Procurement and Supply Chain Management

Front Cover
Half Title Page
Title Page
Copyright Page
Dedication Page
Contents
Preface
Acknowledgements
Publisher's acknowledgements
Plan of the book
Part 1 Introduction and strategy
	1 The scope and influence of procurement
		Learning outcomes
		Key ideas
		Introduction
		1.1 How to define procurement
		1.2 How to define supply chain management (SCM)
		1.3 Strategic roles of procurement
		1.4 Procurement as organisational buying
		1.5 The strategic scope of procurement
		1.6 Integrated supply chain management
		1.7 Procurement and change
		1.8 World-class procurement
		1.9 The status of procurement and supply management (PSM)
		1.10 Reflections on procurement positioning in business
		1.11 The scope of procurement in the public sector
		Discussion questions
		References
	2 Strategic procurement
		Learning outcomes
		Key ideas
		Introduction
		2.1 Strategic fit between the supply chain and competitive strategies
		2.2 What is strategy?
		2.3 Strategy development
		2.4 Levels of organisational strategy
		2.5 Corporate strategy
		2.6 Growth strategies
		2.7 Business-level strategy
		2.8 Strategic management
		2.9 Strategic analysis
		2.10 Important environmental factors
		2.11 Internal scrutiny
		2.12 Strategy formulation
		2.13 The evaluation of alternative strategies
		2.14 Strategy implementation
		2.15 Post-implementation evaluation, control and review
		2.16 Strategic procurement and supply chain process models
		Discussion questions
		References
	3 Logistics and supply chains
		Learning outcomes
		Key ideas
		Introduction
		3.1 What is logistics?
		3.2 Materials, logistics and distribution management
		3.3 Reverse logistics
		3.4 Supply chains
		3.5 Supply chain management (SCM)
		3.6 Supply chain vulnerability
		3.7 Value chains
		3.8 Value chain analysis
		3.9 Supply chain optimisation
		3.10 Procurement positioning within supply chain management
		Discussion questions
		References
	4 Organisational and supply chain structures
		Learning outcomes
		Key ideas
		Introduction
		4.1 Organisational structures
		4.2 New type organisations
		4.3 The organisation of the future
		4.4 Factors in configurations
		4.5 Lean organisations
		4.6 Agile organisations and production
		4.7 Supply and value chain mapping
		4.8 Types of change
		4.9 Centralised procurement
		4.10 Decentralised procurement
		4.11 Cross-functional procurement
		Discussion questions
		References
	5 Procurement policies, procedures and support tools
		Learning outcomes
		Key ideas
		Introduction
		5.1 Exemplar Procurement Policy – The Crossrail Project
		5.2 Procurement procedures
		5.3 Procurement process failures
		5.4 E-commerce, e-business, e-SCM and e-procurement
		5.5 The evolution of e-procurement models
		5.6 Electronic data interchange (EDI)
		5.7 E-hubs, exchanges, portals and marketplaces
		5.8 E-catalogues
		5.9 E-auctions
		5.10 Reverse auctions
		5.11 E-payment
		5.12 Low-value purchases
		5.13 Procurement manuals
		5.14 Procurement playbook
		Discussion questions
		References
Part 2 Strategy, tactics and operations 1: Procurement factors
	6 Supplier relationships and partnering
		Learning outcomes
		Key ideas
		Introduction
		6.1 Relationship procurement and procurement relationships
		6.2 The application of power in relationship management
		6.3 Supplier relationship management - strategic focus
		6.4 The contrast between transactional and relationship procurement, taking account of contractual requirements
		6.5 Collaborative business relationships
		6.6 SRM model
		6.7 Models of supplier relationships
		6.8 Supplier relationship management - a critique
		6.9 The termination of relationships
		6.10 Relationship breakdown on an IT project
		6.11 Further aspects of relationships
		Discussion questions
		References
	7 Legal and contractual management
		Learning outcomes
		Key ideas
		7.1 The procurement specialist and Contract Law
		7.2 Formation of a contract
		7.3 Acceptance
		7.4 Contracts for the Sale of Goods
		7.5 Contract for the Supply of Services
		7.6 Consideration
		7.7 Capacity to Contract
		7.8 Drafting the detail of contract clauses
		7.9 Misrepresentation
		7.10 The right to terminate a contract
		7.11 HOT TOPICS
		7.12 Standard Forms of Contract
		Discussion questions
		References
	8 Quality management, service and product innovation
		Learning outcomes
		Key ideas
