Purchasing and Supply Chain Management 4th Edition
BRAND: Sage
Publisher: | SAGE Publications, Inc |
Author: | W. C. Benton, Jr. |
Edition: | @2021 |
eBook ISBN: | 9781071804773 |
Print ISBN: | 9781071804759 |
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Mô tả sản phẩm
Quản lý chuỗi cung ứng và mua hàng
Quản lý chuỗi cung ứng và mua hàng giới thiệu cho sinh viên cách mua hàng vì nó liên quan đến chuỗi cung ứng cũng như các chức năng và hệ thống khác trong một tổ chức, chẳng hạn như tiếp thị, hậu cần và vận hành. Tác giả W. C. Benton, Jr. đã có hơn 30 năm kinh nghiệm thực hành, giảng dạy, nghiên cứu và tư vấn để dạy cho sinh viên sự hợp tác, đàm phán và phân tích chủ động. Thông qua cách tiếp cận từng bước, người đọc sẽ có được các kỹ năng mua hàng dựa trên dữ liệu rất quan trọng đối với thế hệ chuyên gia tiếp theo. Phiên bản thứ tư được cập nhật đầy đủ với các trường hợp thực tế mới, nghiên cứu mới nhất và thông tin cập nhật về các xu hướng chính trong lĩnh vực này. Đi kèm với tiêu đề này: Trang web Tài nguyên dành cho Giảng viên được bảo vệ bằng mật khẩu (chính thức được gọi là SAGE Edge) cung cấp quyền truy cập vào tất cả các tài nguyên dành riêng cho văn bản, bao gồm ngân hàng bài kiểm tra và các trang trình bày PowerPoint® dành riêng cho từng chương có thể chỉnh sửa.
Preface
Acknowledgments
About the Author
Part I Introduction to Purchasing and Supply Chain Management
Chapter 1 Purchasing and Supply Chain Management
INTRODUCTION
PURCHASING MANAGERS, BUYERS, AND PURCHASING AGENTS
THE EVOLUTION OF THE PURCHASING AND SUPPLY MANAGEMENT FUNCTION
THE SUPPLY MANAGEMENT PROCESS
PURCHASING DOLLAR RESPONSIBILITY
Material Shortages
Synthetic Materials
Inflation
Complex, High-Value Products
INTEGRATED SUPPLY MANAGEMENT (ISM)
ORGANIZING FOR PURCHASING
Centralized Versus Decentralized Purchasing
Centralized/Decentralized Hybrid Purchasing Systems
The Future Organization Concept
REPORTING STRUCTURE
The Organization Concept of Supply Management
PROFESSIONALISM WITHIN PURCHASING AND SUPPLY MANAGEMENT
Careers in Purchasing
The Institute for Supply Management: J. Shipman Gold Medal Award
SUMMARY
Chapter 2 Purchasing Decisions and Business Strategy
INTRODUCTION
THE RELATIONSHIP BETWEEN PURCHASING AND COMPETITIVE STRATEGY
Competitive Strategy
Competitive Priorities
Purchasing Criteria and Purchasing Actions
Reward Criteria
External Environment
SUPPLY CHAIN STRATEGY
SUPPLIER RELATIONSHIP QUALITY (SRQ)
The Evolution of Supplier Relationships in the Automobile Industry
THE INTEGRATED BUYING MODEL
Cost
Quality Level
Supplier Lead Time
Budgetary Constraints
THE STRATEGIC SOURCING PLAN
Developing a Strategic Sourcing Plan
Program Objectives by Phase
PURCHASING STRATEGY TRENDS
Summary
Appendix: Supply Chain Relationship Quality Study
Chapter 3 The Legal Aspects of Purchasing
INTRODUCTION
AUTHORITY OF THE PURCHASING MANAGER
CONTRACTS AND PURCHASE ORDERS
Essentials of a Purchase Contract
The Requirements for a Contract
Oral Contracts
OFFERS
The Terms of an Offer
The Time Limits of an Offer
EXECUTION OF CONTRACTS AND PURCHASE ORDERS BY THE PURCHASING MANAGER
Invitation to Do Business
Making an Offer
THE LEGAL IMPACT OF THE INFORMATION AGE
Federal and State Electronic Transactions Laws
Contracts That Must Be on Paper
PURCHASING AND ETHICS
Ethics and the Law
Ethics and the Negotiations Process
WOMEN AND MINORITY COMPLIANCE
SUMMARY
Part II Materials Management
Chapter 4 Materials Management
INTRODUCTION
MATERIALS REQUIREMENTS PLANNING AND CAPACITY REQUIREMENTS
Capacity Management
Capacity and Inventory
THROUGHPUT TIME—VELOCITY
ORDER CYCLE
The Order Cycle as a Link
The Order Cycle as a Set of Activities
CUSTOMER SATISFACTION
Material Availability
On-Time Shipment
On-Time Receipt
Complete Shipment
Quality of Receipt
Flexibility
Responsiveness to Inquiry
Customer Satisfaction—The Balance
QUALITY
The Quality Level
Objective Quality
SPECIFYING MATERIALS
Raw Materials
Purchased Parts
MAINTENANCE, REPAIR, AND OPERATING (MRO) SUPPLIES
Maintenance
Repair
Operating Supplies
TOOLING
SUMMARY
Chapter 5 Inventory Management
INTRODUCTION
INDEPENDENT VERSUS DEPENDENT DEMAND
INVENTORY MANAGEMENT OVERVIEW
ABC CLASSIFICATION OF INVENTORY ITEMS
INDEPENDENT DEMAND
The Classical EOQ Model
The Classical EOQ Model With Quantity Discounts
Demand Uncertainty and Safety Stock
DEPENDENT DEMAND SYSTEMS
The Material Requirements Concept
The General Lot-Sizing Problem
Quantity Discounts for the Variable Demand Case
Illustration of Various Variable-Demand Lot-Sizing Models
SUMMARY
APPENDIX: AREAS UNDER THE NORMAL CURVE
Chapter 6 Just-in-Time (Lean) Purchasing
INTRODUCTION
LEAN PRODUCTION SYSTEMS
JUST-IN-TIME PRODUCTION SYSTEM
KANBAN PRODUCTION CONTROL SYSTEM
A Simple Kanban Example
Determining the Number of Kanbans (Containers)
SIGNIFICANCE OF JIT PURCHASING
PURCHASING BENEFITS
IMPLEMENTATION OF JIT PURCHASING
ROLE OF CULTURE
CRITICAL ANALYSIS OF THE JIT CONCEPT
SUMMARY
Part III Fundamentals of Purchasing and Supply Chain Management
Chapter 7 Purchasing Procedures, E-Procurement, and Systems Contracting
INTRODUCTION
PURCHASING PROCEDURES
SYSTEMS CONTRACTING
E-PROCUREMENT
Two Broad E-Procurement Purchasing Categories
Purchase-to-Pay (P2P) and Source-to-Contract (S2C) Processes
REVERSE AUCTIONS
ELECTRONIC DATA INTERCHANGE (EDI) AND PURCHASING
RADIO FREQUENCY IDENTIFICATION (RFID)
ADOPTING NEW TECHNOLOGIES
Effective E-Procurement Implementation
Cybersecurity
SUMMARY
Appendix: Systems Contract Agreement
Chapter 8 Supplier Selection and Evaluation
INTRODUCTION
THE BUY DECISION: OUTSOURCING
SOURCES OF SUPPLIER INFORMATION
STRATEGIC SOURCE SELECTION
SUPPLIER RELATIONSHIP MANAGEMENT
Model of Supply Chain Relationship Management
SUPPLIER RELATIONSHIP MANAGEMENT PROGRAMS
SUPPLIER DEVELOPMENT PROGRAMS
SUPPLIER EVALUATION PROGRAMS
Criteria for Supplier Evaluation
Three Common Supplier Evaluation Systems
The Strategic Supplier Performance Review Process
The SRM Scoring System
SINGLE VERSUS MULTIPLE SOURCES
Multiple Sourcing
Single Sourcing
Disadvantages of Single and Multiple Sourcing
Long-Term Issues With Sourcing
Japanese Reality
Cross-Sourcing
Supplier Reduction
INDUSTRY EXAMPLES
Apparel Industry
Chemical Industry
Electronics Industry
Construction Industry
SUMMARY
Chapter 9 Strategic Outsourcing
INTRODUCTION
WHY DO ORGANIZATIONS OUTSOURCE BUSINESS PROCESSES?
