THE ROLE OF PURCHASING AND SUPPLY CHAIN MANAGEMENT

IN BUSINESS

THE ROLE OF PURCHASING AND SUPPLY CHAIN MANAGEMENT

IN BUSINESS

WEEK 3WEEK 3

PERSPECTIVE ON PURCHASING PERSPECTIVE ON PURCHASING

PURCHASING AS A FUNCTIONPURCHASING AS A FUNCTION

PURCHASING AS A PROCESSPURCHASING AS A PROCESS

PURCHASING AS A SUPPLY CHAINPURCHASING AS A SUPPLY CHAIN

PURCHASING AS A DISCIPLINEPURCHASING AS A DISCIPLINE

PURCHASING AS A PROFESSIONPURCHASING AS A PROFESSION

PERSPECTIVE ON PURCHASING PERSPECTIVE ON PURCHASING

PURCHASING AS A FUNCTIONPURCHASING AS A FUNCTION

PURCHASING AS A PROCESSPURCHASING AS A PROCESS

PURCHASING AS A SUPPLY CHAINPURCHASING AS A SUPPLY CHAIN

PURCHASING AS A DISCIPLINEPURCHASING AS A DISCIPLINE

PURCHASING AS A PROFESSIONPURCHASING AS A PROFESSION

DEFINED AS A UNIT OR DEPARTMENT IN WHICH PEOPLE USE SPECIFIC SKILLS, KNOLEDGE AND RESOURCES TO PERFORM SPECIALED TASK.

DEFINED AS A UNIT OR DEPARTMENT IN WHICH PEOPLE USE SPECIFIC SKILLS, KNOLEDGE AND RESOURCES TO PERFORM SPECIALED TASK.

PERSPECTIVE ON PURCHASING PERSPECTIVE ON PURCHASING

PURCHASING AS A FUNCTIONPURCHASING AS A FUNCTION

PURCHASING AS A PROCESSPURCHASING AS A PROCESS

PURCHASING AS A SUPPLY CHAINPURCHASING AS A SUPPLY CHAIN

PURCHASING AS A DISCIPLINEPURCHASING AS A DISCIPLINE

PURCHASING AS A PROFESSIONPURCHASING AS A PROFESSION

IT IS A SET OF SUBPROCESS STAGES DIRECTED TO ACHIEVING AN OUTPUT.IT IS A SET OF SUBPROCESS STAGES DIRECTED TO ACHIEVING AN OUTPUT.

PERSPECTIVE ON PURCHASING PERSPECTIVE ON PURCHASING

PURCHASING AS A FUNCTIONPURCHASING AS A FUNCTION

PURCHASING AS A PROCESSPURCHASING AS A PROCESS

PURCHASING AS A SUPPLY CHAINPURCHASING AS A SUPPLY CHAIN

PURCHASING AS A DISCIPLINEPURCHASING AS A DISCIPLINE

PURCHASING AS A PROFESSIONPURCHASING AS A PROFESSION

IT IS A PART OF ACTIVITIES IN SEQUENCE PROCESS AS PROCUREMENT, PRODUCTION, WAREHOUSING & TRANSPORTATION.

IT IS A PART OF ACTIVITIES IN SEQUENCE PROCESS AS PROCUREMENT, PRODUCTION, WAREHOUSING & TRANSPORTATION.

PERSPECTIVE ON PURCHASING PERSPECTIVE ON PURCHASING

PURCHASING AS A FUNCTIONPURCHASING AS A FUNCTION

PURCHASING AS A PROCESSPURCHASING AS A PROCESS

PURCHASING AS A SUPPLY CHAINPURCHASING AS A SUPPLY CHAIN

PURCHASING AS A DISCIPLINEPURCHASING AS A DISCIPLINE

PURCHASING AS A PROFESSIONPURCHASING AS A PROFESSIONIT IS THE DEPARTMENT OF KNOWLEDGE.CLEARLY FOCUS ON MATHEMATIC, & ACCOUNTING, ECONOMIC, LAW, OPERATION, ETHIC, INFORMATION TECHNOLOGY & PSYCHOLOGY.

IT IS THE DEPARTMENT OF KNOWLEDGE.CLEARLY FOCUS ON MATHEMATIC, & ACCOUNTING, ECONOMIC, LAW, OPERATION, ETHIC, INFORMATION TECHNOLOGY & PSYCHOLOGY.

