MIM 524Global Sourcing

Class one

Introduction

Welcome to Global Sourcing amp Supply ndash MIM 524

Agenda for the classWelcome to Global SourcingClass LogisticsExpectationsReview of SyllabusCareers in SCMSCM amp the FirmTeam Formation amp Case

ArgumentsZin ObliskCommodity Assignment Guava Puree

Typical Class FlowhellipSubject to change

Typically arrive by 500 to meet with students prior to class if necessary Available to meet other times by appointment

Start at 530 ndashStart with initial lecturediscussions (one small ndash 10 min break)

Approx 700 ndash dinner break (25-30 min) I will be available to answer questions etc Please be sure to clean up any food or drinks in room Dinner Break time might change depending on guest speaker

schedulesThird hour will be either teamgroup discussion guest

speakers or follow on lectureFourth hour will be Current events discussion and review of

next sessions materials plus one small break (10 Min)Note Current Events discussion will go toward class participation scores as well as

other activities including peer reviews

Class AttendanceParticipationAttendance is critical

My lecture will NOT be a repeat of the reading If you are unable to attend please email me and make

arrangements for a class mate to get you hand outs etc Sign In sheets will be used for each class

You will be responsible for all materials covered in classOpen classroom discussion is key to solidifying the concepts

and checking for understandingClass Participation Graded on AttendanceClass Participation amp Discussion Current Events Peer EvaluationComprehensiveness

GradingCase Submittal = 20 (Team)Case Presentation = 10 (Team)IKEA Written Abstract = 5 (Individual)Starbucks Written Abstract = 5 (Individual)Commodity Study = 25 (Team)Final ExamPresentation = 25 (Team)Class Participation (current events class discussion

and peer evaluations) = 10 (Individual)Please note you will form a team of 4-5 members for

the case study commodity study and the final exampresentation Grade will be applied across all members Individual grades for IKEAStarbucks Abstracts and Class

Participation Only

SubmittalsDue Dates Papers Studies Presentations should be submitted BOTH

Via Email ndash DawnMSUmooreyahoocom Hard Copy at the beginning of class

Late submittals will result in a reduction in grade Important Due Dates

IKEA Abstracts ndash June 28th

Case Submittals and Presentations ndash July 12th

Starbucks Abstract ndash July 26th Commodity Studies ndash Aug 2nd Final Presentations ndash Aug 9th

Peer Reviews will be completed during class and go toward class participation grade

My Contact InformationEmail DawnMSUmooreyahoocom - Preferred

method of contact Email me with a way to contact you and I will respond as

soon as possible Quick clarification questions via email are fine as well

Phone 503-712-8857 for immediate issues only during the weekday (more than likely need to leave a message)

Evening and weekend contact number ndash 503-267-7663

I will be available prior to class at the dinner break and after class if needed Able to schedule other meeting times with advanced notice

Additional ItemsSyllabus OverviewText BookRequired ReadingCommodity Study GuidelinesSome Commodity Ideas

Please return from Dinner break tonight with your teams formedI will have a sign up sheet at the front

of class

Questions

Team Exercise

Zin Obelisk

Careers In Source and Supply Chain ManagementTransactional SpecialistsBuyerCommodity SpecialistManagerMaterials SpecialistManagerMaterials EngineerSupplier Quality Engineer (SQE)Supply Chain AnalystMaterials PlanningMFG Program Manager (MPM)

Importance of Supply Management to the Firm

Continuity of SupplyAs of Product Value Impact on ProfitabilityCompetitive Advantage

Importance of purchasing to business

60-85 60-80 50-70 60-80

25-50

512

18

3 12

50

Admin

Services

Capex

Spares

Trade-items

Retailers Computers Consumer electronics

Automotive Pharma Service

industry

Typicalstructure

10-40 Production parts

Types of Purchases

Production MaterialsRaw MaterialsParts and Components (Sub-

Assemby)Capital Equipment

MachineryVehicles

Capital ProjectsConstruction

Types of PurchasesMRO Supplies

Operating SuppliesSpare Parts

Services Repair ServicesBuildings and GroundsProfessional Services amp

ConsultingTravelMarketing amp Advertisement

Basic Purchasing Objectives

Maintain Continuity of SupplyLeast Total Cost of OwnershipDevelop Purchasing as Strategic AssetCreate Competitive Advantage

Basic Purchasing Activities

SourcingFinding Potential SuppliersQualifying SuppliersSelecting the Supplier and

the Contract Type Single PurchasesMulti -year Agreements

Basic Purchasing Activities

Contract Administration Tracking Progress Expediting Progress Payments Other Life-of-Contract Activities

Developing and Managing Long-Term Supplier Relationships

Managing Change in the Supply System

Assigned ReadingMIT Sloan Management Review ndash Achieving Excellence in

Global Sourcing by Robert J Trent amp Robert M Monczka

Changes in the Business Environment

What Are Business System Changes

Changes in the Business Environment

Globalization of Trade Deregulation in many industries Product commonality across cultures and countries Formation of trade blocks (NAFTA EU) Improved transportation More sophisticated information and communications

technology

Regulation of Banks and squeeze of credit markets

Process Orientation Outsourcing Best-in-class Supplier Networks

Supply Chain Issues Co-ordination of Purchasing Requirements ndash

Pooling of Purchase and Standardization Across Departments Across Divisions Across Countries

Integration of Purchasing Inventory Management and Logistics (Design for Supply Chain)

Integration of Purchasing and Engineering with Production Planning (Design for Cost)

Supply Chain IssuesMake or Buy

OutsourcingOffshoring

Reciprocity Agreements CountertradeQuality Management and Lean

ManufacturingCycle Time Reduction

Environmental Issues ndash Sustainability amp Regulation

ROHS Halogen Free

Barbie Example1048766 An icon of international outsourcing

among other things1048766 Barbie has matured into a multi-billion-

dollar a year industry with sales and production on a global scale

1048766 Mattel Inc Barbiersquos parent company estimates that three Barbie dolls are sold every second of every day

1048766 Design is performed in California US1048766 Oil and plastic Pallet are made in Taiwan1048766 Her nylon hair is made in Japan1048766 Her body molds are made in the US1048766 She is assembled in Indonesia and

Malaysia1048766 She is clothed in China

Example - Boeing

Strategic Planning ndash Global Sourcing

Vision StatementStrategies

Long Term Action PlanCommitment of Organizational AssetsCreates Competitive Advantage

Performance Measures Metrics basedScore Cards

The initials TQRDCEB stand for

Technology Quality

Responsiveness Delivery Cost Environment Business

Strategy Development

Corporate StrategiesSupply StrategiesCommodity StudiesCommodity Strategies Individual Supplier Strategies

New strategic developments in purchasing

Leveraged purchasing and supply strategiesGlobal sourcingSupplier integration Early supplier involvement in new product development Reciprocity agreements and compensation agreementsEnvironmental issues and business integrity

1 Sellerrsquos market Buyerrsquos market

2 Increasing pressure on sales prices and margins leads to

Supply System Strategy

Key Activities Sourcing Continuity Least Total Cost

Three Flows of Supply Chain Management Information Materials Funds Manage in Both Directions

Supply System Strategy

Four Emerging TrendsOutsourcingTechnology UtilizationSustainabilityRisk Management

Guava Puree Case

In class

Risk Identification

Ties to Current Events

Sustainability and Risk Survival = Risk Management Risk Identification

Forecasting RiskSupplier Selection RiskSupplier Performance RiskLogistics Risk Inventory RiskOngoing Operations Risks (Business Continuity

Planning) Focus is on Both Immediate and Long Term Formal Evaluation and Mitigation Plans

Scotts Miracle Gro Case

Case Argument Assignments

CURRENT EVENTS

Next ClassCultural Issues in Supply MgtOutsourcingOffshoring IKEA Case In Class Discussion

Abstracts due at beginning of classScottrsquos Case ndash LectureTeam Break OutsCurrent Events ndash Bring your articlesGuest Speaker ndash Morgan Hartnell

Questions

• Slide 1
• Introduction
• Agenda for the class
• Typical Class Flowhellip Subject to change
• Class AttendanceParticipation
• Grading
• SubmittalsDue Dates
• My Contact Information
• Additional Items
• Questions
• Team Exercise
• Careers In Source and Supply Chain Management
• Importance of Supply Management to the Firm
• Importance of purchasing to business
• Types of Purchases
• Slide 16
• Basic Purchasing Objectives
• Basic Purchasing Activities
• Slide 19
• Assigned Reading
• Changes in the Business Environment
• Slide 22
• Supply Chain Issues
• Slide 24
• Barbie
• Example - Boeing
• Strategic Planning ndash Global Sourcing
• The initials TQRDCEB stand for
• Strategy Development
• New strategic developments in purchasing
• Supply System Strategy
• Slide 32
• Guava Puree Case
• Risk Identification
• Sustainability and Risk
• Scotts Miracle Gro Case
• Current Events
• Next Class
• Slide 39

Introduction

Welcome to Global Sourcing amp Supply ndash MIM 524

Agenda for the classWelcome to Global SourcingClass LogisticsExpectationsReview of SyllabusCareers in SCMSCM amp the FirmTeam Formation amp Case

ArgumentsZin ObliskCommodity Assignment Guava Puree

Typical Class FlowhellipSubject to change

Typically arrive by 500 to meet with students prior to class if necessary Available to meet other times by appointment

Start at 530 ndashStart with initial lecturediscussions (one small ndash 10 min break)

Approx 700 ndash dinner break (25-30 min) I will be available to answer questions etc Please be sure to clean up any food or drinks in room Dinner Break time might change depending on guest speaker

schedulesThird hour will be either teamgroup discussion guest

speakers or follow on lectureFourth hour will be Current events discussion and review of

next sessions materials plus one small break (10 Min)Note Current Events discussion will go toward class participation scores as well as

other activities including peer reviews

Class AttendanceParticipationAttendance is critical

My lecture will NOT be a repeat of the reading If you are unable to attend please email me and make

arrangements for a class mate to get you hand outs etc Sign In sheets will be used for each class

You will be responsible for all materials covered in classOpen classroom discussion is key to solidifying the concepts

and checking for understandingClass Participation Graded on AttendanceClass Participation amp Discussion Current Events Peer EvaluationComprehensiveness

GradingCase Submittal = 20 (Team)Case Presentation = 10 (Team)IKEA Written Abstract = 5 (Individual)Starbucks Written Abstract = 5 (Individual)Commodity Study = 25 (Team)Final ExamPresentation = 25 (Team)Class Participation (current events class discussion

and peer evaluations) = 10 (Individual)Please note you will form a team of 4-5 members for

the case study commodity study and the final exampresentation Grade will be applied across all members Individual grades for IKEAStarbucks Abstracts and Class

Participation Only

SubmittalsDue Dates Papers Studies Presentations should be submitted BOTH

Via Email ndash DawnMSUmooreyahoocom Hard Copy at the beginning of class

Late submittals will result in a reduction in grade Important Due Dates

IKEA Abstracts ndash June 28th

Case Submittals and Presentations ndash July 12th

Starbucks Abstract ndash July 26th Commodity Studies ndash Aug 2nd Final Presentations ndash Aug 9th

Peer Reviews will be completed during class and go toward class participation grade

My Contact InformationEmail DawnMSUmooreyahoocom - Preferred

method of contact Email me with a way to contact you and I will respond as

soon as possible Quick clarification questions via email are fine as well

Phone 503-712-8857 for immediate issues only during the weekday (more than likely need to leave a message)

Evening and weekend contact number ndash 503-267-7663

I will be available prior to class at the dinner break and after class if needed Able to schedule other meeting times with advanced notice

Additional ItemsSyllabus OverviewText BookRequired ReadingCommodity Study GuidelinesSome Commodity Ideas

Please return from Dinner break tonight with your teams formedI will have a sign up sheet at the front

of class

Questions

Team Exercise

Zin Obelisk

Careers In Source and Supply Chain ManagementTransactional SpecialistsBuyerCommodity SpecialistManagerMaterials SpecialistManagerMaterials EngineerSupplier Quality Engineer (SQE)Supply Chain AnalystMaterials PlanningMFG Program Manager (MPM)

Importance of Supply Management to the Firm

Continuity of SupplyAs of Product Value Impact on ProfitabilityCompetitive Advantage

Importance of purchasing to business

60-85 60-80 50-70 60-80

25-50

512

18

3 12

50

Admin

Services

Capex

Spares

Trade-items

Retailers Computers Consumer electronics

Automotive Pharma Service

industry

Typicalstructure

10-40 Production parts

Types of Purchases

Production MaterialsRaw MaterialsParts and Components (Sub-

Assemby)Capital Equipment

MachineryVehicles

Capital ProjectsConstruction

Types of PurchasesMRO Supplies

Operating SuppliesSpare Parts

Services Repair ServicesBuildings and GroundsProfessional Services amp

ConsultingTravelMarketing amp Advertisement

Basic Purchasing Objectives

Maintain Continuity of SupplyLeast Total Cost of OwnershipDevelop Purchasing as Strategic AssetCreate Competitive Advantage

Basic Purchasing Activities

SourcingFinding Potential SuppliersQualifying SuppliersSelecting the Supplier and

the Contract Type Single PurchasesMulti -year Agreements

Basic Purchasing Activities

Contract Administration Tracking Progress Expediting Progress Payments Other Life-of-Contract Activities

