Purchasing and Supply Management Overview

These flashcards cover key concepts and definitions within the realm of purchasing and supply management as discussed in the lecture notes.

Purchasing and Supply Management

An integrated part of business management that involves planning, organizing, coordination, and control to ensure efficiency and sustainability.

Organizational Structure

The framework that dictates how activities such as task allocation, coordination, and supervision are directed toward achieving organizational goals.

Proactive Planning

A type of planning that anticipates needs and trends, moving beyond reactive strategies that respond only to immediate requests.

Strategic Purchasing

The process of integrating purchasing functions with overall business objectives for added value and improved organizational performance.

Decentralized Purchasing Structure

A purchasing organization where various departments have autonomy to make purchasing decisions, leading to greater flexibility.

Cross-Functional Teams

Groups comprising members from different departments working together on purchasing decisions to achieve common goals.

Tactical Planning

Mid-level management planning focused on executing strategic goals through specific initiatives and resource allocation.

Operational Planning

The lowest level of planning that deals with the day-to-day operations and short-term objectives in purchasing and supply management.

Supplier Relationship Management

The systematic approach to managing and developing partnerships with suppliers to enhance collaborative relationships.