Purchasing and supply chain management

목차 (Table of Contents)

• CONTENTS
• Section One UNDERSTANDING THE PROCUREMENT AND SOURCING PROCESS
• 1 Introduction to Purchasing = 1
• THE COMPETITIVE ENVIRONMENT = 2
• Why Purchasing Is Important = 2
• Purchasing at Allied Signal = 3
• DEFINITION OF PURCHASING AND SOURCING MANAGEMENT = 4
• Sourcing Management = 4
• Supply Chain Management = 5
• THE EVOLUTION AND DEVELOPMENT OF PURCHASING = 8
• Period One : The Early Years(1850-1900) = 8
• Period Two : Growth of Purchasing Fundamentals(1900-1940) = 9
• Period Three : The War Years(1940-1946) = 9
• Period Four : The Quiet Years(1947-Mid-1960s) = 10
• Period Five: Materials Management Comes of Age(Mid-1960s-Late 1970s) = 11
• Period Six : The Global Era(Late-1970s-Present) = 12
• Looking Ahead = 13
• Endnotes = 14
• 2 The Purchasing Process = 16
• OBJECTIVES OF A WORLD-CLASS PURCHASING ORGANIZATION = 17
• Support the Operational Needs and Requirements of Purchasing Customers = 18
• Manage the Purchasing Function Efficiently and Effectively = 19
• Select, Develop, and Maintain Sources of Supply = 19
• Develop Strong Relationships and Interact Closely with Other Functional Groups = 20
• Support a Company's Goals and Objectives = 20
• Develop Integrated Purchasing Strategies That Enhance Company Strategies = 21
• PURCHASING'S SPAN OF CONTROL = 21
• Evaluate and Select Suppliers = 22
• Review Specifications = 23
• Act as the Primary Contact with Suppliers = 23
• Determine the Method of Awarding Purchase Contracts = 23
• THE PURCHASING CYCLE = 24
• Need Identification = 24
• Sourcing Snapshot-Bank of Boston Streamlines the Purchasing Cycle for Nontraditional Service Purchases = 27
• Supply Source Evaluation = 29
• Source Selection = 30
• Release and Receipt of Material Requirements = 32
• Supplier Performance Measurement and Continuous Supplier Management = 34
• PURCHASING DOCUMENTS = 35
• Purchase Requisition = 35
• Request for Quotation = 36
• Purchase Order = 36
• Blanket Purchase Order = 37
• Material Purchase Release = 39
• Other Documents/Electronic Forms = 41
• TYPES OF PURCHASES = 42
• Raw Materials = 43
• Semifinished Products and Components = 44
• Finished Products = 44
• Maintenance, Repair, and Operating Items(MRO) = 45
• Production Support Items = 45
• Services = 46
• Capital Equipment = 47
• Transportation = 47
• Conclusion = 48
• Discussion Questions = 48
• Additional Readings = 49
• Endnotes = 49
• 3 Purchasing Organization = 50
• ORGANIZATION OVERVIEW = 51
• PURCHASING IN THE ORGANIZATIONAL HIERARCHY = 53
• Factors Affecting Purchasing's Placement in the Organizational Structure = 53
• Sourcing Snapshot-Purchasing Assumes a New Position in the Corporate Hierarchy = 55
• To Whom Does Purchasing Report? = 56
• ORGANIZATION OF THE PURCHASING FUNCTION = 57
• Specialization Within the Purchasing Function = 59
• Activities of the Purchasing Department = 60
• Most Common Responsibilities of the Purchasing Department = 66
• Separating Strategic and Operational Purchasing = 66
• Sourcing Snapshot-Systems Help Reorganize the Purchasing Function = 67
• PLACEMENT OF PURCHASING AUTHORITY = 68
• Advantages of a Centralized Purchasing Group = 71
• Advantages of Decentralized Purchasing Authority = 74
• A Centralized-Decentralized Purchasing Structure = 75
• Bringing Centralized and Decentralized Purchasing Together-Black and Decker = 76
• ORGANIZING FOR SUPPLY CHAIN MANAGEMENT = 78
• Materials Management Activities and Functions = 81
• A Materials Management Organizational Structure = 84
• ORGANIZING FOR GLOBAL SOURCING = 85
• Factors Affecting the Global Sourcing Structure = 86
