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Week 11A – Procurement & Distribution Chapter 11

Week 11A – Procurement & Distribution Chapter 11. Purchasing, make or buy, DRP. Purchasing - 1. Purchasing activities and interfaces Purchasing cycle Requisition from user or inventory control Supplier selection Order placement Order monitoring and follow-up Order receipt

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Week 11A – Procurement & Distribution Chapter 11

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  1. Week 11A – Procurement & Distribution Chapter 11 Purchasing, make or buy, DRP SJSU Bus 140 - David Bentley

  2. Purchasing - 1 • Purchasing activities and interfaces • Purchasing cycle • Requisition from user or inventory control • Supplier selection • Order placement • Order monitoring and follow-up • Order receipt • Outsourcing • Contract manufacturers SJSU Bus 140 - David Bentley

  3. Purchasing - 2 • “JIT” purchasing • Fewer suppliers • More contracts • Traditional vs. partnership relationships • Next 2 slides • Supplier selection • Supplier audits and certification • May use standard industry certifications SJSU Bus 140 - David Bentley

  4. Supplier Relationships – 1Source: Schonberger & Knod, Operations Management, Fourth Edition, 1991 SJSU Bus 140 - David Bentley

  5. Supplier Relationships – 2Source: Schonberger & Knod, Operations Management, Fourth Edition, 1991 SJSU Bus 140 - David Bentley

  6. Purchasing - 3 • Supply Chain Tools • Bar coding • EDI (Electronic Data Interchange) • RFID (Radio Frequency Identification) • E-commerce SJSU Bus 140 - David Bentley

  7. Purchasing - 4 • Make or buy (breakeven analysis) • QBEP = FC / (p – v) • Distribution requirements planning (DRP) • Aggregate requirements from stores • Assign through warehouses to factories SJSU Bus 140 - David Bentley

  8. E-Commerce Areas • CRM - Oracle (including Seibel), BroadVision • B2B - SAP, Oracle • B2C - BroadVision • SCM - SAP, i2 • E-Procurement - SAP, Ariba SJSU Bus 140 - David Bentley

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