Global Purchasing and Supply Management Fulfill The Vision
This revised edition addresses a broad range of purchasing management issues in a down-to-earth, yet advanced and detailed approach. An evolutionary work, this edition aims to bridge the gap between the management vision of e-business potential and the ex
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GLOBAL PURCHASING AND SUPPLY MANAGEMENT Fulfill The Vision – Second Edition
Victor H. Pooler Pooler & Associates Syracuse, NY U.S.A.
David J. Pooler QinetiQ Technology Slidell, LA U.S.A.
Samuel D. Farney Supply Chain Advisors Sun City Center, FL U.S.A.
KLUWER ACADEMIC PUBLISHERS NEW YORK, BOSTON, DORDRECHT, LONDON, MOSCOW
eBook ISBN: Print ISBN:
1-4020-7817-X 1-4020-7816-1
©2004 Kluwer Academic Publishers New York, Boston, Dordrecht, London, Moscow Print ©2004 Kluwer Academic Publishers Boston All rights reserved No part of this eBook may be reproduced or transmitted in any form or by any means, electronic, mechanical, recording, or otherwise, without written consent from the Publisher Created in the United States of America Visit Kluwer Online at: and Kluwer's eBookstore at:
http://kluweronline.com http://ebooks.kluweronline.com
Dedication
This book is dedicated to our wives, Anne Pooler, Nancy Pooler and Denise Farney, for their enduring support and patience during our work.
Contents
Dedication
v
Preface
ix
Foreword Acknowledgments
xiii xv
Part I - From Buying to Strategic Contributor
1
1. THE ROLE OF THE PURCHASING AND SUPPLY FUNCTIONS
3
2. EVOLUTION OF PURCHASING AND SUPPLY MANAGEMENT 21 3. STRATEGIC PURCHASING SUPPLY INITIATIVES
43
Part II - Creating The Vision
61
4. THE PURCHASE ORDER PROCESS
63
5. BUYING FROM THE RIGHT SUPPLIER
87
6. CREATING A GLOBAL VISION
113
7. BUILDING RAPPORT WITH SUPPLIERS
141
viii
Global Purchasing and Supply Management
8. QUALITY AS A COST IMPROVEMENT TECHNIQUE
163
9. PURCHASING’S STRATEGIC APPROACH TO INVENTORY MANAGEMENT
181
10. PROACTIVE TECHNOLOGY MANAGEMENT STRATEGY FOR COMPONENT OBSOLESCENCE 205 11. BUYING AT THE “RIGHT” PRICE
221
12. NEGOTIATIONS
247
13. GLOBAL SUPPLY DEMANDS TECHNICAL BUYING COOPERATION
263
14. USING COST REDUCTION TECHNIQUES
285
15. LEGALITIES IN BUYING
309
16. SERVICES AND MRO BUYING
335
17. TRANSPORTATION STRATEGIES TO REDUCE LOGISTICS COSTS 349
Part III- Leading and Managing to Fulfill The Vision
373
18. IMPROVING MANAGEMENT OF THE PURCHASING FUNCTION
375
19. MEASUREMENTS OF PURCHASING PERFORMANCE
397
20. A LOOK INTO THE FUTURE
421
Appendix
431
Index
439
Preface
Achieving the promise of e-business Two divergent approaches exist in purchasing and supply management organizations today, which give at least the perception of conflicting direction: 1. Some organizations, counseled by consultants and e-procurement software suppliers, but without a clear understanding of current actual procurement processes, have implemented expensive systems with the expectations of tremendous savings and spectacular supply chain improvements. The results often haven’t lived up to the claims. 2. Many buyers and purchasing managers, failing to grasp the potential benefits from e-procurement, have resisted change, and not given their full support to system improvements. Those who have delayed have missed the opportunities of vastly improved processes and supplier contributions. Both have valid viewpoints, bu
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