Procurement and Supplier Management

  • David Frederick Ross


Without much argument, it can be said that the procurement function is an essential function found at the core of all organizations. The acquisition of materials, components, finished goods, service inventories, and support services is a fundamental activity found in all industries. Effectively designed and executed procurement processes provide several direct advantages. To begin with, procurement plays a fundamental role in actualizing business and operations planning objectives concerning production, supply chain delivery, flexibility, quality, and costs. Second, the sheer financial impact of procurement directly affects the financial stability and profitability of virtually every trading partner in the supply channel. Depending on the nature of the business, procurement costs alone range from 40 % to over 70 % of each sales dollar. Third, the efficiency of procurement has a direct influence on the capability of the business and the entire supply chain to respond effectively to marketplace demand. Because of its significant impact on revenues, costs, and operational efficiencies, procurement is a key enabler of supply chain strategy.

Supplementary material

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Problem 11.1 (XLSX 14 kb)
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Problem 11.2 (XLSX 14 kb)
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Problem 11.3 (XLSX 15 kb)
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Problem 11.4 (XLSX 14 kb)
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Problem 11.5 (XLSX 14 kb)
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Problem 11.6 (XLSX 14 kb)
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Problem 11.7 (XLSX 14 kb)
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Problem 11.8 (XLSX 14 kb)
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Exercise 11.1 Cost avoidance analysis (XLSX 14 kb)
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Exercise 11.2 Supplier scoring and assessment (XLSX 15 kb)
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Exercise 11.3 Break-Even Analysis (XLSX 14 kb)
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Exercise 11.4 Make-Buy Analysis (XLSX 14 kb)
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Exercise 11.5 Supplier selection comparison (XLSX 16 kb)
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Exercise 11.6 Weighted point plan (XLSX 14 kb)
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Balanced scorecard Fig 11.16 (XLSX 13 kb)
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Exercises (XLSX 35 kb)
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Price index (XLSX 14 kb)
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Spend Analysis Figure 11.12 (XLSX 14 kb)
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Chapter 11 Case Study-Solution (XLSX 15 kb)
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Chapter 11 (PPTX 2957 kb)


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Copyright information

© Springer Science+Business Media New York 2015

Authors and Affiliations

  • David Frederick Ross
    • 1
  1. 1.APICSChicagoUSA

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