• THE TEAM APPROACH AS PART OF THE ORGANIZATIONAL STRUCTURE = 89
• Conclusion = 90
• Discussion Questions = 91
• Additional Readings = 92
• Endnotes = 92
• 4 Purchasing Policy and Procedures = 94
• POLICY OVERVIEW = 95
• Advantages and Disadvantages of Policies = 95
• Characteristics of an Effective Policy = 96
• The Policy Hierarchy = 97
• PURCHASING POLICY = 99
• Purchasing's Organizational Role = 100
• The Conduct of Purchasing Personnel = 102
• Social and Minority Business Objectives = 104
• Buyer-Seller Relationship Issues = 106
• Operational Topics = 109
• Procedural Topic Areas = 112
• PURCHASING ETHICS = 116
• Risks of unethical Behavior = 117
• Sourcing Snapshot-GM Limits Supplier-Provided Perks = 118
• A Framework of Ethical Behavior = 119
• Types of Unethical Purchasing Behavior = 121
• N.A.P.M. Professional Code of Ethics = 123
• A Comprehensive Study of Purchasing Ethics = 125
• Supporting Ethical Behavior = 127
• Conclusion = 130
• Discussion Questions = 130
• Additional Readings = 131
• Endnotes = 131
• 5 Purchasing as a Boundary-Spanning Function = 133
• PURCHASING LINKAGES = 134
• Purchasing's Internal Linkages = 135
• Purchasing's External Linkages = 138
• Purchasing and Engineering-A Critical Relationship = 139
• BUYER-SELLER RELATIONSHIPS = 141
• Collaborative Buyer-Seller Relationships = 141
• Sourcing Snapshot-Relying on Buyer-Supplier Relationships for Supply Chain Improvement = 145
• Advantages of Closer Buyer-Seller Relationships = 147
• Obstacles to Collaborative Buyer-Seller Relationships = 147
• Sourcing Snapshot-Supplier Alliances Give Gateway an Edge = 148
• INTERNAL PURCHASING RELATIONSHIPS-CROSS-FUNCTIONAL TEAMS = 150
• Sourcing Snapshot-Cross-Functional Team Redesigns the Purchasing Process = 151
• Benefits Sought from the Cross-Functional Team Approach = 152
• Potential Drawbacks to the Cross-Functional Team Approach = 154
• When to Form a Cross-Functional Team = 156
• Purchasing's Involvement in Different Types of Teams = 156
• Critical Success Factors for Cross-Functional Sourcing Teams = 157
• Some Practical Advice for Team Success = 160
• PURCHASING AND ENGINEERING-A TEAM-BASED APPROACH TO NEW PRODUCT DEVELOPMENT = 161
• Traditional Versus Team Approach to New Product Development = 163
• Sourcing Snapshot-Long-Term Partnership and Teaming Between Chrysler and Rockwell = 165
• Purchasing's Contribution on New Product Development Teams = 168
• Sourcing Snapshot-Purchasing and Suppliers Must Make Major Contributions to Future New Product Development = 169
• Using the Team Approach for New Product Development-Industry Examples = 171
• Conclusion = 174
• Discussion Questions = 175
• Additional Readings = 176
• Endnotes = 176
• Section Two STRATEGIC SUPPLY MANAGEMENT
• 6 Procurement and Sourcing Strategy Development = 179
• LINKING PURCHASING AND CORPORATE STRATEGY = 182
• Increasing Importance of the Supply Base = 182
• Corporate and Purchasing Strategy Alignment = 183
• Sourcing Snapshot-Purchasing Becomes a Key Part of Corporate Strategy at New Pig = 184
• THE PROCUREMENT STRATEGY DEVELOPMENT PROCESS = 187
• Develop a Commodity Strategy = 187
• Define the Strategic Importance of Commodities to the Business Unit = 187
• Develop a Commodity Status Report = 190
• Develop Goal and Action Items = 190
• Implement Strategy = 193
• Monitor Progress = 194
• TYPES OF PURCHASING COMMODITY STRATEGIES = 194
• Supply-Base Optimization = 195
• Total Quality Management(TQM) of Suppliers = 195
• Worldwide Sourcing = 196
• Establishing Higher Supplier Performance Expectations = 197
• Longer-Term Supplier Relationships = 197
