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Purchasing Management Chapter Summary

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Hemant Kr
Hemant Kr

The document discusses key concepts in purchasing management including the purchasing process, sourcing decisions, supplier selection, and purchasing organization structures. It describes the role of purchasing in ensuring supply of materials at lowest cost while improving quality. The purchasing process involves requisitions, requests for quotation, and purchase orders which can now be done electronically for improved efficiency. Sourcing decisions evaluate making vs. buying based on factors like cost, capacity, expertise. Selecting suppliers considers criteria like quality, cost, reliability. Global sourcing provides opportunities but also challenges in dealing with international issues.

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CHAPTER 2- PURCHASING MANAGEMENT Prof O S Rao
Learning Objectives ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Learning Objectives- Cont. ,[object Object],[object Object],[object Object]
Chapter Two Outline ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Introduction ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Role of Purchasing in an Organization ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Purchasing Process ,[object Object],[object Object],[object Object]
The Purchasing Process- Cont.
The Purchasing Process- Cont. ,[object Object],[object Object],[object Object],[object Object],[object Object]
The Purchasing Process- Cont. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Small Value Purchase Orders ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Sourcing Decisions: The Make-or-Buy Decision ,[object Object],[object Object],[object Object],[object Object]
Sourcing Decisions: The Make-or-Buy Decision- Cont. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Sourcing Decisions: The Make-or-Buy Decision- Cont. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Sourcing Decisions: The Make-or-Buy Decision- Cont. ,[object Object]
Roles of Supply Base ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Supplier Selection ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],The process of selecting suppliers, is complex and should be based on multiple criteria:
How Many Suppliers to Use  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Single-sourcing- a risky proposition. Although trends favor fewer sources, avoid single source.
Purchasing: Centralized vs. Decentralized   ,[object Object],[object Object],[object Object]
Purchasing: Centralized vs. Decentralized     ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],A hybrid purchasing organization - both decentralized at the corporate level and centralized at the business unit level may be warranted.
International Purchasing/Global Sourcing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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