Developing and Managing Long-Term Supplier Relationships

Managing Change in the Supply System

Assigned ReadingMIT Sloan Management Review ndash Achieving Excellence in

Global Sourcing by Robert J Trent amp Robert M Monczka

Changes in the Business Environment

What Are Business System Changes

Changes in the Business Environment

Globalization of Trade Deregulation in many industries Product commonality across cultures and countries Formation of trade blocks (NAFTA EU) Improved transportation More sophisticated information and communications

technology

Regulation of Banks and squeeze of credit markets

Process Orientation Outsourcing Best-in-class Supplier Networks

Supply Chain Issues Co-ordination of Purchasing Requirements ndash

Pooling of Purchase and Standardization Across Departments Across Divisions Across Countries

Integration of Purchasing Inventory Management and Logistics (Design for Supply Chain)

Integration of Purchasing and Engineering with Production Planning (Design for Cost)

Supply Chain IssuesMake or Buy

OutsourcingOffshoring

Reciprocity Agreements CountertradeQuality Management and Lean

ManufacturingCycle Time Reduction

Environmental Issues ndash Sustainability amp Regulation

ROHS Halogen Free

Barbie Example1048766 An icon of international outsourcing

among other things1048766 Barbie has matured into a multi-billion-

dollar a year industry with sales and production on a global scale

1048766 Mattel Inc Barbiersquos parent company estimates that three Barbie dolls are sold every second of every day

1048766 Design is performed in California US1048766 Oil and plastic Pallet are made in Taiwan1048766 Her nylon hair is made in Japan1048766 Her body molds are made in the US1048766 She is assembled in Indonesia and

Malaysia1048766 She is clothed in China

Example - Boeing

Strategic Planning ndash Global Sourcing

Vision StatementStrategies

Long Term Action PlanCommitment of Organizational AssetsCreates Competitive Advantage

Performance Measures Metrics basedScore Cards

The initials TQRDCEB stand for

Technology Quality

Responsiveness Delivery Cost Environment Business

Strategy Development

Corporate StrategiesSupply StrategiesCommodity StudiesCommodity Strategies Individual Supplier Strategies

New strategic developments in purchasing

Leveraged purchasing and supply strategiesGlobal sourcingSupplier integration Early supplier involvement in new product development Reciprocity agreements and compensation agreementsEnvironmental issues and business integrity

1 Sellerrsquos market Buyerrsquos market

2 Increasing pressure on sales prices and margins leads to

Supply System Strategy

Key Activities Sourcing Continuity Least Total Cost

Three Flows of Supply Chain Management Information Materials Funds Manage in Both Directions

Supply System Strategy

Four Emerging TrendsOutsourcingTechnology UtilizationSustainabilityRisk Management

Guava Puree Case

In class

Risk Identification

Ties to Current Events

Sustainability and Risk Survival = Risk Management Risk Identification

Forecasting RiskSupplier Selection RiskSupplier Performance RiskLogistics Risk Inventory RiskOngoing Operations Risks (Business Continuity

Planning) Focus is on Both Immediate and Long Term Formal Evaluation and Mitigation Plans

Scotts Miracle Gro Case

Case Argument Assignments

CURRENT EVENTS

Next ClassCultural Issues in Supply MgtOutsourcingOffshoring IKEA Case In Class Discussion

Abstracts due at beginning of classScottrsquos Case ndash LectureTeam Break OutsCurrent Events ndash Bring your articlesGuest Speaker ndash Morgan Hartnell

Questions

• Slide 1
• Introduction
• Agenda for the class
• Typical Class Flowhellip Subject to change
• Class AttendanceParticipation
• Grading
• SubmittalsDue Dates
• My Contact Information
• Additional Items
• Questions
• Team Exercise
• Careers In Source and Supply Chain Management
• Importance of Supply Management to the Firm
• Importance of purchasing to business
• Types of Purchases
• Slide 16
• Basic Purchasing Objectives
• Basic Purchasing Activities
• Slide 19
• Assigned Reading
• Changes in the Business Environment
• Slide 22
• Supply Chain Issues
• Slide 24
• Barbie
• Example - Boeing
• Strategic Planning ndash Global Sourcing
• The initials TQRDCEB stand for
• Strategy Development
• New strategic developments in purchasing
• Supply System Strategy
• Slide 32
• Guava Puree Case
• Risk Identification
• Sustainability and Risk
• Scotts Miracle Gro Case
• Current Events
• Next Class
• Slide 39

Agenda for the classWelcome to Global SourcingClass LogisticsExpectationsReview of SyllabusCareers in SCMSCM amp the FirmTeam Formation amp Case

ArgumentsZin ObliskCommodity Assignment Guava Puree

Typical Class FlowhellipSubject to change

Typically arrive by 500 to meet with students prior to class if necessary Available to meet other times by appointment

Start at 530 ndashStart with initial lecturediscussions (one small ndash 10 min break)

Approx 700 ndash dinner break (25-30 min) I will be available to answer questions etc Please be sure to clean up any food or drinks in room Dinner Break time might change depending on guest speaker

schedulesThird hour will be either teamgroup discussion guest

speakers or follow on lectureFourth hour will be Current events discussion and review of

next sessions materials plus one small break (10 Min)Note Current Events discussion will go toward class participation scores as well as

other activities including peer reviews

Class AttendanceParticipationAttendance is critical

My lecture will NOT be a repeat of the reading If you are unable to attend please email me and make

arrangements for a class mate to get you hand outs etc Sign In sheets will be used for each class

You will be responsible for all materials covered in classOpen classroom discussion is key to solidifying the concepts

and checking for understandingClass Participation Graded on AttendanceClass Participation amp Discussion Current Events Peer EvaluationComprehensiveness

GradingCase Submittal = 20 (Team)Case Presentation = 10 (Team)IKEA Written Abstract = 5 (Individual)Starbucks Written Abstract = 5 (Individual)Commodity Study = 25 (Team)Final ExamPresentation = 25 (Team)Class Participation (current events class discussion

and peer evaluations) = 10 (Individual)Please note you will form a team of 4-5 members for

the case study commodity study and the final exampresentation Grade will be applied across all members Individual grades for IKEAStarbucks Abstracts and Class

Participation Only

SubmittalsDue Dates Papers Studies Presentations should be submitted BOTH

Via Email ndash DawnMSUmooreyahoocom Hard Copy at the beginning of class

Late submittals will result in a reduction in grade Important Due Dates

IKEA Abstracts ndash June 28th

Case Submittals and Presentations ndash July 12th

Starbucks Abstract ndash July 26th Commodity Studies ndash Aug 2nd Final Presentations ndash Aug 9th

Peer Reviews will be completed during class and go toward class participation grade

My Contact InformationEmail DawnMSUmooreyahoocom - Preferred

method of contact Email me with a way to contact you and I will respond as

soon as possible Quick clarification questions via email are fine as well

Phone 503-712-8857 for immediate issues only during the weekday (more than likely need to leave a message)

Evening and weekend contact number ndash 503-267-7663

I will be available prior to class at the dinner break and after class if needed Able to schedule other meeting times with advanced notice

Additional ItemsSyllabus OverviewText BookRequired ReadingCommodity Study GuidelinesSome Commodity Ideas

Please return from Dinner break tonight with your teams formedI will have a sign up sheet at the front

of class

Questions

Team Exercise

Zin Obelisk

Careers In Source and Supply Chain ManagementTransactional SpecialistsBuyerCommodity SpecialistManagerMaterials SpecialistManagerMaterials EngineerSupplier Quality Engineer (SQE)Supply Chain AnalystMaterials PlanningMFG Program Manager (MPM)

Importance of Supply Management to the Firm

Continuity of SupplyAs of Product Value Impact on ProfitabilityCompetitive Advantage

Importance of purchasing to business

60-85 60-80 50-70 60-80

25-50

512

18

3 12

50

Admin

Services

Capex

Spares

Trade-items

Retailers Computers Consumer electronics

Automotive Pharma Service

industry

Typicalstructure

10-40 Production parts

Types of Purchases

Production MaterialsRaw MaterialsParts and Components (Sub-

Assemby)Capital Equipment

MachineryVehicles

Capital ProjectsConstruction

Types of PurchasesMRO Supplies

Operating SuppliesSpare Parts

Services Repair ServicesBuildings and GroundsProfessional Services amp

ConsultingTravelMarketing amp Advertisement

Basic Purchasing Objectives

Maintain Continuity of SupplyLeast Total Cost of OwnershipDevelop Purchasing as Strategic AssetCreate Competitive Advantage

Basic Purchasing Activities

SourcingFinding Potential SuppliersQualifying SuppliersSelecting the Supplier and

the Contract Type Single PurchasesMulti -year Agreements

Basic Purchasing Activities

Contract Administration Tracking Progress Expediting Progress Payments Other Life-of-Contract Activities

Developing and Managing Long-Term Supplier Relationships

Managing Change in the Supply System

Assigned ReadingMIT Sloan Management Review ndash Achieving Excellence in

Global Sourcing by Robert J Trent amp Robert M Monczka

Changes in the Business Environment

What Are Business System Changes

Changes in the Business Environment

Globalization of Trade Deregulation in many industries Product commonality across cultures and countries Formation of trade blocks (NAFTA EU) Improved transportation More sophisticated information and communications

technology

Regulation of Banks and squeeze of credit markets

Process Orientation Outsourcing Best-in-class Supplier Networks

Supply Chain Issues Co-ordination of Purchasing Requirements ndash

Pooling of Purchase and Standardization Across Departments Across Divisions Across Countries

Integration of Purchasing Inventory Management and Logistics (Design for Supply Chain)

Integration of Purchasing and Engineering with Production Planning (Design for Cost)

Supply Chain IssuesMake or Buy

OutsourcingOffshoring

Reciprocity Agreements CountertradeQuality Management and Lean

ManufacturingCycle Time Reduction

Environmental Issues ndash Sustainability amp Regulation

ROHS Halogen Free

Barbie Example1048766 An icon of international outsourcing

among other things1048766 Barbie has matured into a multi-billion-

dollar a year industry with sales and production on a global scale

1048766 Mattel Inc Barbiersquos parent company estimates that three Barbie dolls are sold every second of every day

1048766 Design is performed in California US1048766 Oil and plastic Pallet are made in Taiwan1048766 Her nylon hair is made in Japan1048766 Her body molds are made in the US1048766 She is assembled in Indonesia and

Malaysia1048766 She is clothed in China

Example - Boeing

Strategic Planning ndash Global Sourcing

Vision StatementStrategies

Long Term Action PlanCommitment of Organizational AssetsCreates Competitive Advantage

Performance Measures Metrics basedScore Cards

The initials TQRDCEB stand for

Technology Quality

Responsiveness Delivery Cost Environment Business

Strategy Development

Corporate StrategiesSupply StrategiesCommodity StudiesCommodity Strategies Individual Supplier Strategies

New strategic developments in purchasing

Leveraged purchasing and supply strategiesGlobal sourcingSupplier integration Early supplier involvement in new product development Reciprocity agreements and compensation agreementsEnvironmental issues and business integrity

1 Sellerrsquos market Buyerrsquos market

2 Increasing pressure on sales prices and margins leads to

Supply System Strategy

Key Activities Sourcing Continuity Least Total Cost

Three Flows of Supply Chain Management Information Materials Funds Manage in Both Directions

Supply System Strategy

Four Emerging TrendsOutsourcingTechnology UtilizationSustainabilityRisk Management

Guava Puree Case

In class

Risk Identification

Ties to Current Events

Sustainability and Risk Survival = Risk Management Risk Identification

Forecasting RiskSupplier Selection RiskSupplier Performance RiskLogistics Risk Inventory RiskOngoing Operations Risks (Business Continuity

Planning) Focus is on Both Immediate and Long Term Formal Evaluation and Mitigation Plans

Scotts Miracle Gro Case

Case Argument Assignments

CURRENT EVENTS

Next ClassCultural Issues in Supply MgtOutsourcingOffshoring IKEA Case In Class Discussion

Abstracts due at beginning of classScottrsquos Case ndash LectureTeam Break OutsCurrent Events ndash Bring your articlesGuest Speaker ndash Morgan Hartnell

Questions

• Slide 1
• Introduction
• Agenda for the class
• Typical Class Flowhellip Subject to change
• Class AttendanceParticipation
• Grading
• SubmittalsDue Dates
• My Contact Information
• Additional Items
• Questions
• Team Exercise
• Careers In Source and Supply Chain Management
• Importance of Supply Management to the Firm
• Importance of purchasing to business
• Types of Purchases
• Slide 16
• Basic Purchasing Objectives
• Basic Purchasing Activities
• Slide 19
• Assigned Reading
• Changes in the Business Environment
• Slide 22
• Supply Chain Issues
• Slide 24
• Barbie
• Example - Boeing
• Strategic Planning ndash Global Sourcing
• The initials TQRDCEB stand for
• Strategy Development
• New strategic developments in purchasing
• Supply System Strategy
• Slide 32
• Guava Puree Case
• Risk Identification
• Sustainability and Risk
• Scotts Miracle Gro Case
• Current Events
• Next Class
• Slide 39

Typical Class FlowhellipSubject to change

Typically arrive by 500 to meet with students prior to class if necessary Available to meet other times by appointment

Start at 530 ndashStart with initial lecturediscussions (one small ndash 10 min break)

Approx 700 ndash dinner break (25-30 min) I will be available to answer questions etc Please be sure to clean up any food or drinks in room Dinner Break time might change depending on guest speaker

schedulesThird hour will be either teamgroup discussion guest

speakers or follow on lectureFourth hour will be Current events discussion and review of

next sessions materials plus one small break (10 Min)Note Current Events discussion will go toward class participation scores as well as

other activities including peer reviews

Class AttendanceParticipationAttendance is critical

My lecture will NOT be a repeat of the reading If you are unable to attend please email me and make

arrangements for a class mate to get you hand outs etc Sign In sheets will be used for each class

