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Chapter 5

MGT 3070 Chapter Notes - Chapter 5: Formal System, Group Purchasing Organization, New Product Development


Department
Management
Course Code
MGT 3070
Professor
ryanbooth
Chapter
5

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Purchasing and Supply Chain Management Organization
Chapter 5
ORGANIZATIONAL DESIGN
Selecting and assessing the structure and formal system of:
Communication
Division of labour
Coordination
Control
Authority
Responsibility
These are required to achieve organizational goals and objectives including supply management
objectives
Factors that affect design include
1. Responding to external environmental change
2. Need to meet corporate goals and objectives
3. Firms perception of the value of purchasing and supply chain management(P/SM)
ADVANTAGES OF CENTRALIZED /CENTRE-LED STRUCTURE
Leverage Purchase Volumes
Reduced Duplication of Purchasing Effort
Coordination of Purchasing Strategies & Plans
Coordination of Management of Company Wide Purchasing
Development of Specialized Expertise
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