THE HIDDEN COSTS OF OUTSOURCING
Quality Costs
Costs of Strategic Supplier Relationship Management
Internal Coordination Costs
Costs Related to Implementation of External Sourcing Model
Costs of Product/Service Design and Development
Governmental and Political Expenses
Costs Related to Supply Chain Risk Management
Miscellaneous Financial Considerations
CORE COMPETENCIES
OUTSOURCING TRENDS
ELEMENTS OF STRATEGIC OUTSOURCING
Strategic Evaluation
Financial Evaluation
Supplier Selection and Contract Development
Transition to External Sourcing Model
Relationship Management
SUMMARY
Chapter 10 Global Sourcing
INTRODUCTION
COSTS OF GLOBAL SOURCING
Administrative Costs
Foreign Costs
Common Costs
CURRENCY EXCHANGE RATES
ORGANIZATIONAL AND BEHAVIORAL ISSUES
GLOBAL SOURCING AS A STRATEGIC SOURCING OPTION
PROTECTIONISM
Protectionism in the United States
IMPORTANCE OF NEGOTIATIONS
United Kingdom
The Federal Republic of Germany
Mexico
Canada
China
GLOBAL PROVIDER OPPORTUNISM
U.S. EXPORT ADMINISTRATION REGULATIONS
FOREIGN TRADE ZONES
Countertrade
SUMMARY
APPENDIX: OUTSOURCING POLICY EXAMPLE
Chapter 11 Supply Partnerships and Supply Chain Power
INTRODUCTION
BENCHMARK SUPPLIER PARTNERSHIPS: CHRYSLER CORPORATION
PARTNERSHIPS: DEFINITION AND OVERVIEW
THE EVOLVING SUPPLY CHAIN STRATEGY
SUPPLY CHAIN PARTNERSHIPS
Benefits of Supplier Partnerships
Risks of Supplier Partnerships
Partnership Implementation and Critical Success Factors
POWER INFLUENCES ON SUPPLY CHAIN RELATIONSHIPS
Power and Dependence
Power and Commitment
Power, Cooperation, and Compliance
Power and Conflict
Power and Satisfaction
Power, Performance, and Profitability
SUMMARY
Chapter 12 Total Quality Management (TQM) and Purchasing
INTRODUCTION
TOTAL QUALITY MANAGEMENT AND SUPPLY CHAIN MANAGEMENT
TQM IMPLEMENTATION PROBLEMS
QUALITY REQUIREMENTS FOR SUPPLIERS
Quality Assurance Expectations
Quality Target Commitment
Preventive Quality
STATISTICAL PROCESS CONTROL, SIX SIGMA, AND THE TAGUCHI METHOD
Statistical Process Control (SPC)
Six Sigma and the Supplier
Taguchi Method
Acceptance Sampling and Commodity Components
QUALITY AWARDS AND CERTIFICATIONS
The Deming Prize
The Malcolm Baldrige National Quality Award
ISO 9000
CONTINUOUS IMPROVEMENT AND THE SUPPLIER
Quality Function Deployment (QFD)
Supplier Evaluations
ENGINEERING AND DESIGN
SUMMARY
APPENDIX A: THE TAGUCHI METHOD
Appendix B: Acceptance Sampling
Part IV Price/Cost Analysis and Negotiation Strategies
Chapter 13 Price Determination
INTRODUCTION
THE PURCHASING DECISION
PRICE-SETTING STRATEGY
Economic
Psychological
DISCOUNTS
Cash Discounts
Trade Discounts
Quantity Discounts
PRICE DETERMINATION
Price
Costs
THE LEARNING CURVE
The Learning Curve Model
PRICING STRATEGY
Standard Price Lists
Competitive Bidding
Negotiations
PROJECT PRICING
Markups Versus Margins
Breakeven
THE PRICE/COST ANALYSIS PROCESS
SUMMARY
Appendix A: The Robinson–Patman Act—General Price Discrimination
APPENDIX B: UNIT FACTORS FOR PROGRESS FUNCTIONS
APPENDIX C: ESTRADA SYSTEMS
Chapter 14 Bargaining and Negotiations
INTRODUCTION
DISTRIBUTIVE VERSUS INTEGRATIVE BARGAINING
Distributive Bargaining
Integrative Bargaining
The Bargaining Model
PSYCHOLOGICAL BARGAINING FRAMEWORK
Payoff System
Bargaining Strategy
ECONOMIC BARGAINING FRAMEWORK
AN EXPERIMENT IN DISTRIBUTIVE BARGAINING
PLANNING FOR A FORMAL NEGOTIATION
Planning (Seller’s Perspective)
Planning (Buyer’s Perspective)
Procedure
Tips
AN INTERGRATED MODEL OF THE BUYER–SELLER INTERACTION
SUMMARY
Part V Special Purchasing Applications
Chapter 15 Purchasing Transportation Services
INTRODUCTION
TRANSPORTATION’S ROLE IN PURCHASING
Mode Selection
Carrier Selection
Third-Party Relationships
Freight Consolidation
Documentation/Tracing/Claims
Terms and Condition of Transportation Purchasing
THREE TRANSPORTATION PURCHASING EXAMPLES
Ross Laboratories
Consolidated (Big Lots) Stores
Copeland Inc.
