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Discuss the link between procurement, sourcing, suppliers, and production strategies in supply chains

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  1. Introduction.
  2. Definitions.
    1. Supply chain management.
    2. Strategy.
    3. The supply chain management as modules.
  3. Links between activities.
    1. Link between purchasing and procurement.
    2. Link between purchasing and sourcing strategy.
    3. Link between sourcing and procurement.
    4. Link between e-sourcing and e-procurement.
    5. Link between procurement and purchasing.
  4. Strategies.
    1. Improve supplier collaboration and development.
    2. Globalisation/delocalisation.
    3. Increase amount of spend under management while improving spend.
    4. Leverage Logistics through channel integration and inventory.
  5. Findings.
  6. Conclusion.
  7. References.

The mission of supply chain management is to have processes integrated between the functions of the firm. Consequently, procurement, production, distribution, and marketing are members of a network. The vision of the supply chain management is to deliver value to customers. Moreover, the performance objectives are quality, speed, dependability, flexibility, and cost objectives. The objective of the report is to analyse the strategies a company needs to reach the objectives required at the inbound level to remain competitive. At first, to delimit boundaries, definitions of the main concepts are given, then several strategies are deeply analysed to manage to link procurement, sources, suppliers and production strategies. The definition of supply chain management has been evolving these past years partly because of an important transition from the concept of logistics to the one of supply chain management. According to Christopher (2005, p.5), supply chain management is ?the management of upstream and downstream relationships with suppliers and customers to deliver superior customer value at less cost to the supply chain as a whole? (italics used by Christopher).

[...] At first, to delimit boundaries, definitions of the main concepts are given, then several strategies are deeply analysed to manage to link procurement, sources, suppliers and production strategies Definitions 2.1 Definitions The supply chain management The definition of supply chain management has been evolving these past years partly because of an important transition from the concept of logistics to the one of supply chain management. According to Christopher (2005, p.5), supply chain management is management of upstream and downstream relationships with suppliers and customers to deliver superior customer value at less cost to the supply chain as a whole? (italics used by Christopher) Strategy Coyle, Bardi, and Langley (1996, p.568) defines strategy as being course of action, a scheme, or a principal idea through which an organization or individual hopes to accomplish a specific objective or goal.? The supply chain management as modules To understand what is similar to procurement, sourcing, suppliers and production strategies, there is a need to schematise a supply chain. [...]


[...] These delays directly reverberate on the production that is slowed down or stopped Enhance procurement and supplier roles in new product development (Lambert, Stock, and Ellram, 1998) This strategy links procurement, suppliers, and sources as it concerns early supplier involvement (ESI) in product development. This technique allows engineers, designers, producers, and suppliers to resolve problems before they appear because they meet before the conception of the products. This process results in a better quality, responsiveness, and competitiveness from the supplier. [...]


[...] A solution might be to establish an international purchasing office in the country or region where low-cost country suppliers and production are located. Table Degree of globalization Source: Christopher, M (2005) Outsourcing The collaboration of suppliers might also be understood by outsourcing. Indeed, warehousing, transport and services are often outsourced to specialists ?third party logistics? because they are not core competencies for the company. It is a key point for internationalisation because it represents an economy of costs if it is used for non-core activities Strategy Increase amount of spend under management while improving spend compliance (Minahan, 2005) Thanks to these types of spending, companies get product and process innovations, faster time-to-market cycles, improved profitability, and expansion into new markets. [...]

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