• Sourcing Snapshot-Alliances and Longer-Term Relationships Sweep the North American Metal Industry = 198
• Cross-Functional Teams = 199
• Early Supplier Design Involvement = 199
• Supplier Development = 200
• Sourcing Snapshot-Motion Industries Invites Suppliers to Annual Industry Fair = 201
• Total Cost of Ownership = 201
• EVOLVING SOURCING STRATEGIES = 202
• A Four-Stage Model of Procurement Evolution = 202
• Purchasing Strategy Implementation Sequence = 204
• Conclusion = 206
• Discussion Questions = 206
• Additional Readings = 207
• Endnotes = 207
• 7 Insourcing／Outsourcing = 209
• ADVANTAGES AND DISADVANTAGES OF INSOURCING／OUTSOURCING = 210
• Sourcing Snapshot-Outsourcing Transportation and Logistics = 211
• FACTORS AFFECTING INSOURCING／OUTSOURCING DECISIONS = 213
• Core Competence of Firms = 213
• Time-Based Competition = 215
• Increased Reliance on Suppliers = 215
• Sourcing Snapshot-Focus on the Customer Requires Supply Chain Management for Steel Firms = 216
• INITIATING THE INSOURCING／OUTSOURCING DECISION = 216
• New Product Development = 217
• Strategy Development = 217
• Poor Internal or External Supplier Performance = 217
• Changing Demand Patterns = 217
• Sourcing Snapshot-OEMs Outsource Value-Added Activities to Distributors = 218
• Shifting Technology Life Cycles = 218
• RELATIONSHIP BETWEEN COMPETITIVE NALYSIS AND INSOURCING／OUTSOURCING = 219
• Market Analysis = 220
• Industry Analysis = 220
• Competitor Analysis = 221
• Technological Maturity = 222
• COST FACTORS IN INSOURCING／OUTSOURCING ANALYSIS = 224
• Types of Costs = 224
• Cost Analysis Example = 227
• NONCOST FACTORS IN INSOURSING／OUTSOURCING ANALYSIS = 228
• INSOURCING／OUTSOURCING EXAMPLE : CUMMINS ENGINE = 229
• Insourcing／Outsourcing Process = 230
• The Decision = 232
• Implementation = 232
• Conclusion = 234
• Discussion Questions = 234
• Additional Readings = 235
• Endnotes = 235
• 8 Supplier Evaluation and Selection = 237
• THE SUPPLIER EVALUATION AND SELECTION PROCESS = 238
• Recognize a New Supplier Selection Need = 239
• Identify Key Sourcing Requirements = 239
• Determine Sourcing Strategy = 240
• Identify Potential Supply Sources = 242
• Sourcing Snapshot-Finding Potential Suppliers on the Internet = 245
• First Cut : Limit Suppliers in Pool = 246
• Determine the Method of Supplier Evaluation and Selection = 247
• Select Supplier = 249
• KEY SUPPLIER EVALUATION CRITERIA = 249
• Management Capability = 250
• Personnel Capabilities = 251
• Cost Structure = 251
• Total Quality Management Philosophy = 252
• Process and Technological Capability = 253
• Sourcing Snapshot-Technological Capability Becomes a Key Supplier Evaluation Criterion at Ford = 254
• Environmental Regulation Compliance = 254
• Financial Capability and Stability = 255
• Production Scheduling and Control Systems = 258
• Information Systems Capability = 259
• Supplier Sourcing Strategies, Policies, and Techniques = 260
• Longer-Term Relationship Potential = 261
• Sourcing Snapshot-Kodak Selects Fewer Suppliers for Control Systems = 262
• DEVELOPING AN INITIAL SUPPLIER EVALUATION AND SELECTION AUDIT = 263
• Step One : Identify Key Supplier Evaluation Categories = 265
• Step Two : Weight Each Evaluation Category = 266
• Step Three : Identify and Weight Subcategories = 268
• Step Four : Define Scoring System for Categories or Subcategories = 268
• Step Five : Evaluate Supplier Directly = 269
• Step Six : Review Evaluation Results and Make Supplier Selection Decision = 272
• Step Seven : Continuous Review of Supplier Performance = 272
• The Texas Instruments Experience = 273
• CRITICAL SUPPLIER SELECTION ISSUES = 273
