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Purchasing and Supply Management With 50 Supply Chain Cases

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ISBN-10: 0072873795

ISBN-13: 9780072873795

Edition: 13th 2006 (Revised)

Authors: Harold E. Fearon, Anna Flynn, P. Fraser Johnson, Michiel Leenders

List price: $206.00
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Description:

Purchasing and supply management has become increasingly visible in a world where supply is a major determinant of corporate survival and success. Supply chain performance influences not only operational and financial risks but also reputational risk. Extending the supply chain globally into developing countries places new responsibilities on supplier and supply, not only to monitor environmental, social, political and security concerns, but also to influence them. The job of today's supply manager goes beyond the scope of efficiency and value, into the search for competitive advantage. Book jacket.
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Book details

List price: $206.00
Edition: 13th
Copyright year: 2006
Publisher: McGraw-Hill Higher Education
Publication date: 3/1/2005
Binding: Hardcover
Pages: 588
Size: 7.50" wide x 9.40" long x 1.20" tall
Weight: 2.288
Language: English

Purchasing and Supply Management
Purchasing and Supply Management
Definitions
Supply and Logistics
The Size of an Organization's Spend and Financial Significance
Supply Contribution
The Operational versus Strategic Contribution of Supply
The Direct and Indirect Contribution of Supply
Decision Making in the Supply Management Context
The Differences between Commercial and Consumer Acquisition
Supply Qualifications and Associations
Challenges Facing Purchasing and Supply Management over the Next Decade
Technology
Supply Chain Management
Measurement
Growth and Influence
Effective Contribution to Corporate Success
The Organization of This Text
Conclusion
Questions for Review and Discussion
References
Addresses
Cases
Custom Equipment
Roger Gray
Cottrill Inc.
Supply Organization
Objectives of Supply Management
Organizational Structures for Supply Management
Small and Medium-Sized Organizations
Specialization within the Supply Function
Large Organizations
Centralized Supply Structure
Decentralized Supply Structure
Hybrid Supply Structure
Structure for Direct and Indirect Spend
Managing Organizational Change in Supply
Organizing the Supply Group
The Chief Purchasing Officer (CPO)
Profile of the CPO
CPO Trends
Reporting Relationship
Supply Activities and Responsibilities
What Is Acquired
Supply Chain Activities
Type of Involvement
Involvement in Corporate Activities
Influence of the Industry Sector on Supply Activities
Supply Teams
Leading and Managing Teams
Cross-Functional Supply Teams
Teams with Supplier Participation
Teams with Customer Participation
Co-location of Supply with Internal Customers
Co-location of Suppliers in the Buying Organization
Supplier Councils
Supply Councils
Consortia
Conclusion
Questions for Review and Discussion
References
Cases
Duchess University
Roger Haskett
Supply Processes
The Supply Management Process
Strategy and Goal Alignment
Ensuring Process Compliance
Steps in the Supply Process
Recognition of Need
Description of the Need
Types of Requisitions
Flow of the Requisition
Early Supply and Supplier Involvement
Identification of Potential Sources
Issuing an RFx
Linking Organizational and Category Strategy
Supplier Selection and Determination of Terms
Preparation and Placement of the Purchase Order
Format and Routing
Follow-Up and Expediting
Cost and Benefits
Receipt and Inspection of Goods
Eliminating or Reducing Inspection
Invoice Clearing and Payment
Aligning Supply and Accounts Payable
Cash Discounts and Late Invoices
Streamlining the Receiving, Invoicing, and Payment Process
Maintenance of Records and Relationships
Linking Data to Decisions
Managing Supplier Relationships
A Supply Process Flowchart
Rush and Small-Value Orders
Rush or Emergency Orders
Small-Value Orders and Efficiency Tools
Policy and Procedure Manual
Conclusion
Questions for Review and Discussion
References
Cases