You will be responsible for all materials covered in classOpen classroom discussion is key to solidifying the concepts

and checking for understandingClass Participation Graded on AttendanceClass Participation amp Discussion Current Events Peer EvaluationComprehensiveness

GradingCase Submittal = 20 (Team)Case Presentation = 10 (Team)IKEA Written Abstract = 5 (Individual)Starbucks Written Abstract = 5 (Individual)Commodity Study = 25 (Team)Final ExamPresentation = 25 (Team)Class Participation (current events class discussion

and peer evaluations) = 10 (Individual)Please note you will form a team of 4-5 members for

the case study commodity study and the final exampresentation Grade will be applied across all members Individual grades for IKEAStarbucks Abstracts and Class

Participation Only

SubmittalsDue Dates Papers Studies Presentations should be submitted BOTH

Via Email ndash DawnMSUmooreyahoocom Hard Copy at the beginning of class

Late submittals will result in a reduction in grade Important Due Dates

IKEA Abstracts ndash June 28th

Case Submittals and Presentations ndash July 12th

Starbucks Abstract ndash July 26th Commodity Studies ndash Aug 2nd Final Presentations ndash Aug 9th

Peer Reviews will be completed during class and go toward class participation grade

My Contact InformationEmail DawnMSUmooreyahoocom - Preferred

method of contact Email me with a way to contact you and I will respond as

soon as possible Quick clarification questions via email are fine as well

Phone 503-712-8857 for immediate issues only during the weekday (more than likely need to leave a message)

Evening and weekend contact number ndash 503-267-7663

I will be available prior to class at the dinner break and after class if needed Able to schedule other meeting times with advanced notice

Additional ItemsSyllabus OverviewText BookRequired ReadingCommodity Study GuidelinesSome Commodity Ideas

Please return from Dinner break tonight with your teams formedI will have a sign up sheet at the front

of class

Questions

Team Exercise

Zin Obelisk

Careers In Source and Supply Chain ManagementTransactional SpecialistsBuyerCommodity SpecialistManagerMaterials SpecialistManagerMaterials EngineerSupplier Quality Engineer (SQE)Supply Chain AnalystMaterials PlanningMFG Program Manager (MPM)

Importance of Supply Management to the Firm

Continuity of SupplyAs of Product Value Impact on ProfitabilityCompetitive Advantage

Importance of purchasing to business

60-85 60-80 50-70 60-80

25-50

512

18

3 12

50

Admin

Services

Capex

Spares

Trade-items

Retailers Computers Consumer electronics

Automotive Pharma Service

industry

Typicalstructure

10-40 Production parts

Types of Purchases

Production MaterialsRaw MaterialsParts and Components (Sub-

Assemby)Capital Equipment

MachineryVehicles

Capital ProjectsConstruction

Types of PurchasesMRO Supplies

Operating SuppliesSpare Parts

Services Repair ServicesBuildings and GroundsProfessional Services amp

ConsultingTravelMarketing amp Advertisement

Basic Purchasing Objectives

Maintain Continuity of SupplyLeast Total Cost of OwnershipDevelop Purchasing as Strategic AssetCreate Competitive Advantage

Basic Purchasing Activities

SourcingFinding Potential SuppliersQualifying SuppliersSelecting the Supplier and

the Contract Type Single PurchasesMulti -year Agreements

Basic Purchasing Activities

Contract Administration Tracking Progress Expediting Progress Payments Other Life-of-Contract Activities

Developing and Managing Long-Term Supplier Relationships

Managing Change in the Supply System

Assigned ReadingMIT Sloan Management Review ndash Achieving Excellence in

Global Sourcing by Robert J Trent amp Robert M Monczka

Changes in the Business Environment

What Are Business System Changes

Changes in the Business Environment

Globalization of Trade Deregulation in many industries Product commonality across cultures and countries Formation of trade blocks (NAFTA EU) Improved transportation More sophisticated information and communications

technology

Regulation of Banks and squeeze of credit markets

Process Orientation Outsourcing Best-in-class Supplier Networks

Supply Chain Issues Co-ordination of Purchasing Requirements ndash

Pooling of Purchase and Standardization Across Departments Across Divisions Across Countries

Integration of Purchasing Inventory Management and Logistics (Design for Supply Chain)

Integration of Purchasing and Engineering with Production Planning (Design for Cost)

Supply Chain IssuesMake or Buy

OutsourcingOffshoring

Reciprocity Agreements CountertradeQuality Management and Lean

ManufacturingCycle Time Reduction

Environmental Issues ndash Sustainability amp Regulation

ROHS Halogen Free

Barbie Example1048766 An icon of international outsourcing

among other things1048766 Barbie has matured into a multi-billion-

dollar a year industry with sales and production on a global scale

1048766 Mattel Inc Barbiersquos parent company estimates that three Barbie dolls are sold every second of every day

1048766 Design is performed in California US1048766 Oil and plastic Pallet are made in Taiwan1048766 Her nylon hair is made in Japan1048766 Her body molds are made in the US1048766 She is assembled in Indonesia and

Malaysia1048766 She is clothed in China

Example - Boeing

Strategic Planning ndash Global Sourcing

Vision StatementStrategies

Long Term Action PlanCommitment of Organizational AssetsCreates Competitive Advantage

Performance Measures Metrics basedScore Cards

The initials TQRDCEB stand for

Technology Quality

Responsiveness Delivery Cost Environment Business

Strategy Development

Corporate StrategiesSupply StrategiesCommodity StudiesCommodity Strategies Individual Supplier Strategies

New strategic developments in purchasing

Leveraged purchasing and supply strategiesGlobal sourcingSupplier integration Early supplier involvement in new product development Reciprocity agreements and compensation agreementsEnvironmental issues and business integrity

1 Sellerrsquos market Buyerrsquos market

2 Increasing pressure on sales prices and margins leads to

Supply System Strategy

Key Activities Sourcing Continuity Least Total Cost

Three Flows of Supply Chain Management Information Materials Funds Manage in Both Directions

Supply System Strategy

Four Emerging TrendsOutsourcingTechnology UtilizationSustainabilityRisk Management

Guava Puree Case

In class

Risk Identification

Ties to Current Events

Sustainability and Risk Survival = Risk Management Risk Identification

Forecasting RiskSupplier Selection RiskSupplier Performance RiskLogistics Risk Inventory RiskOngoing Operations Risks (Business Continuity

Planning) Focus is on Both Immediate and Long Term Formal Evaluation and Mitigation Plans

Scotts Miracle Gro Case

Case Argument Assignments

CURRENT EVENTS

Next ClassCultural Issues in Supply MgtOutsourcingOffshoring IKEA Case In Class Discussion

Abstracts due at beginning of classScottrsquos Case ndash LectureTeam Break OutsCurrent Events ndash Bring your articlesGuest Speaker ndash Morgan Hartnell

Questions

• Slide 1
• Introduction
• Agenda for the class
• Typical Class Flowhellip Subject to change
• Class AttendanceParticipation
• Grading
• SubmittalsDue Dates
• My Contact Information
• Additional Items
• Questions
• Team Exercise
• Careers In Source and Supply Chain Management
• Importance of Supply Management to the Firm
• Importance of purchasing to business
• Types of Purchases
• Slide 16
• Basic Purchasing Objectives
• Basic Purchasing Activities
• Slide 19
• Assigned Reading
• Changes in the Business Environment
• Slide 22
• Supply Chain Issues
• Slide 24
• Barbie
• Example - Boeing
• Strategic Planning ndash Global Sourcing
• The initials TQRDCEB stand for
• Strategy Development
• New strategic developments in purchasing
• Supply System Strategy
• Slide 32
• Guava Puree Case
• Risk Identification
• Sustainability and Risk
• Scotts Miracle Gro Case
• Current Events
• Next Class
• Slide 39

Class AttendanceParticipationAttendance is critical

My lecture will NOT be a repeat of the reading If you are unable to attend please email me and make

arrangements for a class mate to get you hand outs etc Sign In sheets will be used for each class

You will be responsible for all materials covered in classOpen classroom discussion is key to solidifying the concepts

and checking for understandingClass Participation Graded on AttendanceClass Participation amp Discussion Current Events Peer EvaluationComprehensiveness

GradingCase Submittal = 20 (Team)Case Presentation = 10 (Team)IKEA Written Abstract = 5 (Individual)Starbucks Written Abstract = 5 (Individual)Commodity Study = 25 (Team)Final ExamPresentation = 25 (Team)Class Participation (current events class discussion

and peer evaluations) = 10 (Individual)Please note you will form a team of 4-5 members for

the case study commodity study and the final exampresentation Grade will be applied across all members Individual grades for IKEAStarbucks Abstracts and Class

Participation Only

SubmittalsDue Dates Papers Studies Presentations should be submitted BOTH

Via Email ndash DawnMSUmooreyahoocom Hard Copy at the beginning of class

Late submittals will result in a reduction in grade Important Due Dates

IKEA Abstracts ndash June 28th

Case Submittals and Presentations ndash July 12th

Starbucks Abstract ndash July 26th Commodity Studies ndash Aug 2nd Final Presentations ndash Aug 9th

Peer Reviews will be completed during class and go toward class participation grade

My Contact InformationEmail DawnMSUmooreyahoocom - Preferred

method of contact Email me with a way to contact you and I will respond as

soon as possible Quick clarification questions via email are fine as well

Phone 503-712-8857 for immediate issues only during the weekday (more than likely need to leave a message)

Evening and weekend contact number ndash 503-267-7663

I will be available prior to class at the dinner break and after class if needed Able to schedule other meeting times with advanced notice

Additional ItemsSyllabus OverviewText BookRequired ReadingCommodity Study GuidelinesSome Commodity Ideas

Please return from Dinner break tonight with your teams formedI will have a sign up sheet at the front

of class

Questions

Team Exercise

Zin Obelisk

Careers In Source and Supply Chain ManagementTransactional SpecialistsBuyerCommodity SpecialistManagerMaterials SpecialistManagerMaterials EngineerSupplier Quality Engineer (SQE)Supply Chain AnalystMaterials PlanningMFG Program Manager (MPM)

Importance of Supply Management to the Firm

Continuity of SupplyAs of Product Value Impact on ProfitabilityCompetitive Advantage

Importance of purchasing to business

60-85 60-80 50-70 60-80

25-50

512

18

3 12

50

Admin

Services

Capex

Spares

Trade-items

Retailers Computers Consumer electronics

Automotive Pharma Service

industry

Typicalstructure

10-40 Production parts

Types of Purchases

Production MaterialsRaw MaterialsParts and Components (Sub-

Assemby)Capital Equipment

MachineryVehicles

Capital ProjectsConstruction

Types of PurchasesMRO Supplies

Operating SuppliesSpare Parts

Services Repair ServicesBuildings and GroundsProfessional Services amp

ConsultingTravelMarketing amp Advertisement

Basic Purchasing Objectives

Maintain Continuity of SupplyLeast Total Cost of OwnershipDevelop Purchasing as Strategic AssetCreate Competitive Advantage

Basic Purchasing Activities

SourcingFinding Potential SuppliersQualifying SuppliersSelecting the Supplier and

the Contract Type Single PurchasesMulti -year Agreements

Basic Purchasing Activities

Contract Administration Tracking Progress Expediting Progress Payments Other Life-of-Contract Activities

Developing and Managing Long-Term Supplier Relationships

Managing Change in the Supply System

Assigned ReadingMIT Sloan Management Review ndash Achieving Excellence in

Global Sourcing by Robert J Trent amp Robert M Monczka

Changes in the Business Environment

What Are Business System Changes

Changes in the Business Environment

Globalization of Trade Deregulation in many industries Product commonality across cultures and countries Formation of trade blocks (NAFTA EU) Improved transportation More sophisticated information and communications

technology

Regulation of Banks and squeeze of credit markets

Process Orientation Outsourcing Best-in-class Supplier Networks

Supply Chain Issues Co-ordination of Purchasing Requirements ndash

Pooling of Purchase and Standardization Across Departments Across Divisions Across Countries

Integration of Purchasing Inventory Management and Logistics (Design for Supply Chain)

Integration of Purchasing and Engineering with Production Planning (Design for Cost)

Supply Chain IssuesMake or Buy

OutsourcingOffshoring

Reciprocity Agreements CountertradeQuality Management and Lean

ManufacturingCycle Time Reduction

Environmental Issues ndash Sustainability amp Regulation

ROHS Halogen Free

Barbie Example1048766 An icon of international outsourcing

among other things1048766 Barbie has matured into a multi-billion-

dollar a year industry with sales and production on a global scale

1048766 Mattel Inc Barbiersquos parent company estimates that three Barbie dolls are sold every second of every day

1048766 Design is performed in California US1048766 Oil and plastic Pallet are made in Taiwan1048766 Her nylon hair is made in Japan1048766 Her body molds are made in the US1048766 She is assembled in Indonesia and

Malaysia1048766 She is clothed in China

Example - Boeing

Strategic Planning ndash Global Sourcing

Vision StatementStrategies

Long Term Action PlanCommitment of Organizational AssetsCreates Competitive Advantage

Performance Measures Metrics basedScore Cards

The initials TQRDCEB stand for

Technology Quality

Responsiveness Delivery Cost Environment Business

Strategy Development

Corporate StrategiesSupply StrategiesCommodity StudiesCommodity Strategies Individual Supplier Strategies

New strategic developments in purchasing

Leveraged purchasing and supply strategiesGlobal sourcingSupplier integration Early supplier involvement in new product development Reciprocity agreements and compensation agreementsEnvironmental issues and business integrity

