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Badm 2160 Introduction to Purchasing Supply Management by Burt, Petcavage and Pinkerton Eighth Edition Chapter 3

Autor:   •  September 14, 2017  •  830 Words (4 Pages)  •  931 Views

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- Lawyers

Legal professionals frequently are actively involved in contract negotiations and contract information. In other cases, their role is one of review and approval of contracts development by supply management professionals.

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External Linkages:

Purchasing acts as a liaison with the external environment for multiple issues, including materials, new technology, information and services.

- Describe areas in the outside environment supply managers need to monitor:

Changes in legislation that may affect the work place. Such changes can have an impact on both price and viability.

Wars and other conflicts that may disturb the availability of material and services a firm or its supplier require. Firms that proactively monitor the environment take defensive action in anticipation of the resulting material and labor shortage and prices increases.

A consolidation among suppliers. The extreme case is consolidation to the point of monopoly. Such change may require a change in a firm’s supply strategy.

Wages, projected wages, and possible relations issues.

- Describe Polaroid’s six-step environment monitoring strategy:

- Determine the cost, supply, and technology drivers of the material and services that a supply manager is watching,

- Identify the major supplier and customers of the materials and services.

- Determine the sources of information for those drivers.

- Build a model that predicts the material (or service) behavior.

- Monitor the model to determine its accuracy.

- Continuously make improvements as new relationships are understood and additional date becomes available.

Supply chain management is the integration of these activities through improved supply chain relationships to achieve a sustainable competitive advantage.

Supply chain management involves multiple organizations! It also involves Supplier integration with the Customer!

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