• Conclusion = 275
• Discussion Questions = 275
• Additional Readings = 276
• Endnotes = 276
• 9 Supplier Quality Management = 278
• INTRODUCTION = 279
• OVERVIEW OF SUPPLIER QUALITY MANAGEMENT = 279
• What Is Quality? = 279
• Sourcing Snapshot-Purchasing Helps EMC Avoid Supplier Quality Slip-Ups = 280
• What Is Supplier Quality? = 281
• Why Be Concerned with Supplier Quality? = 282
• MANAGING SUPPLIER QUALITY-THE ROLE OF THE BUYER = 284
• Clearly Communicate Expectations and Specifications = 284
• Sourcing Snapshot-Toyota Expects Better Quality from U. S. Suppliers = 285
• Be a Good Customer = 286
• Provide Feedback = 287
• MANAGING SUPPLIER QUALITY-THE ROLE OF THE PURCHASING FUNCTION = 289
• Supply-Base Optimization = 290
• Quality Improvement Training Initiatives with Suppliers = 291
• Supplier Quality Certification = 311
• Supplier Development and Performance Improvement Support = 316
• Early Supplier Design Involvement = 317
• Setting Aggressive Supplier Performance Improvement Targets = 318
• Supplier Performance Improvement Rewards = 318
• Supplier Performance Measurement = 319
• SUPPLIER EVALUATION SYSTEMS : ISO 9000 REGISTRATION AND THE MALCOLM BALDRIGE NATIONAL QUALITY AWARD = 319
• Sourcing Snapshot-Suppliers Are Critical to Honda's Quality = 320
• ISO 9000 Registration = 321
• The Malcolm Baldrige National Quality Award = 323
• Sourcing Snapshot-Detroit Drives Supplier Quality = 324
• Comparing ISO 9000 and the Baldrige Award as Supplier Assessment Tools = 326
• Conclusion = 328
• Discussion Questions = 328
• Additional Readings = 329
• Endnotes = 329
• 10 Supplier Management and Development = 331
• SUPPLY-BASE OPTIMIZATION : THE BEGINNING OF SUPPLIER MANAGEMENT AND DEVELOPMENT = 332
• Sourcing Snapshot-Purchasers Optimize Supply Base to Increase Total Performance = 333
• Advantages of an Optimized Supply Base = 334
• Sourcing Snapshot-Fastener Alliances Provide Integrated Service to Customers = 336
• Potential Risks of Maintaining Fewer Suppliers = 338
• Formal Approaches to Supply-Base Reduction = 339
• SUPPLIER PERFORMANCE MEASUREMENT AND EVALUATION = 341
• Supplier Measurement and Evaluation Decisions = 341
• Types of Supplier Measurement and Evaluation Techniques = 344
• LONGER-TERM RELATIONSHIPS AND CONTRACTS = 348
• An Overview = 348
• Structure for Managing Longer-Term Buyer-Seller Relationships = 350
• SUPPLIER DEVELOPMENT = 352
• An Overview = 352
• Sourcing Snapshot-Supplier Development Is a Key Part of Toyota's U.S. Sourcing Strategy = 353
• Types of Supplier Development Support = 355
• Supplier Development-A Framework = 357
• Supplier Development-A Case Example = 359
• SUPPLIER MANAGEMENT AND DEVELOPMENT : PUTTING IT ALL TOGETHER = 361
• Sourcing Snapshot-Supplier Management and Development : Looking Past the First Tier = 362
• Conclusion = 362
• Discussion Questions = 363
• Additional Readings = 364
• Endnotes = 364
• 11 Global Sourcing = 366
• Sourcing Snapshot-Big Three Auto Makers Expand Global Supply Base = 368
• GLOBAL SOURCING OVERVIEW = 369
• Why Firms Pursue Worldwide Sourcing = 370
• Barriers to Worldwide Sourcing = 373
• PROGRESSING FROM DOMESTIC TO GLOBAL SOURCING = 375
• Five International Sourcing Strategies = 376
• Sourcing Snapshot-Ford Design and Purchasing Go Global! = 378
• Assessing the Need for Global Sourcing = 379
• Requirements to Pursue Integrated and Coordinated Global Sourcing = 381
• THE INTERNATIONAL SOURCING PROCESS = 383
• Choosing Items to Get Started = 383
• Obtaining Information About Worldwide Sources = 385
• Evaluating Sources of Supply = 387
• Sourcing Snapshot-MRO Purchasing Goes Global at AT&T = 389
