Preface
Acknowledgments
About the Author
Part I: Introduction to Purchasing and Supply Chain Management
Introduction
Purchasing Managers, Buyers, and Purchasing Agents
The Evolution of the Purchasing and Supply Management Function
The Supply Management Process
Purchasing Dollar Responsibility
Integrated Supply Management (ISM)
Organizing for Purchasing
Reporting Structure
Professionalism within Purchasing and Supply Management
Summary
Introduction
The Relationship Between Purchasing and Competitive Strategy
Supply Chain Strategy
Supplier Relationship Quality (SRQ)
The Integrated Buying Model
The Strategic Sourcing Plan
Purchasing Strategy Trends
Summary
Appendix: Supply Chain Relationship Quality Study
Introduction
Authority of the Purchasing Manager
Contracts and Purchase Orders
Offers
Execution of Contracts and Purchase Orders by the Purchasing Manager
The Legal Impact of the Information Age
Purchasing and Ethics
Women and Minority Compliance
Summary
Part II: Materials Management
Introduction
Materials Requirements Planning and Capacity Requirements
Throughput Time—Velocity
Order Cycle
Customer Satisfaction
Quality
Specifying Materials
Maintenance, Repair, and Operating (MRO) Supplies
Tooling
Summary
Introduction
Independent Versus Dependent Demand
Inventory Management Overview
ABC Classification of Inventory Items
Independent Demand
Dependent Demand Systems
Summary
Appendix: Areas Under the Normal Curve
Introduction
Lean Production Systems
Just-In-Time Production System
Kanban Production Control System
Significance of JIT Purchasing
Purchasing Benefits
Implementation of JIT Purchasing
Role of Culture
Critical Analysis of the JIT Concept
Summary
Part III: Fundamentals of Purchasing and Supply Chain Management
Introduction
Purchasing Procedures
Systems Contracting
E-Procurement
Reverse Auctions
Electronic Data Interchange (EDI) and Purchasing
Radio Frequency Identification (RFID)
Adopting New Technologies
Summary
Appendix: Systems Contract Agreement
Introduction
The Buy Decision: Outsourcing
Sources of Supplier Information
Strategic Source Selection
Supplier Relationship Management
Supplier Relationship Management Programs
Supplier Development Programs
Supplier Evaluation Programs
Single Versus Multiple Sources
Industry Examples
Summary
Introduction
Why Do Organizations Outsource Business Processes?
The Hidden Costs of Outsourcing
Core Competencies
Outsourcing Trends
Elements of Strategic Outsourcing
Summary
Introduction
Costs of Global Sourcing
Currency Exchange Rates
Organizational and Behavioral Issues
Global Sourcing as a Strategic Sourcing Option
Protectionism
Importance of Negotiations
Global Provider Opportunism
U.S. Export Administration Regulations
Foreign Trade Zones
Summary
Appendix: Outsourcing Policy Example
Introduction
Benchmark Supplier Partnerships: Chrysler Corporation
Partnerships: Definition and Overview
The Evolving Supply Chain Strategy
Supply Chain Partnerships
Power Influences on Supply Chain Relationships
Summary
Introduction
Total Quality Management and Supply Chain Management
TQM Implementation Problems
Quality Requirements for Suppliers
Statistical Process Control, Six Sigma, and the Taguchi Method
Quality Awards and Certifications
Continuous Improvement and the Supplier
Engineering and Design
Summary
Appendix A: The Taguchi Method
Appendix B: Acceptance Sampling
Part IV: Price/Cost Analysis and Negotiation Strategies
Introduction
The Purchasing Decision
Price-Setting Strategy
Discounts
Price Determination
The Learning Curve
Pricing Strategy
Project Pricing
The Price/Cost Analysis Process
Summary
Appendix A: The Robinson–Patman Act—General Price Discrimination
Appendix B: Unit Factors for Progress Functions
Appendix C: Estrada Systems
Introduction
Distributive Versus Integrative Bargaining
Psychological Bargaining Framework
Economic Bargaining Framework
An Experiment in Distributive Bargaining
Planning for a Formal Negotiation
An Intergrated Model of the Buyer–Seller Interaction
Summary
Part V: Special Purchasing Applications
Introduction
Transportation’s Role in Purchasing
Three Transportation Purchasing Examples
The Impact of the North American Free Trade Agreement (NAFTA) on Domestic Transportation
Summary
Introduction
The Capital Equipment Acquisition Process
Disposal of Capital Equipment
Purchasing New Versus Used Capital Equipment
Lease Versus Borrow-and-Purchase Example
Summary
Appendix A: Federal Acquisition Regulation; Electronic and Information Technology
Appendix B: Discount Rates
Introduction
Purchasing, Supplies, and Services
Health Care Supply Chain Management
Methods of Supply Management
Complicating Factors Unique to Health Care for Inventory Control
Current Trends
Acquisition of Capital Equipment Process Overview
Group Health Insurance
Summary
Appendix: Purchasing Health Care Plans
Introduction
Service Sector Characteristics and Strategies
Outsourcing and the Service Sector
Managing Outsourced Services
Purchasing Professional Services
Summary
Appendix A: Preliminary Exploratory Interviews
Appendix B: FHWA Project Example
Appendix C: Fortune 500 Company Example
Cases
Glossary
Index