Procurement and Supplier Management

David Frederick Ross
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David Frederick Ross: APICS

Chapter 11 in Distribution Planning and Control, 2015, pp 531-604 from Springer

Abstract: Abstract Without much argument, it can be said that the procurement function is an essential function found at the core of all organizations. The acquisition of materials, components, finished goods, service inventories, and support services is a fundamental activity found in all industries. Effectively designed and executed procurement processes provide several direct advantages. To begin with, procurement plays a fundamental role in actualizing business and operations planning objectives concerning production, supply chain delivery, flexibility, quality, and costs. Second, the sheer financial impact of procurement directly affects the financial stability and profitability of virtually every trading partner in the supply channel. Depending on the nature of the business, procurement costs alone range from 40 % to over 70 % of each sales dollar. Third, the efficiency of procurement has a direct influence on the capability of the business and the entire supply chain to respond effectively to marketplace demand. Because of its significant impact on revenues, costs, and operational efficiencies, procurement is a key enabler of supply chain strategy.

Keywords: Purchasing Function; Request For Quote (RFQ); Purchase Order (PO); PO Release; Supplier Relationship Management (SRM) (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-1-4899-7578-2_11

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DOI: 10.1007/978-1-4899-7578-2_11

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