THE IMPACT OF THE NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA) ON DOMESTIC TRANSPORTATION
SUMMARY
Chapter 16 Equipment Acquisition and Disposal
INTRODUCTION
THE CAPITAL EQUIPMENT ACQUISITION PROCESS
Department Requisition
Company Goals and Objectives
New Project Ideas
Cash-Flow Analysis
Economic Evaluation
Selection of Projects
Financial Plan Analysis
Implementation
Expenditure Control
Auditing
DISPOSAL OF CAPITAL EQUIPMENT
PURCHASING NEW VERSUS USED CAPITAL EQUIPMENT
New Equipment Purchases
Used Equipment Purchases
Refurbishing Used Medical Equipment
LEASE VERSUS BORROW-AND-PURCHASE EXAMPLE
Step 1: Comparing Purchase Price and Lease Payments
Step 2: Comparing Income Tax Effect
Step 3: Comparing Present Values
Conclusion
SUMMARY
APPENDIX A: Federal Acquisition Regulation; Electronic and Information Technology
APPENDIX B: Discount Rates
Chapter 17 Health Care Purchasing and Supply Management
INTRODUCTION
PURCHASING, SUPPLIES, AND SERVICES
HEALTH CARE SUPPLY CHAIN MANAGEMENT
Opportunities in Health Care Supply Management
Examples of Health Care Savings Opportunities
METHODS OF SUPPLY MANAGEMENT
Fixed Order Quantity System
Fixed Order Interval
Stockless Inventory Systems
The Best Method
Group Purchasing Organizations
Antikickback Issues
COMPLICATING FACTORS UNIQUE TO HEALTH CARE FOR INVENTORY CONTROL
Demand Problems
Safety Stock
CURRENT TRENDS
Primary Supplier
Automation Technology
Impact of COVID-19 Pandemic on the Health Care Supply Chain
ACQUISITION OF CAPITAL EQUIPMENT PROCESS OVERVIEW
Overview of the Process
Factors and Decision Rules
Selecting the Right Supplier
GROUP HEALTH INSURANCE
Summary
Appendix: Purchasing Health Care Plans
Chapter 18 Sourcing Professional Services
INTRODUCTION
SERVICE SECTOR CHARACTERISTICS AND STRATEGIES
OUTSOURCING AND THE SERVICE SECTOR
MANAGING OUTSOURCED SERVICES
Complexity and Coordination
Dependence and Power
PURCHASING PROFESSIONAL SERVICES
Statement of Work or Scope of Work
Project Management
Project Planning and Scheduling Processes
SUMMARY
Appendix A: Preliminary Exploratory Interviews
Appendix B: FHWA Project Example
Appendix C: Fortune 500 Company Example
Cases
Case 1 AMD Construction Company: Negotiating the Old-Fashioned Way
Case 2 The Art and Science of Bidding Not to Get a Job
Case 3 The Auction Case
Case 4 Boston Gaming Systems, Inc.
Case 5 BSD at 777-Holdings
Case 6 Carter Systems Canada, Inc.
Case 7 Case Construction Company
Case 8 Central Texas Wine Distributors (CTWD)
Case 9 Columbus Auto Parts
Case 10 Custom Doors, Inc.
Case 11 Delta Construction Systems (DCS)
Case 12 Great Lakes University
Case 13 GRC Systems, Inc.
Case 14 Industrial Heating Systems
Case 15 The K-Car Airbag Assembly
Case 16 The Kemper Engine Plant
Case 17 McGruder Pavers, Inc.
Case 18 Medical Laser Equipment, Inc. (C)
Case 19 Michigan City Tractor (MCT), Inc.
Case 20 Microfuse, Inc. (B)
Case 21 Morgan Summerfield (CCS)
Case 22 Natural Construction, Inc.
Case 23 Pendleton Construction, Inc.
Case 24 Philadelphia Aircraft Equipment, Inc.
Case 25 Precision Manufacturing, Inc.
Case 26 Sage Imaging Center, Inc.
Case 27 Simpson Hospital Systems
Case 28 Tom & Jerry (T&J) Construction, Inc.
Case 29 Worldwide Auto Manufacturers, Inc.
Glossary
Index
TỔNG QUAN SÁCH
Quản lý chuỗi cung ứng và mua hàng
Quản lý chuỗi cung ứng và mua hàng giới thiệu cho sinh viên cách mua hàng vì nó liên quan đến chuỗi cung ứng cũng như các chức năng và hệ thống khác trong một tổ chức, chẳng hạn như tiếp thị, hậu cần và vận hành. Tác giả W. C. Benton, Jr. đã có hơn 30 năm kinh nghiệm thực hành, giảng dạy, nghiên cứu và tư vấn để dạy cho sinh viên sự hợp tác, đàm phán và phân tích chủ động. Thông qua cách tiếp cận từng bước, người đọc sẽ có được các kỹ năng mua hàng dựa trên dữ liệu rất quan trọng đối với thế hệ chuyên gia tiếp theo. Phiên bản thứ tư được cập nhật đầy đủ với các trường hợp thực tế mới, nghiên cứu mới nhất và thông tin cập nhật về các xu hướng chính trong lĩnh vực này. Đi kèm với tiêu đề này: Trang web Tài nguyên dành cho Giảng viên được bảo vệ bằng mật khẩu (chính thức được gọi là SAGE Edge) cung cấp quyền truy cập vào tất cả các tài nguyên dành riêng cho văn bản, bao gồm ngân hàng bài kiểm tra và các trang trình bày PowerPoint® dành riêng cho từng chương có thể chỉnh sửa.