Mike Wesley
UIL Inc.
Southeastern University
Information Systems and Technology
Information Management
Information Systems
Information System Technology Use in Supply Management
Software
Commonly Used Technology Tools
Electronic Communication
Electronic Data Interchange (EDI)
eXtensible Markup Language (XML)
Intranets and Extranets
E-Marketplaces
Electronic or Online Catalogs
RFID
Online Auctions
Reverse Auctions
When to Use Reverse Auctions
Conducting Reverse Auction Events
Ethical Issues with Reverse Auctions
Potential Problems with Using Online Auctions
Implications for Supply
Conclusion
Glossary of Terms
Questions for Review and Discussion
References
Cases
Cable and Wireless plc (A)
Establishing E-Business Standards at Deere & Company
Hemingway College
Quality, Specification, and Service
Determination of Need
Early Supply and Supplier Involvement
Methods of Description
Description by Brand
"Or Equal"
Description by Specification
Description by Engineering Drawing
Miscellaneous Methods of Description
Combination of Descriptive Methods
Sources of Specification Data
Standardization and Simplification
Quality, Suitability, and Best Buy
Quality
Suitability
Reliability
Quality Dimensions
"Best Buy"
Determining the "BestBuy"
The Cost of Quality
Continuous Improvement
ISO 9000 Quality Standards and the Malcolm Baldrige Award
Total Quality Management (TQM)
Quality Function Deployment (QFD)
Inspection and Testing
Testing and Samples
Inspection
Quality Assurance and Quality Control
Process Control
Adjustments and Returns
Supplier Certification
Service
Conclusion
Questions for Review and Discussion
References
Cases
Bright Technology International
Air Quality Systems Inc.
Synergy Metals Inc.
Quantity and Inventory
Inventory Management
Functions and Forms of Inventories
The Functions of Inventory
The Forms of Inventory
Inventory Function and Form Framework
Managing Supply Chain Inventories
ABC Classification
Costs of Inventories
Forecasting
Forecasting Techniques
Determining Order Quantities and Inventory Levels
Fixed-Quantity Models
Fixed-Period Models
Probabilistic Models and Service Coverage
Buffer or Safety Stocks and Service Levels
Material Requirements Planning (MRP)
MRP Inputs
MRP Lot Sizing
Modern MRP Systems
Supply Implications of MRP
Lean Supply and JIT
Kanban Systems
JIT and Inventory Management
JIT Implications for Supply Management
Conclusion
Questions for Review and Discussion
References
Cases
Connecticut Circuit Manufacturers
Abbey Paquette
Sedgman Steel
Transportation and Delivery
Organization for Logistics Decisions
FOB Terms and Incoterms
Transportation
Supply's Involvement in Transportation
Transportation Regulation and Deregulation
Transportation Carriers
Motor Carriers
Rail Carriers and Intermodal
Air Carriers
Water Carriers
Pipelines
Selection of Mode and Carrier
Rates and Pricing
Other Transportation Service Providers
Documentation in Freight Shipments
Freight Audits
Expediting and Tracing Shipments
Developing a Transportation and Logistics Strategy
Conclusion
Questions for Review and Discussion
References
Cases
Great Western Bank
Geo Products
Penner Medical Products
Price
Relation of Cost to Price
Meaning of Cost
How Suppliers Establish Price
The Cost Approach
The Market Approach
Government Influence on Pricing
Legislation Affecting Price Determination
Types of Purchases
Raw Materials/Sensitive Commodities
Special Items
Standard Production Items
Small-Value Items
The Use of Quotations and Competitive Bidding
Firm Bidding
Determination of Most Advantageous Bid
Collusive Bidding
The Problem of Identical Prices
Provision for Price Changes
Contract Cancellation
Forward Buying and Commodities
Forward Buying versus Speculation
Organizing for Forward Buying
Control of Forward Buying
The Commodity Exchanges
Limitations of the Exchanges
Hedging
Sources of Information Regarding Price Trends
Conclusion
Questions for Review and Discussion
References
Cases
MasTech Inc.
Chevron Corporation: The PC Selection Team (Abridged)
Commodity Purchasing Game
Price Forecasting Exercise
Cost Management, Discounts, and Negotiation
Cost Management
Total Cost of Ownership
Target Pricing
