SCM 406 Exam 1
To identify, select, and develop suppliers
To measure supplier performance
Major Strategic Procurement To foster collaborative buyer-supplier partnerships
Decisions To supply globally and/or locally
To promote sustainability among global suppliers
To be socially responsible in the supply chain
Economic Impact
1. Challenges (BSR, Supplier Evaluation & Selection)
SCM 406 topics 2. Tools (JIT, Six Sigma, ISO 9000)
Environmental & Social Impact
3. Opportunities (global sourcing, environmental sustainability, CSR)
1. Consumes a large portion of company resources
Why is procurement a critical
2. Reinforces and/or weakens the company's brand
business area?
3. Directly impacts profitability of the enterprise
, SCM 406 Exam 1
Procurement holds the company's wallet
*Procurement Costs/% of Revenue on Procurement:
-IBM: $42.4Bn/52%
How much do we spend in
-ChevronTexaco: ~$17Bn/~16%
procurement?
-Dell: $26Bn/82%
-Delta Airlines: $7Bn/50%
-etc
2019: excessive temporary workers in Foxconn
2017: Illegal overtime by school-age interns in Foxconn
2015: Student workers in Dell suppliers' facilities
Can procurement endanger a firm's
2013: 1,100 people died in the collapse of Bangladesh factory supplyin
brand?
Apple (labor and safety rights)
2010-12: the scandal involving high suicide rates at Foxconn's factory, a
supplier of Apple (working conditions, safety wages)
supply chain disruptions: -7.2%
Stock market reaction to supply chain
excess inventory: -6.9%
glitches
product introduction delays: -12.8%
, SCM 406 Exam 1
Corporate Strategy >
Purchasing Strategy>
How does purchasing work?
Supplier Relationship Mgmt, Supplier Development Programs, Global
Sourcing, Risk Mgmt, Sustainable Purchasing
1st step to making procurement knowing the corporate strategy
decisions ex. Walmart- low cost; Amazon- on time delivery and flexibility
Why might a supply chain -visibility to the entire supply chain
professional be the best candidate -synchronizes efforts cross-functionally
for CEO?
influencing skills
developing leaders & teams
What are the main characteristics of a
customer-centrism
successful supply chain professional?
results orientation
emotional fortitude
Balance Strategy and Tactics- SC strategy and vision development
How can we expand the Supply
Balance Cost and Revenue- innovation and revenue
Chain brand?
Emphasize Inspirational Leadership- not just technical
, SCM 406 Exam 1
What are the major challenges that View SC as tactical, cost-focused, technical
supply chain professionals face in Not traditional path to CEO
their positions to be promoted to the
top mgmt/CEOS?
Purchasing leader characteristics Influential, Capable, Innovative
one of the preeminent worldwide professional associations of SCM
Council of SCM Professional professionals
(CSCMP) Mission: to lead the evolving SCM profession by developing, advanci
and disseminating SC knowledge and research
largest supply management association in the world as well as one of
most respected
Institute for Supply Management
Mission: to lead the supply management profession through its standa
(ISM)
of excellence in research, promotional activities, and education
> 40K professionals
To identify, select, and develop suppliers
To measure supplier performance
Major Strategic Procurement To foster collaborative buyer-supplier partnerships
Decisions To supply globally and/or locally
To promote sustainability among global suppliers
To be socially responsible in the supply chain
Economic Impact
1. Challenges (BSR, Supplier Evaluation & Selection)
SCM 406 topics 2. Tools (JIT, Six Sigma, ISO 9000)
Environmental & Social Impact
3. Opportunities (global sourcing, environmental sustainability, CSR)
1. Consumes a large portion of company resources
Why is procurement a critical
2. Reinforces and/or weakens the company's brand
business area?
3. Directly impacts profitability of the enterprise
, SCM 406 Exam 1
Procurement holds the company's wallet
*Procurement Costs/% of Revenue on Procurement:
-IBM: $42.4Bn/52%
How much do we spend in
-ChevronTexaco: ~$17Bn/~16%
procurement?
-Dell: $26Bn/82%
-Delta Airlines: $7Bn/50%
-etc
2019: excessive temporary workers in Foxconn
2017: Illegal overtime by school-age interns in Foxconn
2015: Student workers in Dell suppliers' facilities
Can procurement endanger a firm's
2013: 1,100 people died in the collapse of Bangladesh factory supplyin
brand?
Apple (labor and safety rights)
2010-12: the scandal involving high suicide rates at Foxconn's factory, a
supplier of Apple (working conditions, safety wages)
supply chain disruptions: -7.2%
Stock market reaction to supply chain
excess inventory: -6.9%
glitches
product introduction delays: -12.8%
, SCM 406 Exam 1
Corporate Strategy >
Purchasing Strategy>
How does purchasing work?
Supplier Relationship Mgmt, Supplier Development Programs, Global
Sourcing, Risk Mgmt, Sustainable Purchasing
1st step to making procurement knowing the corporate strategy
decisions ex. Walmart- low cost; Amazon- on time delivery and flexibility
Why might a supply chain -visibility to the entire supply chain
professional be the best candidate -synchronizes efforts cross-functionally
for CEO?
influencing skills
developing leaders & teams
What are the main characteristics of a
customer-centrism
successful supply chain professional?
results orientation
emotional fortitude
Balance Strategy and Tactics- SC strategy and vision development
How can we expand the Supply
Balance Cost and Revenue- innovation and revenue
Chain brand?
Emphasize Inspirational Leadership- not just technical
, SCM 406 Exam 1
What are the major challenges that View SC as tactical, cost-focused, technical
supply chain professionals face in Not traditional path to CEO
their positions to be promoted to the
top mgmt/CEOS?
Purchasing leader characteristics Influential, Capable, Innovative
one of the preeminent worldwide professional associations of SCM
Council of SCM Professional professionals
(CSCMP) Mission: to lead the evolving SCM profession by developing, advanci
and disseminating SC knowledge and research
largest supply management association in the world as well as one of
most respected
Institute for Supply Management
Mission: to lead the supply management profession through its standa
(ISM)
of excellence in research, promotional activities, and education
> 40K professionals