Quản lý chuỗi cung ứng và mua hàng
Quản lý chuỗi cung ứng và mua hàng giới thiệu cho sinh viên cách mua hàng vì nó liên quan đến chuỗi cung ứng cũng như các chức năng và hệ thống khác trong một tổ chức, chẳng hạn như tiếp thị, hậu cần và vận hành. Tác giả W. C. Benton, Jr. đã có hơn 30 năm kinh nghiệm thực hành, giảng dạy, nghiên cứu và tư vấn để dạy cho sinh viên sự hợp tác, đàm phán và phân tích chủ động. Thông qua cách tiếp cận từng bước, người đọc sẽ có được các kỹ năng mua hàng dựa trên dữ liệu rất quan trọng đối với thế hệ chuyên gia tiếp theo. Phiên bản thứ tư được cập nhật đầy đủ với các trường hợp thực tế mới, nghiên cứu mới nhất và thông tin cập nhật về các xu hướng chính trong lĩnh vực này. Đi kèm với tiêu đề này: Trang web Tài nguyên dành cho Giảng viên được bảo vệ bằng mật khẩu (chính thức được gọi là SAGE Edge) cung cấp quyền truy cập vào tất cả các tài nguyên dành riêng cho văn bản, bao gồm ngân hàng bài kiểm tra và các trang trình bày PowerPoint® dành riêng cho từng chương có thể chỉnh sửa.
MỤC LỤC
Preface
Acknowledgments
About the Author
Part I Introduction to Purchasing and Supply Chain Management
Chapter 1 Purchasing and Supply Chain Management
INTRODUCTION
PURCHASING MANAGERS, BUYERS, AND PURCHASING AGENTS
THE EVOLUTION OF THE PURCHASING AND SUPPLY MANAGEMENT FUNCTION
THE SUPPLY MANAGEMENT PROCESS
PURCHASING DOLLAR RESPONSIBILITY
Material Shortages
Synthetic Materials
Inflation
Complex, High-Value Products
INTEGRATED SUPPLY MANAGEMENT (ISM)
ORGANIZING FOR PURCHASING
Centralized Versus Decentralized Purchasing
Centralized/Decentralized Hybrid Purchasing Systems
The Future Organization Concept
REPORTING STRUCTURE
The Organization Concept of Supply Management
PROFESSIONALISM WITHIN PURCHASING AND SUPPLY MANAGEMENT
Careers in Purchasing
The Institute for Supply Management: J. Shipman Gold Medal Award
SUMMARY
Chapter 2 Purchasing Decisions and Business Strategy
INTRODUCTION
THE RELATIONSHIP BETWEEN PURCHASING AND COMPETITIVE STRATEGY
Competitive Strategy
Competitive Priorities
Purchasing Criteria and Purchasing Actions
Reward Criteria
External Environment
SUPPLY CHAIN STRATEGY
SUPPLIER RELATIONSHIP QUALITY (SRQ)
The Evolution of Supplier Relationships in the Automobile Industry
THE INTEGRATED BUYING MODEL
Cost
Quality Level
Supplier Lead Time
Budgetary Constraints
THE STRATEGIC SOURCING PLAN
Developing a Strategic Sourcing Plan
Program Objectives by Phase
PURCHASING STRATEGY TRENDS
Summary
Appendix: Supply Chain Relationship Quality Study
Chapter 3 The Legal Aspects of Purchasing
INTRODUCTION
AUTHORITY OF THE PURCHASING MANAGER
CONTRACTS AND PURCHASE ORDERS
Essentials of a Purchase Contract
The Requirements for a Contract
Oral Contracts
OFFERS
The Terms of an Offer
The Time Limits of an Offer
EXECUTION OF CONTRACTS AND PURCHASE ORDERS BY THE PURCHASING MANAGER
Invitation to Do Business
Making an Offer
THE LEGAL IMPACT OF THE INFORMATION AGE
Federal and State Electronic Transactions Laws
Contracts That Must Be on Paper
PURCHASING AND ETHICS
Ethics and the Law
Ethics and the Negotiations Process
WOMEN AND MINORITY COMPLIANCE
SUMMARY
Part II Materials Management
Chapter 4 Materials Management
INTRODUCTION
MATERIALS REQUIREMENTS PLANNING AND CAPACITY REQUIREMENTS
Capacity Management
Capacity and Inventory
THROUGHPUT TIME—VELOCITY
ORDER CYCLE
The Order Cycle as a Link
The Order Cycle as a Set of Activities
CUSTOMER SATISFACTION
Material Availability
On-Time Shipment
On-Time Receipt
Complete Shipment
Quality of Receipt
Flexibility
Responsiveness to Inquiry
Customer Satisfaction—The Balance
QUALITY
The Quality Level
Objective Quality
SPECIFYING MATERIALS
Raw Materials
Purchased Parts
MAINTENANCE, REPAIR, AND OPERATING (MRO) SUPPLIES
Maintenance
Repair
Operating Supplies
TOOLING
SUMMARY
Chapter 5 Inventory Management
INTRODUCTION
INDEPENDENT VERSUS DEPENDENT DEMAND
INVENTORY MANAGEMENT OVERVIEW
ABC CLASSIFICATION OF INVENTORY ITEMS
INDEPENDENT DEMAND
The Classical EOQ Model
The Classical EOQ Model With Quantity Discounts
Demand Uncertainty and Safety Stock
DEPENDENT DEMAND SYSTEMS
The Material Requirements Concept
The General Lot-Sizing Problem
Quantity Discounts for the Variable Demand Case
Illustration of Various Variable-Demand Lot-Sizing Models
SUMMARY
APPENDIX: AREAS UNDER THE NORMAL CURVE
Chapter 6 Just-in-Time (Lean) Purchasing
INTRODUCTION
LEAN PRODUCTION SYSTEMS
JUST-IN-TIME PRODUCTION SYSTEM
KANBAN PRODUCTION CONTROL SYSTEM
A Simple Kanban Example
Determining the Number of Kanbans (Containers)
SIGNIFICANCE OF JIT PURCHASING
PURCHASING BENEFITS
IMPLEMENTATION OF JIT PURCHASING
ROLE OF CULTURE
CRITICAL ANALYSIS OF THE JIT CONCEPT
SUMMARY
Part III Fundamentals of Purchasing and Supply Chain Management
Chapter 7 Purchasing Procedures, E-Procurement, and Systems Contracting
INTRODUCTION
PURCHASING PROCEDURES
SYSTEMS CONTRACTING
E-PROCUREMENT
Two Broad E-Procurement Purchasing Categories
Purchase-to-Pay (P2P) and Source-to-Contract (S2C) Processes
REVERSE AUCTIONS
ELECTRONIC DATA INTERCHANGE (EDI) AND PURCHASING
RADIO FREQUENCY IDENTIFICATION (RFID)
ADOPTING NEW TECHNOLOGIES
Effective E-Procurement Implementation
Cybersecurity
SUMMARY
Appendix: Systems Contract Agreement
Chapter 8 Supplier Selection and Evaluation
INTRODUCTION
THE BUY DECISION: OUTSOURCING
SOURCES OF SUPPLIER INFORMATION
STRATEGIC SOURCE SELECTION
SUPPLIER RELATIONSHIP MANAGEMENT
Model of Supply Chain Relationship Management
SUPPLIER RELATIONSHIP MANAGEMENT PROGRAMS
SUPPLIER DEVELOPMENT PROGRAMS
SUPPLIER EVALUATION PROGRAMS
Criteria for Supplier Evaluation
Three Common Supplier Evaluation Systems
The Strategic Supplier Performance Review Process
The SRM Scoring System
SINGLE VERSUS MULTIPLE SOURCES
Multiple Sourcing
Single Sourcing
Disadvantages of Single and Multiple Sourcing
Long-Term Issues With Sourcing
Japanese Reality
Cross-Sourcing
Supplier Reduction
INDUSTRY EXAMPLES
Apparel Industry
Chemical Industry
Electronics Industry
Construction Industry
SUMMARY
Chapter 9 Strategic Outsourcing
INTRODUCTION
WHY DO ORGANIZATIONS OUTSOURCE BUSINESS PROCESSES?
