Supply Organization

Supply Organization

1. Organizational Structures for Supply Management

   • Small and Medium-Sized Organizations
   • Large Organizations
     • Centralized, Hybrid, and Decentralized
   • Centralized and Decentralized Supply Structures
   • Hybrid Supply Structure
   • Specialization within the Supply Function
     • Sourcing and Commodity Management
     • Materials Management
     • Administration
     • Supply Research
   • Structure for Direct and Indirect Spend
   • Managing Organizational Change in Supply
     • Changes toward Centralization
     • Changes toward Decentralization

2. OBJECTIVES OF SUPPLY MANAGEMENT

   • 1. Improve the organization’s competitive position
   • 2. Provide an uninterrupted flow of materials, supplies, and services required to operate the organization.
   • 3. Keep inventory investment and loss at a minimum.
   • 4. Maintain and improve quality
   • 5. Find or develop best-in-class suppliers
   • 6. Standardize, where possible, the items bought and the processes used to procure them
   • 7. Purchase required items and services at lowest total cost of ownership
   • 8. Achieve harmonious, productive internal relationships
   • 9. Accomplish supply objectives at the lowest possible operating costs.

3. Organizing the Supply Group

   • The Chief Purchasing Officer (CPO)
     • “top level” executive in a “fi rm’s corporate
     • Profi le of the CPO
   • Reporting Relationship
     • Reports gives a good indication of the status of supply and the degree

4. Supply Activities and Responsibilities

   • What Is Acquired
     • Raw materials, standard and special direct purchases, MRO, capital, services, and resale
   • Supply Chain Activities
     • more responsibilities
       • Purchasing/buying
       • Purchasing research
       • Inventory control
       • Transportation
       • Environmental and investment recovery/disposal
       • Forecasting and planning
       • Outsourcing and subcontracting
       • Nonproduction /nontraditional Purshases
       • Supply chain management
   • Type of Involvement
   • Involvement in Corporate Activities
   • Influence of the Industry Sector on Supply Activities

5. Supply Teams

   • Leading and Managing Teams
   • Cross-Functional Supply Teams
     • Sourcing Teams
     • New Product/Service Development Teams
     • Commodity Management Teams
   • Other Types of Supply Teams
     • Teams with Supplier Participation
     • Teams with Customer Participation
     • Co-location of Supply with Internal Customers
     • Co-location of Suppliers in the Buying Organization
     • Supplier Councils
     • Supply Councils

6. Consortia

   • Purchasing consortia are a form of collaborative purchasing that is used by both public and private-sector organizations as a means of delivering a wider range of services at a lower total cost.

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