The procurement of materials for a supply chain involves contracting with suppliers (Tier 1), who in turn quite often contract with other suppliers (Tier 2) to create the materials that they sell to the company for the company to create its product for sale to the consumer. To achieve efficiency in the procurement area of its supply chain operation, a company needs to make decisions based on cost alone and other elements of the supplier relationship. Decisions relating to these elements require the procurement team to collaborate with other business functions such as finance and information technology (IT). Sourcing is a complex discipline that requires the procurement team to make decisions relating to the following elements: aligned strategies, coordinated processes, optimized organization, enabled technologies, and measured results.

Complete the following:

  • Introduce the role of procurement in a supply chain operation, including the collaboration necessary to make decisions relating to the following elements:
    • Aligned strategies
    • Coordinated processes
    • Optimized organization
    • Enabled technologies
    • Measured results
  • Appraise the value of procurement decisions in these areas to achieving efficiency in a supply chain operation, highlighting the collaboration between business functions in making the decisions.
  • Discuss how purchasing decisions, supported by cross-functional collaboration, helps the supply chain operate efficiently.
  • Analyze the supply chain scenario and devise a procurement decision strategy recommendation to enable the supply chain to achieve its efficiency goal, including how the business functions collaborate to enable procurement decisions.
  • Summarize key points from the analysis.


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