THE HIDDEN COSTS OF OUTSOURCING
Quality Costs
Costs of Strategic Supplier Relationship Management
Internal Coordination Costs
Costs Related to Implementation of External Sourcing Model
Costs of Product/Service Design and Development
Governmental and Political Expenses
Costs Related to Supply Chain Risk Management
Miscellaneous Financial Considerations
CORE COMPETENCIES
OUTSOURCING TRENDS
ELEMENTS OF STRATEGIC OUTSOURCING
Strategic Evaluation
Financial Evaluation
Supplier Selection and Contract Development
Transition to External Sourcing Model
Relationship Management
SUMMARY
Chapter 10 Global Sourcing
INTRODUCTION
COSTS OF GLOBAL SOURCING
Administrative Costs
Foreign Costs
Common Costs
CURRENCY EXCHANGE RATES
ORGANIZATIONAL AND BEHAVIORAL ISSUES
GLOBAL SOURCING AS A STRATEGIC SOURCING OPTION
PROTECTIONISM
Protectionism in the United States
IMPORTANCE OF NEGOTIATIONS
United Kingdom
The Federal Republic of Germany
Mexico
Canada
China
GLOBAL PROVIDER OPPORTUNISM
U.S. EXPORT ADMINISTRATION REGULATIONS
FOREIGN TRADE ZONES
Countertrade
SUMMARY
APPENDIX: OUTSOURCING POLICY EXAMPLE
Chapter 11 Supply Partnerships and Supply Chain Power
INTRODUCTION
BENCHMARK SUPPLIER PARTNERSHIPS: CHRYSLER CORPORATION
PARTNERSHIPS: DEFINITION AND OVERVIEW
THE EVOLVING SUPPLY CHAIN STRATEGY
SUPPLY CHAIN PARTNERSHIPS
Benefits of Supplier Partnerships
Risks of Supplier Partnerships
Partnership Implementation and Critical Success Factors
POWER INFLUENCES ON SUPPLY CHAIN RELATIONSHIPS
Power and Dependence
Power and Commitment
Power, Cooperation, and Compliance
Power and Conflict
Power and Satisfaction
Power, Performance, and Profitability
SUMMARY
Chapter 12 Total Quality Management (TQM) and Purchasing
INTRODUCTION
TOTAL QUALITY MANAGEMENT AND SUPPLY CHAIN MANAGEMENT
TQM IMPLEMENTATION PROBLEMS
QUALITY REQUIREMENTS FOR SUPPLIERS
Quality Assurance Expectations
Quality Target Commitment
Preventive Quality
STATISTICAL PROCESS CONTROL, SIX SIGMA, AND THE TAGUCHI METHOD
Statistical Process Control (SPC)
Six Sigma and the Supplier
Taguchi Method
Acceptance Sampling and Commodity Components
QUALITY AWARDS AND CERTIFICATIONS
The Deming Prize
The Malcolm Baldrige National Quality Award
ISO 9000
CONTINUOUS IMPROVEMENT AND THE SUPPLIER
Quality Function Deployment (QFD)
Supplier Evaluations
ENGINEERING AND DESIGN
SUMMARY
APPENDIX A: THE TAGUCHI METHOD
Appendix B: Acceptance Sampling
Part IV Price/Cost Analysis and Negotiation Strategies
Chapter 13 Price Determination
INTRODUCTION
THE PURCHASING DECISION
PRICE-SETTING STRATEGY
Economic
Psychological
DISCOUNTS
Cash Discounts
Trade Discounts
Quantity Discounts
PRICE DETERMINATION
Price
Costs
THE LEARNING CURVE
The Learning Curve Model
PRICING STRATEGY
Standard Price Lists
Competitive Bidding
Negotiations
PROJECT PRICING
Markups Versus Margins
Breakeven
THE PRICE/COST ANALYSIS PROCESS
SUMMARY
Appendix A: The Robinson–Patman Act—General Price Discrimination
APPENDIX B: UNIT FACTORS FOR PROGRESS FUNCTIONS
APPENDIX C: ESTRADA SYSTEMS
Chapter 14 Bargaining and Negotiations
INTRODUCTION
DISTRIBUTIVE VERSUS INTEGRATIVE BARGAINING
Distributive Bargaining
Integrative Bargaining
The Bargaining Model
PSYCHOLOGICAL BARGAINING FRAMEWORK
Payoff System
Bargaining Strategy
ECONOMIC BARGAINING FRAMEWORK
AN EXPERIMENT IN DISTRIBUTIVE BARGAINING
PLANNING FOR A FORMAL NEGOTIATION
Planning (Seller’s Perspective)
Planning (Buyer’s Perspective)
Procedure
Tips
AN INTERGRATED MODEL OF THE BUYER–SELLER INTERACTION
SUMMARY
Part V Special Purchasing Applications
Chapter 15 Purchasing Transportation Services
INTRODUCTION
TRANSPORTATION’S ROLE IN PURCHASING
Mode Selection
Carrier Selection
Third-Party Relationships
Freight Consolidation
Documentation/Tracing/Claims
Terms and Condition of Transportation Purchasing
THREE TRANSPORTATION PURCHASING EXAMPLES
Ross Laboratories
Consolidated (Big Lots) Stores
Copeland Inc.
