Chap1 Procurment

Supply Chain Management

The design and management of seamless, value-added processes across organizational boundaries to meet the real needs of the end customer.

Cost Management in Supply Chains

Key challenge in the early 1900s focusing on the availability of supply and cost strategies.

Outsourcing

The practice of relying on suppliers for key components and services, increasing reliance on external sources.

Total Cost of Ownership (TCO)

A concept involving the reduction of total costs associated with the purchasing process.

Integrated Strategic Procurement

A function with executive leadership that focuses on external/internal customer needs and integrates strategic business units.

Supplier Relationship Management (SRM)

Focused on supplier development, joint performance improvement efforts, and value enhancement initiatives.

Global Supply Chain Challenges

Issues arising from increased global competition, sustainability, and supply chain risk management.

Profit-Leverage Effect

The impact on profit that can arise from cost reductions in the supply function.

Executive Leadership in Supply Chain

Support from executive committees for integration and strategic alignment across corporate plans.

Technological Developments in Supply Chains

Advancements that provide expectations for supply chain integration and improvements in transaction costs and response times.