Procurement and Supply Chain Management PDF eBook

Cover......Page 1 Title page......Page 4 Copyright page......Page 5 Contents......Page 8 Preface......Page 16 Acknowledgements......Page 18 Publisher’s acknowledgements......Page 19 Plan of the book......Page 21 Part 1 Introduction, strategy, logistics, supply chain, policies and procedures......Page 22 Key ideas......Page 24 1.1 How to define procurement......Page 25 1.2 Strategic roles of procurement......Page 26 1.3 Procurement as organisational buying......Page 28 1.4 The evolution of purchasing through to procurement......Page 30 1.5 Procurement and change......Page 36 1.6 World-class procurement......Page 37 1.7 The status of procurement and supply management (PSM)......Page 39 Discussion questions......Page 46 References......Page 47 Key ideas......Page 49 Introduction......Page 50 2.1 Strategic thinking......Page 51 2.2 What is strategy?......Page 52 2.3 Strategy development......Page 53 2.4 Levels of organisational strategy......Page 57 2.6 Growth strategies......Page 58 2.7 Business-level strategy......Page 61 2.9 Strategic analysis......Page 64 2.10 Important environmental factors......Page 66 2.11 Internal scrutiny......Page 70 2.12 Strategy formulation......Page 71 2.13 The evaluation of alternative strategies......Page 75 2.14 Strategy implementation......Page 86 2.15 Post-implementation evaluation, control and review vii......Page 90 2.16 Strategic procurement and supply chain process models......Page 92 Discussion questions......Page 96 References......Page 97 Key ideas......Page 99 3.1 What is logistics?......Page 100 3.2 Materials, logistics and distribution management......Page 101 3.3 Reverse logistics......Page 106 3.4 Supply chains......Page 107 3.5 Supply chain management (SCM)......Page 110 3.6 Supply chain vulnerability......Page 115 3.8 Value chains......Page 116 3.9 Value chain analysis......Page 121 3.10 Supply chain optimisation......Page 124 3.11 Supply chains and procurement......Page 127 Discussion questions......Page 130 References......Page 131 Key ideas......Page 133 4.1 Organisational structures......Page 134 4.2 New type organisations......Page 142 4.3 Networks......Page 143 4.4 Factors in configurations......Page 150 4.5 Lean organisations......Page 153 4.6 Agile organisations and production......Page 156 4.7 Supply and value chain mapping......Page 160 4.8 Types of change......Page 164 4.9 Centralised procurement......Page 167 4.11 Cross-functional procurement......Page 169 Discussion questions......Page 172 References......Page 173 Introduction......Page 176 5.1 Exemplar Procurement Policy – The Crossrail Project......Page 177 5.2 Procurement procedures......Page 180 5.4 E-commerce, e-business, e-SCM and e-procurement......Page 182 5.6 Electronic data interchange (EDI)......Page 186 5.7 E-hubs, exchanges, portals and marketplaces......Page 192 5.8 E-catalogues......Page 194 5.9 E-auctions......Page 197 5.10 Reverse auctions......Page 198 5.11 E-payment......Page 203 5.12 Low-value purchases......Page 204 5.13 Procurement manuals......Page 206 5.14 Supplier manuals......Page 208 Discussion questions......Page 209 References......Page 210 Part 2 Supplier relationships, legal & contractual management, quality management, sourcing, supplier selection, price management and long-term cost in use......Page 212 Introduction......Page 214 6.3 Collaborative business relationships......Page 215 6.4 Relationship formation......Page 218 6.5 Models of supplier relationships......Page 220 6.6 Practical considerations of supplier relationship management......Page 226 6.7 The termination of relationships......Page 229 6.8 Relationship breakdown on an IT project......Page 232 Discussion questions......Page 234 References......Page 235 7.1 The procurement specialist and Contract Law......Page 237 7.2 Offer and acceptance......Page 238 7.3 Acceptance......Page 240 7.4 Contracts for the Sale of Goods......Page 242 7.5 Contract for the Supply of Services......Page 243 7.6 Consideration......Page 244 7.7 Capacity to Contract......Page 245 7.8 Drafting the detail of contract clauses......Page 247 7.9 Misrepresentation......Page 248 7.10 The Right to terminate a contract......Page 249 7.11 HOT TOPICS......Page 251 7.12 Standard Forms of Contract......Page 258 References......Page 260 Key ideas......Page 262 8.1 What is quality?......Page 263 8.3 The importance of TQM......Page 265 8.4 Specifications......Page 270 8.5 Alternatives to individual specifications......Page 275 8.6 Standardisation......Page 278 8.8 Quality assurance and quality control......Page 283 8.9 Tests for quality control and reliability......Page 284 8.10 The cost of quality......Page 296 8.11 Value management, engineering and analysis......Page 297 Discussion questions......Page 308 References......Page 309 Key ideas......Page 311 9.2 Reasons for keeping inventory......Page 312 9.4 Scope and aims of inventory management......Page 313 9.5 Some tools of inventory management......Page 315 9.6 The economics of inventory......Page 319 9.7 Inventory performance measures......Page 320 9.8 Safety stocks and service levels......Page 321 9.9 The right quantity......Page 324 9.11 Forecasting demand......Page 325 9.12 ‘Push’ and ‘pull’ inventories......Page 331 9.13 Independent demand......Page 332 9.15 Just-in-time (JIT)......Page 336 9.16 Materials and requirements planning (MRP)......Page 343 9.17 Manufacturing resource planning (MRP II)......Page 347 9.18 Enterprise resource planning (ERP)......Page 348 9.20 Distribution requirements planning (DRP)......Page 351 9.21 