Supply Processes and Technology

Supply Processes and Technology

1. Five major reasons for developing a robust process are as follows

   • 1. Large number of items. 2. Large dollar volume involved. 3. Need for an audit trail. 4. Severe consequences of poor performance. 5. Potential contribution to effective organizational operations inherent in the function.

2. Information Flows

   • Inward Flows
   • Outward Flows

3. Steps in the Supply Process

   • 1. Recognition of need. 2. Description of need. 3. Identification and analysis of possible sources of supply.
   • 4. Supplier selection and determination of terms. 5. Preparation and placement of purchase order. 6. Follow-up and/or expediting the order.
   • 7. Receipt and inspection. 8. Invoice clearing and payment. 9. Maintenance of records and relationships.

4. IMPROVING PROCESS EFFICIENCY AND EFFECTIVENESS

   • Supply Process Flowchart
   • Strategic Spend
   • Nonstrategic Spend

5. Information systems

   • Data accessibility.
   • Cost reduction and effi ciency gains.
   • Speedier communication.
   • Dedicate resources to strategic issues.
   • Data accuracy.
   • Systems integration.
   • Monetary control.

6. Technology Options

   • Software
   • Systems
     • Knowledge Level Systems
     • Management Level Systems
     • Operational Level Systems

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