Flashcards
Purchasing Evolution
Cards in this deck (7)
- 11850- 1900 The Early Years* Railroads were vital to move goods
*First purchasing Department "Supplying Dept" in the Pennsylvania Railroad (1866), and the head become a top management position
*First book "The Handling of Railway Supplies - Their Purchase and Disposition" 1887 (topics: technical expertise, centralization, personnel selections) - 21900 - 1939 Growth of Purchasing Fundamentals* Articles addressing industrial purchasing appeared outside the railroad trades journals
*"The Book on Buying" 1905, about principles of buying (non-railroad), shared forms and procedures used invarious company purchasing systems - 31940 - 1946 The War Years* Emphasis on obtaining (scarce) materials during war influenced a growth in purchasing interest
* By 1945, 49 colleges were offering courses related to purchasing
*76% of all purchase requisitions contained no specifications or stipulation of brand, these decisions were made by a purchasing agent. - 41947 - Mid 1960s The Quiet Years*No much changes, the purchasing function didn't received in full measure the attention and emphasis it deserves.
*Ford Motor Co was one of the first private organizatons to establish a commodity research department providing short and long term commodity information. Also created a purchase analysis dept to give buyers assistance on product and price analysis.
* Value Analysis (VA) technique postwar, pioneered by General Electric 1947 - 5Mid 1960 s - Late 1970s Materials Mangement Era*Dramatic growth on Materials Management concept
*Combined related functions: purchasing, inventory control, receiving and stores
*Experience on "Shortages" leads to the concept of "materials management"
*Total system view (quality, scrap, etc)
*Price competition was the major factor determining supply contracts - 6Late 1970 s - 1999 The Global Era*Recession 1980 and global competition
*Quality concepts "Statistical process control and Total quality management"
*Instense competitions and quickly
*Global firms increasingly captured world market share and emphasized different strategies vs national companies
*Technology changed purchasing cycles
*Ability to coordinate worldwide purchasing activiy by using internet - 72000 - 2025 Integrated Supply Chain Management and Technology*Importance of managing best suppliers overall (no
t only price)
*Collaboration: Supplier development, supplier design involvment, supplier relationship management
*ERP (Enterprise resource planning) hosted on the "cloud" shared databases 24/7
*Mobile devices to monitor supply
*Managing risks in a global supply chain
*AI to recognize trends and drive decisions
*Blockchains permit instant traceability of supply chain transactions enhancing safety, compliance, and responsiveness
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- Flashcards on Purchasing Evolution, created by Mayra Galvan Campos on 17/02/2021.
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- Mayra Galvan Campos · Feb 2021
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- Feb 17, 2021
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