THE IMPACT OF THE NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA) ON DOMESTIC TRANSPORTATION
SUMMARY
Chapter 16 Equipment Acquisition and Disposal
INTRODUCTION
THE CAPITAL EQUIPMENT ACQUISITION PROCESS
Department Requisition
Company Goals and Objectives
New Project Ideas
Cash-Flow Analysis
Economic Evaluation
Selection of Projects
Financial Plan Analysis
Implementation
Expenditure Control
Auditing
DISPOSAL OF CAPITAL EQUIPMENT
PURCHASING NEW VERSUS USED CAPITAL EQUIPMENT
New Equipment Purchases
Used Equipment Purchases
Refurbishing Used Medical Equipment
LEASE VERSUS BORROW-AND-PURCHASE EXAMPLE
Step 1: Comparing Purchase Price and Lease Payments
Step 2: Comparing Income Tax Effect
Step 3: Comparing Present Values
Conclusion
SUMMARY
APPENDIX A: Federal Acquisition Regulation; Electronic and Information Technology
APPENDIX B: Discount Rates
Chapter 17 Health Care Purchasing and Supply Management
INTRODUCTION
PURCHASING, SUPPLIES, AND SERVICES
HEALTH CARE SUPPLY CHAIN MANAGEMENT
Opportunities in Health Care Supply Management
Examples of Health Care Savings Opportunities
METHODS OF SUPPLY MANAGEMENT
Fixed Order Quantity System
Fixed Order Interval
Stockless Inventory Systems
The Best Method
Group Purchasing Organizations
Antikickback Issues
COMPLICATING FACTORS UNIQUE TO HEALTH CARE FOR INVENTORY CONTROL
Demand Problems
Safety Stock
CURRENT TRENDS
Primary Supplier
Automation Technology
Impact of COVID-19 Pandemic on the Health Care Supply Chain
ACQUISITION OF CAPITAL EQUIPMENT PROCESS OVERVIEW
Overview of the Process
Factors and Decision Rules
Selecting the Right Supplier
GROUP HEALTH INSURANCE
Summary
Appendix: Purchasing Health Care Plans
Chapter 18 Sourcing Professional Services
INTRODUCTION
SERVICE SECTOR CHARACTERISTICS AND STRATEGIES
OUTSOURCING AND THE SERVICE SECTOR
MANAGING OUTSOURCED SERVICES
Complexity and Coordination
Dependence and Power
PURCHASING PROFESSIONAL SERVICES
Statement of Work or Scope of Work
Project Management
Project Planning and Scheduling Processes
SUMMARY
Appendix A: Preliminary Exploratory Interviews
Appendix B: FHWA Project Example
Appendix C: Fortune 500 Company Example
Cases
Case 1 AMD Construction Company: Negotiating the Old-Fashioned Way
Case 2 The Art and Science of Bidding Not to Get a Job
Case 3 The Auction Case
Case 4 Boston Gaming Systems, Inc.
Case 5 BSD at 777-Holdings
Case 6 Carter Systems Canada, Inc.
Case 7 Case Construction Company
Case 8 Central Texas Wine Distributors (CTWD)
Case 9 Columbus Auto Parts
Case 10 Custom Doors, Inc.
Case 11 Delta Construction Systems (DCS)
Case 12 Great Lakes University
Case 13 GRC Systems, Inc.
Case 14 Industrial Heating Systems
Case 15 The K-Car Airbag Assembly
Case 16 The Kemper Engine Plant
Case 17 McGruder Pavers, Inc.
Case 18 Medical Laser Equipment, Inc. (C)
Case 19 Michigan City Tractor (MCT), Inc.
Case 20 Microfuse, Inc. (B)
Case 21 Morgan Summerfield (CCS)
Case 22 Natural Construction, Inc.
Case 23 Pendleton Construction, Inc.
Case 24 Philadelphia Aircraft Equipment, Inc.
Case 25 Precision Manufacturing, Inc.
Case 26 Sage Imaging Center, Inc.
Case 27 Simpson Hospital Systems
Case 28 Tom & Jerry (T&J) Construction, Inc.
Case 29 Worldwide Auto Manufacturers, Inc.
Glossary
Index
Preface
Acknowledgments
About the Author
Part I Introduction to Purchasing and Supply Chain Management
Chapter 1 Purchasing and Supply Chain Management
INTRODUCTION
PURCHASING MANAGERS, BUYERS, AND PURCHASING AGENTS
THE EVOLUTION OF THE PURCHASING AND SUPPLY MANAGEMENT FUNCTION
THE SUPPLY MANAGEMENT PROCESS
PURCHASING DOLLAR RESPONSIBILITY
Material Shortages
Synthetic Materials
Inflation
Complex, High-Value Products
INTEGRATED SUPPLY MANAGEMENT (ISM)
ORGANIZING FOR PURCHASING
Centralized Versus Decentralized Purchasing
Centralized/Decentralized Hybrid Purchasing Systems
The Future Organization Concept
REPORTING STRUCTURE
The Organization Concept of Supply Management
PROFESSIONALISM WITHIN PURCHASING AND SUPPLY MANAGEMENT
Careers in Purchasing
The Institute for Supply Management: J. Shipman Gold Medal Award
SUMMARY
Chapter 2 Purchasing Decisions and Business Strategy
INTRODUCTION
THE RELATIONSHIP BETWEEN PURCHASING AND COMPETITIVE STRATEGY
Competitive Strategy
Competitive Priorities
Purchasing Criteria and Purchasing Actions
Reward Criteria
External Environment
SUPPLY CHAIN STRATEGY
SUPPLIER RELATIONSHIP QUALITY (SRQ)
The Evolution of Supplier Relationships in the Automobile Industry
THE INTEGRATED BUYING MODEL
Cost
Quality Level
Supplier Lead Time
Budgetary Constraints
THE STRATEGIC SOURCING PLAN
Developing a Strategic Sourcing Plan
Program Objectives by Phase
PURCHASING STRATEGY TRENDS
Summary
Appendix: Supply Chain Relationship Quality Study
Chapter 3 The Legal Aspects of Purchasing
INTRODUCTION
AUTHORITY OF THE PURCHASING MANAGER
CONTRACTS AND PURCHASE ORDERS
Essentials of a Purchase Contract
The Requirements for a Contract
Oral Contracts
OFFERS
The Terms of an Offer
The Time Limits of an Offer
EXECUTION OF CONTRACTS AND PURCHASE ORDERS BY THE PURCHASING MANAGER
Invitation to Do Business
Making an Offer
THE LEGAL IMPACT OF THE INFORMATION AGE
