Instructor Manual: Handfield, Purchasing and Supply Chain Management, 8e, 2026; 9798214042039;
Chapter 1: Introduction to Purchasing and Supply Chain Management
Instructor Manual
Handfield, Purchasing and Supply Chain Management, 8e, 2026; 9798214042039;
Chapter 1: Introduction to Purchasing and Supply Chain Management
TABLE OF CONTENTS
Discussion Questions................................................................................................................................... 2
© 2026 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a 1
publicly accessible website, in whole or in part.
, Instructor Manual: Handfield, Purchasing and Supply Chain Management, 8e, 2026; 9798214042039;
Chapter 1: Introduction to Purchasing and Supply Chain Management
DISCUSSION QUESTIONS
The following are discussion questions that do not appear in the text, PPTs, or courseware (if courseware
exists) – they are for you to use as you wish. You can assign these questions several ways: in a discussion
forum in your LMS; as whole-class discussions in person; or as a partner or group activity in class.
1. Why are more top managers recognizing the importance of purchasing/supply management?
Answer:
The presence of world-class competitors, both domestically and internationally, is forcing
organizations to improve their purchasing & supply chain practices and processes.
Shifts to outsource more items meaning there are more purchase dollar expenditures to
manage. Decisions need to be made in terms of domestic outsourcing versus offshoring.
The increasing volatility of the supply marketplace created by tariff wars, country
conflicts and resource scarcity.
2. What is the difference between purchasing and supply management? What is the difference
between supply chain orientation and supply chain management?
Answer:
Purchasing is a functional group as well as a functional activity.
Supply management is a strategic approach to planning for and acquiring the
organization’s current and future needs.
Supply chain orientation is a higher-level recognition of the strategic value of managing
operational activities and flows within and across a supply chain.
Supply chain management endorses a supply chain orientation and involves proactively
managing the two-way movement and coordination of goods, services, information, and
funds from raw material through end user
3. What is the difference between a supply chain and a value chain?
Answer:
A Supply chain is a set of three or more organizations linked directly by one or more of
the upstream or downstream flows of products, services, finances, and information from a
source to a customer. A supply chain is a subset of the value chain.
A value chain is composed of primary and support activities that can lead to competitive
advantage when configured properly. A value chain is the accumulation of these
activities’ results in the total value provided by a firm.
4. Do you think organizational purchasers should behave like entrepreneurs? Why or why not?
Answer:
Purchasers manage a line of commodities requiring the expenditure of corporate funds. As a
result, they must be self-motivated in their approach, take risks, interact with multiple
stakeholders in formulating strategies and plans to effectively purchase those commodities.
All these characteristics and duties are similar to those required of someone running a small
business.
© 2026 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a 2
publicly accessible website, in whole or in part.
, Instructor Manual: Handfield, Purchasing and Supply Chain Management, 8e, 2026; 9798214042039;
Chapter 1: Introduction to Purchasing and Supply Chain Management
5. What are some of the factors that might influence how important purchasing is to the success of
an organization?
Answer:
The amount of spend as a percentage of total revenue
Recognition by upper management that purchasing is a strategic function
Appropriate budget for personnel and technology
The need to increase value and savings
Recognizing the importance of building supplier relationships to drive innovation
Improving end customer quality and product reputation through proper supply base
selection
Reducing time to market to make the firm’s products and services more competitive
Realizing that supplier risk affects bottom-line revenue and profitability
Recognizing that utilizing strategic sourcing contributes to competitive advantage
6. With the expected increase in AI, robotics, and automation, what knowledge and skills do you
feel are required for a purchasing professional?
Answer:
Ability to interface with and deploy these technologies through:
o Formal Education
o Certifications
o Strategic thinking
o Leadership
o Managing cross-functional teams
o The ability to see the ―big picture‖ and use a process approach
o ―Soft‖ skills
o Data and analytics
o Total cost analysis
o Market analysis
o Fact-based decision making
7. Why does the collective behavior of supply managers have such an impact on economic trends as
reported in the ISM Report on Business?
Answer:
The collective actions of supply managers have the power to move financial markets due
to their sizable impact on GDP and economic activity.
ISM Report on Business is a major financial indicator which reflects the collective input
of purchasing managers.
8. What impacts will technology have on supply base innovation and risk management, and will
technology allow supply managers to spend more time on these two areas?
