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iPurchasing and SupplyChain Management:Strategies and RealitiesMichael QuayleUniversity of Glamorgan, UKIRM PressPublisher of innovative scholarly and professionalinformation technology titles in the cyberageHershey London Melbourne Singapore
iiAcquisitions Editor:Development Editor:Senior Managing Editor:Managing Editor:Copy Editor:Typesetter:Cover Design:Printed at:Michelle PotterKristin RothAmanda AppicelloJennifer NeidigBecky ShoreSharon BergerLisa TosheffIntegrated Book TechnologyPublished in the United States of America byIRM Press (an imprint of Idea Group Inc.)701 E. Chocolate Avenue, Suite 200Hershey PA 17033-1240Tel: 717-533-8845Fax: 717-533-8661E-mail: cust@idea-group.comWeb site: http://www.irm-press.comand in the United Kingdom byIRM Press (an imprint of Idea Group Inc.)3 Henrietta StreetCovent GardenLondon WC2E 8LUTel: 44 20 7240 0856Fax: 44 20 7379 0609Web site: http://www.eurospanonline.comCopyright 2006 by Idea Group Inc. All rights reserved. No part of this book may be reproduced, stored or distributed in any form or by any means, electronic or mechanical, includingphotocopying, without written permission from the publisher.Product or company names used in this book are for identification purposes only. Inclusion of thenames of the products or companies does not indicate a claim of ownership by IGI of thetrademark or registered trademark.Library of Congress Cataloging-in-Publication DataPurchasing and supply chain management : strategies and realities / Michael Quayle, editor.-- 1st ed.p. cm.Summary: "This book shows readers how to develop supply chain strategy and implementationand use it gain an advantage in the 21st century competitive marketplace"--Provided by publisher.Includes bibliographical references and index.ISBN 1-59140-899-7 (hardcover) -- ISBN 1-59140-900-4 (softcover) -- ISBN 1-59140-901-2(ebook)1. Business logistics--Management. 2. Strategic planning. I. Quayle, Michael, 1947HD38.5.P87 2006658.7--dc222005023882British Cataloguing in Publication DataA Cataloguing in Publication record for this book is available from the British Library.All work contributed to this book is new, previously-unpublished material. The views expressed inthis book are those of the authors, but not necessarily of the publisher.
iiiPurchasing and SupplyChain Management:Strategies and RealitiesTable of ContentsForeword . viiiPreface . ixChapter I.Developments in Purchasing and Supply Chain Managementand Logistics . 1Procurement, Purchasing, Outsourcing, Supply Management andSupply Chain Management . 1The Sustainable Supply Chain . 9Resource-Based View and Competitive Advantage . 10Business Issues in the 21st Century . 13Supply Chains into the Future . 14Supply Chain Education . 16Professional Competence: Food for Thought . 19Chapter II.Strategic Purchasing Management . 21Corporate Planning . 21Purchasing Planning and Purchasing Strategies . 27Corporate and Environmental Factors . 29Strategic Planning . 29Market Strategic Flexibility. 30Objectives and Responsibilities . 30
ivSWOT and Gap Analysis . 32Functions Involved in Corporate Planning . 33Functional Contribution to Corporate Strategy. 34Monitoring Performance . 35Purchasing Needs and Corporate Strategies . 36Purchasing Strategies . 38Flexible Strategies. 41International Trade: Implications for PurchasingManagement . 44Ethical Purchasing . 47Procurement Agencies . 48Food for Thought . 49Chapter III.Purchasing Policy . 50Policy Issues . 50Selecting Overall Policy . 53Structure of Purchasing Organisation . 53Structure of the Purchasing Function in Simple Organisations . 54Division of Work amongst Buying Groups . 57The Position of Purchasing Management in the Organisation . 59Structure of the Purchasing Function in Complex Organisation . 60A Multilevel Structure for Purchasing Management . 63Other Methods of Achieving Coordination . 65The Selection of an Appropriate Structure for ParticularCircumstances . 66Multinational Supplies Structures . 67Public Sector . 68Benchmarking . 69Materials Management. 71Exemplar Case Study: Procurement Business Strategy . 73Chapter IV.Quality Management and Customer Service . 89Defining Quality . 89Design and Conformance . 92The Costs of Quality . 93Efficient Consumer Response . 99Total Quality Management . 100Food for Thought . 103
vChapter V.Supply Chain Management . 104The Role of Supply Chain Management . 104The Supply Chain Mix . 107The Scope of the Supply Chain . 109The Value Chain and Interlock Strategy . 113Chapter VI.Managing the Supply Chain Function . 120Staffing the Department . 121Operating Manuals. 124Qualities of Supply Chain Personnel . 125Recruiting Personnel . 126Managing the Department . 130Implications for Supply Chain Management . 133Management and Implementation of Change . 133Supply Chain and Change . 135Chapter VII.Operating Environments . 138Integrated Logistic Support . 138ILS Management Structure. 143Level of Repair Analysis . 148Logistics Information Systems . 150Logistics and Other Organisational Functions . 155Chapter VIII.Provisioning and Inventory Control . 161Provisioning . 161The Use of Computers . 171The Objectives of an Inventory Control System . 174Method of Inventory Control . 180Cost of Inventory Investment . 185Inventory Control and Accounting Methods . 187Pricing Issues . 189Price Analysis . 195Inventory in the Final Accounts. 196Identification and Coding of Materials . 198Development of the Coding System . 205
viThe Stores Vocabulary . 210Inventory Reduction . 217Review of Other Concepts . 221Materials Requirements Planning . 224Manufacturing Resource Planning . 226Chapter IX.Stores Management . 228Stores Management Objectives . 228The Siting of Stores Buildings and Stockyards . 230Construction of the Buildings and Stockyards . 231Stockyards . 233Internal Layout . 233Detailed Planning of Layouts . 234Types of Stores . 235Special Storage Facilities . 240Planning Storage Equipment . 242Handling Equipment . 245Types of Handling Equipment . 248Security . 255Safety and Safe Methods of Working . 256Case Studies . 260Chapter X.Transport . 264Introduction . 265Fleet Management . 266Vehicle Scheduling . 269Maintenance and Security . 273Facilities for Maintenance . 273Quality Control . 274Security . 275Containers, Unitisation and Palletisation . 276Mechanical Aids to Loading and Off-Loading . 280Loading and Unloading Equipment Available on Vehicles. 282Road Vehicle Design and Road Planning . 282Road Haulage . 287Operating Costs of Own Fleet . 291Rail Freight . 295
viiAir Freight . 297Food for Thought . 300Case Study . 301Chapter XIPhysical Distribution . 303Distribution . 303Distribution Planning . 304Logistics and Delivery Planning . 307Budgetary Control in Distribution . 312Food for Thought . 315Case Study . 317Uni
This first edition ofPurchasing and Supply Chain Management: Strategies and Realities has been produced in response to market demand. I have devel-oped and reinforced the concept of purchasing and supply chain management as a dynamic and managerial process, and have added material that reflects the current more general view of purchasing and supply chain management as a strategic