Federal and State Electronic Transactions Laws
Contracts That Must Be on Paper
PURCHASING AND ETHICS
Ethics and the Law
Ethics and the Negotiations Process
WOMEN AND MINORITY COMPLIANCE
SUMMARY
Part II Materials Management
Chapter 4 Materials Management
INTRODUCTION
MATERIALS REQUIREMENTS PLANNING AND CAPACITY REQUIREMENTS
Capacity Management
Capacity and Inventory
THROUGHPUT TIME—VELOCITY
ORDER CYCLE
The Order Cycle as a Link
The Order Cycle as a Set of Activities
CUSTOMER SATISFACTION
Material Availability
On-Time Shipment
On-Time Receipt
Complete Shipment
Quality of Receipt
Flexibility
Responsiveness to Inquiry
Customer Satisfaction—The Balance
QUALITY
The Quality Level
Objective Quality
SPECIFYING MATERIALS
Raw Materials
Purchased Parts
MAINTENANCE, REPAIR, AND OPERATING (MRO) SUPPLIES
Maintenance
Repair
Operating Supplies
TOOLING
SUMMARY
Chapter 5 Inventory Management
INTRODUCTION
INDEPENDENT VERSUS DEPENDENT DEMAND
INVENTORY MANAGEMENT OVERVIEW
ABC CLASSIFICATION OF INVENTORY ITEMS
INDEPENDENT DEMAND
The Classical EOQ Model
The Classical EOQ Model With Quantity Discounts
Demand Uncertainty and Safety Stock
DEPENDENT DEMAND SYSTEMS
The Material Requirements Concept
The General Lot-Sizing Problem
Quantity Discounts for the Variable Demand Case
Illustration of Various Variable-Demand Lot-Sizing Models
SUMMARY
APPENDIX: AREAS UNDER THE NORMAL CURVE
Chapter 6 Just-in-Time (Lean) Purchasing
INTRODUCTION
LEAN PRODUCTION SYSTEMS
JUST-IN-TIME PRODUCTION SYSTEM
KANBAN PRODUCTION CONTROL SYSTEM
A Simple Kanban Example
Determining the Number of Kanbans (Containers)
SIGNIFICANCE OF JIT PURCHASING
PURCHASING BENEFITS
IMPLEMENTATION OF JIT PURCHASING
ROLE OF CULTURE
CRITICAL ANALYSIS OF THE JIT CONCEPT
SUMMARY
Part III Fundamentals of Purchasing and Supply Chain Management
Chapter 7 Purchasing Procedures, E-Procurement, and Systems Contracting
INTRODUCTION
PURCHASING PROCEDURES
SYSTEMS CONTRACTING
E-PROCUREMENT
Two Broad E-Procurement Purchasing Categories
Purchase-to-Pay (P2P) and Source-to-Contract (S2C) Processes
REVERSE AUCTIONS
ELECTRONIC DATA INTERCHANGE (EDI) AND PURCHASING
RADIO FREQUENCY IDENTIFICATION (RFID)
ADOPTING NEW TECHNOLOGIES
Effective E-Procurement Implementation
Cybersecurity
SUMMARY
Appendix: Systems Contract Agreement
Chapter 8 Supplier Selection and Evaluation
INTRODUCTION
THE BUY DECISION: OUTSOURCING
SOURCES OF SUPPLIER INFORMATION
STRATEGIC SOURCE SELECTION
SUPPLIER RELATIONSHIP MANAGEMENT
Model of Supply Chain Relationship Management
SUPPLIER RELATIONSHIP MANAGEMENT PROGRAMS
SUPPLIER DEVELOPMENT PROGRAMS
SUPPLIER EVALUATION PROGRAMS
Criteria for Supplier Evaluation
Three Common Supplier Evaluation Systems
The Strategic Supplier Performance Review Process
The SRM Scoring System
SINGLE VERSUS MULTIPLE SOURCES
Multiple Sourcing
Single Sourcing
Disadvantages of Single and Multiple Sourcing
Long-Term Issues With Sourcing
Japanese Reality
Cross-Sourcing
Supplier Reduction
INDUSTRY EXAMPLES
Apparel Industry
Chemical Industry
Electronics Industry
Construction Industry
SUMMARY
Chapter 9 Strategic Outsourcing
INTRODUCTION
WHY DO ORGANIZATIONS OUTSOURCE BUSINESS PROCESSES?
THE HIDDEN COSTS OF OUTSOURCING
Quality Costs
Costs of Strategic Supplier Relationship Management
Internal Coordination Costs
Costs Related to Implementation of External Sourcing Model
Costs of Product/Service Design and Development
Governmental and Political Expenses
Costs Related to Supply Chain Risk Management
Miscellaneous Financial Considerations
CORE COMPETENCIES
OUTSOURCING TRENDS
ELEMENTS OF STRATEGIC OUTSOURCING
Strategic Evaluation
Financial Evaluation
Supplier Selection and Contract Development
Transition to External Sourcing Model
Relationship Management
SUMMARY
Chapter 10 Global Sourcing
INTRODUCTION
COSTS OF GLOBAL SOURCING
Administrative Costs
Foreign Costs
Common Costs
CURRENCY EXCHANGE RATES
ORGANIZATIONAL AND BEHAVIORAL ISSUES
GLOBAL SOURCING AS A STRATEGIC SOURCING OPTION
PROTECTIONISM
Protectionism in the United States
IMPORTANCE OF NEGOTIATIONS
United Kingdom
The Federal Republic of Germany
Mexico
Canada
China
GLOBAL PROVIDER OPPORTUNISM
U.S. EXPORT ADMINISTRATION REGULATIONS
FOREIGN TRADE ZONES
Countertrade
SUMMARY
APPENDIX: OUTSOURCING POLICY EXAMPLE
Chapter 11 Supply Partnerships and Supply Chain Power
INTRODUCTION
BENCHMARK SUPPLIER PARTNERSHIPS: CHRYSLER CORPORATION
PARTNERSHIPS: DEFINITION AND OVERVIEW
THE EVOLVING SUPPLY CHAIN STRATEGY
SUPPLY CHAIN PARTNERSHIPS
Benefits of Supplier Partnerships
Risks of Supplier Partnerships
Partnership Implementation and Critical Success Factors
POWER INFLUENCES ON SUPPLY CHAIN RELATIONSHIPS
Power and Dependence
Power and Commitment
Power, Cooperation, and Compliance
Power and Conflict
Power and Satisfaction
Power, Performance, and Profitability
SUMMARY
Chapter 12 Total Quality Management (TQM) and Purchasing
INTRODUCTION
TOTAL QUALITY MANAGEMENT AND SUPPLY CHAIN MANAGEMENT
TQM IMPLEMENTATION PROBLEMS
QUALITY REQUIREMENTS FOR SUPPLIERS
Quality Assurance Expectations
Quality Target Commitment
Preventive Quality
STATISTICAL PROCESS CONTROL, SIX SIGMA, AND THE TAGUCHI METHOD