• Awarding the Purchase Contract = 389
• COSTS ASSOCIATED WITH WORLDWIDE SOURCING = 389
• Common Costs = 390
• International Transaction Costs = 390
• MANAGING INTERNATIONAL CURRENCY RISK = 392
• Approaches to Currency Risk Management = 394
• COUNTERTRADE = 399
• Types of Countertrade = 401
• Issues to Consider When Evaluating Countertrade = 403
• GLOBAL SOURCING SUCCESS STORIES = 404
• Bose Corporation = 404
• Ford Motor Company = 405
• Conclusion = 405
• Appendix : International Purchasing Terms = 406
• Discussion Questions = 408
• Additional Readings = 408
• Endnotes = 409
• Section Three APPROACHES FOR MANAGING THE PROCUREMENT AND SOURCING PROCESS
• 12 Purchasing Tools and Techniques = 411
• LEARNING CURVE = 412
• Components of the Learning or Experience Curve = 413
• When to Use the Learning Curve = 413
• Learning Curve Illustrated = 414
• Learning Curve Problem = 415
• VALUE ENGINEERING／VALUE ANALYSIS = 415
• Who Is Involved in Value Analysis? = 417
• Tests for Determining Value in a Product or Service = 418
• Sourcing Snapshot-Value Analysis : An Idea Whose Time Has Come-Again! = 419
• Selecting Items for Value Analysis = 420
• The Value Analysis Process = 420
• Value Analysis or Value Engineering-Which One? = 422
• PROJECT MANAGEMENT = 422
• Sourcing Snapshot-The Best Supplier Representatives Do More Than Sell! = 423
• Roles and Responsibilities of a Project Manager = 423
• Defining Project Success = 424
• Phases of a Project = 425
• Project Planning and Control Techniques = 427
• Rules for Constructing a Project Management Network = 429
• Project Management Illustrated with Time Estimates = 433
• QUANTITY DISCOUNT ANALYSIS = 435
• Quantity Discount Analysis Illustrated = 435
• PROCESS MAPPING = 438
• Process Mapping Illustrated = 439
• Conclusion = 442
• Discussion Questions = 443
• Additional Readings = 443
• Endnotes = 443
• 13 Cost／Price Analysis = 441
• COST FUNDAMENTALS = 446
• Types of Costs = 446
• A Different System of Classifying Costs = 448
• COST ANALYSIS TECHNIQUES = 451
• Production Cost Schedules = 452
• Sourcing Snapshot-Innovative Cost Approaches Save Big Dollars! = 453
• Graphical Analysis of Cost = 455
• Break-Even Analysis = 455
• Learning Curve Analysis = 460
• FACTORS AFFECTING PRICE = 460
• Type of Market Structure = 460
• Economic Conditions = 462
• Cost Structure of the Seller = 463
• Sourcing Snapshot-Expecting Suppliers to Take a Lead in Cost Reduction = 464
• Sourcing Snapshot-U.S. Auto Makers Focus on Cost to Reduce Price = 465
• Pricing Strategy of the Seller = 466
• Type of Product Purchased = 467
• Purchase Volume and Quantity Discounts = 468
• Buyer Versus Supplier Market Leverage = 469
• Buyer／Seller Relationship = 469
• TOTAL COST OF OWNERSHIP = 470
• Benefits and Uses of Total Cost of Ownership Data = 471
• Developing a Total Cost System = 474
• Example : General Electric's Wiring Division = 475
• COST-BASED PRICING : AN INNOVATIVE APPROACH TO PRICING = 476
• Cost-Based Pricing Defined = 477
• Prerequisites for Successful Cost-Based Pricing = 477
• Cost-Based Pricing Applications = 478
• An Example of Cost-Based Pricing = 479
• INNOVATIVE COST ACCOUNTING SYSTEMS = 481
• Advanced Cost Management Systems = 482
• Activity-Based Costing Systems = 482
• Conclusion = 483
• Discussion Questions = 483
• Additional Readings = 484
• Endnotes = 484
• 14 Negotiation = 486
• A NEGOTIATION FRAMEWORK = 488
• Identify or Anticipate a Purchase Requirement = 488
• Determine If Negotiation Is Required = 488
• Plan for the Negotiation = 491
• Conduct the Negotiation = 492
• Execute the Agreement = 494
• NEGOTIATION PLANNING = 494
