Other
MNP2601 CHAP2
- Institution
- University Of South Africa (Unisa)
CHAPTER 2
[Show more]
Content preview
CHAPTER 2 THE TASK OF PURCHASING AND SUPPLY MANAGEMENTTHE PURCHASING AND SUPPLY MANAGEMENT AS PART OF BUSINESS
MANAGEMENT
* It should be emphasised from the outset that purchasing and supply management is
executed as an integrated part of the firm's broader management (as part of the logistics
management or supply chain management approach)
*Purchasing and supply PLANNING is part of the firm's general planning, mainly because the
continuous supply of raw materials components & services is of a strategic importance to the
enterprise. The supply market is just as important for the firm's survival continued profitability
as the sales market is the firms own product. Firm's general planning must be integrated.
*The ORGANISATIONAL STRUCTURE of the purchasing and supply function should be
aimed mainly @ linking into the firm's overall structure in the most effective way. The
purchasing and supply function primarily renders a service to the enterprise.
*Purchasing and supply COORDINATION should be aimed @ harmonising and aligning the
activities of the purchasing and supply function with those of the other business functions.
*CONTROL is that element of management which ensures that activities are executed
according to plan and within the allowed parameters.
2.2 PLANNING FOR PURCHASING AND SUPPLY MANAGEMENT
THE NATURE OF PURCHASING AND SUPPLY PLANNING
Planning can be defined as the basic management task that entails a systematic and
intelligent exposition of the direction to be followed to attain predetermined goal
LEVELS OF PURCHASING AND SUPPLY PLANNING AND OBJECTIVES
>TOP MANAGEMENT
Mission and long-term objectives. (Long-term or strategic planning)
>SUPPLY (CHAIN) MANAGEMENT
Intergrated objectives
(Medium-term or integrated functional planning)
>PURCHASING AND OTHER SECTION MANAGEMENT
Operational objectives
(Short-term or tactical planning)
STRATEGIC PURCHASING AND SUPPLY PLANNING
STRATEGIC PURCHASING OBJECTIVES
>To ensure the availability of purchased requirements @ a competitive price
>To develop existing or new suppliers
>To keep investment in inventory as low as possible
TACTICAL SUPPLY OBJECTIVES
>To enter into the long term contracts with reliable suppliers of strategic materials
>To put together a project team responsible for developing suppliers
>To study alternative inventory control systems or the flow of materials to and within the
enterprise
OPERATIONAL PURCHASING OBJECTIVES
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller LLL56. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R65,00. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
60434 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now