		8.1 What is quality?
		8.2 Quality systems
		8.3 Total quality management
		8.4 Specifications
		8.5 Alternatives to individual specifications
		8.6 Standardisation
		8.7 Variety reduction
		8.8 Quality assurance and quality control
		8.9 Tests for quality control and reliability
		8.10 The cost of quality
		8.11 Value management, engineering and analysis
		Discussion questions
		References
	9 Matching supply with demand
		Learning outcomes
		Key ideas
		9.1 Inventory, logistics and supply chain management
		9.2 Reasons for keeping inventory
		9.3 Inventory classifications
		9.4 Scope and aims of inventory management
		9.5 Some tools of inventory management
		9.6 The economics of inventory
		9.7 Inventory performance measures
		9.8 Safety stocks and service levels
		9.9 The right quantity
		9.10 The nature of demand
		9.11 Forecasting demand
		9.12 'Push' and 'pull' inventories
		9.13 Independent demand
		9.14 Dependent demand
		9.15 Just-in-time (JIT)
		9.16 Materials and requirements planning (MRP)
		9.17 Manufacturing resource planning (MRP II)
		9.18 Enterprise resource planning (ERP)
		9.19 Supply chain management systems
		9.20 Distribution requirements planning (DRP)
		9.21 Vendor-managed inventory (VMI)
		9.22 Procurement and inventory
		Discussion questions
		References
	10 Sourcing and the management of suppliers
		Learning outcomes
		Key ideas
		10.1 What is sourcing?
		10.2 The strategic sourcing process
		10.3 Sourcing information
		10.4 Analysis of market conditions
		10.5 Directives
		10.6 E-sourcing
		10.7 Supplier evaluation
		10.8 Supplier approval
		10.9 Evaluating supplier performance
		10.10 Policy issues in sourcing
		10.11 The supplier base
		10.12 Outsourcing
		10.13 Make vs buy
		10.14 Sub-contracting
		10.15 Partnering
		10.16 Intellectual property rights
		10.17 Procurement management of IPRs
		10.18 Procurement support for in-house marketing
		10.19 Intra-company trading
		10.20 Procurement consortia
		10.21 Sustainability
		10.22 Sourcing decisions
		10.23 Factors in deciding where to buy
		Discussion questions
		References
	11 Purchase price management and long-term cost-in-use
		Learning outcomes
		Key ideas
		11.1 What is price?
		11.2 Strategic pricing - an introduction
		11.3 The buyer's role in managing purchase prices
		11.4 Supplier pricing decisions
		11.5 The supplier's choice of pricing strategy
		11.6 Tender pricing
		11.7 Price and cost analysis
		11.8 Competition legislation
		11.9 Collusive tendering
		11.10 Price variation formulae
		Discussion questions
		References
Part 3 Public sector procurement and sustainable procurement
	12 Public sector procurement
		Learning outcomes
		Key ideas
		Introduction
		12.1 Understanding the context of public procurement
		12.2 Procurement - an integral element of the commissioning cycle
		12.3 The complexity and nature of public sector expenditure
		12.4 Public Accounts Committee
		12.5 Procurement of goods and services
		12.6 EU financial thresholds
		12.7 OJEU minimum timescale
		12.8 Public procurement procedures
		12.9 Pre-qualification to supply a public sector organisation
		12.10 Tender evaluation
		12.11 The Legal context of challenges to public sector contract award
		12.12 Public sector risk
		12.13 Public sector procurement fraud
		12.14 Aviation Department Fraud - United States
		12.15 Mighty River Power Ltd Fraud - New Zealand
		12.16 The Fat Leonard Case USA
		12.17 Public sector projects - procurement learning
		12.18 Conclusion
		Discussion questions
		References
	13 Sustainability and socially responsible procurement
		Learning outcomes
		Key ideas
		13.1 What is sustainability procurement?
		13.2 Sustainable Procurement Strategy
		13.3 Sustainability as an objective in corporate strategy
		13.4 Sustainable Procurement Policy
		13.5 Sustainable Procurement Guide
		13.6 Supply chain compliance
		13.7 What is Social Value?
		13.8 ISO 14001:2015 Environmental management systems
		13.9 BS ISO 20400:2017 Sustainable Procurement
		13.10 ISO 14031:2015 Environmental Management - Environmental performance evaluation: guidelines
		13.11 Environmental impact of computers
		13.12 Addressing environmental issues during the procurement process
		13.13 Pre-qualification questionnaire - sustainability implications
		13.14 New models for sustainable procurement
		13.15 Environmental technical specifications
