Purchasing and Supply Chain Management
6th Edition
ISBN: 9781285869681
Author: Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher: Cengage Learning
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Question
Chapter 19, Problem 7DQ
Summary Introduction
To determine: The meaning of the below statement and examples of performance measures that result in negative long-term outcome on purchasing performance.
Statement: Some firms still rely on measures that harm rather than support purchasing’s long term performance objectives.
Performance and evaluation system is a formal and systematic methodology to observe and assess the purchasing performance.
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Students have asked these similar questions
You have been made the purchasing manager of a local bakery that specialises in artisanal bread, pastries, and cakes. This bakery is steadily growing in the Durban CBD and is seeing increased growth month on month as a result of lowered Covid-19 regulations. Answer the following questions with application to your new role.
There are several objectives to performance evaluation. In your opinion, is performance evaluation vital to the success of the purchasing and supply function? Justify your stance by discussing at least 2 key points in relation to the context of the bakery.
Discuss the concept of the internal customer. Who are purchasing’s internal customers?
What can be the performance indices for a purchasing department of an organization? How can a purchasing manager monitor them? What are the advantages of defining such performance indices? Include examples for each part of this question
Chapter 19 Solutions
Purchasing and Supply Chain Management
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- Discuss the reasons why measuring and evaluating purchasing performance has historically had certain problems or limitations.arrow_forwardWhat is more important for a purchasing transaction, price, timing or quality?arrow_forwardWhen a buying team visit a potential supplier, what evidence might they find that managers are not forward - looking or that the company might not perform well?arrow_forward
- Ethical sourcing (ES) and sustainable sourcing (SS) are becoming an important issue in purchasing activities. Explain to your firm the risk and benefit of practicing ES and SS in purchasing activities.arrow_forwardWhy is it important to capture the transaction-level data associated with all purchasing processes?arrow_forwardExplain when should a firm focus on purchasing effectiveness measures?arrow_forward
- Discuss the major difference between cost-reduction and cost-avoidance measures. Why have some described the reported savings in cost-avoidance measures as “soft,” “funny money,” and “easy to manipulate”? When can purchasing take credit for a legitimate cost reduction or cost avoidance?arrow_forwardWhich phase in the 8 Phases Involved in Organizational Purchasing Decision Making is the most difficult to comply? Why?arrow_forwardThe earnings of the organization can be considerably impacted by buyers and supply chain management. Anorganization may spend up to 50% of its sales revenue on the acquisition of goods and services, including rawmaterials.You are employed as a purchasing director at Food Lovers in Durban, South Africa. The selection of a supplier establishes the crucial issues that will determine whether the organization's procurement process is successful or unsuccessful.Critically examine how Food Lovers will detect which supplier is able to supply its requirements satisfactorily, bothstrategically and operationally in the short and long termarrow_forward
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