Procurement and Supply Chain Management VitalSource eText (9e) : 9781292170671

Procurement and Supply Chain Management VitalSource eText (9e)

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Pearson United Kingdom
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About the book

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.

Table of contents


Publisher’s acknowledgements

Plan of the book

Part 1 Introduction, strategy, logistics, supply chain, policies and procedures

1 The scope and influence of procurement
Learning outcomes
Key ideas
1.1 How to define procurement
1.2 Strategic roles of procurement
1.3 Procurement as organisational buying
1.4 The evolution of purchasing through to procurement
1.5 Procurement and change
1.6 World-class procurement
1.7 The status of procurement and supply management (PSM)
1.8 Reflections on procurement positioning in business
Discussion questions

2 Strategic procurement
Learning outcomes
Key ideas
2.1 Strategic thinking
2.2 What is strategy?
2.3 Strategy development
2.4 Levels of organisational strategy
2.5 Corporate strategy
2.6 Growth strategies
2.7 Business-level strategy
2.8 Strategic management
2.9 Strategic analysis
2.10 Important environmental factors
2.11 Internal scrutiny
2.12 Strategy formulation
2.13 The evaluation of alternative strategies
2.14 Strategy implementation
2.15 Post-implementation evaluation, control and review
2.16 Strategic procurement and supply chain process models
Discussion questions

3 Logistics and supply chains
Learning outcomes
Key ideas
3.1 What is logistics?
3.2 Materials, logistics and distribution management
3.3 Reverse logistics
3.4 Supply chains
3.5 Supply chain management (SCM)
3.6 Supply chain vulnerability
3.7 SCM and logistics
3.8 Value chains
3.9 Value chain analysis
3.10 Supply chain optimisation
3.11 Supply chains and procurement
Discussion questions

4 Organisational and supply chain structures
Learning outcomes
Key ideas
4.1 Organisational structures
4.2 New type organisations
4.3 Networks
4.4 Factors in configurations
4.5 Lean organisations
4.6 Agile organisations and production
4.7 Supply and value chain mapping
4.8 Types of change
4.9 Centralised procurement
4.10 Decentralised procurement
4.11 Cross-functional procurement
Discussion questions

5 Procurement policies, procedures and support tools
Learning outcomes
Key ideas
5.1 Exemplar Procurement Policy – The Crossrail Project
5.2 Procurement procedures
5.3 Analysing a procurement process
5.4 E-commerce, e-business, e-SCM and e-procurement
5.5 The evolution of e-procurement models
5.6 Electronic data interchange (EDI)
5.7 E-hubs, exchanges, portals and marketplaces
5.8 E-catalogues
5.9 E-auctions
5.10 Reverse auctions
5.11 E-payment
5.12 Low-value purchases
5.13 Procurement manuals
5.14 Supplier manuals
Discussion questions

Part 2 Supplier relationships, legal & contractual management, quality management, sourcing, supplier selection, price management and long-term cost in use

6 Supplier relationships and partnering
Learning outcomes
Key ideas
6.1 Relationship procurement and procurement relationships
6.2 The contrast between transactional and relationship procurement,
taking account of contractual requirements
6.3 Collaborative business relationships
6.4 Relationship formation
6.5 Models of supplier relationships
6.6 Practical considerations of supplier relationship management
6.7 The termination of relationships
6.8 Relationship breakdown on an IT project
6.9 Further aspects of relationships
Discussion questions

7 Legal and contractual management
Learning outcomes
Key ideas
7.1 The procurement specialist and Contract Law
7.2 Offer and acceptance
7.3 Acceptance
7.4 Contracts for the Sale of Goods
7.5 Contract for the Supply of Services
7.6 Consideration
7.7 Capacity to Contract
7.8 Drafting the detail of contract clauses
7.9 Misrepresentation
7.10 The Right to terminate a contract
7.12 Standard Forms of Contract
Discussion questions

8 Quality management, service and product innovation
Learning outcomes
Key ideas
8.1 What is quality?
8.2 Quality systems
8.3 The importance of TQM
8.4 Specifications
8.5 Alternatives to individual specifications
8.6 Standardisation
8.7 Variety reduction
8.8 Quality assurance and quality control
8.9 Tests for quality control and reliability
8.10 The cost of quality
8.11 Value management, engineering and analysis
Discussion questions

9 Matching supply with demand
Learning outcomes
Key ideas
9.1 Inventory, logistics and supply chain management
9.2 Reasons for keeping inventory
9.3 Inventory classifications
9.4 Scope and aims of inventory management
9.5 Some tools of inventory management
9.6 The economics of inventory
9.7 Inventory performance measures
9.8 Safety stocks and service levels
9.9 The right quantity
9.10 The nature of demand
9.11 Forecasting demand
9.12 ‘Push’ and ‘pull’ inventories
9.13 Independent demand
9.14 Dependent demand
9.15 Just-in-time (JIT)
9.16 Materials and requirements planning (MRP)
9.17 Manufacturing resource planning (MRP II)
9.18 Enterprise resource planning (ERP)
9.19 Supply chain management systems
9.20 Distribution requirements planning (DRP)
9.21 Vendor-managed inventory (VMI)
9.22 Procurement and inventory
Discussion questions

