ECON 1 Lecture Notes - Lecture 11: Global Sourcing, Profit Margin, Purchase Order
Document Summary
Supply management (sometimes called sourcing or purchasing) the broad set of activities carried out by organizations to analyze sourcing opportunities, develop sourcing strategies, select suppliers, and carry out all the activities required to procure goods and services. Performance impact: purchased goods and services can have a major effect on other performance dimensions, including quality and delivery performance. Personnel responsible for spend analysis must have the flexibility and skills needed to analyze large quantities of data. Part iii establishing supply chain linkages | audreysanny: an understanding of how the purchased components or services are used and how demand levels in the organization will change over time. Step 3: develop the sourcing strategy (3 parts: make-or-buy decision a high level, often strategic, decision regarding which products or services will be provided internally (insource) which will be provided by external supply chain partners (externally) Indirect costs costs that are not tied directly to the level of operations or supply chain activity.