Answer:
Technology will improve end-to-end supply chain visibility which will lead to an
improved ability to bring innovations. Additionally, technology can highlight areas of
potential threats, allowing purchasing managers to take a more proactive approach to
mitigate such risks earlier.
© 2026 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a 3
publicly accessible website, in whole or in part.
, Instructor Manual: Handfield, Purchasing and Supply Chain Management, 8e, 2026; 9798214042039;
Chapter 1: Introduction to Purchasing and Supply Chain Management
Yes, since technology will automate routine activities, allowing more time for strategic
issues.
9. Discuss the four enablers of purchasing and supply chain excellence.
Answer:
Capable human resources
o A key to the success of any company is the quality of its employees
o The need for interpersonal skills to manage relationships
o The ability to interpret data and analytics
o The ability to understand cost management
o Technological savvy
o Sound human resources strategy
Proper organizational design
o The process of assessing and selecting the structure and formal system of
communication, division of labor, coordination, control, authority, and
responsibility required to achieve organizational goals
o The proper use of teams
Real-time collaborative technology capabilities
o Cloud-based information technology
o Mobile devices
o Planning and execution software
o AI driven data and analytics
Right measures and measurement system
o Knowing what to measure
o A process in place to measure
o Accessibility to the right data
o Support for fact-based decision making and implementation
o The ability to communicate requirements to other supply chain members
o The ability to improve supplier performance
o The willingness to recognize outstanding performance
10. Briefly discuss each of the seven periods in the evolution of purchasing and supply management.
What do you forecast for the future?
Answer:
The Early Years (1850 – 1900)
o Manufacturing-based
o Purchasing managers functioned as the ―materials man who selects, purchases,
receives, and delivers all articles required‖.
o The Railroad industry was an early adopter of purchasing activities.
Growth of Purchasing Fundamentals (1900 – 1939)
o Expansion of purchasing outside the railroad industry
o Development of basic purchasing procedures and ideas
o During World War I the role of purchasing and supply management was vital
for obtaining vital war materials.
o Focus on sourcing or raw materials, instead of buying finished or semi-finished
goods
© 2026 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a 4
publicly accessible website, in whole or in part.
Chapter 1: Introduction to Purchasing and Supply Chain Management
Instructor Manual
Handfield, Purchasing and Supply Chain Management, 8e, 2026; 9798214042039;
Chapter 1: Introduction to Purchasing and Supply Chain Management
TABLE OF CONTENTS
Discussion Questions................................................................................................................................... 2
© 2026 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a 1
publicly accessible website, in whole or in part.
, Instructor Manual: Handfield, Purchasing and Supply Chain Management, 8e, 2026; 9798214042039;
Chapter 1: Introduction to Purchasing and Supply Chain Management
DISCUSSION QUESTIONS
The following are discussion questions that do not appear in the text, PPTs, or courseware (if courseware
exists) – they are for you to use as you wish. You can assign these questions several ways: in a discussion
forum in your LMS; as whole-class discussions in person; or as a partner or group activity in class.
1. Why are more top managers recognizing the importance of purchasing/supply management?
Answer:
The presence of world-class competitors, both domestically and internationally, is forcing
organizations to improve their purchasing & supply chain practices and processes.
Shifts to outsource more items meaning there are more purchase dollar expenditures to
manage. Decisions need to be made in terms of domestic outsourcing versus offshoring.
The increasing volatility of the supply marketplace created by tariff wars, country
conflicts and resource scarcity.
2. What is the difference between purchasing and supply management? What is the difference
between supply chain orientation and supply chain management?
Answer:
Purchasing is a functional group as well as a functional activity.
Supply management is a strategic approach to planning for and acquiring the
organization’s current and future needs.
Supply chain orientation is a higher-level recognition of the strategic value of managing
operational activities and flows within and across a supply chain.
Supply chain management endorses a supply chain orientation and involves proactively
managing the two-way movement and coordination of goods, services, information, and
funds from raw material through end user
3. What is the difference between a supply chain and a value chain?
Answer:
A Supply chain is a set of three or more organizations linked directly by one or more of
the upstream or downstream flows of products, services, finances, and information from a
source to a customer. A supply chain is a subset of the value chain.
