33:799:301 Lecture 5: Purchasing Management

• School: Rutgers University
• Department: Supply Chain Management
• Course: 33:799:301
• Professor: Chris Provines

Document Summary

The acquisition of goods, services, or works from an external source. It"s favorable that the goods, services, or works are appropriate and that they are procured at the best possible cost to meet the needs of the acquirer in terms of quality and quantity, time, and location. Goods and capital equipment: tangible, products, parts, supplies, etc, easier to measure quality and performance. Services and works: often intangible, consulting, training, outsourced services, ip, etc, harder to measure quality and performance. Involved in both direct and indirect supplies: direct supplies that go directly into the end product. Source: produce/veggies, meat, drinks, accessories, furniture, hr, legal services, logistics, advertising: drivers behind the transformation of procurement. Growing complexity/risk of supply markets: procurement defined. Definition the process of selecting and vetting suppliers, negotiating contracts, establishing payment terms, and the actual purchasing of goods and services. Concerned w/ acquiring all of the goods, services, and work that is vital to an organization.