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Purchasing and Supply Management

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Book cover Operations, Logistics and Supply Chain Management

Part of the book series: Lecture Notes in Logistics ((LNLO))

Abstract

Purchasing is the function in a firm responsible for the professional management of a firm’s interface with the supply market, to ensure its supply with the necessary goods and services provided by other organisations, i.e. suppliers. Industrial firms spend more than half of their turnover on supplies, which is why the purchasing function has become a central success factor for modern firms. Purchasing can be distinguished into strategic sourcing (supply planning, supplier selection and contracting) and operative procurement (material ordering, expediting and paying). The activities of a purchasing department can be organised in a purchasing year cycle, which repeats on an annual basis. Next to ensuring a safe and timely supply, purchasing has the target to achieve good costs as well as to contribute to innovation and improve the strategic position of a firm. For that several tools have been developed, such as the Kraljiĉ-Matrix (which helps to develop sourcing tactics), the lever analysis (used to systematically achieve cost savings) or the preferred customer approach (used to achieve competitive advantages through smart purchasing).

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Authors and Affiliations

  1. University of Twente, Enschede, The Netherlands

    Holger Schiele

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  1. Holger Schiele
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Correspondence to Holger Schiele .

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Editors and Affiliations

  1. Department of Industrial Engineering and Business Information Systems, University of Twente, Enschede, Overijssel, The Netherlands

    Henk Zijm

  2. FOM University of Applied Sciences, Essen, Nordrhein-Westfalen, Germany

    Matthias Klumpp

  3. Department of Industrial Engineering, University of Bologna, Bologna, Italy

    Alberto Regattieri

  4. Industrial Engineering and Management, Oklahoma State University, Stillwater, OK, USA

    Sunderesh Heragu

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Schiele, H. (2019). Purchasing and Supply Management. In: Zijm, H., Klumpp, M., Regattieri, A., Heragu, S. (eds) Operations, Logistics and Supply Chain Management. Lecture Notes in Logistics. Springer, Cham. https://doi.org/10.1007/978-3-319-92447-2_4

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  • DOI: https://doi.org/10.1007/978-3-319-92447-2_4

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-92446-5

  • Online ISBN: 978-3-319-92447-2

  • eBook Packages: EngineeringEngineering (R0)

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