Purchasing and Supply Function Relevence, Direct and Support Function diffrene , Growing Trend toward Outsourcing , Farmulate Objectives and Policies for Purchasing and Supply

Functions are groupings
of related activities

Activity
A1 Activity
A2
Function A Activity
Activity B1 Activity
Activity A5 B2
A3 Activity Function B
A4 Activity
Activity B5
B3 Activity
B4


Activity
C1 Activity
C2
Function C
Activity
Activity C5
C3 Activity
C4




ITC M1:U5:5.2-1

, Scope of activities undertaken by
the purchasing & supply function

Negotiating Managing
Developing inbound
supply logistics
strategies
Preparing the
Specifying contract
Appraising & Managing
requirements
shortlisting inventory
& planning
supply suppliers
Managing
the contract &
Analysing supplier
Obtaining &
supply relation- ships
selecting
markets
offers In small enterprises,
one person undertakes
a number of functions
ITC M1:U5:5.2-2

, A function being performed
by various departments Production
Department


Purchasing & Supply Finance
Department Department


Purchasing & supply function
activities
Other Activities


R&D All other
Department Departments




A function being performed R & D activities

solely by one department Other Activities
ITC M1:U5:5.2-3