Statistical Process Control (SPC)
Six Sigma and the Supplier
Taguchi Method
Acceptance Sampling and Commodity Components
QUALITY AWARDS AND CERTIFICATIONS
The Deming Prize
The Malcolm Baldrige National Quality Award
ISO 9000
CONTINUOUS IMPROVEMENT AND THE SUPPLIER
Quality Function Deployment (QFD)
Supplier Evaluations
ENGINEERING AND DESIGN
SUMMARY
APPENDIX A: THE TAGUCHI METHOD
Appendix B: Acceptance Sampling
Part IV Price/Cost Analysis and Negotiation Strategies
Chapter 13 Price Determination
INTRODUCTION
THE PURCHASING DECISION
PRICE-SETTING STRATEGY
Economic
Psychological
DISCOUNTS
Cash Discounts
Trade Discounts
Quantity Discounts
PRICE DETERMINATION
Price
Costs
THE LEARNING CURVE
The Learning Curve Model
PRICING STRATEGY
Standard Price Lists
Competitive Bidding
Negotiations
PROJECT PRICING
Markups Versus Margins
Breakeven
THE PRICE/COST ANALYSIS PROCESS
SUMMARY
Appendix A: The Robinson–Patman Act—General Price Discrimination
APPENDIX B: UNIT FACTORS FOR PROGRESS FUNCTIONS
APPENDIX C: ESTRADA SYSTEMS
Chapter 14 Bargaining and Negotiations
INTRODUCTION
DISTRIBUTIVE VERSUS INTEGRATIVE BARGAINING
Distributive Bargaining
Integrative Bargaining
The Bargaining Model
PSYCHOLOGICAL BARGAINING FRAMEWORK
Payoff System
Bargaining Strategy
ECONOMIC BARGAINING FRAMEWORK
AN EXPERIMENT IN DISTRIBUTIVE BARGAINING
PLANNING FOR A FORMAL NEGOTIATION
Planning (Seller’s Perspective)
Planning (Buyer’s Perspective)
Procedure
Tips
AN INTERGRATED MODEL OF THE BUYER–SELLER INTERACTION
SUMMARY
Part V Special Purchasing Applications
Chapter 15 Purchasing Transportation Services
INTRODUCTION
TRANSPORTATION’S ROLE IN PURCHASING
Mode Selection
Carrier Selection
Third-Party Relationships
Freight Consolidation
Documentation/Tracing/Claims
Terms and Condition of Transportation Purchasing
THREE TRANSPORTATION PURCHASING EXAMPLES
Ross Laboratories
Consolidated (Big Lots) Stores
Copeland Inc.
THE IMPACT OF THE NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA) ON DOMESTIC TRANSPORTATION
SUMMARY
Chapter 16 Equipment Acquisition and Disposal
INTRODUCTION
THE CAPITAL EQUIPMENT ACQUISITION PROCESS
Department Requisition
Company Goals and Objectives
New Project Ideas
Cash-Flow Analysis
Economic Evaluation
Selection of Projects
Financial Plan Analysis
Implementation
Expenditure Control
Auditing
DISPOSAL OF CAPITAL EQUIPMENT
PURCHASING NEW VERSUS USED CAPITAL EQUIPMENT
New Equipment Purchases
Used Equipment Purchases
Refurbishing Used Medical Equipment
LEASE VERSUS BORROW-AND-PURCHASE EXAMPLE
Step 1: Comparing Purchase Price and Lease Payments
Step 2: Comparing Income Tax Effect
Step 3: Comparing Present Values
Conclusion
SUMMARY
APPENDIX A: Federal Acquisition Regulation; Electronic and Information Technology
APPENDIX B: Discount Rates
Chapter 17 Health Care Purchasing and Supply Management
INTRODUCTION
PURCHASING, SUPPLIES, AND SERVICES
HEALTH CARE SUPPLY CHAIN MANAGEMENT
Opportunities in Health Care Supply Management
Examples of Health Care Savings Opportunities
METHODS OF SUPPLY MANAGEMENT
Fixed Order Quantity System
Fixed Order Interval
Stockless Inventory Systems
The Best Method
Group Purchasing Organizations
Antikickback Issues
COMPLICATING FACTORS UNIQUE TO HEALTH CARE FOR INVENTORY CONTROL
Demand Problems
Safety Stock
CURRENT TRENDS
Primary Supplier
Automation Technology
Impact of COVID-19 Pandemic on the Health Care Supply Chain
ACQUISITION OF CAPITAL EQUIPMENT PROCESS OVERVIEW
Overview of the Process
Factors and Decision Rules
Selecting the Right Supplier
GROUP HEALTH INSURANCE
Summary
Appendix: Purchasing Health Care Plans
Chapter 18 Sourcing Professional Services
INTRODUCTION
SERVICE SECTOR CHARACTERISTICS AND STRATEGIES
OUTSOURCING AND THE SERVICE SECTOR
MANAGING OUTSOURCED SERVICES
Complexity and Coordination
Dependence and Power
PURCHASING PROFESSIONAL SERVICES
Statement of Work or Scope of Work
Project Management
Project Planning and Scheduling Processes
SUMMARY
Appendix A: Preliminary Exploratory Interviews
Appendix B: FHWA Project Example
Appendix C: Fortune 500 Company Example
Cases
Case 1 AMD Construction Company: Negotiating the Old-Fashioned Way
Case 2 The Art and Science of Bidding Not to Get a Job
Case 3 The Auction Case
Case 4 Boston Gaming Systems, Inc.
Case 5 BSD at 777-Holdings
Case 6 Carter Systems Canada, Inc.
Case 7 Case Construction Company
Case 8 Central Texas Wine Distributors (CTWD)
Case 9 Columbus Auto Parts
Case 10 Custom Doors, Inc.
Case 11 Delta Construction Systems (DCS)
Case 12 Great Lakes University
Case 13 GRC Systems, Inc.
Case 14 Industrial Heating Systems
Case 15 The K-Car Airbag Assembly
Case 16 The Kemper Engine Plant
Case 17 McGruder Pavers, Inc.
Case 18 Medical Laser Equipment, Inc. (C)
Case 19 Michigan City Tractor (MCT), Inc.
Case 20 Microfuse, Inc. (B)
Case 21 Morgan Summerfield (CCS)
Case 22 Natural Construction, Inc.
Case 23 Pendleton Construction, Inc.
Case 24 Philadelphia Aircraft Equipment, Inc.
Case 25 Precision Manufacturing, Inc.
Case 26 Sage Imaging Center, Inc.
Case 27 Simpson Hospital Systems
Case 28 Tom & Jerry (T&J) Construction, Inc.
Case 29 Worldwide Auto Manufacturers, Inc.
Glossary
Index