COMMERCE 4BE3 Lecture Notes - Lecture 9: Strategic Sourcing, Item Number, Purchase Order
29 Oct 2017
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Document Summary
What is purchasing: one of the basic functions common to all organizations, process of acquiring, goods, services, and equipment from another organization in legal/ethical manner, purchasing provides foundation of supply management. What"s upply ma(cid:374)age(cid:373)e(cid:374)t: supply management shifts focus from price to total cost of ownership, supply management helps put more emphasis on increasing sales. What is professional purchasing address: 5 rights; purchase of the right item/service, in right quantity, quality, price, and time. What is materials management: term grouping purchasing, production, inventory control, and transportation all together, the current term is called, supply chain management. What"s upply ma(cid:374)age(cid:373)e(cid:374)t: supply management shifts focus from price to total cost of ownership, supply management helps put more emphasis on increasing sales, 5 stage process, stage 1. Identification of the item/service required to meet the need of organization: need is translated into statement describing the item needed to satisfy need, 85% of the cost is determined at this stage.
