Purchase

Author: Gan Huaming
Publisher:
Publish Date: 2003-08-01
Features: "Core Courses for MBA," based on renowned and widely used textbooks in various fields of Western and European business management, encompassing common and applicable knowledge in business management. Systematically studying these materials will provide a comprehensive understanding of core MBA courses. Procurement is a crucial function for businesses, yet it is often overlooked. Whether a company's core competencies lie in services, sales, or production, and whether it is for-profit or non-profit, understanding and managing costs and supply sources are fundamental to business growth and gaining competitive advantages. A company that can strategically leverage procurement tools is equivalent to acquiring a competitive edge, enabling it to quickly enhance product value and establish market competitiveness, as well as to expand into new markets faster and more successfully. Procurement and supply reflect a company's strategic capabilities in many aspects. In the past, many people considered procurement and supply to be isolated functions, but now they are viewed as a series of value-added processes directly related to the market, highlighting a company's market innovation and value delivery capabilities. The standard statement of the overall objective of the procurement function is: the goods acquired must meet quality and quantity requirements and be delivered to the correct location at the right time, sourced from appropriate suppliers (i.e., reliable suppliers who will fulfill their commitments promptly). Many companies are still striving to become world-class manufacturing enterprises, but those that have succeeded are now shifting their focus to building a world-class supplier network.