1 Sellerrsquos market Buyerrsquos market

2 Increasing pressure on sales prices and margins leads to

Supply System Strategy

Key Activities Sourcing Continuity Least Total Cost

Three Flows of Supply Chain Management Information Materials Funds Manage in Both Directions

Supply System Strategy

Four Emerging TrendsOutsourcingTechnology UtilizationSustainabilityRisk Management

Guava Puree Case

In class

Risk Identification

Ties to Current Events

Sustainability and Risk Survival = Risk Management Risk Identification

Forecasting RiskSupplier Selection RiskSupplier Performance RiskLogistics Risk Inventory RiskOngoing Operations Risks (Business Continuity

Planning) Focus is on Both Immediate and Long Term Formal Evaluation and Mitigation Plans

Scotts Miracle Gro Case

Case Argument Assignments

CURRENT EVENTS

Next ClassCultural Issues in Supply MgtOutsourcingOffshoring IKEA Case In Class Discussion

Abstracts due at beginning of classScottrsquos Case ndash LectureTeam Break OutsCurrent Events ndash Bring your articlesGuest Speaker ndash Morgan Hartnell

Questions

• Slide 1
• Introduction
• Agenda for the class
• Typical Class Flowhellip Subject to change
• Class AttendanceParticipation
• Grading
• SubmittalsDue Dates
• My Contact Information
• Additional Items
• Questions
• Team Exercise
• Careers In Source and Supply Chain Management
• Importance of Supply Management to the Firm
• Importance of purchasing to business
• Types of Purchases
• Slide 16
• Basic Purchasing Objectives
• Basic Purchasing Activities
• Slide 19
• Assigned Reading
• Changes in the Business Environment
• Slide 22
• Supply Chain Issues
• Slide 24
• Barbie
• Example - Boeing
• Strategic Planning ndash Global Sourcing
• The initials TQRDCEB stand for
• Strategy Development
• New strategic developments in purchasing
• Supply System Strategy
• Slide 32
• Guava Puree Case
• Risk Identification
• Sustainability and Risk
• Scotts Miracle Gro Case
• Current Events
• Next Class
• Slide 39

GradingCase Submittal = 20 (Team)Case Presentation = 10 (Team)IKEA Written Abstract = 5 (Individual)Starbucks Written Abstract = 5 (Individual)Commodity Study = 25 (Team)Final ExamPresentation = 25 (Team)Class Participation (current events class discussion

and peer evaluations) = 10 (Individual)Please note you will form a team of 4-5 members for

the case study commodity study and the final exampresentation Grade will be applied across all members Individual grades for IKEAStarbucks Abstracts and Class

Participation Only

SubmittalsDue Dates Papers Studies Presentations should be submitted BOTH

Via Email ndash DawnMSUmooreyahoocom Hard Copy at the beginning of class

Late submittals will result in a reduction in grade Important Due Dates

IKEA Abstracts ndash June 28th

Case Submittals and Presentations ndash July 12th

Starbucks Abstract ndash July 26th Commodity Studies ndash Aug 2nd Final Presentations ndash Aug 9th

Peer Reviews will be completed during class and go toward class participation grade

My Contact InformationEmail DawnMSUmooreyahoocom - Preferred

method of contact Email me with a way to contact you and I will respond as

soon as possible Quick clarification questions via email are fine as well

Phone 503-712-8857 for immediate issues only during the weekday (more than likely need to leave a message)

Evening and weekend contact number ndash 503-267-7663

I will be available prior to class at the dinner break and after class if needed Able to schedule other meeting times with advanced notice

Additional ItemsSyllabus OverviewText BookRequired ReadingCommodity Study GuidelinesSome Commodity Ideas

Please return from Dinner break tonight with your teams formedI will have a sign up sheet at the front

of class

Questions

Team Exercise

Zin Obelisk

Careers In Source and Supply Chain ManagementTransactional SpecialistsBuyerCommodity SpecialistManagerMaterials SpecialistManagerMaterials EngineerSupplier Quality Engineer (SQE)Supply Chain AnalystMaterials PlanningMFG Program Manager (MPM)

Importance of Supply Management to the Firm

Continuity of SupplyAs of Product Value Impact on ProfitabilityCompetitive Advantage

Importance of purchasing to business

60-85 60-80 50-70 60-80

25-50

512

18

3 12

50

Admin

Services

Capex

Spares

Trade-items

Retailers Computers Consumer electronics

Automotive Pharma Service

industry

Typicalstructure

10-40 Production parts

Types of Purchases

Production MaterialsRaw MaterialsParts and Components (Sub-

Assemby)Capital Equipment

MachineryVehicles

Capital ProjectsConstruction

Types of PurchasesMRO Supplies

Operating SuppliesSpare Parts

Services Repair ServicesBuildings and GroundsProfessional Services amp

ConsultingTravelMarketing amp Advertisement

Basic Purchasing Objectives

Maintain Continuity of SupplyLeast Total Cost of OwnershipDevelop Purchasing as Strategic AssetCreate Competitive Advantage

Basic Purchasing Activities

SourcingFinding Potential SuppliersQualifying SuppliersSelecting the Supplier and

the Contract Type Single PurchasesMulti -year Agreements

Basic Purchasing Activities

Contract Administration Tracking Progress Expediting Progress Payments Other Life-of-Contract Activities

Developing and Managing Long-Term Supplier Relationships

Managing Change in the Supply System

Assigned ReadingMIT Sloan Management Review ndash Achieving Excellence in

Global Sourcing by Robert J Trent amp Robert M Monczka

Changes in the Business Environment

What Are Business System Changes

Changes in the Business Environment

Globalization of Trade Deregulation in many industries Product commonality across cultures and countries Formation of trade blocks (NAFTA EU) Improved transportation More sophisticated information and communications

technology

Regulation of Banks and squeeze of credit markets

Process Orientation Outsourcing Best-in-class Supplier Networks

Supply Chain Issues Co-ordination of Purchasing Requirements ndash

Pooling of Purchase and Standardization Across Departments Across Divisions Across Countries

Integration of Purchasing Inventory Management and Logistics (Design for Supply Chain)

Integration of Purchasing and Engineering with Production Planning (Design for Cost)

Supply Chain IssuesMake or Buy

OutsourcingOffshoring

Reciprocity Agreements CountertradeQuality Management and Lean

ManufacturingCycle Time Reduction

Environmental Issues ndash Sustainability amp Regulation

ROHS Halogen Free

Barbie Example1048766 An icon of international outsourcing

among other things1048766 Barbie has matured into a multi-billion-

dollar a year industry with sales and production on a global scale

1048766 Mattel Inc Barbiersquos parent company estimates that three Barbie dolls are sold every second of every day

1048766 Design is performed in California US1048766 Oil and plastic Pallet are made in Taiwan1048766 Her nylon hair is made in Japan1048766 Her body molds are made in the US1048766 She is assembled in Indonesia and

Malaysia1048766 She is clothed in China

Example - Boeing

Strategic Planning ndash Global Sourcing

Vision StatementStrategies

Long Term Action PlanCommitment of Organizational AssetsCreates Competitive Advantage

Performance Measures Metrics basedScore Cards

The initials TQRDCEB stand for

Technology Quality

Responsiveness Delivery Cost Environment Business

Strategy Development

Corporate StrategiesSupply StrategiesCommodity StudiesCommodity Strategies Individual Supplier Strategies

New strategic developments in purchasing

Leveraged purchasing and supply strategiesGlobal sourcingSupplier integration Early supplier involvement in new product development Reciprocity agreements and compensation agreementsEnvironmental issues and business integrity

1 Sellerrsquos market Buyerrsquos market

2 Increasing pressure on sales prices and margins leads to

Supply System Strategy

Key Activities Sourcing Continuity Least Total Cost

Three Flows of Supply Chain Management Information Materials Funds Manage in Both Directions

Supply System Strategy

Four Emerging TrendsOutsourcingTechnology UtilizationSustainabilityRisk Management

Guava Puree Case

In class

Risk Identification

Ties to Current Events

Sustainability and Risk Survival = Risk Management Risk Identification

Forecasting RiskSupplier Selection RiskSupplier Performance RiskLogistics Risk Inventory RiskOngoing Operations Risks (Business Continuity

Planning) Focus is on Both Immediate and Long Term Formal Evaluation and Mitigation Plans

Scotts Miracle Gro Case

Case Argument Assignments

CURRENT EVENTS

Next ClassCultural Issues in Supply MgtOutsourcingOffshoring IKEA Case In Class Discussion

Abstracts due at beginning of classScottrsquos Case ndash LectureTeam Break OutsCurrent Events ndash Bring your articlesGuest Speaker ndash Morgan Hartnell

Questions

• Slide 1
• Introduction
• Agenda for the class
• Typical Class Flowhellip Subject to change
• Class AttendanceParticipation
• Grading
• SubmittalsDue Dates
• My Contact Information
• Additional Items
• Questions
• Team Exercise
• Careers In Source and Supply Chain Management
• Importance of Supply Management to the Firm
• Importance of purchasing to business
• Types of Purchases
• Slide 16
• Basic Purchasing Objectives
• Basic Purchasing Activities
• Slide 19
• Assigned Reading
• Changes in the Business Environment
• Slide 22
• Supply Chain Issues
• Slide 24
• Barbie
• Example - Boeing
• Strategic Planning ndash Global Sourcing
• The initials TQRDCEB stand for
• Strategy Development
• New strategic developments in purchasing
• Supply System Strategy
• Slide 32
• Guava Puree Case
• Risk Identification
• Sustainability and Risk
• Scotts Miracle Gro Case
• Current Events
• Next Class
• Slide 39

SubmittalsDue Dates Papers Studies Presentations should be submitted BOTH

Via Email ndash DawnMSUmooreyahoocom Hard Copy at the beginning of class

Late submittals will result in a reduction in grade Important Due Dates

IKEA Abstracts ndash June 28th

Case Submittals and Presentations ndash July 12th

Starbucks Abstract ndash July 26th Commodity Studies ndash Aug 2nd Final Presentations ndash Aug 9th

Peer Reviews will be completed during class and go toward class participation grade

My Contact InformationEmail DawnMSUmooreyahoocom - Preferred

method of contact Email me with a way to contact you and I will respond as

soon as possible Quick clarification questions via email are fine as well

Phone 503-712-8857 for immediate issues only during the weekday (more than likely need to leave a message)

Evening and weekend contact number ndash 503-267-7663

I will be available prior to class at the dinner break and after class if needed Able to schedule other meeting times with advanced notice

Additional ItemsSyllabus OverviewText BookRequired ReadingCommodity Study GuidelinesSome Commodity Ideas

Please return from Dinner break tonight with your teams formedI will have a sign up sheet at the front

of class

Questions

Team Exercise

Zin Obelisk

Careers In Source and Supply Chain ManagementTransactional SpecialistsBuyerCommodity SpecialistManagerMaterials SpecialistManagerMaterials EngineerSupplier Quality Engineer (SQE)Supply Chain AnalystMaterials PlanningMFG Program Manager (MPM)

Importance of Supply Management to the Firm

Continuity of SupplyAs of Product Value Impact on ProfitabilityCompetitive Advantage

Importance of purchasing to business

60-85 60-80 50-70 60-80

25-50

512

18

3 12

50

Admin

Services

Capex

Spares

Trade-items

Retailers Computers Consumer electronics

Automotive Pharma Service

industry

Typicalstructure

10-40 Production parts

Types of Purchases

Production MaterialsRaw MaterialsParts and Components (Sub-

Assemby)Capital Equipment

MachineryVehicles

Capital ProjectsConstruction

Types of PurchasesMRO Supplies

Operating SuppliesSpare Parts

Services Repair ServicesBuildings and GroundsProfessional Services amp

ConsultingTravelMarketing amp Advertisement

Basic Purchasing Objectives

Maintain Continuity of SupplyLeast Total Cost of OwnershipDevelop Purchasing as Strategic AssetCreate Competitive Advantage

Basic Purchasing Activities

SourcingFinding Potential SuppliersQualifying SuppliersSelecting the Supplier and

the Contract Type Single PurchasesMulti -year Agreements

Basic Purchasing Activities

Contract Administration Tracking Progress Expediting Progress Payments Other Life-of-Contract Activities

Developing and Managing Long-Term Supplier Relationships

Managing Change in the Supply System

Assigned ReadingMIT Sloan Management Review ndash Achieving Excellence in

Global Sourcing by Robert J Trent amp Robert M Monczka

Changes in the Business Environment

What Are Business System Changes

Changes in the Business Environment

Globalization of Trade Deregulation in many industries Product commonality across cultures and countries Formation of trade blocks (NAFTA EU) Improved transportation More sophisticated information and communications

technology

Regulation of Banks and squeeze of credit markets

Process Orientation Outsourcing Best-in-class Supplier Networks

Supply Chain Issues Co-ordination of Purchasing Requirements ndash

Pooling of Purchase and Standardization Across Departments Across Divisions Across Countries

Integration of Purchasing Inventory Management and Logistics (Design for Supply Chain)

Integration of Purchasing and Engineering with Production Planning (Design for Cost)

Supply Chain IssuesMake or Buy

OutsourcingOffshoring

Reciprocity Agreements CountertradeQuality Management and Lean

ManufacturingCycle Time Reduction

Environmental Issues ndash Sustainability amp Regulation

ROHS Halogen Free

Barbie Example1048766 An icon of international outsourcing

among other things1048766 Barbie has matured into a multi-billion-

dollar a year industry with sales and production on a global scale

1048766 Mattel Inc Barbiersquos parent company estimates that three Barbie dolls are sold every second of every day

1048766 Design is performed in California US1048766 Oil and plastic Pallet are made in Taiwan1048766 Her nylon hair is made in Japan1048766 Her body molds are made in the US1048766 She is assembled in Indonesia and

