Questions and Answers of Purchasing And Supply Management

appreciate how the purchasing function has evolved;
have an understanding of the key drivers of the evolution from purchasing to supply management;
have a clear understanding of the various roles that purchasing and supply management can play in achieving strategic success;
understand the different levels of analysis in supply chain management.
Discuss the evolution or the purchasing function from logistics, through administration, supply chain management to supply management and strategic decision making.
Using a PEST model, discuss the key drivers of the evolution of the supply management function in an organisation with which you are familiar.
Examine three case study companies and analyse what role their Purchasing department fulfils. In each case discuss whether the role that the Purchasing department fulfils has had an impact on the
understand the fundamental significance of the make–buy decision to organisations in general and supply chain management in particular;
have a clear understanding of transaction cost approaches and be able to apply the theory to practical dilemmas;
have a clear understanding of competency approaches and be able to apply the theory to practical dilemmas.
the concept of supply strategy as it relates to supply chain configurations;
the implications of Kraljic’s positioning matrix;
the four key sourcing configurations;
the implications for choosing and applying appropriate sourcing strategies to commodity, product and service groups.
Discuss how the concept of supply strategy relates to supply chain configurations.
Apply Kraljic’s positioning matrix to a company of your choice, identifying suppliers that fall into each category within the matrix.
Using case studies give examples of the four key sourcing configurations.
Discuss examples (good and bad) of the application of different sourcing strategies to commodity, product and service groups.
identify the stages of supplier selection;
identify some of the primary criteria used to select suppliers;
understand different sources of information used to evaluate and distinguish between suppliers;
understand and be able to apply the analytic hierarchy process to the selection of suppliers.
Discuss the strengths and weaknesses of the following sources of information that may be used to evaluate a supplier: information from suppliers, supplier visits, supplier performance measures.
Using a case study, undertake an AHP.
appreciate the strategic importance of supplier development;
have an understanding of best practices in supplier development;
understand the supplier development process.
Discuss, with examples, the strategies that may be adopted when developing a supplier.
Give examples of good and bad practice in supplier development.
Discuss how a particular supplier may be developed in a case study of your choice.
understand the principles of the supply wheel;
understand the difference between policy and strategy;
appreciate the high degree of interaction between elements of the supply wheel.
define and identify levels of strategy;
understand the importance of strategic alignment;
understand and be able to apply strategic alignment within a supply chain context.
Describe the development of strategy within a business (showing the difference between corporate, business and functional levels).
Discuss the importance of strategic alignment.
Apply strategic alignment within a supply chain context.
difference between skills, competencies and competences;
competencies for strategic supply;
methodology for the application of competencies to a practical situation.
Discuss the difference between skills, competencies and competences.
Describe the competencies required for strategic supply.
Apply the competencies approach to a practical situation.
understand the difference between centralised, decentralised, hybrid, atomised and federal structures;
understand the advantages and disadvantages of these different structures.
Describe the difference between centralised, decentralised, hybrid, atomised and federal structures.
In groups, examine the advantages and disadvantages of centralised, decentralised, hybrid, atomised and federal structures.
understand the basic elements of performance measurement systems;
appreciate the interaction between performance measures and strategy;
understand the differences between different types of supplier performance measures.
Outline the basic elements of performance measurement systems.
Discuss how performance measurement and strategy interact, giving examples of good and bad practice.
Develop a set of performance measurements for evaluating purchasing performance in a firm competing: (a) as an innovative, high-tech manufacturer; (b) a low-cost provider; and (c) a manufacturer of
understand the role that cost has to play in making the purchasing decision;
have a clear overview of how to apply the Total Cost of Ownership (TCO) concept in making a business case.
Discuss the role of cost versus price in a purchasing decision.
What are the major benefits of adopting a total cost of ownership (TCO) perspective?
Thinking about the procurement value chain, how do you think a firm could calculate the cost of recycling and disposal in a TCO model? Give examples of these activities, and how you might identify
have a clear understanding of the main models, concepts and theories of relationship management;
be able to see relationship management in context and understand that it can be viewed from a variety of perspectives, e.g. economic, strategic, behavioural and marketing;
appreciate the complexities and difficulties in implementing a relationship management approach;
have an understanding of how to approach and implement relationship management techniques.
Discuss, giving examples, the main models, concepts and theories of relationship management.
Discuss how relationship management can be viewed from the economic, strategic, behavioural and marketing perspectives.
Using a case study company of your choice, show the complexities and difficulties in implementing a relationship management approach.
Using a case study, discuss how you would implement relationship management techniques.
understand why purchasing and supply management should be concerned with environmental and ethical supply issues;
have a clear understanding of the contribution purchasing and supply management can make to environmental soundness;
be able to identify a range of implementations issues that are important to‘green supply’.
Why should purchasing and supply management be concerned with environmental and ethical supply issues?
Describe some of the ways purchasing and supply management can make a contribution to environmental soundness.
Describe a number of implementation issues that are important to ‘green supply’.
understand issues in selection of suppliers;
be aware of criteria for the extent and timing of supplier involvement;
understand key managerial practices which enhance successful involvement outcomes.
Identify the main drivers of the trend toward collaborative new product development. What benefits might buyers expect to gain from this approach?
What do you consider to be the key factors that are commonly used to promote supplier innovation?
Make suggestions as to when different approaches to supplier design involvement (e.g. white box, grey box, black box) would be most appropriate.
understand the special nature of public procurement;2
know something of the historical development of the European procurement regulations, as an example of regulated supply management;
understand the European Commission Procurement Directives and how they are applied;
understand how regulation affects decision making and behaviour in public procurement;
access links to information available publicly on this subject.
Compare and contrast the procurement activities of one public sector or government organisation and one private sector enterprise and discuss the reasons for any different approaches.
Regulatory frameworks such as the EC Procurement Directives are intended to achieve better value for public money. What barriers might there be to realising this objective?
Access the information available publicly on this subject and describe if and how the EC Procurement Directives have developed since the writing of this book.
be able to differentiate Electronic Data Interchange from internet technologies;
be able to identify different forms of electronic exchanges;
understand the implications of electronic technology for strategic relationships and the supply base.
Discuss the difference between electronic data interchange and Internet technologies.
Identify, with examples from your experience or case studies, each of the different forms of electronic exchange.
Discuss, using case studies, the implications of electronic technology for strategic relationships and the supply base.
have a clear understanding of the definitions and operations of commodity markets;
be able to distinguish various types of commodities, for example hard and soft;
have an overview understanding of the workings of the commodity markets themselves;
understand the implications of active and professional commodity management on the supply process and ultimately the effect that they have on the firm’s output.
Discuss your understanding of the definitions and operations of commodity markets as outlined in the text.
Using case study examples, distinguish between four various types of commodities, for example hard and soft.

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