MARKET 1 Lecture Notes - Lecture 21: Analytic Hierarchy Process, Social Complexity, Performance Measurement
Document Summary
Supply is a dynamic strategic process and not a bureaucratic business function. Supply coordinates the method of input and supports transformation through the organization"s value system. Chapter 2 the evolution of purchasing and supply management. Strategy: an integrated set of choices positioning a firm in an industry to earn superior financial returns over the long run. Today: logistics is the entire process of materials moving in, through and out of a company. 1970: purchasing as an administrative function, operated in an isolated environment. Purchasing was a service department that bought the needed goods. Porter purchasing is important for a competitive advantage. It saves money and therefore people invest in it as a management discipline and creating strategic purchasing departments. Purchasing strategy: specific actions of the function to achieve goals. As a strategic function purchasing can contribute to shaping firm strategy and firm boundaries.