Malaysia1048766 She is clothed in China

Example - Boeing

Strategic Planning ndash Global Sourcing

Vision StatementStrategies

Long Term Action PlanCommitment of Organizational AssetsCreates Competitive Advantage

Performance Measures Metrics basedScore Cards

The initials TQRDCEB stand for

Technology Quality

Responsiveness Delivery Cost Environment Business

Strategy Development

Corporate StrategiesSupply StrategiesCommodity StudiesCommodity Strategies Individual Supplier Strategies

New strategic developments in purchasing

Leveraged purchasing and supply strategiesGlobal sourcingSupplier integration Early supplier involvement in new product development Reciprocity agreements and compensation agreementsEnvironmental issues and business integrity

1 Sellerrsquos market Buyerrsquos market

2 Increasing pressure on sales prices and margins leads to

Supply System Strategy

Key Activities Sourcing Continuity Least Total Cost

Three Flows of Supply Chain Management Information Materials Funds Manage in Both Directions

Supply System Strategy

Four Emerging TrendsOutsourcingTechnology UtilizationSustainabilityRisk Management

Guava Puree Case

In class

Risk Identification

Ties to Current Events

Sustainability and Risk Survival = Risk Management Risk Identification

Forecasting RiskSupplier Selection RiskSupplier Performance RiskLogistics Risk Inventory RiskOngoing Operations Risks (Business Continuity

Planning) Focus is on Both Immediate and Long Term Formal Evaluation and Mitigation Plans

Scotts Miracle Gro Case

Case Argument Assignments

CURRENT EVENTS

Next ClassCultural Issues in Supply MgtOutsourcingOffshoring IKEA Case In Class Discussion

Abstracts due at beginning of classScottrsquos Case ndash LectureTeam Break OutsCurrent Events ndash Bring your articlesGuest Speaker ndash Morgan Hartnell

Questions

• Slide 1
• Introduction
• Agenda for the class
• Typical Class Flowhellip Subject to change
• Class AttendanceParticipation
• Grading
• SubmittalsDue Dates
• My Contact Information
• Additional Items
• Questions
• Team Exercise
• Careers In Source and Supply Chain Management
• Importance of Supply Management to the Firm
• Importance of purchasing to business
• Types of Purchases
• Slide 16
• Basic Purchasing Objectives
• Basic Purchasing Activities
• Slide 19
• Assigned Reading
• Changes in the Business Environment
• Slide 22
• Supply Chain Issues
• Slide 24
• Barbie
• Example - Boeing
• Strategic Planning ndash Global Sourcing
• The initials TQRDCEB stand for
• Strategy Development
• New strategic developments in purchasing
• Supply System Strategy
• Slide 32
• Guava Puree Case
• Risk Identification
• Sustainability and Risk
• Scotts Miracle Gro Case
• Current Events
• Next Class
• Slide 39

My Contact InformationEmail DawnMSUmooreyahoocom - Preferred

method of contact Email me with a way to contact you and I will respond as

soon as possible Quick clarification questions via email are fine as well

Phone 503-712-8857 for immediate issues only during the weekday (more than likely need to leave a message)

Evening and weekend contact number ndash 503-267-7663

I will be available prior to class at the dinner break and after class if needed Able to schedule other meeting times with advanced notice

Additional ItemsSyllabus OverviewText BookRequired ReadingCommodity Study GuidelinesSome Commodity Ideas

Please return from Dinner break tonight with your teams formedI will have a sign up sheet at the front

of class

Questions

Team Exercise

Zin Obelisk

Careers In Source and Supply Chain ManagementTransactional SpecialistsBuyerCommodity SpecialistManagerMaterials SpecialistManagerMaterials EngineerSupplier Quality Engineer (SQE)Supply Chain AnalystMaterials PlanningMFG Program Manager (MPM)

Importance of Supply Management to the Firm

Continuity of SupplyAs of Product Value Impact on ProfitabilityCompetitive Advantage

Importance of purchasing to business

60-85 60-80 50-70 60-80

25-50

512

18

3 12

50

Admin

Services

Capex

Spares

Trade-items

Retailers Computers Consumer electronics

Automotive Pharma Service

industry

Typicalstructure

10-40 Production parts

Types of Purchases

Production MaterialsRaw MaterialsParts and Components (Sub-

Assemby)Capital Equipment

MachineryVehicles

Capital ProjectsConstruction

Types of PurchasesMRO Supplies

Operating SuppliesSpare Parts

Services Repair ServicesBuildings and GroundsProfessional Services amp

ConsultingTravelMarketing amp Advertisement

Basic Purchasing Objectives

Maintain Continuity of SupplyLeast Total Cost of OwnershipDevelop Purchasing as Strategic AssetCreate Competitive Advantage

Basic Purchasing Activities

SourcingFinding Potential SuppliersQualifying SuppliersSelecting the Supplier and

the Contract Type Single PurchasesMulti -year Agreements

Basic Purchasing Activities

Contract Administration Tracking Progress Expediting Progress Payments Other Life-of-Contract Activities

Developing and Managing Long-Term Supplier Relationships

Managing Change in the Supply System

Assigned ReadingMIT Sloan Management Review ndash Achieving Excellence in

Global Sourcing by Robert J Trent amp Robert M Monczka

Changes in the Business Environment

What Are Business System Changes

Changes in the Business Environment

Globalization of Trade Deregulation in many industries Product commonality across cultures and countries Formation of trade blocks (NAFTA EU) Improved transportation More sophisticated information and communications

technology

Regulation of Banks and squeeze of credit markets

Process Orientation Outsourcing Best-in-class Supplier Networks

Supply Chain Issues Co-ordination of Purchasing Requirements ndash

Pooling of Purchase and Standardization Across Departments Across Divisions Across Countries

Integration of Purchasing Inventory Management and Logistics (Design for Supply Chain)

Integration of Purchasing and Engineering with Production Planning (Design for Cost)

Supply Chain IssuesMake or Buy

OutsourcingOffshoring

Reciprocity Agreements CountertradeQuality Management and Lean

ManufacturingCycle Time Reduction

Environmental Issues ndash Sustainability amp Regulation

ROHS Halogen Free

Barbie Example1048766 An icon of international outsourcing

among other things1048766 Barbie has matured into a multi-billion-

dollar a year industry with sales and production on a global scale

1048766 Mattel Inc Barbiersquos parent company estimates that three Barbie dolls are sold every second of every day

1048766 Design is performed in California US1048766 Oil and plastic Pallet are made in Taiwan1048766 Her nylon hair is made in Japan1048766 Her body molds are made in the US1048766 She is assembled in Indonesia and

Malaysia1048766 She is clothed in China

Example - Boeing

Strategic Planning ndash Global Sourcing

Vision StatementStrategies

Long Term Action PlanCommitment of Organizational AssetsCreates Competitive Advantage

Performance Measures Metrics basedScore Cards

The initials TQRDCEB stand for

Technology Quality

Responsiveness Delivery Cost Environment Business

Strategy Development

Corporate StrategiesSupply StrategiesCommodity StudiesCommodity Strategies Individual Supplier Strategies

New strategic developments in purchasing

Leveraged purchasing and supply strategiesGlobal sourcingSupplier integration Early supplier involvement in new product development Reciprocity agreements and compensation agreementsEnvironmental issues and business integrity

1 Sellerrsquos market Buyerrsquos market

2 Increasing pressure on sales prices and margins leads to

Supply System Strategy

Key Activities Sourcing Continuity Least Total Cost

Three Flows of Supply Chain Management Information Materials Funds Manage in Both Directions

Supply System Strategy

Four Emerging TrendsOutsourcingTechnology UtilizationSustainabilityRisk Management

Guava Puree Case

In class

Risk Identification

Ties to Current Events

Sustainability and Risk Survival = Risk Management Risk Identification

Forecasting RiskSupplier Selection RiskSupplier Performance RiskLogistics Risk Inventory RiskOngoing Operations Risks (Business Continuity

Planning) Focus is on Both Immediate and Long Term Formal Evaluation and Mitigation Plans

Scotts Miracle Gro Case

Case Argument Assignments

CURRENT EVENTS

Next ClassCultural Issues in Supply MgtOutsourcingOffshoring IKEA Case In Class Discussion

Abstracts due at beginning of classScottrsquos Case ndash LectureTeam Break OutsCurrent Events ndash Bring your articlesGuest Speaker ndash Morgan Hartnell

Questions

• Slide 1
• Introduction
• Agenda for the class
• Typical Class Flowhellip Subject to change
• Class AttendanceParticipation
• Grading
• SubmittalsDue Dates
• My Contact Information
• Additional Items
• Questions
• Team Exercise
• Careers In Source and Supply Chain Management
• Importance of Supply Management to the Firm
• Importance of purchasing to business
• Types of Purchases
• Slide 16
• Basic Purchasing Objectives
• Basic Purchasing Activities
• Slide 19
• Assigned Reading
• Changes in the Business Environment
• Slide 22
• Supply Chain Issues
• Slide 24
• Barbie
• Example - Boeing
• Strategic Planning ndash Global Sourcing
• The initials TQRDCEB stand for
• Strategy Development
• New strategic developments in purchasing
• Supply System Strategy
• Slide 32
• Guava Puree Case
• Risk Identification
• Sustainability and Risk
• Scotts Miracle Gro Case
• Current Events
• Next Class
• Slide 39

Additional ItemsSyllabus OverviewText BookRequired ReadingCommodity Study GuidelinesSome Commodity Ideas

Please return from Dinner break tonight with your teams formedI will have a sign up sheet at the front

of class

Questions

Team Exercise

Zin Obelisk

Careers In Source and Supply Chain ManagementTransactional SpecialistsBuyerCommodity SpecialistManagerMaterials SpecialistManagerMaterials EngineerSupplier Quality Engineer (SQE)Supply Chain AnalystMaterials PlanningMFG Program Manager (MPM)

Importance of Supply Management to the Firm

Continuity of SupplyAs of Product Value Impact on ProfitabilityCompetitive Advantage

Importance of purchasing to business

60-85 60-80 50-70 60-80

25-50

512

18

3 12

50

Admin

Services

Capex

Spares

Trade-items

Retailers Computers Consumer electronics

Automotive Pharma Service

industry

Typicalstructure

10-40 Production parts

Types of Purchases

Production MaterialsRaw MaterialsParts and Components (Sub-

Assemby)Capital Equipment

MachineryVehicles

Capital ProjectsConstruction

Types of PurchasesMRO Supplies

Operating SuppliesSpare Parts

Services Repair ServicesBuildings and GroundsProfessional Services amp

ConsultingTravelMarketing amp Advertisement

Basic Purchasing Objectives

Maintain Continuity of SupplyLeast Total Cost of OwnershipDevelop Purchasing as Strategic AssetCreate Competitive Advantage

Basic Purchasing Activities

SourcingFinding Potential SuppliersQualifying SuppliersSelecting the Supplier and

the Contract Type Single PurchasesMulti -year Agreements

Basic Purchasing Activities

Contract Administration Tracking Progress Expediting Progress Payments Other Life-of-Contract Activities

Developing and Managing Long-Term Supplier Relationships

Managing Change in the Supply System

Assigned ReadingMIT Sloan Management Review ndash Achieving Excellence in

Global Sourcing by Robert J Trent amp Robert M Monczka

Changes in the Business Environment

What Are Business System Changes

Changes in the Business Environment

Globalization of Trade Deregulation in many industries Product commonality across cultures and countries Formation of trade blocks (NAFTA EU) Improved transportation More sophisticated information and communications

technology

Regulation of Banks and squeeze of credit markets

Process Orientation Outsourcing Best-in-class Supplier Networks

Supply Chain Issues Co-ordination of Purchasing Requirements ndash

Pooling of Purchase and Standardization Across Departments Across Divisions Across Countries

Integration of Purchasing Inventory Management and Logistics (Design for Supply Chain)

Integration of Purchasing and Engineering with Production Planning (Design for Cost)

Supply Chain IssuesMake or Buy

OutsourcingOffshoring

Reciprocity Agreements CountertradeQuality Management and Lean

ManufacturingCycle Time Reduction

Environmental Issues ndash Sustainability amp Regulation

ROHS Halogen Free

Barbie Example1048766 An icon of international outsourcing

among other things1048766 Barbie has matured into a multi-billion-

dollar a year industry with sales and production on a global scale

1048766 Mattel Inc Barbiersquos parent company estimates that three Barbie dolls are sold every second of every day

1048766 Design is performed in California US1048766 Oil and plastic Pallet are made in Taiwan1048766 Her nylon hair is made in Japan1048766 Her body molds are made in the US1048766 She is assembled in Indonesia and

Malaysia1048766 She is clothed in China

Example - Boeing

Strategic Planning ndash Global Sourcing

Vision StatementStrategies

Long Term Action PlanCommitment of Organizational AssetsCreates Competitive Advantage

Performance Measures Metrics basedScore Cards

The initials TQRDCEB stand for

Technology Quality

Responsiveness Delivery Cost Environment Business

Strategy Development

Corporate StrategiesSupply StrategiesCommodity StudiesCommodity Strategies Individual Supplier Strategies

New strategic developments in purchasing

Leveraged purchasing and supply strategiesGlobal sourcingSupplier integration Early supplier involvement in new product development Reciprocity agreements and compensation agreementsEnvironmental issues and business integrity

1 Sellerrsquos market Buyerrsquos market

2 Increasing pressure on sales prices and margins leads to

Supply System Strategy

Key Activities Sourcing Continuity Least Total Cost

Three Flows of Supply Chain Management Information Materials Funds Manage in Both Directions