• Develop Specific Objectives = 495
• Analyze the Strengths and Weaknesses of Each Party = 496
• Gather Relevant Information = 496
• Recognize the Needs of Your Counterpart = 497
• Identify the Facts and Issues = 497
• Establish a Position on Each Issue = 498
• Develop a Negotiating Strategy and Tactics = 499
• Brief Other Personnel About the Negotiation = 500
• Practice the Negotiation = 500
• POWER IN NEGOTIATION = 500
• Sources of Power in Negotiation = 500
• CONCESSIONS = 503
• NEGOTIATION TACTICS : TRYING TO GET TO YES = 505
• CONCEPT OF WIN-WIN NEGOTIATION = 508
• INTERNATIONAL NEGOTIATION = 510
• Conclusion = 512
• Discussion Questions = 513
• Additional Readings = 514
• Endnotes = 514
• 15 Managing Contracts = 515
• TYPES OF CONTRACTS = 516
• Fixed Price Contra = 516
• Cost-Type Contracts = 518
• Considerations in Selecting Contract Types = 519
• SPECIAL CONTRACTUAL ARRANGEMENTS = 521
• Long-Term Purchasing Agreements = 521
• Systems Contracts = 524
• Sourcing Snapshot-Distributors Unite to Meet Demands for Integrated Supply Contracts = 525
• Minority Contracting = 528
• Snapshot-Systems Contracts Help New Haven Manufacturing Reduce Inventory and Improve Service = 529
• SERVICE CONTRACTS = 530
• Consultant Contra = 530
• Construction Contracts = 531
• CONTRACT ADMINISTRATION = 533
• How to Write a Contract = 533
• Components of a Contract = 533
• Short-Term Versus Long-Term Contracts = 535
• SETTLING CONTRACTUAL DISPUTES = 540
• Legal Alternatives = 541
• Arbitration = 542
• Other Forms of Conflict Resolution = 542
• Conclusion = 545
• Discussion Questions = 546
• Additional Readings = 546
• Endnotes = 547
• Section Four ISSUES AND ACTIVITIES THAT SUPPORT THE PROCUREMENT AND SOURCING PROCESS
• 16 Legal Issues and Purchasing Contracts = 549
• LEGAL INFLUENCES IN PURCHASING = 550
• Contractual Relationships = 550
• Laws of Agency = 551
• Jurisprudence System = 551
• LEGAL AUTHORITY AND PERSONAL LIABILITY OF THE PURCHASING MANAGER = 552
• Legal Authority = 552
• Personal Liability = 553
• SOURCES OF U.S. LAW = 554
• U.S. Federal Law Applicable to Purchasing Activities = 555
• Uniform Commercial Code(U. C. C.) = 555
• Commercial Law = 556
• WARRANTIES = 559
• THE PURCHASE ORDER CONTRACT = 561
• Pricing = 562
• Boilerplate Contract Terms and Conditions = 563
• CANCELLATION OF ORDERS AND BREACH OF CONTRACT = 565
• Cancellation of Orders = 565
• Breach of Contract = 565
• Damages = 567
• Acceptance and Rejection of Goods = 568
• Honest Mistakes = 570
• TRANSPORTATION DOCUMENTATION AND DELIVERY TERMS = 570
• PATENTS AND INTELLECTUAL PROPERTIES = 573
• Conclusion = 575
• Discussion Questions = 577
• Additional Readings = 577
• Endnotes = 578
• 17 Inventory Management for Purchases = 579
• PRINCIPLES OF INVENTORY = 580
• Types of Inventory = 581
• Costs of Inventory = 582
• Inventory Investment-Asset or Liability? = 583
• FUNCTION OF INVENTORY WITHIN A FIRM = 585
• Support Production Requirements = 585
• Support Operational Requirements = 585
• Support Customer Service Requirements = 586
• Hedge Against Marketplace Uncertainty = 586
• Taking Advantage of Order Quantity Discounts = 586
• Form Versus Function = 587
• FACTORS LEADING TO INVENTORY WASTE = 587
• Poor Quality and Material Yield = 587
• Unreliable Supplier Delivery = 588
• Extended Buyer-Supplier Order-Cycle Times = 588
• Inaccurate or Uncertain Demand Forecasts = 589
• Specifying Custom Items for Standard Jobs = 589
• Extended Material Pipelines = 589
• Inefficient Manufacturing Processes = 590
• APPROACHES FOR CONTROLLING INVENTORY INVESTMENT = 590
• Just-in-Time Purchasing／Manufacturing／Inbound Logistics = 590
