Fifty percent or more of an organization’s funds may be expended in purchases of material and services through purchase orders and subcontracts. The success of a firm depends greatly on the effective management of its purchasing and supply management function. In most leading firms today the purchasing or procurement function has expanded to become supply management.
This course provides a practical framework for how firms manage the enterprise-wide functions of purchasing and supply in today’s business environment with an increased focus on supply chain issues. The course covers the conduct and management of the purchasing and supply management function – how that function interacts with the other principal business functions, including product development, marketing, operations and finance – the conduct of the acquisition process, including the determination of requirements, supplier qualification and selection – and the management of supplier relations and performance.
Course Learning Outcomes
Define the term “supply chain.”
Describe the significance of determining the total cost of ownership.
Provide a brief explanation of why the location of supply management within the organizational hierarchy is important.
Identify the activities that are part of supply chain management.
Describe the importance of the flow of communications between marketing, operations, material control and supply management.
Describe why supply management professionals should always be involved in addressing social, legal, political and ethical issues in a diverse global economy.
Compare and contrast collaborative relationships and supply alliances.
Recognize those critical to quality factors that influence supply management’s role in managing supplier quality.
Define a Quality Management System and compare and contrast it with the other quality management approaches.
Explain the responsibilities of the supply management function.
Describe the fundamentals of transportation management and how these services can be sourced efficiently and effectively.
Outline the basic benefits as well as criticisms of ERP.
Define Ecommerce as well as compare and contrast the public and private exchanges of Ecommerce.
Evaluate approaches for reducing supplier costs of production and delivery.
Explain how to calculate the effect of learning curves on supplier costs.
Identify and state the primary objective of the statement of work.
List and discuss how the S.O.W. affects administration of the contract.
Compare/contrast outsourcing and the “insourcing” process. State when insourcing is best conducted.
List five means of identifying potential suppliers.
Identify the five tools that a supply manager can utilize to conduct a price analysis.
Identify trends in the supply organization of the future.
Identify and define the three categories of compensation arrangements and give an example for each category.
Identify the steps that a negotiator should do to properly prepare for a face-to-face negotiation and explain why such a level of preparation is vital.
Identify and discuss the two typical approaches (tools and techniques) used in deriving a forecast.
List five initiatives that improve quality.
Discuss and describe how supply management contributes to the net income of a buying organization.
Explain how e-supply chain systems have evolved over time.