The Learning Curve or Manufacturing Progress Function
Activity-Based Costing
Discounts
Cash Discounts
Trade Discounts
Multiple Discounts
Quantity Discounts
The Price-Discount Problem
Quantity Discounts and Source Selection
Cumulative or Volume Discounts
Negotiation
Negotiation Strategy and Practice
Framework for Planning and Preparing for Negotiation
Conclusion
Questions for Review and Discussion
References
Cases
Deere Cost Management
McMichael Inc.
Supplier Selection
The Supplier Selection Decision
Decision Trees
Identifying Potential Sources
Information Sources
The Evaluation of Potential Sources
Technical, Engineering, and Manufacturing and Distribution Strengths
Management and Financial Evaluation
Supplier Evaluation Methods
Informal and Semiformal Evaluation and Rating
Formal Supplier Evaluation and Rating
Linking Sourcing with Strategy
Single versus Multiple Sourcing
Manufacturer versus Distributor
Geographical Location of Sources
Supplier Size
Social, Political, and Environmental Concerns
Joint Purchasing with Supplier
Purchasing for Company Personnel
Risk Assessment
Strategy Development
Conclusion
Questions for Review and Discussion
References
Cases
Quotech Inc.
Bid Evaluation
Somers Office Products Inc.
Investment Recovery
North American Environmental Initiatives
ISO 14000 Environmental Standards
Benefits of Effective Disposal
Categories of Material for Disposal
Excess or Surplus Materials
Obsolete Material or Equipment
Rejected End Products
Scrap Material
Waste
Hazardous Waste
Responsibility for Material Disposal
Keys to Profitable Disposal
Disposal Channels
Disposal Procedures
Selecting the Right Disposal Partner
Conclusion
Questions for Review and Discussion
References
Cases
Miltec Inc.
Ornex
Supply Law and Ethics
Legal Authority
Personal Liability
Authority of Suppliers' Representatives
The Uniform Commercial Code
The Purchase Order Contract
Acceptance of Orders
Purchases Made Orally-Statute of Frauds
Inspection
Acceptance and Rejection of Goods
Warranties
Title to Purchased Goods
Protection against Price Fluctuations
Cancellation of Orders and Breach of Contract
Common Law and the Purchase of Services
E-Commerce and the Law
Electronic Signatures
Uniform Electronic Transactions Act
Antitrust and E-Marketplaces
Intellectual Property Laws
Copyright Law
Patents
Trademarks
Industrial Design
Geographical Indication
Product Liability
Alternative Dispute Resolution
Commercial Arbitration
Mediation
Internal Escalation
The Sarbanes-Oxley Act
Ethics
Perceptions and Conflict of Interest
Gifts and Gratuities
Promotion of Positive Relationships with Suppliers
Reciprocity
Social Responsibility
Conclusion
Questions for Review and Discussion
References
Cases
Brassco
Lancaster Life Insurance Co.
Research and Metrics
Organizing for Supply Research
Full-Time or Part-Time Research Positions
Cross-Functional Teams
Supply Research Opportunities
Purchased Materials, Products, or Services
Value Analysis
Target Costing
Commodities
Suppliers
Relationship Classification
Supply Processes
Assessing Research Results
Supply Planning Process
Supply Budgets
Performance Measurement Systems
The Value of Supply Metrics
The Challenges
Measuring Supplier Performance
Key Supplier Performance Indicators
Supply Management Performance Metrics
Establishing Metrics
Efficiency Metrics
Effectiveness Metrics
Operating Reports
Validating Results
Appraising Team Performance
Supply Performance Benchmarking
Conclusion
Questions for Review and Discussion
References
Cases
City of Granston
Industrial Products Corporation (IPC)
Global Supply
The Importance of Global Supply
Reasons for Global Purchasing
Potential Problem Areas
Incoterms
Information Sources for Locating and Evaluating International Suppliers
Global Sourcing Organizations
Intermediaries
Countertrade
Barter/Swaps
Offset Arrangements
Counterpurchase
Buyback/Compensation
Switch Trade
Foreign Trade Zones
Foreign Trade Zones Compared with Bonded Warehouses
Maquiladoras
TIBs and Duty Drawbacks
Free Trade Agreements
Conclusion
Questions for Review and Discussion
References
Cases
Global Pharmaceuticals Ltd.
Andrew Morton
Public Supply Management
Characteristics of Public Supply
Source of Authority