• Sourcing Snapshot-Bose Brings Suppliers In-House to Schedule and Control Inventory = 593
• Structural Barriers and JIT Trends in the U.S. = 595
• Continuous Review of Excess and Obsolete Inventory = 596
• Part Simplification and Redesign = 597
• Review of Safety Stock Levels and Forecasting Techniques = 597
• Sourcing Snapshot-Forecasting System Helps Hill Control Inventory Investment and Meet Customer Requirements = 598
• Sourcing Snapshot-Alliances Lead the Way for Better Purchase and Control of MRO Inventory = 599
• Supplier-Buyer Partnerships with Distributors = 599
• Material Requirement Planning Systems = 601
• FUTURE TRENDS IN SUPPLY CHAIN MANAGEMENT = 604
• Systemwide Inventory Planning and Control = 604
• Automated Systemwide Inventory Control = 604
• Supplier-Buyer Cycle-Time Reduction = 604
• Sourcing Snapshot-Beyond the Benefits of JIT : JIT Ⅱ = 605
• Conclusion = 606
• Discussion Questions = 606
• Additional Readings = 607
• Endnotes = 608
• 18 Purchasing and Transportation = 609
• BUYING TRANSPORTATION SERVICES IN AN ERA OF DEREGULATION = 610
• PURCHASING'S ROLE IN TRANSPORTATION BUYING = 612
• Purchasing Activities and Inbound Transportation = 613
• A DECISION-MAKING FRAMEWORK FOR TRANSPORTATION STRATEGY = 614
• Determine When and Where to Control Transportation = 614
• Identify Key Transportation Performance Variables = 616
• Select a Transportation Mode = 618
• Sourcing Snapshot-Railroads and Trucks to Do Battle for Business = 621
• Select the Type and Carrier = 623
• Negotiate Inbound Rates and Service Levels = 625
• CONTROLLING AND INFLUENCING INBOUND TRANSPORTATION = 626
• Gain Access to Critical and Timely Data = 626
• Develop System Visibility to Inbound Material Shipments = 626
• Develop Closer Carrier-Buyer Relationships = 627
• Sourcing Snapshot-Using Transportation Suppliers for More Than Just Transportation = 628
• Establish Companywide Transportation Contracts = 628
• Sourcing Snapshot-Well-Managed Transportation Networks Yield Supply Chain Savings = 629
• Evaluate Carriers as Suppliers = 629
• Use Computer Decision-Support Tools and Computer Modeling = 629
• Other Actions = 630
• Basic Principles for Success = 630
• TRENDS AFFECTING INBOUND TRANSPORTATION = 630
• Sourcing Snapshot-Full-Service Transportation Carriers Provide Better Customer Service = 631
• Increased Use of Full-Service Transportation Carriers = 631
• Sourcing Snapshot-Xerox Turns to Third-Party Providers for Logistics Help = 632
• Increased Combining of Intermodal Resources = 632
• Organizational Trends = 632
• Focus on Inbound Transportation Pickup Versus Delivery = 633
• Time-Based Logistics = 633
• Cross-Docking = 634
• Conclusion = 635
• Discussion Questions = 636
• Additional Readings = 637
• Endnotes = 637
• 19 Purchasing Information Systems = 638
• AN IDEAL INFORMATION SYSTEM = 640
• INFORMATION SYSTEM BENEFITS = 641
• PURCHASING DATABASES = 643
• COMPUTER-AIDED PURCHASING-THE BASIC TRANSACTIONAL SYSTEM = 645
• Computer-Aided Purchasing and Materials System Modules = 646
• Record Updating and System Interfaces = 648
• ELECTRONIC DATA INTERCHANGE(EDI) = 649
• Sourcing Snapshot-Motorola Uses EDI Technology to Reduce Order Lead Times = 650
• Sourcing Snapshot-Taking Advantage of Electronic Purchasing Systems = 654
• EDI Benefits = 654
• Identifying Firms as EDI Candidates = 656
• EDI Implementation Model = 657
• Navistar : An EDI Success Story = 657
• ADVANCED PURCHASING SYSTEMS AND APPLICATIONS = 659
• Decision-Support Systems = 659
• Decision-Support System Applications in a Purchasing Environment = 659