10 Sourcing, supplier selection and performance management
Learning outcomes
Key ideas
10.1 What is sourcing?
10.2 The strategic sourcing process
10.3 Sourcing information
10.4 Analysis of market conditions
10.5 Directives
10.6 E-sourcing
10.7 Locating suppliers
10.8 Supplier assessment
10.9 Supplier approval
10.10 Evaluating supplier performance
10.11 Policy issues in sourcing
10.12 The supplier base
10.13 Outsourcing
10.14 Outsourcing manufacturing
10.15 Outsourcing services
10.16 Drivers of outsourcing
10.17 Types of outsourcing
10.18 Benefits of outsourcing
10.19 Problems of outsourcing
10.20 Handling an outsourcing project
10.21 Sub-contracting
10.22 Partnering
10.23 Intellectual property rights and secrecy
10.24 Procurement support for in-house marketing
10.25 Intra-company trading
10.26 Local suppliers
10.27 Procurement consortia
10.28 Sustainability
10.29 Sourcing decisions
10.30 Factors in deciding where to buy
Discussion questions

11 Purchase price management and long-term cost-in-use
Learning outcomes
Key ideas
11.1 What is price?
11.2 Strategic pricing – an introduction
11.3 The buyer’s role in managing purchase prices
11.4 Supplier pricing decisions
11.5 The supplier’s choice of pricing strategy
11.6 Price and cost analysis
11.7 Competition legislation
11.8 Collusive tendering
11.9 Price variation formulae
Discussion questions

Part 3 Project management and risk management, global sourcing, negotiation skills, contract management, category procurement, world-class procurement to enhance business performance

12 Project procurement and risk management
Learning outcomes
Key ideas
12.1 Introduction
12.2 The project lifecycle
12.3 PID and the project procurement strategy
12.4 Design and build
12.5 Role of procurement
12.6 PRINCE2 ®
12.7 Project management issues
12.8 Project risk management
12.9 Project procurement risk management
12.10 Project procurement management
Discussion questions

13 Global sourcing
Learning outcomes
Key ideas
13.1 Terminology
13.2 Motives for buying offshore
13.3 Sources of information for offshore suppliers
13.4 Overcoming challenges when sourcing off-shore
13.5 Incoterms ®
13.6 Shipping terms
13.7 Customs and Excise
13.8 Transport systems, costs and considerations
13.9 Freight agents
13.10 Methods of payment
13.11 Countertrade
13.12 The true cost of offshore buying
13.13 Buying capital equipment offshore
13.14 Factors in successful offshore procurement
Discussion questions

14 Negotiation skills, practice and business benefits
Learning outcomes
Key ideas
14.1 Approaches to negotiation
14.2 The content of negotiation
14.3 Factors in negotiation
14.4 The negotiation process
14.5 Pre-negotiation
14.6 The actual negotiation
14.7 Post-negotiation actions
14.8 What is effective negotiation?
14.9 Negotiation and relationships
14.10 Negotiation ethics
Discussion questions

15 Contract management
Learning outcomes
Key ideas
15.1 The pre-contract award activities impact on contract management
15.2 The contract manager’s role, skills and knowledge
15.3 Contract management plans
15.4 The contract management of specifications/standards
15.5 Managing contract performance
15.6 Social services contract monitoring audit
15.7 Contract management checklist
15.8 Contract provisions
15.9 Contract clauses and what they mean
Discussion questions

16 Category and commodity procurement
Learning outcomes
Key ideas
16.1 Defining categories
16.2 Illustrations of category management issues
16.3 The talent challenge
16.4 Category management risk profiling
16.5 Category management – corporate travel
16.6 Category management – ICT
16.7 Capital investment procurement
16.8 Production materials
16.9 Raw materials
16.10 Futures dealing
16.11 Methods of commodity dealing
16.12 Procurement of non-domestic gas and electricity
16.13 Energy regulation
16.14 Energy supply chains in the UK
16.15 Markets
16.16 Pricing
16.17 Procuring energy contracts
16.18 Energy consultants and management
16.19 Component parts and assemblies
16.20 Procurement and consumables
16.21 Construction supplies and bills of quantities
16.22 Procurement of services
Discussion questions

17 World-class procurement to enhance business performance
Learning outcomes
Key ideas
17.1 Innovation and supplier continuous improvement
17.2 Innovation
17.3 Environmentally sensitive design
17.4 Procurement involvement in product development
17.5 Supplier development
17.6 Procurement research
17.7 Procurement performance evaluation
17.8 Accounting approaches
17.9 The procurement management audit approach
17.10 Benchmarking and ratios
17.11 Integrated benchmarking
17.12 Procurement ethics
17.13 Ethical issues relating to suppliers
17.14 Ethical codes of conduct
17.15 Procurement and fraud
17.16 Environmental aspects of procurement
Discussion questions

Appendix 1: Code of professional ethics – Chartered Institute of Procurement and Supply (CIPS) (Approved by the CIPS Council, 11 March 2009)

Appendix 2: Principles and standards of ethical supply management conduct (ISM) (Adopted May 2008)
Definitions, acronyms and foreign words and phrases

Index of names and organisations and some publications mentioned in the text

Subject Index
Access Code info.

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