Budgetary Restrictions/Limitations
Outside Pressures
Government Programs
Interest Costs
Inspection
Transportation and Logistics
Past Performance and Switching Cost
Transparency and Confidentiality
Importance of Specifications
Acquisition Procedures
The Bid Process
Military Supply
Firm-Fixed-Price (FFP) Contract
Cost-Plus-Fixed-Fee (CPFF) Contract
Cost-No-Fee (CNF) Contract
Cost-Plus-Incentive-Fee (CPIF) Contract
State, Local, and Municipal Supply
Cooperative or Consortium Purchasing
Governmentwide and Cooperative Contracts
Local-Bidder Preference Laws
Model Procurement Code
Public Supply Changes
Use of Electronic/Internet-Based Systems
Involvement in Services Spend
Multiyear Contracts
Privatization
Simplified Acquisition Procedures
Commercial Practices
Conclusion
Questions for Review and Discussion
References
Cases
TriCity
Fairview School Board
Capital Goods
The Challenge of Procuring Capital Assets
New Technology-New Equipment
Equipment Classification
Challenges of Equipment Buying
Sourcing and Supply Issues
Design and R&D Considerations
Engineering Service
Importance of Cost Factors
Life Cycle Costing or Total Cost of Ownership
Budgeting Procedures
Sourcing and Selection
Legal Issues
Disposition of Obsolete or Replaced Equipment
Reasons for Buying Used Equipment
Sales Contract Terms
Leasing Equipment
Advantages and Disadvantages of Leasing
Types of Leases
Categories of Leasing Companies
Lessor Evaluation
The Acquisition of Technology
The Acquisition of Construction
Risks in the Construction Process
Approaches to Construction Acquisition
On-Site Considerations in Construction
Sustainable Building
Supply's Involvement in Construction
Conclusion
Questions for Review and Discussion
References
Cases
Mark Appleton
Casson Construction
Services
Services
Significance of Services Spend
What Makes Services Different?
Supply Involvement
A Framework for Analyzing Services
Value of the Service
Degree of Repetitiveness
Degree of Tangibility
Direction of the Service
Production of the Service
Nature of the Demand
Nature of Service Delivery
Degree of Standardization
Skills Required for the Service
The Acquisition Process for Services
Need Recognition and Description
Analysis of Supply Alternatives
The Purchase Agreement
Service Contract Administration
Developing a Services Sourcing Strategy
Outsourcing and Managing Third-party Service Providers
Expanding Supply's Involvement
Process Steps
Conclusion
Questions for Review and Discussion
References
Cases
Erica Carson
Talbot County School Board
Hampton Manor
Make or Buy, Insourcing, and Outsourcing
Make or Buy
Reasons for Make Instead of Buy
Reasons for Buying Outside
The Gray Zone in Make or Buy
Subcontracting
Insourcing and Outsourcing
Insourcing
Outsourcing
Outsourcing Purchasing and Logistics
Purchasing's Role in Outsourcing
Conclusion
Questions for Review and Discussion
References
Cases
B&L Inc.
Rondot Automotive
Husort Manufacturing
Supplier Relations
Purchaser-Supplier Relations
Supplier Goodwill
The Purchaser-Supplier Satisfaction Matrix
Tools and Techniques for Moving Positions
Purchaser-Supplier Relationship Management
Supplier Ranking
Partnerships
Sematech's Partnering Perspective
Early Supplier Involvement (ESI)/Early Purchasing Involvement (EPI)
Partner Selection
The Longer Time Perspective
Co-location/In-plants
Strategic Alliances
Concerns about Partnerships
Reverse Marketing/Supplier Development
Supply Chain Management
Supply Networks
Conclusion
Questions for Review and Discussion
References
Cases
Plastic Cable Clips
Loren Inc.
Strategy in Purchasing and Supply Management
Levels of Strategic Planning
Major Challenges in Setting Supply Objectives and Strategies
Strategic Planning in Purchasing and Supply Management
Major Supply Strategy Areas
Risk Management
Supply Interruptions and Delays
Changes in Prices
Reputational Risk
Managing Supply Risks
The Corporate Context
Strategic Components
What?
Quality?
How Much?
Who?
When?
What Price?
Where?
How?
Why?
What is Happening in Purchasing and Supply Management
Conclusion
Questions for Review and Discussion
References
Cases
Spartan Heat Exchangers Inc.
Sabor Inc.
Iowa Elevators
Indexes
Case Index
Subject Index