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Lecture Purchasing and supply chain management (3/e): Chapter 8 - W. C. Benton
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Lecture Purchasing and supply chain management (3/e): Chapter 8 - W. C. Benton
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Chapter 8 - Supplier selection and evaluation. Supplier selection is addressed in Chapter 8. The selection of suppliers is a complex and demanding question that has no real correct answer. Each firm must weigh the benefits and risks of single and multiple sourcing. | 1 Chapter 8: Supplier Selection and Evaluation Purchasing and Supply Chain Management, 3rd edition, Copyright 2013, W. C. Benton Jr., All rights reserved Current Global Trends Produce quality products at reasonable prices Buying organizations are reducing the supplier base Increasingly important role for the purchasing and professional purchasing managers 2 Strategic Make vs. Buy Decision The Process: Determine what product or service is under consideration. Consider the in-house capability. Key Make-or-Buy Mistakes Not being proficient at identifying own core capabilities Waiting too long to assess the value of consultants or strategic partners Not recognizing that the product or service is approaching maturity Not recognizing that there are always new competitors with new technology 3 Benefits of Outsourcing Vertical integration Expanding into areas that are at different points on the same production path More control vs. Greater competence requirement in each of the areas . | 1 Chapter 8: Supplier Selection and Evaluation Purchasing and Supply Chain Management, 3rd edition, Copyright 2013, W. C. Benton Jr., All rights reserved Current Global Trends Produce quality products at reasonable prices Buying organizations are reducing the supplier base Increasingly important role for the purchasing and professional purchasing managers 2 Strategic Make vs. Buy Decision The Process: Determine what product or service is under consideration. Consider the in-house capability. Key Make-or-Buy Mistakes Not being proficient at identifying own core capabilities Waiting too long to assess the value of consultants or strategic partners Not recognizing that the product or service is approaching maturity Not recognizing that there are always new competitors with new technology 3 Benefits of Outsourcing Vertical integration Expanding into areas that are at different points on the same production path More control vs. Greater competence requirement in each of the areas Outsourcing A delegation of production capabilities Concentrate on true core capabilities vs. loss of control and non-core capabilities 4 Outsourcing and Supplier Selection The selection of the correct supplier is the most important purchasing activity. The buying firm must spend extensive time analyzing and carefully selecting the correct supplier. Periodic supplier evaluations are needed to ensure continuous supplier performance achievement. 5 Supplier Relationship Management (SRM) Factors for stronger supply chain relationship management: Businesses purchase larger percentage of product value The shrinking supplier bases Increasing shortages of skilled supplier capabilities and resources 6 The 4 Pure Supply Management Relationships Counter-productive relationships Lose-Lose Transactional or competitive relationships Win-Lose Cooperative relationships Win-Win Collaborative relationships Win-Win 7 SRM and 3 Supplier Categories Strategic suppliers Supply difficult to replace essential materials
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Lecture Purchasing and supply chain management (3/e): Chapter 1 - W. C. Benton
Lecture Purchasing and supply chain management (3/e): Chapter 2 - W. C. Benton
Lecture Purchasing and supply chain management (3/e): Chapter 3 - W. C. Benton
Lecture Purchasing and supply chain management (3/e): Chapter 4 - W. C. Benton
Lecture Purchasing and supply chain management (3/e): Chapter 5 - W. C. Benton
Lecture Purchasing and supply chain management (3/e): Chapter 7 - W. C. Benton
Lecture Purchasing and supply chain management (3/e): Chapter 15 - W. C. Benton
Lecture Purchasing and supply chain management (3/e): Chapter 1 - W. C. Benton
Lecture Purchasing and supply chain management (3/e): Chapter 2 - W. C. Benton
Lecture Purchasing and supply chain management (3/e): Chapter 3 - W. C. Benton
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