		13.16 Sustainability achievements in public procurement
		13.17 European Directive on clean energy-efficient vehicles
		13.18 Contractual Implications of environmental and related considerations
		13.19 Sustainability challenges for procurement
		13.20 Multinational enterprises
		13.21 The Kyoto protocol
		13.22 Conclusion
		Discussion questions
		References
Part 4 Strategy, tactics and operations 2: Operation and strategic performance
	14 Project procurement and risk management
		Learning outcomes
		Key ideas
		Introduction
		14.1 The project lifecycle
		14.2 The project procurement strategy
		14.3 Role of procurement
		14.4 PRINCE 2®
		14.5 Project management issues
		14.6 Project risk management
		14.7 Corporate benefits of world-class project procurement
		14.8 Project risk register
		14.9 Project audit
		14.10 Procurement management
		Discussion questions
		References
	15 Global sourcing
		Learning outcomes
		Key ideas
		15.1 Terminology
		15.2 Motives for buying offshore
		15.3 Sources of information for offshore suppliers
		15.4 Overcoming challenges when sourcing offshore
		15.5 Incoterms®
		15.6 Customs and Excise
		15.7 Transport systems, costs and considerations
		15.8 Freight agents
		15.9 Methods of payment
		15.10 Countertrade
		15.11 The true cost of offshore buying
		15.12 Global sourcing - Boeing case study
		15.13 Buying capital equipment offshore
		15.14 Factors in successful offshore procurement
		Discussion questions
		References
Part 5 Strategy, tactics and operations 3: Negotiation skills, contract management, category and world class procurement
	16 Negotiation skills, practice and business benefits
		Learning outcomes
		Key ideas
		Introduction
		16.1 Approaches to negotiation
		16.2 The content of negotiation
		16.3 The negotiator's authority
		16.4 The negotiation process
		16.5 Pre-negotiation
		16.6 The actual negotiation
		16.7 Post-negotiation actions
		16.8 What is effective negotiation?
		16.9 Negotiation and relationships
		16.10 Negotiation ethics
		Discussion questions
		References
	17 Contract management
		Learning outcomes
		Key ideas
		Introduction
		17.1 The pre-contract award activities impact on contract management
		17.2 The contract manager's role, skills and knowledge
		17.3 Contract management good practice (including VFM)
		17.4 Contract management plans
		17.5 Key performance indicators (KPIs) for contract management
		17.6 Lapses in contract management
		17.7 Social services contract monitoring audit
		17.8 Contract provisions
		17.9 Contract clauses and what they mean
		Discussion questions
		References
	18 Category and commodity procurement
		Learning outcomes
		Key ideas
		Introduction
		18.1 Defining categories
		18.2 Illustrations of category management issues
		18.3 The talent challenge
		18.4 Category management - corporate travel
		18.5 Category management - ICT
		18.6 Capital investment procurement
		18.7 Production materials
		18.8 Raw materials
		18.9 Futures dealing
		18.10 Methods of commodity dealing
		18.11 Procurement of non-domestic gas and electricity
		18.12 Energy regulation
		18.13 Energy supply chains in the UK
		18.14 Markets
		18.15 Pricing
		18.16 Procuring energy contracts
		18.17 Energy consultants and management
		18.18 Component parts and assemblies
		18.19 Consumables and MRO items
		18.20 Construction supplies and bills of quantities
		18.21 Procurement of services
		Discussion questions
		References
	19 World-class procurement to enhance business performance
		Learning outcomes
		Key ideas
		19.1 Innovation and supplier continuous improvement
		19.2 Innovation
		19.3 Environmentally sensitive design
		19.4 Procurement involvement in product development
		19.5 Supplier development
		19.6 Procurement research
		19.7 Procurement performance evaluation
		19.8 Accounting approaches
		19.9 The procurement management audit approach
		19.10 Benchmarking and ratios
		19.11 Integrated benchmarking
		19.12 Procurement ethics
		19.13 Ethical issues relating to suppliers
		19.14 Ethical codes of conduct
		19.15 Procurement and fraud
		19.16 Cyber security
		Discussion questions
		References
Appendix 1: Code of ethics-Your commitment to the profession
Appendix 2: CIPS Code of Conduct (Adopted September 2013)
Definitions, acronyms and foreign words and phrases
Index of names and organisations and some publications mentioned in the text
Subject Index
Back Cover