PERSPECTIVE ON PURCHASING PERSPECTIVE ON PURCHASING

PURCHASING AS A FUNCTIONPURCHASING AS A FUNCTION

PURCHASING AS A PROCESSPURCHASING AS A PROCESS

PURCHASING AS A SUPPLY CHAINPURCHASING AS A SUPPLY CHAIN

PURCHASING AS A DISCIPLINEPURCHASING AS A DISCIPLINE

PURCHASING AS A PROFESSIONPURCHASING AS A PROFESSIONIT PROVIDE A JOB OPPORTUNITY WITH THE SEQUENCE PROCESS.IT PROVIDE A JOB OPPORTUNITY WITH THE SEQUENCE PROCESS.

CHANGES IN THE BUSINESS CONTEXT

CHANGES IN THE BUSINESS CONTEXT

GLOBALIZATION OF TRADEGLOBALIZATION OF TRADE

THE INFORMATION SOCIETYTHE INFORMATION SOCIETY

CHANGING CONSUMER PATTERNCHANGING CONSUMER PATTERN

CHANGES IN THE BUSINESS CONTEXT

CHANGES IN THE BUSINESS CONTEXT

GLOBALIZATION OF TRADEGLOBALIZATION OF TRADE

THE INFORMATION SOCIETYTHE INFORMATION SOCIETY

CHANGING CONSUMER PATTERNCHANGING CONSUMER PATTERN

• COMPETITION IN MANY INDUSTRIES• EMERGING POSITION OF CHINA AS A LOW COST COUNTRIES.• INTERCULTURAL HOMOGENIZATION• FORMING TRADE REGIONS (NAFTA & EEC)• IMPROVED TRANSPORTATION FACILITIES.• NEW TECHNOLOGY IN COMMUNICATION.

• COMPETITION IN MANY INDUSTRIES• EMERGING POSITION OF CHINA AS A LOW COST COUNTRIES.• INTERCULTURAL HOMOGENIZATION• FORMING TRADE REGIONS (NAFTA & EEC)• IMPROVED TRANSPORTATION FACILITIES.• NEW TECHNOLOGY IN COMMUNICATION.

CHANGES IN THE BUSINESS CONTEXT

CHANGES IN THE BUSINESS CONTEXT

THE INFORMATION SOCIETYTHE INFORMATION SOCIETY

CHANGING CONSUMER PATTERNCHANGING CONSUMER PATTERN

• ECONOMIC VALUE FROM GENERATING, USING, AND SELLING INFORMATION IS GROWING FAST.

• DETAILED INFORMATION ABOUT BUYING PATTERN & CONSUMER PROFILES IS READY AVAILABLE.

• ADVANCED RETAIL INFORMATION SYSTEMS ENABLE AN EFFICIENT TRACING AND TRACKING OF GOOD FLOW AND DETAIL ED MONITORING OF SUPPLIER PERFORMANCE.

• ECONOMIC VALUE FROM GENERATING, USING, AND SELLING INFORMATION IS GROWING FAST.

• DETAILED INFORMATION ABOUT BUYING PATTERN & CONSUMER PROFILES IS READY AVAILABLE.

• ADVANCED RETAIL INFORMATION SYSTEMS ENABLE AN EFFICIENT TRACING AND TRACKING OF GOOD FLOW AND DETAIL ED MONITORING OF SUPPLIER PERFORMANCE.

CHANGES IN THE BUSINESS CONTEXT

CHANGES IN THE BUSINESS CONTEXT

CHANGING CONSUMER PATTERNCHANGING CONSUMER PATTERN

• CUSTOMER ARE DEMANDING QUALITY PRODUCTS. • HIGHLY EDUCATED CONSUMERS.• CONSUMERS TAKE CHARGE IN PRODUCT & SERVICE.

• CUSTOMER ARE DEMANDING QUALITY PRODUCTS. • HIGHLY EDUCATED CONSUMERS.• CONSUMERS TAKE CHARGE IN PRODUCT & SERVICE.

THE CLASSIC DEFINATION THE CLASSIC DEFINATION

“ TO OBTAIN MATERIALS OF THE RIGHT QUALITY IN THE RIGHT QUANTITY FROM THE RIGHT SOURCE, DELIVERED TO THE RIGHT PLACE AT THE RIGHT PRICE”

“ TO OBTAIN MATERIALS OF THE RIGHT QUALITY IN THE RIGHT QUANTITY FROM THE RIGHT SOURCE, DELIVERED TO THE RIGHT PLACE AT THE RIGHT PRICE”

THE CLASSIC DEFINATION THE CLASSIC DEFINATION

PURCHASING AS PROCUREMENTPURCHASING AS PROCUREMENT

IT IS THE PROCESS OF OBTAINING GOODS OR SERVICES IN ANY WAY INCLUDING BORROWING AND LEASING.