• Sourcing Snapshot-Systems Technology Automates the Purchasing Process = 661
• Expert Systems = 661
• Purchasing Workstations-A System for the Professional Buyer = 662
• Sourcing Snapshot-Volkswagen Relies on Systems to Support Its Factory of the Future = 663
• FUTURE PURCHASING SYSTEMS APPLICATIONS = 663
• Sourcing Snapshot-Advanced System Supports Data Exchange with Suppliers = 665
• Conclusion = 665
• Discussion Questions = 666
• Additional Readings = 666
• Endnotes = 667
• 20 Performance Measurement and Evaluation = 669
• PURCHASING PERFORMANCE MEASUREMENT AND EVALUATION = 670
• Sourcing Snapshot-Measuring Cost Reduction Ideas Leads to Savings at Chrysler = 671
• Why Measure Purchasing Performance? = 671
• Problems with Purchasing Measurement and Evaluation = 672
• PURCHASING PERFORMANCE MEASUREMENT CATEGORIES = 673
• Price-Effectiveness Measures = 673
• Cost-Effectiveness Measures = 675
• Purchasing Workload Measures = 675
• Administration and Control Measures = 676
• General Efficiency Measures = 677
• Material Status and Control Measures = 678
• Supplier Performance Measures = 678
• Additional Purchasing Measures = 679
• Strategic Performance Measures = 680
• DEVELOPING A PERFORMANCE MEASUREMENT AND EVALUATION SYSTEM = 680
• Determine Which Purchasing Performance Categories to Measure = 681
• Develop Specific Purchasing Performance Measures = 682
• Establish Performance Objectives for Each Measure = 684
• Finalize System Details = 686
• Implement and Review System Performance and Measures = 686
• PERFORMANCE BENCHMARKING : COMPARING AGAINST THE BEST = 687
• Benchmarking Overview = 687
• The Benchmarking Process = 690
• Xerox : A Benchmarking Case Example = 692
• SUMMARY OF PURCHASING MEASUREMENT AND EVALUATION CHARACTERISTICS = 693
• System Characteristics = 693
• Human Resource Characteristics = 694
• Conclusion = 695
• Discussion Questions = 695
• Additional Readings = 696
• Endnotes = 697
• Section Five FUTURE DIRECTIONS
• 21 Future Trends : Purchasing and Sourcing Strategy = 698
• PURCHASING 2000 AND BEYOND : KEY TRENDS AND CHANGES = 699
• Sourcing Snapshot-2lst Century Requires Purchasers to Master New Skills = 700
• Sourcing Snapshot-Increased Reliance on Suppliers to Help Meet Future Recycling Targets = 702
• Sourcing Snapshot-Collaboration to Lead to Standardized Government Mandated Component = 705
• Sourcing Snapshot-Disney Begins Crafting a Future MRO Strategy Today = 707
• CREATING FUTURE COMPETITIVE ADVANTAGES FROM PURCHASING AND SOURCING STRATEGY = 708
• KEY PURCHASING AND SOURCING STRATEGY ENABLES = 709
• Organization = 709
• Measurement and Evaluation Systems = 710
• Information Systems Development and Application = 710
• Human Resources Development and Application = 710
• REALIZING COMPETITIVE ADVANTAGE FROM PURCHASING AND SOURCING STRATEGY = 711
• Level 1 = 711
• Level 2 = 711
• Level 3 = 712
• Level 4 = 712
• Conclusion = 712
• Discussion Questions = 713
• Additional Readings = 713
• Cases = 714
• Guava Puree = 716
• Writing Harness Purchase = 718
• Purchasing Ethics = 720
• Plastic Shield Price Analysis = 723
• Learning Curve A = 725
• Learning Curve B = 726
• Quantity Discount Analysis = 727
• Project Management A = 728
• Project Management B = 729
• Cross-Functional Sourcing Team Workshop = 730
• Space Systems, Inc.(A) = 734
• Space Systems, Inc.(B) = 737
• Best Practice-Bose Corporation = 739
• Best Practice-X Corporation and B Steel = 742
• Best Practice-Digital Equipment Corporation's JITQC Program = 747
• Whizzbangg 4000 = 753
• Electric Motors = 755
• Buying a Pickup Truck = 756
• SMP Corporation = 757
• Sysco = 758
• Advanced Technologies = 759
• Index = 766