Procurement principles and management in the digital age

Front Cover
Half Title
Title Page
Copyright Page
Contents
Preface
Acknowledgements
Part 1 PROCUREMENT OBJECTIVES AND DEVELOPMENT
	1 Procurement scope and development
		Introduction
		Objectives of this chapter
		The scope of purchasing
		Sustainable procurement
		The procurement cycle
		Procurement transformations
		The changing role of procurement and supply
		Proactive procurement
		The changing nature of relationships
		Procurement positioning
		Supplier preferencing
		Total acquisition cost and total cost of ownership
		Procurement development
		Best practice in strategic supply management
		Summary
		Self-assessment tasks
		References and further reading
	2 Strategic procurement and supply chain management
		Introduction
		Objectives of this chapter
		Strategic procurement
		The concept of strategy
		The mission statement
		Levels of strategy
		Category management (CM)
		Skills for category management
		Strategic management
		Strategic analysis
		Strategic development
		Strategy implementation
		Objectives for purchasing/procurement
		Selecting a strategy
		Effective supply market strategies
		Integrated approaches
		The supply chain
		Supply chain resilience
		The supply chain concept in action
		Improving the efficiency of the supply chain
		Hierarchy of objectives
		The future of procurement and supply management
		Summary
		Self-assessment tasks
		References and further reading
	3 Public sector procurement
		Introduction
		Objectives of this chapter
		Part A
		Historic background
		Public sector sustainability and social value
		Third sector – not-for-profit procurement
		UK National Health Service (NHS)
		UK Metropolitan Police procurement
		The Ministry of Defence (MoD)
		Part B
		The EU and procurement
		EU competition procurement cycle for goods and services
		EU procurement directives
		Public procurement after Brexit
		Summary
		Self-assessment tasks
		References and further reading
Part 2 KEY PROCUREMENT ISSUES
	4 Outsourcing
		Introduction
		Objectives of this chapter
		Outsourcing
		Outsourcing methodologies
		Outsourcing – pitfalls
		How to avoid pitfalls
		Outsourcing update
		Summary
		Self-assessment tasks
		References and further reading
	5 Quality management
		Introduction
		Objectives of this chapter
		What is quality?
		Continuous improvement
		Statistical process control
		Taguchi methods for the 'off-line' control of quality
		Failure mode and effect analysis
		The House of Quality
		Specification
		Producing a specification
		Sustainable specifications
		Early supplier involvement
		Standardisation
		Correction of defects
		Quality circles
		Value analysis/value engineering
		Make-or-buy decisions
		Six Sigma
		Quality update: Quality 4.0
		Summary
		Self-assessment tasks
		References and further reading
	6 Inventory management
		Introduction
		Objectives of this chapter
		Provisioning systems
		Order quantities and stock control
		Materials requirements planning (MRP)
		Manufacturing resource planning (MRP2)
		Enterprise resource planning (ERP)
		Just-in-time (JIT)
		Lean and agile supply
		Vendor-managed inventory (VMI)
		Covid-19: just-in-case inventory?
		Summary
		Self-assessment tasks
		References and further reading
	7 Lead time and time compression
		Introduction
		Objectives of this chapter
		Time and competitive advantage
		On-time delivery
		Lead-time improvement
		Effect of Covid-19 pandemic on supply chains
		Supply chain resilience
		Summary
		Self-assessment tasks
		References and further reading
	8 Sourcing strategies and relationships
		Introduction
		Objectives of this chapter
		The nature of the sourcing decision
		Attributes of a good supplier
		Sourcing decisions
		Sources of information on potential suppliers
		Supplier evaluation
		Carter's 10 Cs model
		Impact of supply chain disruption – Covid-19 pandemic
		Award criteria
		Sustainable sourcing
		The right relationship
		Other aspects of sourcing
		Collaboration and partnering
		The Bensaou model of relationship management
		Tiering of suppliers
		Summary
		Self-assessment tasks
		References and further reading
	9 Price and total cost of ownership (TCO)
		Introduction
		Objectives of this chapter
		Factors affecting pricing decisions
		How buyers obtain prices
		Auctions
		Discounts
		Price analysis and cost analysis
		Pricing major contracts
		Investment appraisal
		Learning curves and experience curves
		Conclusion
		Summary
		Self-assessment tasks
		References and further reading
	10 Negotiations
		Introduction
		Objectives of this chapter
		Negotiation
		Negotiation skills
		Preparation
		The introductory stage
		The discussion stage
		The agreement stage
		The post-negotiation stage
		SPEED negotiation process
		Competition and cooperation in negotiation
		Distributive and integrative approaches
		Body language
		Negotiation strategies
		Best practice negotiation
		Summaries of other examples of best practice negotiation approaches
		Virtual negotiations
		Summary
		Self-assessment tasks
		References and further reading
Part 3 APPLICATIONS
	11 Project procurement
		Introduction
		Objectives of this chapter
		Introduction to projects
		Project planning
		Project control
		The 'should cost model' (SCM)
		Subcontracting
		Network analysis
		Risk
		Disaster recovery
		Blockchain in project management
		Predictive analytics
		Summary
		Self-assessment tasks
		References and further reading
	12 Procurement of commodities
		Introduction
		Objectives of this chapter
		The principal commodities
		Why do commodity prices fluctuate?