IT IS THE PROCESS OF OBTAINING GOODS OR SERVICES IN ANY WAY INCLUDING BORROWING AND LEASING.

THE RELATIONSHIP OF PURCHASING / PROCUMENT/ SUPPLY/ MNAGEMENT

ACTIVITIES

THE RELATIONSHIP OF PURCHASING / PROCUMENT/ SUPPLY/ MNAGEMENT

ACTIVITIES

THE CLASSIC DEFINATION THE CLASSIC DEFINATION

PURCHASING AS AN ORGANISATIONAL BUYING

PURCHASING AS AN ORGANISATIONAL BUYING

THOSE BUYERS OF GOODS & SERVICES FOR THE SPECIFIC PURPOSE OF INDUSTRIAL OR AGRICULTURAL

PRODUCTION.

THOSE BUYERS OF GOODS & SERVICES FOR THE SPECIFIC PURPOSE OF INDUSTRIAL OR AGRICULTURAL

PRODUCTION.

TYPE OF PURCHASING IN BUSINESS TYPE OF PURCHASING IN BUSINESS

1. PURCHASING FOR RESALE2. PURCHASING FOR

CONVERSION/ CONSUMPTION

1. PURCHASING FOR RESALE2. PURCHASING FOR

CONVERSION/ CONSUMPTION

OBJECTIVE OF PURCHASING OBJECTIVE OF PURCHASING

“ TO OBTAIN MATERIALS OF THE RIGHT QUALITY IN THE RIGHT QUANTITY FROM THE RIGHT SOURCE, DELIVERED TO THE RIGHT PLACE AT THE RIGHT PRICE”

“ TO OBTAIN MATERIALS OF THE RIGHT QUALITY IN THE RIGHT QUANTITY FROM THE RIGHT SOURCE, DELIVERED TO THE RIGHT PLACE AT THE RIGHT PRICE”

OBJECTIVE OF PURCHASING OBJECTIVE OF PURCHASING TO SUPPORT COMPANY OPERATIONTO SUPPORT COMPANY OPERATION TO BUY WISELY &

COMPETITIVELYTO BUY WISELY &

COMPETITIVELYTO KEEP INVENTORY INVESTMENTTO KEEP INVENTORY INVESTMENT

TO DEVELOP EFFECTIVE AND RELIABLE SOURCE OF SUPPLYTO DEVELOP EFFECTIVE AND RELIABLE SOURCE OF SUPPLY

TO HAVE A GOOD RELATIONSHIPWITH

SUPPLIER

TO HAVE A GOOD RELATIONSHIPWITH

SUPPLIER TO ACHIEVE MAXIMUM INTERGRATION

TO ACHIEVE MAXIMUM INTERGRATION

TO HANDLE PURCHASING & SUPPLY MANAGEMENT

FUNCTION

TO HANDLE PURCHASING & SUPPLY MANAGEMENT

FUNCTION

WORLD CLASS PURCHASING WORLD CLASS PURCHASING

COMMITMENT TO TOTAL QUALITY MANAGEMENT

COMMITMENT TO TOTAL QUALITY MANAGEMENT

COMMITMENT TO JUST IN TIME

COMMITMENT TO JUST IN TIME COMMITMENT TO

TOTAL CYCLE TIME REDUCTIONCOMMITMENT TO

TOTAL CYCLE TIME REDUCTION

LONG RANGE STRATEGICLONG RANGE STRATEGICSUPPLIER RELATIONSHIPSUPPLIER RELATIONSHIP

STRATEGIC COST MANAGEMENT

STRATEGIC COST MANAGEMENT

PERFORMANCE MEASUREMENTPERFORMANCE MEASUREMENT

TRAINING AND PREFESIONAL DEVE LOPMENT

TRAINING AND PREFESIONAL DEVE LOPMENT

CORPORATE SOCIAL RESPONSIBILITY

CORPORATE SOCIAL RESPONSIBILITY

SERVICE EXCELLENCESERVICE EXCELLENCE LEARNINGLEARNING

MANAGEMENT & LEADERSHIPMANAGEMENT & LEADERSHIP

PURCHASING IN THE FUTURE PURCHASING IN THE FUTURE