MGT 3070 Chapter Notes - Chapter 1: Materials Management, Major Force, Supplier Relationship Management
SUPPLY CHAIN EVOLUTION
The Early Years (1850-1900)
Charles Babbage
Materials man
Selects, purchases, receives and delivers all articles required
American Railroads
-major force in the economy
-movement of goods from east market to west
-Chief purchasing manager
-purchasing importance in corporate profitability
-organization and centralization of purchasing department
Growth of purchasing fundamentals (1900-1939)
Purchasing importance outside of railroad industry
Need for qualified personnel
Materials specification
The book on buying
World war 1
Importance placed on procurement of raw materials
The war years (1940-1946)
World war 2
Scarce materials
Other departments recognized importance of purchasing department in sourcing
The quiet years (1947-id ’s
-studies on using staff to collect, analyze and present data for purchasing decisions
-ford motor company (commodity research dept, purchase analysis dept)
-value analysis technique
GE 1947
Designed products with specs that would reduce materials costs
-Important elements for purchasing were not present such as:
stable competition
access to resources and materials
focus on satisfying demand and growing industry
Materials aageet Coes to age id ’s-Late 1’s
Dramatic growth of materials management
Combined functions:
Materials and procurement research
Purchasing
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