Tài liệu tiếng Anh (cao học) Chapter 1 Professional supply management

Tài liệu tiếng Anh (cao học) Chapter 1 Professional supply management, dành cho cao học

Chapter 1 The Progression to Professional Supply Management 1-1 Key Concepts • Purchasing, Supply Management, and Supply Chain Management Defined » Increasing Importance of Purchased Materials. • Supply Management’s Impact on the Bottom Line » Increased Sales » Faster to Market or Time-Based Competition • Supply Management and Return on Investment • The Progression to Proactive Supply Management 1-2 What Is a Profession? • A calling requiring specialized knowledge and often long and intensive preparation • including instruction in skills and methods as well as in the scientific, historical, or scholarly principles underlying such skills and methods, • maintaining by force of organization or concerted opinion high standards of achievement and conduct, • and committing its members to continued study and to a kind of work which has for its prime purpose the rendering of a public service. (Source: Webster's Third International Edition) (Source: Webster's Third International Edition) 1-3 Purchasing: A Dynamic Profession • Is purchasing a profession? • Do the required skills have a historic foundation? • Does the supply management profession render a public service? • Is the profession undergoing changes? 1-4 Six Key Business Functions (Supply Management’s Role in Business) 1. Creation, the idea or design function, frequently based on research and development 2. Finance, the capital acquisition, financial planning and control function 3. Personnel, the human resources and labor relations function 4. Supply, the acquisition of required materials, services, and equipment 5. Conversion, the transformation of materials into economic goods and services 6. Distribution, the marketing and selling of goods and services produced 1-5 Evolution of Purchasing Function • Purchasing: a Dynamic Profession • Origins of Purchasing and Supply Management • Transition to Supply Management » Wider in Scope » Value-Adding Benefits » Strategic Focus • Value Adding Benefits ‑ • Strategic Focus 1-6 Supply Management • A Five Stage Process » Identification of item or service required » Identification of best supplier » Establishment of a fair and reasonable price » Creation of an enforceable agreement » Management of the relationship • Supply Management utilizes Strategic Sourcing 1-7 Strategic Sourcing • Strategic sourcing is understanding the markets you're purchasing from inside and out… • …and learning from your own organization and your suppliers' organizational processes,… • …working as a mediator between suppliers and your organization,… • …and capturing information and using it to improve relationships. • Strategic sourcing requires two-way continuous improvement process work from each organization 1-8 Four Principles of Strategic Sourcing 1. Define the total value of the relationship between purchaser and suppler, 2. Develop solutions based on a deep understanding of the supplier's economics and business dynamics, 3. Use differentiated purchasing tactics in order to optimize the economic relationship for both purchaser and suppliers, and 4. Imbed the required changes in the organization so the purchaser achieves not only a near-term measurable performance improvement but also the ability to continuously improve 1-9 Four Step Process of Implementation • Research the industry economics and dynamics of the team's assigned commodity; • Evaluate sourcing strategies and suppliers' capabilities; • Structure the supply relationship jointly with suppliers and develop action plans to build the required infrastructure; • Implement the plan and organize for continuous improvement 1-10 [...]