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Chapter 14 Purchasing and supply management - …

Chapter 14 Purchasing and supply 1 Chapter 14 Purchasing and supply management 1. Importance of Purchasing and 2 Greatest expenditure of business .. 2 inventory holding .. 2 Profit leverage .. 2 Contribution to marketing of products .. 3 2. management task of Purchasing and supply .. 3 Purchasing and supply planning .. 3 Ongoing supply and Purchasing function .. 3 Place in organization structure .. 4 Hierarchical level of Purchasing and supply in organization 4 Internal organizing of Purchasing and 4 Co-ordination with other functional management areas .. 4 Cross functional sourcing teams .. 5 Control in Purchasing and 5 Assessment of Purchasing and supply activities .. 5 3. Purchasing process and activities .. 6 Purchasing process .. 6 Quality decisions as a Purchasing and supply 6 Role of quality in Purchasing .

1.1. Greatest expenditure of business • Purchasing cost is business greatest expense • Profit = favorable difference between income and expenditure 1.2. Inventory holding • Stock is held to prevent disruptions in transformation process • Aim is to keep inventory levels as low as possible without interrupting operational process

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