Vendor-managed inventory (VMI)......Page 353 Discussion questions......Page 356 References......Page 358 Key ideas......Page 359 10.2 The strategic sourcing process......Page 360 10.3 Sourcing information......Page 362 10.4 Analysis of market conditions......Page 363 10.5 Directives......Page 365 10.6 E-sourcing......Page 366 10.7 Locating suppliers......Page 367 10.8 Supplier assessment......Page 368 10.9 Supplier approval......Page 376 10.10 Evaluating supplier performance......Page 377 10.11 Policy issues in sourcing......Page 380 10.12 The supplier base......Page 381 10.13 Outsourcing......Page 382 10.14 Outsourcing manufacturing......Page 383 10.15 Outsourcing services......Page 388 10.17 Types of outsourcing......Page 390 10.19 Problems of outsourcing......Page 391 10.20 Handling an outsourcing project......Page 392 10.21 Sub-contracting......Page 394 10.22 Partnering......Page 396 10.23 Intellectual property rights and secrecy......Page 406 10.24 Procurement support for in-house marketing......Page 407 10.25 Intra-company trading......Page 408 10.27 Procurement consortia......Page 409 10.28 Sustainability......Page 410 10.29 Sourcing decisions......Page 411 10.30 Factors in deciding where to buy......Page 413 Discussion questions......Page 415 References......Page 417 Key ideas......Page 419 11.2 Strategic pricing – an introduction......Page 420 11.3 The buyer’s role in managing purchase prices......Page 421 11.5 The supplier’s choice of pricing strategy......Page 432 11.6 Price and cost analysis......Page 434 11.7 Competition legislation......Page 438 11.8 Collusive tendering......Page 440 11.9 Price variation formulae......Page 441 Discussion questions......Page 443 References......Page 445 Part 3 Project management and risk management, global sourcing, negotiation skills, contract management, category procurement, world-class procurement to enhance business performance......Page 446 Key ideas......Page 448 12.2 The project lifecycle......Page 449 12.3 PID and the project procurement strategy......Page 454 12.4 Design and build......Page 456 12.6 PRINCE2 ®......Page 457 12.7 Project management issues......Page 459 12.8 Project risk management......Page 460 12.9 Project procurement risk management......Page 461 12.10 Project procurement management......Page 468 References......Page 476 Key ideas......Page 478 13.2 Motives for buying offshore......Page 479 13.3 Sources of information for offshore suppliers......Page 480 13.4 Overcoming challenges when sourcing off-shore......Page 481 13.5 Incoterms ®......Page 488 13.6 Shipping terms......Page 489 13.7 Customs and Excise......Page 493 13.8 Transport systems, costs and considerations......Page 494 13.9 Freight agents......Page 496 13.10 Methods of payment......Page 498 13.11 Countertrade......Page 500 13.13 Buying capital equipment offshore......Page 503 13.14 Factors in successful offshore procurement......Page 505 References......Page 506 Key ideas......Page 508 Introduction......Page 509 14.1 Approaches to negotiation......Page 512 14.2 The content of negotiation......Page 513 14.3 Factors in negotiation......Page 516 14.4 The negotiation process......Page 520 14.5 Pre-negotiation......Page 521 14.6 The actual negotiation......Page 527 14.7 Post-negotiation actions......Page 532 14.9 Negotiation and relationships......Page 533 14.10 Negotiation ethics......Page 535 Discussion questions......Page 539 References......Page 540 Key ideas......Page 542 15.1 The pre-contract award activities impact on contract management......Page 543 15.2 The contract manager’s role, skills and knowledge......Page 544 15.3 Contract management plans......Page 548 15.4 The contract management of specifications/standards......Page 552 15.5 Managing contract performance......Page 555 15.6 Social services contract monitoring audit......Page 557 15.7 Contract management checklist......Page 561 15.8 Contract provisions......Page 562 15.9 Contract clauses and what they mean......Page 563 Discussion questions......Page 564 References......Page 565 Key ideas......Page 566 16.1 Defining categories......Page 567 16.2 Illustrations of category management issues......Page 568 16.4 Category management risk profiling......Page 570 16.5 Category management – corporate travel......Page 571 16.6 Category management – ICT......Page 575 16.7 Capital investment procurement......Page 577 16.8 Production materials......Page 588 16.9 Raw materials......Page 589 16.10 Futures dealing......Page 590 16.11 Methods of commodity dealing......Page 594 16.14 Energy supply chains in the UK......Page 598 16.15 Markets......Page 599 16.16 Pricing......Page 600 16.17 Procuring energy contracts......Page 601 16.19 Component parts and assemblies......Page 603 16.20 Procurement and consumables......Page 604 16.21 Construction supplies and bills of quantities......Page 605 16.22 Procurement of services......Page 608 Discussion questions......Page 613 References......Page 614 Key ideas......Page 615 17.1 Innovation and supplier continuous improvement......Page 616 17.2 Innovation......Page 617 17.3 Environmentally sensitive design......Page 618 17.5 Supplier development......Page 620 17.6 Procurement research......Page 624 17.7 Procurement performance evaluation......Page 627 17.8 Accounting approaches......Page 631 17.9 The procurement management audit approach......Page 632 17.10 Benchmarking and ratios......Page 637 17.11 Integrated benchmarking......Page 638 17.12 Procurement ethics......Page 640 17.13 Ethical issues relating to suppliers......Page 642 17.14 Ethical codes of conduct......Page 