... increase = new sales X 08 • $11 5,000 = new sales X 08 • new sales = $1, 437,500 1- 16 The Impact on ROI of Reducing Materials Costs vs Increasing Sales • therefore… • ( $1, 437,500 / $5,000,000) X 10 0 = 28.8% • or a sales increase of 28.8% is required to match the profit increase generated by a 5% reduction in materials cost 1- 17 A Definition of Supply Chain Management • Supply Chain Management is a set of approaches... Human 2% 18 50 2% 19 00 19 50 1- 12 Supply Management and the Bottom Line • Purchased items account for a large percentage of the cost of goods sold • Outsourcing allows firms to focus on their core competencies » Organizations outsource when they decide to purchase something they had been making inhouse • A dollar saved in materials cost is usually considered a dollar increase in profit 1- 13 Supply Management s... characterized by virtual integration 1- 22 Implementing Strategic SCM Figure 1. 6 1- 23 Concluding Remarks • Purchasing is the foundation of Supply Management and a basic activity common to all organizations • Effective Supply Management has an overwhelming impact on the firm’s bottom line giving organizations a competitive edge • Supply Management provides tremendous career opportunities 1- 24 END ... Man/Womanpower, Material, Money, Management » Materials costs have increased – As a percentage of the cost of goods sold » Labor costs have decreased » Machine power has replaced much of human (and horse) labor over the last 15 0 years • The result? » Materials costs are increasingly the focus of management 1- 11 Power Source Relationships: The Reduction of Labor Content in Products Figure 1- 1 98% 98% Key 50% 50%... Source: Simchi-Levi, Kaminsky, and Simchi-Levi, Designing and Managing the Supply Chain, Irwin, McGraw-Hill, 2000 1- 18 The Supply Chain Figure 1- 4 Mother Earth Extractors Miners Harvesters Converters (suppliers) Materials and Service Original Equipment Manufacturers (OEM) Information/Funds/Relationships 1- 19 The Value Chain Figure 1- 5 Mother Earth Extractors Miners Harvesters Converters (suppliers) Original... if we decrease materials cost by 5%? (or $11 5,000) Sales $5,000,000 ($475,000) Account receivable $300,000 Current assets $1, 100,000 Divided by ( $1, 075,000) Plus Total assets $4,000,000 Cash $300,000 Fixed assets $2,900,000 ($3,975,000) Asset turnover rate 1. 25 (1. 26) Figure 1- 3 1- 15 The Impact on ROI of Reducing Materials Costs vs Increasing Sales • If the same profit increase were to be generated by... Labor $700,000 Materials $2,300,000 ($2 ,18 5,000) Overhead $800,000 Sales $5,000,000 Minu s Cost of Goods Sold $3,800,000 ($3,685,000) Plus Net income $400,000 ($ 515 ,000) Divided by Sales $5,000,000 Profit margin 8% (10 .3%) Other costs $800,000 Multiply Return on Investments 10 .0% (13 .0%) Inventories $500,000 Assets What if we decrease materials cost by 5%? (or $11 5,000) Sales $5,000,000 ($475,000) Account... Impact on Net Income and the Bottom Line Figure 1- 2 Increased Sales: • • • • Faster to Market Improved Quality Pricing Flexibility Innovation Lower Total Cost: • • • • • • • • • • Acquisition Cost Processing Cost Quality Cost Downtime Cost Risk Cost Cycle Time Cost Conversion Cost Non-value Added Cost Supply Chain Cost Post Ownership Cost 1- 14 Supply Management and Return on Investment Operating cost... and Service Information/Funds/Relationships 1- 20 The Supply and Value Networks • Flexible virtual systems linked by communication systems and alliances • Simultaneous activities • Focus is on the ultimate customer to deliver: » Value creation through innovation » Value delivery through order fulfillment » Value maintenance through after sales service 1- 21 The Extended Enterprise • When a group or network . Chapter 1 The Progression to Professional Supply Management 1- 1 Key Concepts • Purchasing, Supply Management, and Supply Chain Management Defined » Increasing. last 15 0 years • The result? » Materials costs are increasingly the focus of management 1- 11 Power Source Relationships: The Reduction of Labor Content in Products Figure 1- 1 Figure 1- 1 18 50 19 00. turnover rate 1. 25 Multiply Cash $300,000 Account receivable $300,000 Inventories $500,000 Assets Labor $700,000 Materials $2,300,000 Overhead $800,000 Operating cost elements ($ 515 ,000) ($3,685,000)($2 ,18 5,000) (10 .3%) (1. 26) ($3,975,000) ( $1, 075,000) ($475,000) (13 .0%) What if we decrease materials cost by 5%? (or $11 5,000) Sales $5,000,000 Net