Purchasing Guidebook

Transcription

1 Purchasing Guidebook Steven M. Bragg

2 Chapter 1 Overview of Purchasing... 1 Learning Objectives... 1 Introduction... 1 The Purchasing Function... 1 Purchasing within the Organization... 2 The Supply Chain... 5 Purchasing Planning... 6 Reactive Purchasing... 6 System-Generated Purchasing... 6 Proactive Purchasing... 6 Summary of Purchasing Planning... 7 Purchasing Positions... 7 Purchasing Manager... 7 Buyer... 8 Supply Chain Inventory Planner... 8 Purchasing Department Relations... 8 Purchasing Ethics... 9 Summary Review Questions Review Answers Chapter 2 Purchasing Processes Learning Objectives Introduction Purchasing Objectives Purchase Notification Alternatives The Purchase Requisition The Statement of Work Automated Materials Orders Manual Reorder Point Notifications Purchase Order Issuance Procedure Variations on the Purchasing Procedure The Bidding Procedure E-Procurement Summary Review Questions Review Answers Chapter 3 Procurement Cards Learning Objectives Introduction When and How to Use Procurement Cards Additional Procurement Card Topics Card Issuer Relations Card Rebates Cash Flow Management Card User Relations Departure of Card Users International Purchases Summary Review Questions Review Answers... 38

3 Chapter 4 Supplier Selection Learning Objectives Introduction Overview of Supplier Selection General Considerations When to Conduct a Supplier Selection Locating Suppliers Supplier Selection Criteria Mandated Suppliers Selection Rigor Selection Criteria Supplier Financial Analysis Supplier Capability Analysis Supplier Responsiveness Analysis Other Analysis Issues Site Visits Supplier Scoring Preferred Suppliers Summary Review Questions Review Answers Chapter 5 Supplier Management Learning Objectives Introduction Commodity Strategy Supplier Relations Attending to Supplier Needs The Supplier Scorecard Supplier Performance Index Other Supplier Monitoring Systems Supply Chain Improvement Supplier Risk Management The Maverick Supplier Summary Review Questions Review Answers Chapter 6 Competitive Bidding Learning Objectives Introduction When to Use Competitive Bidding Types of Bidding Requests Third-Party Assistance Contents of a Bid Package Locating Suppliers The Bidding Process Flow Handling Inquiries Handling Complaints Reverse Auctions Unethical Supplier Bidding Practices Summary Review Questions Review Answers Chapter 7 Supplier Negotiations Learning Objectives ii

4 Introduction The Need for Negotiations The Negotiation Team Initial Positions Negotiation Tactics Negotiation Sessions Negotiator Characteristics Negotiation Topics Negotiation Considerations Negotiation Failures Negotiation Follow-Up Summary Review Questions Review Answers Chapter 8 Contract Management Learning Objectives Introduction Contract Terms and Conditions Commercial Terms The Employee or Contractor Designation Contract Pricing Arrangements Firm Fixed Price Fixed Price with Adjustments Cost plus Pricing Time and Materials Pricing Summary of Pricing Arrangements Contract Templates Duration-Based Contractual Issues Contract Approval Process Contracts and Purchase Orders Change Order Management Contractual Disputes Document Retention Summary Review Questions Review Answers Chapter 9 Inventory Management Issues Learning Objectives Introduction Types of Inventory Excessive Inventory Issues Inventory Record Accuracy Operating with Reduced Inventory Basic Inventory Reduction Activities Advanced Inventory Reduction Activities A Reduced-Inventory Environment for Suppliers Bottlenecks in the Supply Chain Reasons to Retain Some Inventory Other Inventory Best Practices for Suppliers Supplier Lead Times The Total Inventory Concept Downstream Postponement Suppliers Own On-Site Inventory Suppliers Pre-Configure Goods Parts Standardization iii

5 Design for Broad Tolerance Design around Limited Availability Components Design around Lifetime Buy Decisions Advance Material Purchase Issues Inventory Disposal Summary Review Questions Review Answers Chapter 10 Logistics Learning Objectives Introduction Purchasing Responsibilities Free on Board Shipping Terms FOB Destination FOB Shipping Point Creating a Logistics System Transportation Brokers Just-in-Time Deliveries Additional Logistics Topics Summary Review Questions Review Answers Chapter 11 Spend Management Learning Objectives Introduction The Spend Database Spend Management Activities Spend Compliance Implications of Spend Management Rollout of Spend Management Summary Review Questions Review Answers Chapter 12 Quality Management Learning Objectives Introduction Quality from a Supplier s Perspective Quality from the Company s Perspective Quality Costs Quality Improvement Considerations Six Sigma International Quality Standards The Quality Message to Impart Summary Review Questions Review Answers Chapter 13 Cost Management Learning Objectives Introduction Types of Analysis Commodity Cost Management Price Analysis Supply and Demand iv

6 Supplier Pricing Strategies Volume Discounts Contract Duration Materials Sourcing Considerations Unique Product and High Value-Added Cost Management Target Costing The Basic Steps of Target Costing Value Engineering Considerations The Cost Reduction Program The Milestone Review Process Problems with Target Costing The Members of a Design Team Data Sources for Target Costing The Product Life Cycle and Target Costing Target Costing Summary Inter-Entity Price Reductions Maintenance, Repair, and Operations Cost Management Product Recycling Cost Management Failures Summary Review Questions Review Answers Chapter 14 Purchasing Financial Analysis Learning Objectives Introduction The Lease or Buy Decision Leasing Concerns Leasing Advantages The Make or Buy Decision The Outsourcing Decision Learning Curve Analysis Quantity Discount Analysis Early Payment Discounting Summary Review Questions Review Answers Chapter 15 Supply Chain Financing Learning Objectives Introduction Supply Chain Financing Summary Review Questions Review Answers Chapter 16 Purchasing Measurements Learning Objectives Introduction Overview of Purchasing Measurements Cost Change Proportion of Purchase Orders above Threshold Procurement Card Usage Percentage Proportion of Spend Managed Proportion of Spend with Preferred Suppliers Proportion of Certified Suppliers Supplier Performance Measurements v

7 Supplier Fulfillment Rate Supplier Defect Rate Supplier Billed Price Variance Perfect Order Percentage Premium Transportation Charges Proportion of Targeted Inventory Dispositioned General Management Measurements Negative Effects of Measurements Summary Review Questions Review Answers Chapter 17 Applicable Information Technology Learning Objectives Introduction Enterprise Resource Planning (ERP) Supplier Relationship Management (SRM) Dependent Demand Reordering Systems Warehouse Management System Distribution Requirements Planning Advance Shipping Notices Backflushing Electronic Catalogs Electronic Requisitions Electronic Tools Inventory Data Collection Methods The Customized Systems Conundrum Impact of information Technology on Purchasing Summary Review Questions Review Answers Glossary Index vi