 Management and Implementation of Change .............................. 133 Supply Chain and Change ........................................................... 135 Chapter VII. Operating Environments ................................................................. 138 Integrated Logistic Support ......................................................... 138 ILS Management Structure.......................................................... 143 Level of Repair Analysis .............................................................. 148 Logistics Information Systems ..................................................... 150 Logistics and Other Organisational Functions ............................. 155 Chapter VIII. Provisioning and Inventory Control ................................................ 161 Provisioning................................................................................ 161 The Use of Computers ................................................................ 171 The Objectives of an Inventory Control System ........................... 174 Method of Inventory Control ....................................................... 180 Cost of Inventory Investment ...................................................... 185 Inventory Control and Accounting Methods ................................ 187 Pricing Issues .............................................................................. 189 Price Analysis ............................................................................. 195 Inventory in the Final Accounts................................................... 196 Identification and Coding of Materials ........................................ 198 Development of the Coding System ............................................. 205 vi The Stores Vocabulary ................................................................ 210 Inventory Reduction .................................................................... 217 Review of Other Concepts ........................................................... 221 Materials Requirements Planning ................................................ 224 Manufacturing Resource Planning .............................................. 226 Chapter IX. Stores Management ....................................................................... 228 Stores Management Objectives ................................................... 228 The Siting of Stores Buildings and Stockyards ............................. 230 Construction of the Buildings and Stockyards ............................. 231 Stockyards .................................................................................. 233 Internal Layout ........................................................................... 233 Detailed Planning of Layouts ...................................................... 234 Types of Stores ............................................................................ 235 Special Storage Facilities ............................................................ 240 Planning Storage Equipment ....................................................... 242 Handling Equipment ................................................................... 245 Types of Handling Equipment ..................................................... 248 Security ....................................................................................... 255 Safety and Safe Methods of Working ........................................... 256 Case Studies ................................................................................ 260 Chapter X. Transport ........................................................................................ 264 Introduction ................................................................................ 265 Fleet Management ...................................................................... 266 Vehicle Scheduling ...................................................................... 269 Maintenance and Security ........................................................... 273 Facilities for Maintenance ........................................................... 273 Quality Control ........................................................................... 274 Security ....................................................................................... 275 Containers, Unitisation and Palletisation .................................... 276 Mechanical Aids to Loading and Off-Loading ............................. 280 Loading and Unloading Equipment Available on Vehicles........... 282 Road Vehicle Design and Road Planning ..................................... 282 Road Haulage ............................................................................. 287 Operating Costs of Own Fleet ..................................................... 291 Rail Freight ................................................................................. 295 vii Air Freight .................................................................................. 297 Food for Thought ........................................................................ 300 Case Study .................................................................................. 301 Chapter XI Physical Distribution ....................................................................... 303 Distribution ................................................................................. 303 Distribution Planning .................................................................. 304 Logistics and Delivery Planning .................................................. 307 Budgetary Control in Distribution ............................................... 312 Food for Thought ........................................................................ 315 Case Study .................................................................................. 317 United Parcel Service ................................................................. 318 Modelling Systems ....................................................................... 318 Radio Frequency Identification.................................................... 319 Chapter XII. E-Business ...................................................................................... 320 A Definition of Electronic Data Interchange................................ 320 Why Use EDI?............................................................................. 323 Viewpoint .................................................................................... 340 References and Bibliography.......................................................... 342 About the Author............................................................................. 355 Index ............................................................................................... 356 [Show More]

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