Companies tend to concentrate on the one or two things they do really well and then outsource all the other activities. That’s why managing your supplier relationships is so very important today. In this video, learn specific methods to measure, manage, and develop an effective supplier base.
- Henry Ford owned everything. … He owned the mines that provided ore for his mills … that in turn provided steel for his factories. … He even owned the railroads … to move his iron ore and steel. … He sold the cars himself … and owned the entire distribution network to do that. … You don't see too many companies like that anymore. … Unlike Henry Ford, today's companies tend to do … one or two things they are really good at … and then hire someone else to do the rest. … That's why managing your suppliers … is more important today than it has ever been. … Here's some things I want you to keep in mind … about managing your suppliers. … Design of a good supplier management system … is very important, and typical performance metrics … will center on such things as cost, quality, and delivery. … One key to an effective measurement system … is to have a standard for comparison, … a benchmark for performance. … You are not comparing companies to each other. … You are measuring each company …
- Explain the purchasing process.
- Define purchase order.
- Describe the intent of a purchasing policy.
- Distinguish types of purchasing structures.
- List the steps of selecting a supplier.
- Identify enablers for success in worldwide sourcing.
- Perform price and cost analysis.
- Measure supply management performance.