Lecture Purchasing and supply chain management (3/e): Chapter 7 - W. C. Benton

Chapter 7 - Purchasing procedures, e-procurement, and systems contracting. This chapter focuses on purchasing procedures, e-purchasing, and systems contracting. Online or e-procurement technology has become an important part of purchasing and supply chain management and the rate of adoption has increased significantly.

Purchasing and Supply Chain Management

3rd edition

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Chapter 7:

Purchasing Procedures, E­Procurement, and

Systems Contracting

Purchasing and Supply Chain Management, 3rd edition, Copyright 2013, W. 

C. Benton Jr., All rights reserved

• the right materials 

• in the right quantities

• at the right time and price

• from the right source.

confidence among all parties.

General Definitions

• Buying goods and services for use by the buying organization

• Procuring items for resale

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routine.

Purchasing Tools

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• A negotiated agreement between buyers and sellers including:

Purchasing Tools

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• Inventory and purchase costs

• Total cost of implementing these systems

• Lack of savings during development and deployment phases 

• Cost of training employees and getting suppliers to participate

Reverse Auctions

• The buying firm initializes the auction by submitting a description 

of the product or service.

• Sellers place bids based on their offer to fulfill the buyer’s needs.

• The competition between the sellers drives the price down, 

instead of up.

• The buyer chooses the winning bidder.

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Purchasing Tools

Questions?

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