物流專業(yè)英語Unit_Three課件

1、Unit Three Purchasing Management1. What is the relation between purchasing and production?2. What items does a company usually purchase?3. Do you know how an enterprise purchases the goods and materials for the products?Pre-reading Discussion 1Purchasing is the management of acquisition process. Its

2、 responsibility is to ensure quality and economic supply of goods for the companys operation. Every organization, whether it is a manufacturer,a wholesaler, or a retailer, buys materials, services, and supplies from the outside suppliers to support its operation. Purchasing is one of the key links i

3、n the supply chain, so it has aIntroduction significant influence on the overall success of the organization. Ensuring that there are sufficient supplies of raw materials at the right price, of the required quality,in the right place and at the right time is obviously crucial for any manufacturing p

4、lant. Importance of Purchasing2Purchasing contributes to the firms efficiency and effectiveness in many ways. First, it helps to determine a firms cost structure. Purchasing goods and services are among the largest elements of cost for many firms. In the average manufacturing firm in North America,

5、purchased goods and services account for approximately 55 cents of every sale dollar. By way of contrast, the average expense of direct labor in the manufacturing process accounts for only about 10 cents of every sale dollar. While the percentage spent on purchased input does vary considerably among

6、 organizations, it is clear that the potential savings from strategic management of purchasing are considerable. Therefore, managers with good negotiating skills and strong relationships with suppliers can save their organizations large sum of money relative to their competitors. And identifying the

7、 right production equipment and buying it at a good price can create competitive cost advantages that last for many years. So important is this process that over the years many organizations have developed large departments to deal with supplier transactions. 3Second, good purchasing practices avoid

8、 operational problems. Stockout of raw materials or component parts can shut down a production plant. The quality of finished goods and services obviously depends upon the quality of the materials and parts used in producing those items. If poor-quality components and materials are used, the final p

9、roduct will not meet customers quality standards. Although avoiding these problems may not lead to operational effectiveness, operational effectiveness is impossible if these problems arise. 4Without effective purchasing practices, operations in a firm may be disrupted, customer service levels may f

10、all, and longterm customer relationship may be damaged. Before any product can be manufactured, supplies meeting certain conditions must be available. Fortunately, progressive managers have recognized these potential contributions of purchasing and have taken necessary steps to ensure the results. T

11、he most important step in successful organizations has been the elevation to top executive status of the purchasing manager. This, coupled with high-caliber staff and the appropriate authority and responsibility, has resulted in an exciting and fruitful realization of the potential of the purchasing

12、 contribution.5Purchasing can determine a firms cost structure. It is the most important factor to save the cost in production. It is said that an efficient purchasing can lead to a good result of operation. On the contrary, the operation in a firm may be badly damaged by the inefficient purchasing.

13、 It is assumed that bad quality of raw materials orcomponent parts can shut down a production plant. The progressive managers often take actions to have the purchasing arranged well and prospectively.Efficient Purchasing 6If you were a manager or a director of a company, the first thing you consider

14、ed about would be the cost and productivity. So the way to save the cost is to perform an efficient purchasing. We can say, purchasing manager plays a strategic role in every organization. What is purchasing? Usually, supply management is considered to be purchasing. In many firms, purchasing is see

15、n as a clerical activity and some kind of business routine. However, when the emergent need of the supply happens,it will become very important. Under the new concept of the supply chain, many managers become aware of the strategic role that it plays in the management and leading. 7Purchasing and se

16、rvice go hand in hand, and they often take up a large amount of the cost of production. Reasonable goods purchasing practices avoid operational problems.Procurement Strategies 8Based on the consumption purposes of the acquired goods and services, procurement activities are often split into two disti

17、nct categories. The first category is direct, production-related procurement and the second is indirect, non-production-related procurement. 9Direct procurement occurs in manufacturing settings only. It encompasses all items that are parts of finished products, such as raw materials, components and

18、parts. Direct procurement, which is the focus in supply chain management, directly affects the production process of manufacturing firms. In contrast, indirect procurement activities concern “operating resources” that a company purchases to enable its operations. It comprises a wide variety of goods

19、 and services, from standardized low value items like office supplies and machine lubricants to complex, costly products and services like heavy equipments and consulting services. Procurement Steps10Procurement life cycle in modern businesses usually consists of seven steps:Information Gathering: I

20、f the potential customer does not have an established relationship with sales/marketing functions of suppliers of needed products and services (P/S), it is necessary to search for suppliers who can satisfy the requirements. Supplier Contact: When one or more suitable suppliers have been identified,

21、Requests for Quotation (RFQ), Requests for Proposals (RFP), Requests for Information (RFI) or Requests for Tender (RFT) may be advertised, or direct contact may be made with the suppliers. Background Review: References for product/service quality are consulted, and any requirement for followup servi

22、ces including installation, maintenance and warranty are investigated. Samples of the P/S being considered may be examined, or trials may be undertaken. Negotiations: Negotiations are undertaken, and price, availability and customization possibilities are established. Delivery schedules are negotiat

23、ed, and a contract to acquire the P/S is completed. Fulfillment: Supplier preparation, shipment, delivery and payment for the P/S are completed, based on contract terms. Installation and training may also be included. Consumption, Maintenance and Disposal: During this phase the company evaluates the

24、 performance of the P/S and any accompanying service support, as they are consumed. Renewal: When the P/S has been consumed and/or disposed of, the contract expires, or the product or service is to be reordered, company experience with the P/S is reviewed. If the P/S is to be reordered, the company

25、determines whether to consider other suppliers or to continue with the same supplier. 11Effective procurement strategies to support supply chain management concepts require a much closer working relationship between buyers and sellers than was traditionally practiced. Three strategies have emerged:

26、volume consolidation, supplier operational integration and value management. Each of these strategies requires an increasing degree of interaction between supply chain partners; thus, they may not be considered to be distinct and separate but rather evolutionary. 12The first step in developing an ef

27、fective procurement strategy is volume consolidation through reduction in the number of suppliers. Numerous advantages are seen in this approach. First, potential suppliers are continually bidding for the buyers business, ensuring that prices would be quoted as low as possible. Second, maintaining multiple sources reduces the buyers dependence on any one supplier. This in t