		Price stabilisation schemes
		The role of the speculator
		Hedging with futures contracts
		The difference between futures and forwards
		Some buying techniques
		Indifference prices
		Traded options
		Rare earth metals
		Application of Blockchain for sustainability and traceability
		Glossary
		Summary
		Self-assessment tasks
		References and further reading
	13 International sourcing, global sourcing and onshoring
		Introduction
		Objectives of this chapter
		Global sourcing and international procurement
		Why source internationally?
		Increases in offshoring
		Issues with international sourcing
		Incoterms (2020)
		How to change
		Countertrade
		Latest developments – onshoring and nearshoring
		Summary
		Self-assessment tasks
		References and further reading
	14 Capital procurement
		Introduction
		Objectives of this chapter
		The acquisition of capital equipment
		What are capital items?
		Leasing and hiring of capital equipment
		Capital requisitions
		The project approach
		Lifetime costs
		Investment appraisal
		Investment appraisal criteria
		Conclusion
		Summary
		Self-assessment tasks
		References and further reading
	15 Retail procurement
		Introduction
		Objectives of this chapter
		Retailing
		Retailing research
		Supply chains in retailing
		Indirect procurement
		Application of technology
		Brands
		Developments in the retail sector
		Conclusion
		Summary
		Self-assessment tasks
		References and further reading
	16 Services procurement
		Introduction
		Objectives of this chapter
		Special factors
		Service quality
		Managing perceptions and satisfaction
		Procurement of marketing services
		Procuring public relations (PR)
		How to buy legal services
		Procurement of consultancy services
		Summary
		Self-assessment tasks
		References and further reading
	17 Corporate social responsibility and sustainability
		Introduction
		Objectives of this chapter
		Corporate social responsibility (CSR)
		Sustainability
		Business drivers for socially responsible procurement
		Social Accountability 8000 (SA8000)
		Three pillars of CSR
		Diversity
		Social value
		Summary
		Self-assessment tasks
		References and further reading
Part 4 INDUSTRY 4.0: E-PROCUREMENT SYSTEMS AND CONTRACT MANAGEMENT
	18 Industry 4.0: e-procurement, digitalisation and analytics
		Introduction
		Objectives of this chapter
		What is e-procurement?
		The benefits of e-procurement
		Complex procurement
		Reverse auctions
		Measuring the benefits of e-procurement
		Industry 4.0
		Analytics
		Conclusion
		Summary
		Self-assessment tasks
		References and further reading
	19 Contract law
		Introduction
		Objectives of this chapter
		Contract law
		International contract law
		Summary
		Self-assessment tasks
		References and further reading
	20 Contract management
		Introduction
		Objectives of this chapter
		Contract management
		Critical success factors
		The Contract Management Cycle
		Trust
		360-degree relationship assessment, measurement and feedback
		Performance management
		A balanced performance measurement system
		Benefits of contract management
		Examples of performance metrics
		Service level agreements (SLAs)
		Procurement as the intelligent customer
		Benchmarking in procurement and supply
		Summary
		Self-assessment tasks
		References and further reading
Index
Publisher's acknowledgements
Back Cover