Supply System Strategy

Four Emerging TrendsOutsourcingTechnology UtilizationSustainabilityRisk Management

Guava Puree Case

In class

Risk Identification

Ties to Current Events

Sustainability and Risk Survival = Risk Management Risk Identification

Forecasting RiskSupplier Selection RiskSupplier Performance RiskLogistics Risk Inventory RiskOngoing Operations Risks (Business Continuity

Planning) Focus is on Both Immediate and Long Term Formal Evaluation and Mitigation Plans

Scotts Miracle Gro Case

Case Argument Assignments

CURRENT EVENTS

Next ClassCultural Issues in Supply MgtOutsourcingOffshoring IKEA Case In Class Discussion

Abstracts due at beginning of classScottrsquos Case ndash LectureTeam Break OutsCurrent Events ndash Bring your articlesGuest Speaker ndash Morgan Hartnell

Questions

• Slide 1
• Introduction
• Agenda for the class
• Typical Class Flowhellip Subject to change
• Class AttendanceParticipation
• Grading
• SubmittalsDue Dates
• My Contact Information
• Additional Items
• Questions
• Team Exercise
• Careers In Source and Supply Chain Management
• Importance of Supply Management to the Firm
• Importance of purchasing to business
• Types of Purchases
• Slide 16
• Basic Purchasing Objectives
• Basic Purchasing Activities
• Slide 19
• Assigned Reading
• Changes in the Business Environment
• Slide 22
• Supply Chain Issues
• Slide 24
• Barbie
• Example - Boeing
• Strategic Planning ndash Global Sourcing
• The initials TQRDCEB stand for
• Strategy Development
• New strategic developments in purchasing
• Supply System Strategy
• Slide 32
• Guava Puree Case
• Risk Identification
• Sustainability and Risk
• Scotts Miracle Gro Case
• Current Events
• Next Class
• Slide 39

Questions

Team Exercise

Zin Obelisk

Careers In Source and Supply Chain ManagementTransactional SpecialistsBuyerCommodity SpecialistManagerMaterials SpecialistManagerMaterials EngineerSupplier Quality Engineer (SQE)Supply Chain AnalystMaterials PlanningMFG Program Manager (MPM)

Importance of Supply Management to the Firm

Continuity of SupplyAs of Product Value Impact on ProfitabilityCompetitive Advantage

Importance of purchasing to business

60-85 60-80 50-70 60-80

25-50

512

18

3 12

50

Admin

Services

Capex

Spares

Trade-items

Retailers Computers Consumer electronics

Automotive Pharma Service

industry

Typicalstructure

10-40 Production parts

Types of Purchases

Production MaterialsRaw MaterialsParts and Components (Sub-

Assemby)Capital Equipment

MachineryVehicles

Capital ProjectsConstruction

Types of PurchasesMRO Supplies

Operating SuppliesSpare Parts

Services Repair ServicesBuildings and GroundsProfessional Services amp

ConsultingTravelMarketing amp Advertisement

Basic Purchasing Objectives

Maintain Continuity of SupplyLeast Total Cost of OwnershipDevelop Purchasing as Strategic AssetCreate Competitive Advantage

Basic Purchasing Activities

SourcingFinding Potential SuppliersQualifying SuppliersSelecting the Supplier and

the Contract Type Single PurchasesMulti -year Agreements

Basic Purchasing Activities

Contract Administration Tracking Progress Expediting Progress Payments Other Life-of-Contract Activities

Developing and Managing Long-Term Supplier Relationships

Managing Change in the Supply System

Assigned ReadingMIT Sloan Management Review ndash Achieving Excellence in

Global Sourcing by Robert J Trent amp Robert M Monczka

Changes in the Business Environment

What Are Business System Changes

Changes in the Business Environment

Globalization of Trade Deregulation in many industries Product commonality across cultures and countries Formation of trade blocks (NAFTA EU) Improved transportation More sophisticated information and communications

technology

Regulation of Banks and squeeze of credit markets

Process Orientation Outsourcing Best-in-class Supplier Networks

Supply Chain Issues Co-ordination of Purchasing Requirements ndash

Pooling of Purchase and Standardization Across Departments Across Divisions Across Countries

Integration of Purchasing Inventory Management and Logistics (Design for Supply Chain)

Integration of Purchasing and Engineering with Production Planning (Design for Cost)

Supply Chain IssuesMake or Buy

OutsourcingOffshoring

Reciprocity Agreements CountertradeQuality Management and Lean

ManufacturingCycle Time Reduction

Environmental Issues ndash Sustainability amp Regulation

ROHS Halogen Free

Barbie Example1048766 An icon of international outsourcing

among other things1048766 Barbie has matured into a multi-billion-

dollar a year industry with sales and production on a global scale

1048766 Mattel Inc Barbiersquos parent company estimates that three Barbie dolls are sold every second of every day

1048766 Design is performed in California US1048766 Oil and plastic Pallet are made in Taiwan1048766 Her nylon hair is made in Japan1048766 Her body molds are made in the US1048766 She is assembled in Indonesia and

Malaysia1048766 She is clothed in China

Example - Boeing

Strategic Planning ndash Global Sourcing

Vision StatementStrategies

Long Term Action PlanCommitment of Organizational AssetsCreates Competitive Advantage

Performance Measures Metrics basedScore Cards

The initials TQRDCEB stand for

Technology Quality

Responsiveness Delivery Cost Environment Business

Strategy Development

Corporate StrategiesSupply StrategiesCommodity StudiesCommodity Strategies Individual Supplier Strategies

New strategic developments in purchasing

Leveraged purchasing and supply strategiesGlobal sourcingSupplier integration Early supplier involvement in new product development Reciprocity agreements and compensation agreementsEnvironmental issues and business integrity

1 Sellerrsquos market Buyerrsquos market

2 Increasing pressure on sales prices and margins leads to

Supply System Strategy

Key Activities Sourcing Continuity Least Total Cost

Three Flows of Supply Chain Management Information Materials Funds Manage in Both Directions

Supply System Strategy

Four Emerging TrendsOutsourcingTechnology UtilizationSustainabilityRisk Management

Guava Puree Case

In class

Risk Identification

Ties to Current Events

Sustainability and Risk Survival = Risk Management Risk Identification

Forecasting RiskSupplier Selection RiskSupplier Performance RiskLogistics Risk Inventory RiskOngoing Operations Risks (Business Continuity

Planning) Focus is on Both Immediate and Long Term Formal Evaluation and Mitigation Plans

Scotts Miracle Gro Case

Case Argument Assignments

CURRENT EVENTS

Next ClassCultural Issues in Supply MgtOutsourcingOffshoring IKEA Case In Class Discussion

Abstracts due at beginning of classScottrsquos Case ndash LectureTeam Break OutsCurrent Events ndash Bring your articlesGuest Speaker ndash Morgan Hartnell

Questions

• Slide 1
• Introduction
• Agenda for the class
• Typical Class Flowhellip Subject to change
• Class AttendanceParticipation
• Grading
• SubmittalsDue Dates
• My Contact Information
• Additional Items
• Questions
• Team Exercise
• Careers In Source and Supply Chain Management
• Importance of Supply Management to the Firm
• Importance of purchasing to business
• Types of Purchases
• Slide 16
• Basic Purchasing Objectives
• Basic Purchasing Activities
• Slide 19
• Assigned Reading
• Changes in the Business Environment
• Slide 22
• Supply Chain Issues
• Slide 24
• Barbie
• Example - Boeing
• Strategic Planning ndash Global Sourcing
• The initials TQRDCEB stand for
• Strategy Development
• New strategic developments in purchasing
• Supply System Strategy
• Slide 32
• Guava Puree Case
• Risk Identification
• Sustainability and Risk
• Scotts Miracle Gro Case
• Current Events
• Next Class
• Slide 39

Team Exercise

Zin Obelisk

Careers In Source and Supply Chain ManagementTransactional SpecialistsBuyerCommodity SpecialistManagerMaterials SpecialistManagerMaterials EngineerSupplier Quality Engineer (SQE)Supply Chain AnalystMaterials PlanningMFG Program Manager (MPM)

Importance of Supply Management to the Firm

Continuity of SupplyAs of Product Value Impact on ProfitabilityCompetitive Advantage

Importance of purchasing to business

60-85 60-80 50-70 60-80

25-50

512

18

3 12

50

Admin

Services

Capex

Spares

Trade-items

Retailers Computers Consumer electronics

Automotive Pharma Service

industry

Typicalstructure

10-40 Production parts

Types of Purchases

Production MaterialsRaw MaterialsParts and Components (Sub-

Assemby)Capital Equipment

MachineryVehicles

Capital ProjectsConstruction

Types of PurchasesMRO Supplies

Operating SuppliesSpare Parts

Services Repair ServicesBuildings and GroundsProfessional Services amp

ConsultingTravelMarketing amp Advertisement

Basic Purchasing Objectives

Maintain Continuity of SupplyLeast Total Cost of OwnershipDevelop Purchasing as Strategic AssetCreate Competitive Advantage

Basic Purchasing Activities

SourcingFinding Potential SuppliersQualifying SuppliersSelecting the Supplier and

the Contract Type Single PurchasesMulti -year Agreements

Basic Purchasing Activities

Contract Administration Tracking Progress Expediting Progress Payments Other Life-of-Contract Activities

Developing and Managing Long-Term Supplier Relationships

Managing Change in the Supply System

Assigned ReadingMIT Sloan Management Review ndash Achieving Excellence in

Global Sourcing by Robert J Trent amp Robert M Monczka

Changes in the Business Environment

What Are Business System Changes

Changes in the Business Environment

Globalization of Trade Deregulation in many industries Product commonality across cultures and countries Formation of trade blocks (NAFTA EU) Improved transportation More sophisticated information and communications

technology

Regulation of Banks and squeeze of credit markets

Process Orientation Outsourcing Best-in-class Supplier Networks

Supply Chain Issues Co-ordination of Purchasing Requirements ndash

Pooling of Purchase and Standardization Across Departments Across Divisions Across Countries

Integration of Purchasing Inventory Management and Logistics (Design for Supply Chain)

Integration of Purchasing and Engineering with Production Planning (Design for Cost)

Supply Chain IssuesMake or Buy

OutsourcingOffshoring

Reciprocity Agreements CountertradeQuality Management and Lean

ManufacturingCycle Time Reduction

Environmental Issues ndash Sustainability amp Regulation

ROHS Halogen Free

Barbie Example1048766 An icon of international outsourcing

among other things1048766 Barbie has matured into a multi-billion-

dollar a year industry with sales and production on a global scale

1048766 Mattel Inc Barbiersquos parent company estimates that three Barbie dolls are sold every second of every day

1048766 Design is performed in California US1048766 Oil and plastic Pallet are made in Taiwan1048766 Her nylon hair is made in Japan1048766 Her body molds are made in the US1048766 She is assembled in Indonesia and

Malaysia1048766 She is clothed in China

Example - Boeing

Strategic Planning ndash Global Sourcing

Vision StatementStrategies

Long Term Action PlanCommitment of Organizational AssetsCreates Competitive Advantage

Performance Measures Metrics basedScore Cards

The initials TQRDCEB stand for

Technology Quality

Responsiveness Delivery Cost Environment Business

Strategy Development

Corporate StrategiesSupply StrategiesCommodity StudiesCommodity Strategies Individual Supplier Strategies

New strategic developments in purchasing

Leveraged purchasing and supply strategiesGlobal sourcingSupplier integration Early supplier involvement in new product development Reciprocity agreements and compensation agreementsEnvironmental issues and business integrity

1 Sellerrsquos market Buyerrsquos market

2 Increasing pressure on sales prices and margins leads to

Supply System Strategy

Key Activities Sourcing Continuity Least Total Cost

Three Flows of Supply Chain Management Information Materials Funds Manage in Both Directions

Supply System Strategy

Four Emerging TrendsOutsourcingTechnology UtilizationSustainabilityRisk Management

Guava Puree Case

In class

Risk Identification

Ties to Current Events

Sustainability and Risk Survival = Risk Management Risk Identification

Forecasting RiskSupplier Selection RiskSupplier Performance RiskLogistics Risk Inventory RiskOngoing Operations Risks (Business Continuity

Planning) Focus is on Both Immediate and Long Term Formal Evaluation and Mitigation Plans

Scotts Miracle Gro Case

Case Argument Assignments

CURRENT EVENTS

Next ClassCultural Issues in Supply MgtOutsourcingOffshoring IKEA Case In Class Discussion

Abstracts due at beginning of classScottrsquos Case ndash LectureTeam Break OutsCurrent Events ndash Bring your articlesGuest Speaker ndash Morgan Hartnell

Questions

• Slide 1
• Introduction
• Agenda for the class
• Typical Class Flowhellip Subject to change
• Class AttendanceParticipation
• Grading
• SubmittalsDue Dates
• My Contact Information
• Additional Items
• Questions
• Team Exercise
• Careers In Source and Supply Chain Management
• Importance of Supply Management to the Firm
• Importance of purchasing to business
• Types of Purchases
• Slide 16
• Basic Purchasing Objectives
• Basic Purchasing Activities
• Slide 19
• Assigned Reading
• Changes in the Business Environment
• Slide 22
• Supply Chain Issues
• Slide 24
• Barbie
• Example - Boeing
• Strategic Planning ndash Global Sourcing
• The initials TQRDCEB stand for
• Strategy Development
• New strategic developments in purchasing
• Supply System Strategy
• Slide 32
• Guava Puree Case
• Risk Identification
• Sustainability and Risk
• Scotts Miracle Gro Case
• Current Events
• Next Class
• Slide 39

