Relevence pocesses, strucure , main processes , organisational Structure , Main issues in Purchasing and Supply

Operating the Purchasing & Supply Function
within the Organisation

How purchasing & supply fits within
the rest of the organisation
Purchasing & supply processes
Structure and positioning
Organisation
Resourcing
ITC M1:U6:6.1-1

, Processes: are the links amongst functions
& activities which ultimately
lead to the outside
customer
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:U6:6.2-1

, Linking processes and functions Figure 6.2-3

Processes
Functions
Process A Process B Process C


Activity C1(a)
Function 1 Activity A1 Activity B1
Activity C1(b)


Activity B2(a)
Function 2 Activity A2 Activity C2
Activity B2(b)


Function 3 Activity A3 Activity B3 Activity C3


Activity C4(a)
Activity A4(a)
Function 4 Activity B4 Activity C4(b)
Activity A4(b)
Activity C4(c)


Activity B5(a)
Function 5 Activity A5 Activity C5
Activity B5(b)


Function 6 Activity A6 Activity B6 Activity C6

ITC M1:U6:6.2-1a

, The purchasing & supply process..
...is a group of related activities


it consists of:
• Processes
• Sub-processes
• Intermediary outputs


it is about:
Producing optimum
value with a minimum
use of time, effort
and resources
ITC M1:U6:6.2-2