Management and Organizational Studies 3330A/B Chapter Notes - Chapter 4: Insourcing, Supply Chain, Waste Minimisation

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 3330A/B
• Professor: Benjamin Marcus

Document Summary

In the mid-1990s electronic storefronts emerged: electronic storefronts on-line catalogs of products made available to the general public by a single supplier, less expensive. Globalization: as globalization continues to increase, supply chains cover greater geographical distance, face greater uncertainty, and can end up being less efficient. The role of purchasing: purchasing is typically responsible for selecting suppliers, negotiating and administering long-term contracts, monitoring supplier performance, placing orders to suppliers, developing a responsive supplier base, and maintaining good supplier relations. Insourcing versus outsourcing decision calculations look in textbook for examples. Developing supplier relationships: a strong supplier base is essential to the success of many organizations, the top three criteria for selecting suppliers are price, quality and on-time delivery. The supplier may be the exclusive owner of essential patents and/or processes and thus be the only possible source. The supplier will be more responsive if it has all of your business for the item.