Careers In Source and Supply Chain ManagementTransactional SpecialistsBuyerCommodity SpecialistManagerMaterials SpecialistManagerMaterials EngineerSupplier Quality Engineer (SQE)Supply Chain AnalystMaterials PlanningMFG Program Manager (MPM)

Importance of Supply Management to the Firm

Continuity of SupplyAs of Product Value Impact on ProfitabilityCompetitive Advantage

Importance of purchasing to business

60-85 60-80 50-70 60-80

25-50

512

18

3 12

50

Admin

Services

Capex

Spares

Trade-items

Retailers Computers Consumer electronics

Automotive Pharma Service

industry

Typicalstructure

10-40 Production parts

Types of Purchases

Production MaterialsRaw MaterialsParts and Components (Sub-

Assemby)Capital Equipment

MachineryVehicles

Capital ProjectsConstruction

Types of PurchasesMRO Supplies

Operating SuppliesSpare Parts

Services Repair ServicesBuildings and GroundsProfessional Services amp

ConsultingTravelMarketing amp Advertisement

Basic Purchasing Objectives

Maintain Continuity of SupplyLeast Total Cost of OwnershipDevelop Purchasing as Strategic AssetCreate Competitive Advantage

Basic Purchasing Activities

SourcingFinding Potential SuppliersQualifying SuppliersSelecting the Supplier and

the Contract Type Single PurchasesMulti -year Agreements

Basic Purchasing Activities

Contract Administration Tracking Progress Expediting Progress Payments Other Life-of-Contract Activities

Developing and Managing Long-Term Supplier Relationships

Managing Change in the Supply System

Assigned ReadingMIT Sloan Management Review ndash Achieving Excellence in

Global Sourcing by Robert J Trent amp Robert M Monczka

Changes in the Business Environment

What Are Business System Changes

Changes in the Business Environment

Globalization of Trade Deregulation in many industries Product commonality across cultures and countries Formation of trade blocks (NAFTA EU) Improved transportation More sophisticated information and communications

technology

Regulation of Banks and squeeze of credit markets

Process Orientation Outsourcing Best-in-class Supplier Networks

Supply Chain Issues Co-ordination of Purchasing Requirements ndash

Pooling of Purchase and Standardization Across Departments Across Divisions Across Countries

Integration of Purchasing Inventory Management and Logistics (Design for Supply Chain)

Integration of Purchasing and Engineering with Production Planning (Design for Cost)

Supply Chain IssuesMake or Buy

OutsourcingOffshoring

Reciprocity Agreements CountertradeQuality Management and Lean

ManufacturingCycle Time Reduction

Environmental Issues ndash Sustainability amp Regulation

ROHS Halogen Free

Barbie Example1048766 An icon of international outsourcing

among other things1048766 Barbie has matured into a multi-billion-

dollar a year industry with sales and production on a global scale

1048766 Mattel Inc Barbiersquos parent company estimates that three Barbie dolls are sold every second of every day

1048766 Design is performed in California US1048766 Oil and plastic Pallet are made in Taiwan1048766 Her nylon hair is made in Japan1048766 Her body molds are made in the US1048766 She is assembled in Indonesia and

Malaysia1048766 She is clothed in China

Example - Boeing

Strategic Planning ndash Global Sourcing

Vision StatementStrategies

Long Term Action PlanCommitment of Organizational AssetsCreates Competitive Advantage

Performance Measures Metrics basedScore Cards

The initials TQRDCEB stand for

Technology Quality

Responsiveness Delivery Cost Environment Business

Strategy Development

Corporate StrategiesSupply StrategiesCommodity StudiesCommodity Strategies Individual Supplier Strategies

New strategic developments in purchasing

Leveraged purchasing and supply strategiesGlobal sourcingSupplier integration Early supplier involvement in new product development Reciprocity agreements and compensation agreementsEnvironmental issues and business integrity

1 Sellerrsquos market Buyerrsquos market

2 Increasing pressure on sales prices and margins leads to

Supply System Strategy

Key Activities Sourcing Continuity Least Total Cost

Three Flows of Supply Chain Management Information Materials Funds Manage in Both Directions

Supply System Strategy

Four Emerging TrendsOutsourcingTechnology UtilizationSustainabilityRisk Management

Guava Puree Case

In class

Risk Identification

Ties to Current Events

Sustainability and Risk Survival = Risk Management Risk Identification

Forecasting RiskSupplier Selection RiskSupplier Performance RiskLogistics Risk Inventory RiskOngoing Operations Risks (Business Continuity

Planning) Focus is on Both Immediate and Long Term Formal Evaluation and Mitigation Plans

Scotts Miracle Gro Case

Case Argument Assignments

CURRENT EVENTS

Next ClassCultural Issues in Supply MgtOutsourcingOffshoring IKEA Case In Class Discussion

Abstracts due at beginning of classScottrsquos Case ndash LectureTeam Break OutsCurrent Events ndash Bring your articlesGuest Speaker ndash Morgan Hartnell

Questions

• Slide 1
• Introduction
• Agenda for the class
• Typical Class Flowhellip Subject to change
• Class AttendanceParticipation
• Grading
• SubmittalsDue Dates
• My Contact Information
• Additional Items
• Questions
• Team Exercise
• Careers In Source and Supply Chain Management
• Importance of Supply Management to the Firm
• Importance of purchasing to business
• Types of Purchases
• Slide 16
• Basic Purchasing Objectives
• Basic Purchasing Activities
• Slide 19
• Assigned Reading
• Changes in the Business Environment
• Slide 22
• Supply Chain Issues
• Slide 24
• Barbie
• Example - Boeing
• Strategic Planning ndash Global Sourcing
• The initials TQRDCEB stand for
• Strategy Development
• New strategic developments in purchasing
• Supply System Strategy
• Slide 32
• Guava Puree Case
• Risk Identification
• Sustainability and Risk
• Scotts Miracle Gro Case
• Current Events
• Next Class
• Slide 39

Importance of Supply Management to the Firm

Continuity of SupplyAs of Product Value Impact on ProfitabilityCompetitive Advantage

Importance of purchasing to business

60-85 60-80 50-70 60-80

25-50

512

18

3 12

50

Admin

Services

Capex

Spares

Trade-items

Retailers Computers Consumer electronics

Automotive Pharma Service

industry

Typicalstructure

10-40 Production parts

Types of Purchases

Production MaterialsRaw MaterialsParts and Components (Sub-

Assemby)Capital Equipment

MachineryVehicles

Capital ProjectsConstruction

Types of PurchasesMRO Supplies

Operating SuppliesSpare Parts

Services Repair ServicesBuildings and GroundsProfessional Services amp

ConsultingTravelMarketing amp Advertisement

Basic Purchasing Objectives

Maintain Continuity of SupplyLeast Total Cost of OwnershipDevelop Purchasing as Strategic AssetCreate Competitive Advantage

Basic Purchasing Activities

SourcingFinding Potential SuppliersQualifying SuppliersSelecting the Supplier and

the Contract Type Single PurchasesMulti -year Agreements

Basic Purchasing Activities

Contract Administration Tracking Progress Expediting Progress Payments Other Life-of-Contract Activities

Developing and Managing Long-Term Supplier Relationships

Managing Change in the Supply System

Assigned ReadingMIT Sloan Management Review ndash Achieving Excellence in

Global Sourcing by Robert J Trent amp Robert M Monczka

Changes in the Business Environment

What Are Business System Changes

Changes in the Business Environment

Globalization of Trade Deregulation in many industries Product commonality across cultures and countries Formation of trade blocks (NAFTA EU) Improved transportation More sophisticated information and communications

technology

Regulation of Banks and squeeze of credit markets

Process Orientation Outsourcing Best-in-class Supplier Networks

Supply Chain Issues Co-ordination of Purchasing Requirements ndash

Pooling of Purchase and Standardization Across Departments Across Divisions Across Countries

Integration of Purchasing Inventory Management and Logistics (Design for Supply Chain)

Integration of Purchasing and Engineering with Production Planning (Design for Cost)

Supply Chain IssuesMake or Buy

OutsourcingOffshoring

Reciprocity Agreements CountertradeQuality Management and Lean

ManufacturingCycle Time Reduction

Environmental Issues ndash Sustainability amp Regulation

ROHS Halogen Free

Barbie Example1048766 An icon of international outsourcing

among other things1048766 Barbie has matured into a multi-billion-

dollar a year industry with sales and production on a global scale

1048766 Mattel Inc Barbiersquos parent company estimates that three Barbie dolls are sold every second of every day

1048766 Design is performed in California US1048766 Oil and plastic Pallet are made in Taiwan1048766 Her nylon hair is made in Japan1048766 Her body molds are made in the US1048766 She is assembled in Indonesia and

Malaysia1048766 She is clothed in China

Example - Boeing

Strategic Planning ndash Global Sourcing

Vision StatementStrategies

Long Term Action PlanCommitment of Organizational AssetsCreates Competitive Advantage

Performance Measures Metrics basedScore Cards

The initials TQRDCEB stand for

Technology Quality

Responsiveness Delivery Cost Environment Business

Strategy Development

Corporate StrategiesSupply StrategiesCommodity StudiesCommodity Strategies Individual Supplier Strategies

New strategic developments in purchasing

Leveraged purchasing and supply strategiesGlobal sourcingSupplier integration Early supplier involvement in new product development Reciprocity agreements and compensation agreementsEnvironmental issues and business integrity

1 Sellerrsquos market Buyerrsquos market

2 Increasing pressure on sales prices and margins leads to

Supply System Strategy

Key Activities Sourcing Continuity Least Total Cost

Three Flows of Supply Chain Management Information Materials Funds Manage in Both Directions

Supply System Strategy

Four Emerging TrendsOutsourcingTechnology UtilizationSustainabilityRisk Management

Guava Puree Case

In class

Risk Identification

Ties to Current Events

Sustainability and Risk Survival = Risk Management Risk Identification

Forecasting RiskSupplier Selection RiskSupplier Performance RiskLogistics Risk Inventory RiskOngoing Operations Risks (Business Continuity

Planning) Focus is on Both Immediate and Long Term Formal Evaluation and Mitigation Plans

Scotts Miracle Gro Case

Case Argument Assignments

CURRENT EVENTS

Next ClassCultural Issues in Supply MgtOutsourcingOffshoring IKEA Case In Class Discussion

Abstracts due at beginning of classScottrsquos Case ndash LectureTeam Break OutsCurrent Events ndash Bring your articlesGuest Speaker ndash Morgan Hartnell

Questions

• Slide 1
• Introduction
• Agenda for the class
• Typical Class Flowhellip Subject to change
• Class AttendanceParticipation
• Grading
• SubmittalsDue Dates
• My Contact Information
• Additional Items
• Questions
• Team Exercise
• Careers In Source and Supply Chain Management
• Importance of Supply Management to the Firm
• Importance of purchasing to business
• Types of Purchases
• Slide 16
• Basic Purchasing Objectives
• Basic Purchasing Activities
• Slide 19
• Assigned Reading
• Changes in the Business Environment
• Slide 22
• Supply Chain Issues
• Slide 24
• Barbie
• Example - Boeing
• Strategic Planning ndash Global Sourcing
• The initials TQRDCEB stand for
• Strategy Development
• New strategic developments in purchasing
• Supply System Strategy
• Slide 32
• Guava Puree Case
• Risk Identification
• Sustainability and Risk
• Scotts Miracle Gro Case
• Current Events
• Next Class
• Slide 39

Importance of purchasing to business

60-85 60-80 50-70 60-80

25-50

512

18

3 12

50

Admin

Services

Capex

Spares

Trade-items

Retailers Computers Consumer electronics

Automotive Pharma Service

industry

Typicalstructure

10-40 Production parts

Types of Purchases

Production MaterialsRaw MaterialsParts and Components (Sub-

Assemby)Capital Equipment

MachineryVehicles

Capital ProjectsConstruction

Types of PurchasesMRO Supplies

Operating SuppliesSpare Parts

Services Repair ServicesBuildings and GroundsProfessional Services amp

ConsultingTravelMarketing amp Advertisement

Basic Purchasing Objectives

Maintain Continuity of SupplyLeast Total Cost of OwnershipDevelop Purchasing as Strategic AssetCreate Competitive Advantage

Basic Purchasing Activities

SourcingFinding Potential SuppliersQualifying SuppliersSelecting the Supplier and

the Contract Type Single PurchasesMulti -year Agreements

Basic Purchasing Activities

Contract Administration Tracking Progress Expediting Progress Payments Other Life-of-Contract Activities

Developing and Managing Long-Term Supplier Relationships

Managing Change in the Supply System

Assigned ReadingMIT Sloan Management Review ndash Achieving Excellence in

Global Sourcing by Robert J Trent amp Robert M Monczka

Changes in the Business Environment

What Are Business System Changes

Changes in the Business Environment

Globalization of Trade Deregulation in many industries Product commonality across cultures and countries Formation of trade blocks (NAFTA EU) Improved transportation More sophisticated information and communications

technology

Regulation of Banks and squeeze of credit markets

Process Orientation Outsourcing Best-in-class Supplier Networks

Supply Chain Issues Co-ordination of Purchasing Requirements ndash

Pooling of Purchase and Standardization Across Departments Across Divisions Across Countries

Integration of Purchasing Inventory Management and Logistics (Design for Supply Chain)

Integration of Purchasing and Engineering with Production Planning (Design for Cost)