644 17.15 Procurement and fraud......Page 648 17.16 Environmental aspects of procurement......Page 652 Discussion questions......Page 663 References......Page 665 Appendix 1: Code of professional ethics – Chartered Institute of Procurement and Supply (CIPS) (Approved by the CIPS Council, 11 March 2009)......Page 667 Appendix 2: Principles and standards of ethical supply management conduct (ISM) (Adopted May 2008)......Page 669 Definitions, acronyms and foreign words and phrases......Page 670 Index of names and organisations and some publications mentioned in the text......Page 676 Subject Index......Page 681 This title covers new developments in the procurement and supply chain field, and offers increased coverage of project procurement and risk management, global sourcing and contract management, alongside a brand new chapter on legal and contractual management. This market-leading text continues its claim to be the most comprehensive textbook on procurement and supply chain management currently available. It is also of value to professionals and those specialists in other fields who need an understanding of the role and influence of this vital area of business performance. The subject matter has been brought to life using extensive real-life examples and a truly international focus on procurement and supply chain. This new fully revised edition covers new developments in the procurement and supply chain field, and offers increased coverage of project procurement and risk management, global sourcing and contract management, alongside a brand new chapter on Legal and Contractual Management. What's new? The entire content has been updated to reflect such changes as contract risk, EU Procurement Regulations, category management, procurement strategies and world-class procurement. Extensive research has been carried out on an international scale to reflect material changes in the procurement profession. New teaching resources, including an Instructors Manual and comprehensive PowerPoint slides available from www.pearsoned.co.uk/farrington Procurement & Supply Chain Management offers great value to those aspiring to be leaders in the profession and who are engaged in professional studies for the Chartered Institute of Procurement and Supply examinations at both the Foundation and Professional stages. It is also a valuable source of practical and reference information for practising professionals. Dr Brian Farrington is the Managing Director of his specialist company, Brian Farrington Limited. They provide training and consultancy support to the public and private sectors of business. They work on major projects and high-value, high-profile and high-risk procurements. He has extensive experience in the USA, Canada, Southern Africa, Hong Kong and Europe. He has resolved major disputes and negotiated complex contracts, including outsourcing key business services Procurement and Supply Chain Management, 10th Edition , by Farrington is the most comprehensive and accessible textbook on procurement and supply chain management currently available. It is the ideal textbook for those aspiring to be leaders in the profession, and for those who are engaged in professional studies for the Chartered Institute of Procurement and Supply examinations (at both the foundation and professional stages). It is also of value to specialists in other fields who require understanding of the role and influence of this area of business performance. Using extensive real-life examples the subject matter has been brought to life throughout the book, and provides a truly international focus on procurement and supply chain. This fully revised edition covers new developments in the procurement and supply chain field, and offers new chapters on public sector procurement and socially responsible procurement. The full text downloaded to your computer With eBooks you eBooks are downloaded to your computer and accessible either offline through the Bookshelf (available as a free download), available online and also via the iPad and Android apps. Upon purchase, you'll gain instant access to this eBook. Time limit The eBooks products do not have an expiry date. You will continue to access yourdigitalebookproducts whilst you have yourBookshelf installed. This market-leading text continues its claim to be the most comprehensive textbook on procurement and supply chain management currently available. It is also of value to professionals and those specialists in other fields who need an understanding of the role and influence of this vital area of business performance. The subject matter has been brought to life using extensive real-life examples and a truly international focus on procurement and supply chain. This new fully revised edition covers new developments in the procurement and supply chain field, and offers increased coverage of project procurement and risk management, global sourcing and contract management, alongside a brand new chapter on Legal and Contractual Management. The full text downloaded to your computer With eBooks you can: search for key concepts, words and phrases make highlights and notes as you study share your notes with friends eBooks are downloaded to your computer and accessible either offline through the Bookshelf (available as a free download), available online and also via the iPad and Android apps. Upon purchase, you will receive via email the code and instructions on how to access this product. Time limit The eBooks products do not have an expiry date. 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