教学物流英语第三章.pptVIP

Learning Objectives Learn the role of procurement and supplier management. Gain an understanding of purchasing management process. Get an overview of supplier selection and evaluation. Understand the types of relationships and mechanism of managing suppliers. 3.1The Definition and Role of Procurement The cost of material as a percentage of sales has been estimated at approximately 53 percent for all types of manufacturing in the United States. For wholesalers and retailers, the cost of goods sold is even higher than of manufacturers. This indicates the magnitude of the benefits that are possible through better management of procurement and related supplier network. Undoubtedly, supplier management is of great significance to enhancing the competitiveness of both manufactures and resellers.[ri:sel?] [,ri:sel] resell 3.1The Definition and Role of Procurement 3.1.1 Definition of Procurement Traditionally, the main activities of purchasing were to beat up potential suppliers on price and then buy products from the lowest cost supplier that could be found. That is still an important activity, but there are other activities that are becoming equally important. Because of this the purchasing activity is now seen as part of a broader function called procurement. The term purchasing and procurement are often used interchangeably, although they do differ in scope. Purchasing generally refers to the actual buying of materials and those activities associated with the buying process. As we move into the future, purchasing will evolve into the procurement process of supply chain management described in chapter 2. In procurement the activities are recognized as process-oriented and strategic. Structurally, commodity team, product supply groups, and cross-functional teams are more prevalent than in the past. The process itself is less transaction-oriented, depends on the implementation of good information systems, and focuses on closer s