Midterm Examination: Purchasing and Materials Management

The main elements of a supply chain include purchasing, operations, distribution, and integration. The supply chain begins with purchasing. Purchasing managers or buyers are typically responsible for determining which products their company will sell, sourcing product suppliers and vendors, and procuring products from vendors at prices and terms that meets profitability goals.

The Customer relationship, Order fulfillment, and Supplier relationship processes need to be analyzed from the perspective of process structure, process improvement, layout, and capacity.

Furthermore each operating office is required to develop a strategy and action plans to support the suppliers’ performance for continuous improvement and more important is that to bring the suppliers and theirs supply chain into line with the entire code. The codes of

Argue a means of ascertainments and arrange through rates differences an acquirement which you will always want to accept. Cite with proper requirements and access having relevance which is a requirement to accept buys on store. Claim items once you have made orders and see to it a retention and discount store ascriptions obligatory.

Associate making a requirement intentional to have improvements in the buying sequence with a purpose served to purchase. Set goals that have wants and implications used in different situations placing a sequence of actions. Seek cut rates and purchase on a specific day stuff you need, having relevance and acceptance in buys.

When looking in “My Grades,” you will see the names of the activities have been shortened.

Answer 1. Strategic sourcing is the major tools and technology in supply chain management and it delivers cost reductions and other offers and advantages. It will make strategic sourcing different from a traditional sourcing. This sounds the most strategic supplier relationship that is based on cost and there is an ability to create new business with technological advances.

It is quite challenging to discuss about procurement management without stating the importance of its strategies. There are four main basic procurement strategies that serve different functions within a procurement management. To begin with, a “Partnership” strategy focuses mainly on constructing mutual commitment in long term relationship with suppliers. While a “Secure Supply” strategy aims to secure short and long term supply while reducing risk from suppliers. In addition, a “Category Management and E-Procurement solutions” serves as a tool to reduce logistic complexity, improve operational efficiency, and attempts to reduce the number of suppliers. Lastly, a “Competive Bidding” strategy emphasizes on obtaining the “Best Deal” for short term transactions with suppliers.(van weele) Each of these four strategies involves a unique purchasing methodology, which implies that the complexity is embedded in an individual strategic implication. Therefore, it requires different tools to accomplish the specific strategical characteristics. A business entity may need to support and execute procurement decisions with other strategic apparatus with analytical methods, including market analysis, uncertainty analysis, price forecasting, supplier relationship and along with others.(Harvard)

The procurement section of Target’s supply chain is an essential part of how it replicate costs to customer requirements. The overall affiliation between customer fulfillment and the supply chain are closely linked to products that are designated based on benchmarks that have been appropriately matched to target costing structured with market criticism and feedback provided. When focusing on purchasing products to sell to customers, the organization selects and processes the best option that best matches Target’s

What Is Strategic Management a process for defining and addressing the management implications of an organization's strategic and operational plans? A long-term context for short-term activities. Strategic management is the analysis of the work done by the management of an organization on behalf of the owners. It gyrates around expressing the purposes of the organization and coming up with an appropriate mission and vision statement. Mission and vision statement together are used to help develop policies and plans to be used in long term and short term goals often categorized as projects or programs. It also involves the right resources of management to ensure that the business profit are maximized to grow the company. Strategic Competitiveness

Purchasing-Information gained from planning stage used to purchase raw material for products and packaging from supplier.

In most situations, there are people that take on many roles in a business purchasing decision. Upon on an establishment’s organization and the significance of the resolution being made, there could be several to a limited amount of managers that will participate within the purchasing method. More or less participants of a purchasing method will take part during the assessment during the purchasing method, while few participants will only participate during a short time.

Purchasing is defined as the management of a company’s external resources in such a way that the supply of all goods, services, capabilities and knowledge which are necessary for running, maintaining and managing the company’s primary and support activities are secured under the most favourable conditions. (Van Weele, 2014).

The topic selected is (Strategic Procurement & Supply Chain Management). For this study, we have selected Toyota Motor Corporations as our company of choice. Toyota is without doubt the best in the world, with its many philosophies and principles on how to make the best out of the least; JIT, lean production and elimination of waste and the desire for continuous improvement are just a few ways how Toyota has become the best in the auto industry. Toyota as a name, a company, and as a brand has become synonymous with Quality.

Strategic Planning is the process of developing and maintaining a strategic fit between the organizations goals and capabilities and its changing marketing opportunities.