Purchasing & Inventory management

Purchasing & Inventory management

1. Challenges

   • Corporate supply challenges
     • Increased global competition
     • Development of new product technologies
     • Evolving information systems
   • Challenges facing purchasing
     • e-commerce
     • Purchase of non-traditional goods and services

2. Opportunities

   • Reduce total costs of ownership
   • • Maximize value from suppliers
   • Identify opportunities to increase revenue

3. the supply function

   • early 1900s
     • Clerical and tactical
     • Key challenges: availability of supply ● and cost management
     • Focus on policies and procedures
   • early 21st century
     • Strategic orientation
     • Key challenges: Sustainability, security, globalization, risk management
     • Global supply chains
   • Supply Chain 50% - 80% of revenue

4. Integrated Strategic Procurement and Sourcing Function

   • Executive Leadership
   • Functional Leadership
   • Integration
   • Supply Base Strategy
   • Supplier Management
   • Measurement (KPI´s)
   • Systems

5. Supply contribution

   • Negative
   • Neutral
   • Positive

6. Manufacturing and Services Organizations

   • Manufacturing
     • • The largest portion of needs is generated by customer needs.
     • The largest portion of spend with suppliers will be on direct requirements
   • Supplier Management
     • The largest portion of needs is generated by capital, services and other requirements
     • In retailing the largest spend is focused on re-sale requirements.

7. The Opportunities for Contribution of the Supply Function

   • Profit-leverage effect
   • Effect on efficiency
   • Return-on-assets effect
   • Training ground

8. Differentiations for Supply

   • Public Organizations
     • Mission
     • Level
   • Private Organizations
     • Reputation
     • Strategy

9. Major logistic Activities

   • customer service
   • warehouse storage
   • • packaging