A value chain is composed of primary and support activities that can lead to competitive
advantage when configured properly. A value chain is the accumulation of these
activities’ results in the total value provided by a firm.
4. Do you think organizational purchasers should behave like entrepreneurs? Why or why not?
Answer:
Purchasers manage a line of commodities requiring the expenditure of corporate funds. As a
result, they must be self-motivated in their approach, take risks, interact with multiple
stakeholders in formulating strategies and plans to effectively purchase those commodities.
All these characteristics and duties are similar to those required of someone running a small
business.
© 2026 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a 2
publicly accessible website, in whole or in part.
, Instructor Manual: Handfield, Purchasing and Supply Chain Management, 8e, 2026; 9798214042039;
Chapter 1: Introduction to Purchasing and Supply Chain Management
5. What are some of the factors that might influence how important purchasing is to the success of
an organization?
Answer:
The amount of spend as a percentage of total revenue
Recognition by upper management that purchasing is a strategic function
Appropriate budget for personnel and technology
The need to increase value and savings
Recognizing the importance of building supplier relationships to drive innovation
Improving end customer quality and product reputation through proper supply base
selection
Reducing time to market to make the firm’s products and services more competitive
Realizing that supplier risk affects bottom-line revenue and profitability
Recognizing that utilizing strategic sourcing contributes to competitive advantage
6. With the expected increase in AI, robotics, and automation, what knowledge and skills do you
feel are required for a purchasing professional?
Answer:
Ability to interface with and deploy these technologies through:
o Formal Education
o Certifications
o Strategic thinking
o Leadership
o Managing cross-functional teams
o The ability to see the ―big picture‖ and use a process approach
o ―Soft‖ skills
o Data and analytics
o Total cost analysis
o Market analysis
o Fact-based decision making
7. Why does the collective behavior of supply managers have such an impact on economic trends as
reported in the ISM Report on Business?
Answer:
The collective actions of supply managers have the power to move financial markets due
to their sizable impact on GDP and economic activity.
ISM Report on Business is a major financial indicator which reflects the collective input
of purchasing managers.
8. What impacts will technology have on supply base innovation and risk management, and will
technology allow supply managers to spend more time on these two areas?
Answer:
Technology will improve end-to-end supply chain visibility which will lead to an
improved ability to bring innovations. Additionally, technology can highlight areas of
potential threats, allowing purchasing managers to take a more proactive approach to
mitigate such risks earlier.
© 2026 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a 3
publicly accessible website, in whole or in part.
, Instructor Manual: Handfield, Purchasing and Supply Chain Management, 8e, 2026; 9798214042039;
Chapter 1: Introduction to Purchasing and Supply Chain Management
Yes, since technology will automate routine activities, allowing more time for strategic
issues.
9. Discuss the four enablers of purchasing and supply chain excellence.
Answer:
Capable human resources
o A key to the success of any company is the quality of its employees
o The need for interpersonal skills to manage relationships
o The ability to interpret data and analytics
o The ability to understand cost management
o Technological savvy
o Sound human resources strategy
Proper organizational design
o The process of assessing and selecting the structure and formal system of
communication, division of labor, coordination, control, authority, and
responsibility required to achieve organizational goals
o The proper use of teams
Real-time collaborative technology capabilities
o Cloud-based information technology
o Mobile devices
o Planning and execution software
o AI driven data and analytics
Right measures and measurement system
o Knowing what to measure
o A process in place to measure
o Accessibility to the right data
o Support for fact-based decision making and implementation
o The ability to communicate requirements to other supply chain members
o The ability to improve supplier performance
o The willingness to recognize outstanding performance
10. Briefly discuss each of the seven periods in the evolution of purchasing and supply management.
What do you forecast for the future?
Answer:
The Early Years (1850 – 1900)
o Manufacturing-based
o Purchasing managers functioned as the ―materials man who selects, purchases,
receives, and delivers all articles required‖.
o The Railroad industry was an early adopter of purchasing activities.
Growth of Purchasing Fundamentals (1900 – 1939)
o Expansion of purchasing outside the railroad industry
o Development of basic purchasing procedures and ideas
o During World War I the role of purchasing and supply management was vital
for obtaining vital war materials.
o Focus on sourcing or raw materials, instead of buying finished or semi-finished
goods
© 2026 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a 4
publicly accessible website, in whole or in part.
