Purchasing & Supply Chain Management 7th Edition by Robert M. Monczka Solution manual
- Improve quality
- Reduce time to market
- Improve supply chain visibility
- Yes
9. Discuss the four enablers of purchasing and supply chain excellence.
- Capable human resources
- Key to the success of any company is the quality of its employees
- Need for interpersonal skills to manage relationships
- Use data and analytics
- Understand cost management
- Technological savvy
- Sound human resources strategy
- Proper organizational design
- Process of assessing and selecting the structure and formal system of communication, division of labor, coordination, control, authority, and responsibility required to achieve organizational goals
- Proper use of teams
- Real-time collaborative technology capabilities
- Cloud-based information technology
- Mobile devices
- Planning and execution software
- Data and analytics
- Right measures and measurement system
- Knowing what to measure
- Process in place to measure
- Accessibility to right data
- Support fact-based decision making and taking action
- Communicate requirements to other supply chain members
- Improve supplier performance
- Recognize outstanding performance
10. Would you agree that the importance of the individual supply chain management activities vary with the type of business (e.g., purchasing vs. inbound transportation) and provide examples?
- Answers will vary by student
11. Briefly discuss each of the seven periods in the evolution of purchasing and supply management. What do you forecast for the future?
- The Early Years (1850 – 1900)
- Manufacturing-based
- “Materials man who selects, purchases, receives, and delivers all articles required”
- Railroad industry was early adopter of purchasing activities
- Growth of Purchasing Fundamentals (1900 – 1939)
- Expansion of purchasing outside the railroad industry
- Development of basic purchasing procedures and ideas
- During World War I – role in obtaining vital war materials
- Focus on sourcing or raw materials, instead of buying finished or semi-finished goods
- The War Years (1939 – 1946)
- Emphasis on obtaining scarce materials during wartime
- Increased number of colleges offering purchasing courses
- Importance of professional organizations focused on purchasing
- The Quiet Years (1947 – Mid-1960s)
- Decline of purchasing awareness post-World War II
- Treated as an inescapable cost of doing business; regarded as a negative function
- Wider dissemination of purchasing practices
- Development of value analysis
- Materials Management Era (Mid-1960s – Late 1970s)
- Combined related functions such as purchasing, inventory control, receiving, and stores under the authority of one individual
- Issue of supply disruptions, i.e., Vietnam War, Arab oil embargoes moved organizations to become more efficient
- Emphasis on multiple sourcing through competitive bid pricing
- Supplier not considered as value-adding with arm’s length relationships
- Price competition