Supply Chain IssuesMake or Buy

OutsourcingOffshoring

Reciprocity Agreements CountertradeQuality Management and Lean

ManufacturingCycle Time Reduction

Environmental Issues ndash Sustainability amp Regulation

ROHS Halogen Free

Barbie Example1048766 An icon of international outsourcing

among other things1048766 Barbie has matured into a multi-billion-

dollar a year industry with sales and production on a global scale

1048766 Mattel Inc Barbiersquos parent company estimates that three Barbie dolls are sold every second of every day

1048766 Design is performed in California US1048766 Oil and plastic Pallet are made in Taiwan1048766 Her nylon hair is made in Japan1048766 Her body molds are made in the US1048766 She is assembled in Indonesia and

Malaysia1048766 She is clothed in China

Example - Boeing

Strategic Planning ndash Global Sourcing

Vision StatementStrategies

Long Term Action PlanCommitment of Organizational AssetsCreates Competitive Advantage

Performance Measures Metrics basedScore Cards

The initials TQRDCEB stand for

Technology Quality

Responsiveness Delivery Cost Environment Business

Strategy Development

Corporate StrategiesSupply StrategiesCommodity StudiesCommodity Strategies Individual Supplier Strategies

New strategic developments in purchasing

Leveraged purchasing and supply strategiesGlobal sourcingSupplier integration Early supplier involvement in new product development Reciprocity agreements and compensation agreementsEnvironmental issues and business integrity

1 Sellerrsquos market Buyerrsquos market

2 Increasing pressure on sales prices and margins leads to

Supply System Strategy

Key Activities Sourcing Continuity Least Total Cost

Three Flows of Supply Chain Management Information Materials Funds Manage in Both Directions

Supply System Strategy

Four Emerging TrendsOutsourcingTechnology UtilizationSustainabilityRisk Management

Guava Puree Case

In class

Risk Identification

Ties to Current Events

Sustainability and Risk Survival = Risk Management Risk Identification

Forecasting RiskSupplier Selection RiskSupplier Performance RiskLogistics Risk Inventory RiskOngoing Operations Risks (Business Continuity

Planning) Focus is on Both Immediate and Long Term Formal Evaluation and Mitigation Plans

Scotts Miracle Gro Case

Case Argument Assignments

CURRENT EVENTS

Next ClassCultural Issues in Supply MgtOutsourcingOffshoring IKEA Case In Class Discussion

Abstracts due at beginning of classScottrsquos Case ndash LectureTeam Break OutsCurrent Events ndash Bring your articlesGuest Speaker ndash Morgan Hartnell

Questions

• Slide 1
• Introduction
• Agenda for the class
• Typical Class Flowhellip Subject to change
• Class AttendanceParticipation
• Grading
• SubmittalsDue Dates
• My Contact Information
• Additional Items
• Questions
• Team Exercise
• Careers In Source and Supply Chain Management
• Importance of Supply Management to the Firm
• Importance of purchasing to business
• Types of Purchases
• Slide 16
• Basic Purchasing Objectives
• Basic Purchasing Activities
• Slide 19
• Assigned Reading
• Changes in the Business Environment
• Slide 22
• Supply Chain Issues
• Slide 24
• Barbie
• Example - Boeing
• Strategic Planning ndash Global Sourcing
• The initials TQRDCEB stand for
• Strategy Development
• New strategic developments in purchasing
• Supply System Strategy
• Slide 32
• Guava Puree Case
• Risk Identification
• Sustainability and Risk
• Scotts Miracle Gro Case
• Current Events
• Next Class
• Slide 39

Types of Purchases

Production MaterialsRaw MaterialsParts and Components (Sub-

Assemby)Capital Equipment

MachineryVehicles

Capital ProjectsConstruction

Types of PurchasesMRO Supplies

Operating SuppliesSpare Parts

Services Repair ServicesBuildings and GroundsProfessional Services amp

ConsultingTravelMarketing amp Advertisement

Basic Purchasing Objectives

Maintain Continuity of SupplyLeast Total Cost of OwnershipDevelop Purchasing as Strategic AssetCreate Competitive Advantage

Basic Purchasing Activities

SourcingFinding Potential SuppliersQualifying SuppliersSelecting the Supplier and

the Contract Type Single PurchasesMulti -year Agreements

Basic Purchasing Activities

Contract Administration Tracking Progress Expediting Progress Payments Other Life-of-Contract Activities

Developing and Managing Long-Term Supplier Relationships

Managing Change in the Supply System

Assigned ReadingMIT Sloan Management Review ndash Achieving Excellence in

Global Sourcing by Robert J Trent amp Robert M Monczka

Changes in the Business Environment

What Are Business System Changes

Changes in the Business Environment

Globalization of Trade Deregulation in many industries Product commonality across cultures and countries Formation of trade blocks (NAFTA EU) Improved transportation More sophisticated information and communications

technology

Regulation of Banks and squeeze of credit markets

Process Orientation Outsourcing Best-in-class Supplier Networks

Supply Chain Issues Co-ordination of Purchasing Requirements ndash

Pooling of Purchase and Standardization Across Departments Across Divisions Across Countries

Integration of Purchasing Inventory Management and Logistics (Design for Supply Chain)

Integration of Purchasing and Engineering with Production Planning (Design for Cost)

Supply Chain IssuesMake or Buy

OutsourcingOffshoring

Reciprocity Agreements CountertradeQuality Management and Lean

ManufacturingCycle Time Reduction

Environmental Issues ndash Sustainability amp Regulation

ROHS Halogen Free

Barbie Example1048766 An icon of international outsourcing

among other things1048766 Barbie has matured into a multi-billion-

dollar a year industry with sales and production on a global scale

1048766 Mattel Inc Barbiersquos parent company estimates that three Barbie dolls are sold every second of every day

1048766 Design is performed in California US1048766 Oil and plastic Pallet are made in Taiwan1048766 Her nylon hair is made in Japan1048766 Her body molds are made in the US1048766 She is assembled in Indonesia and

Malaysia1048766 She is clothed in China

Example - Boeing

Strategic Planning ndash Global Sourcing

Vision StatementStrategies

Long Term Action PlanCommitment of Organizational AssetsCreates Competitive Advantage

Performance Measures Metrics basedScore Cards

The initials TQRDCEB stand for

Technology Quality

Responsiveness Delivery Cost Environment Business

Strategy Development

Corporate StrategiesSupply StrategiesCommodity StudiesCommodity Strategies Individual Supplier Strategies

New strategic developments in purchasing

Leveraged purchasing and supply strategiesGlobal sourcingSupplier integration Early supplier involvement in new product development Reciprocity agreements and compensation agreementsEnvironmental issues and business integrity

1 Sellerrsquos market Buyerrsquos market

2 Increasing pressure on sales prices and margins leads to

Supply System Strategy

Key Activities Sourcing Continuity Least Total Cost

Three Flows of Supply Chain Management Information Materials Funds Manage in Both Directions

Supply System Strategy

Four Emerging TrendsOutsourcingTechnology UtilizationSustainabilityRisk Management

Guava Puree Case

In class

Risk Identification

Ties to Current Events

Sustainability and Risk Survival = Risk Management Risk Identification

Forecasting RiskSupplier Selection RiskSupplier Performance RiskLogistics Risk Inventory RiskOngoing Operations Risks (Business Continuity

Planning) Focus is on Both Immediate and Long Term Formal Evaluation and Mitigation Plans

Scotts Miracle Gro Case

Case Argument Assignments

CURRENT EVENTS

Next ClassCultural Issues in Supply MgtOutsourcingOffshoring IKEA Case In Class Discussion

Abstracts due at beginning of classScottrsquos Case ndash LectureTeam Break OutsCurrent Events ndash Bring your articlesGuest Speaker ndash Morgan Hartnell

Questions

• Slide 1
• Introduction
• Agenda for the class
• Typical Class Flowhellip Subject to change
• Class AttendanceParticipation
• Grading
• SubmittalsDue Dates
• My Contact Information
• Additional Items
• Questions
• Team Exercise
• Careers In Source and Supply Chain Management
• Importance of Supply Management to the Firm
• Importance of purchasing to business
• Types of Purchases
• Slide 16
• Basic Purchasing Objectives
• Basic Purchasing Activities
• Slide 19
• Assigned Reading
• Changes in the Business Environment
• Slide 22
• Supply Chain Issues
• Slide 24
• Barbie
• Example - Boeing
• Strategic Planning ndash Global Sourcing
• The initials TQRDCEB stand for
• Strategy Development
• New strategic developments in purchasing
• Supply System Strategy
• Slide 32
• Guava Puree Case
• Risk Identification
• Sustainability and Risk
• Scotts Miracle Gro Case
• Current Events
• Next Class
• Slide 39

Types of PurchasesMRO Supplies

Operating SuppliesSpare Parts

Services Repair ServicesBuildings and GroundsProfessional Services amp

ConsultingTravelMarketing amp Advertisement

Basic Purchasing Objectives

Maintain Continuity of SupplyLeast Total Cost of OwnershipDevelop Purchasing as Strategic AssetCreate Competitive Advantage

Basic Purchasing Activities

SourcingFinding Potential SuppliersQualifying SuppliersSelecting the Supplier and

the Contract Type Single PurchasesMulti -year Agreements

Basic Purchasing Activities

Contract Administration Tracking Progress Expediting Progress Payments Other Life-of-Contract Activities

Developing and Managing Long-Term Supplier Relationships

Managing Change in the Supply System

Assigned ReadingMIT Sloan Management Review ndash Achieving Excellence in

Global Sourcing by Robert J Trent amp Robert M Monczka

Changes in the Business Environment

What Are Business System Changes

Changes in the Business Environment

Globalization of Trade Deregulation in many industries Product commonality across cultures and countries Formation of trade blocks (NAFTA EU) Improved transportation More sophisticated information and communications

technology

Regulation of Banks and squeeze of credit markets

Process Orientation Outsourcing Best-in-class Supplier Networks

Supply Chain Issues Co-ordination of Purchasing Requirements ndash

Pooling of Purchase and Standardization Across Departments Across Divisions Across Countries

Integration of Purchasing Inventory Management and Logistics (Design for Supply Chain)

Integration of Purchasing and Engineering with Production Planning (Design for Cost)

Supply Chain IssuesMake or Buy

OutsourcingOffshoring

Reciprocity Agreements CountertradeQuality Management and Lean

ManufacturingCycle Time Reduction

Environmental Issues ndash Sustainability amp Regulation

ROHS Halogen Free

Barbie Example1048766 An icon of international outsourcing

among other things1048766 Barbie has matured into a multi-billion-

dollar a year industry with sales and production on a global scale

1048766 Mattel Inc Barbiersquos parent company estimates that three Barbie dolls are sold every second of every day

1048766 Design is performed in California US1048766 Oil and plastic Pallet are made in Taiwan1048766 Her nylon hair is made in Japan1048766 Her body molds are made in the US1048766 She is assembled in Indonesia and

Malaysia1048766 She is clothed in China

Example - Boeing

Strategic Planning ndash Global Sourcing

Vision StatementStrategies

Long Term Action PlanCommitment of Organizational AssetsCreates Competitive Advantage

Performance Measures Metrics basedScore Cards

The initials TQRDCEB stand for

Technology Quality

Responsiveness Delivery Cost Environment Business

Strategy Development

Corporate StrategiesSupply StrategiesCommodity StudiesCommodity Strategies Individual Supplier Strategies

New strategic developments in purchasing

Leveraged purchasing and supply strategiesGlobal sourcingSupplier integration Early supplier involvement in new product development Reciprocity agreements and compensation agreementsEnvironmental issues and business integrity

1 Sellerrsquos market Buyerrsquos market

2 Increasing pressure on sales prices and margins leads to

Supply System Strategy

Key Activities Sourcing Continuity Least Total Cost

Three Flows of Supply Chain Management Information Materials Funds Manage in Both Directions

Supply System Strategy

Four Emerging TrendsOutsourcingTechnology UtilizationSustainabilityRisk Management

Guava Puree Case

In class

Risk Identification

Ties to Current Events

Sustainability and Risk Survival = Risk Management Risk Identification

Forecasting RiskSupplier Selection RiskSupplier Performance RiskLogistics Risk Inventory RiskOngoing Operations Risks (Business Continuity

Planning) Focus is on Both Immediate and Long Term Formal Evaluation and Mitigation Plans

Scotts Miracle Gro Case

Case Argument Assignments

CURRENT EVENTS

Next ClassCultural Issues in Supply MgtOutsourcingOffshoring IKEA Case In Class Discussion

Abstracts due at beginning of classScottrsquos Case ndash LectureTeam Break OutsCurrent Events ndash Bring your articlesGuest Speaker ndash Morgan Hartnell

Questions

• Slide 1
• Introduction
• Agenda for the class
• Typical Class Flowhellip Subject to change
• Class AttendanceParticipation
• Grading
• SubmittalsDue Dates
• My Contact Information
• Additional Items
• Questions
• Team Exercise
• Careers In Source and Supply Chain Management
• Importance of Supply Management to the Firm
• Importance of purchasing to business
• Types of Purchases
• Slide 16
• Basic Purchasing Objectives
• Basic Purchasing Activities
• Slide 19
• Assigned Reading
• Changes in the Business Environment
• Slide 22
• Supply Chain Issues
• Slide 24
• Barbie
• Example - Boeing
• Strategic Planning ndash Global Sourcing
• The initials TQRDCEB stand for
• Strategy Development
• New strategic developments in purchasing
• Supply System Strategy
• Slide 32
• Guava Puree Case
• Risk Identification
• Sustainability and Risk
• Scotts Miracle Gro Case
• Current Events
• Next Class
• Slide 39

Basic Purchasing Objectives

Maintain Continuity of SupplyLeast Total Cost of OwnershipDevelop Purchasing as Strategic AssetCreate Competitive Advantage

Basic Purchasing Activities

SourcingFinding Potential SuppliersQualifying SuppliersSelecting the Supplier and

the Contract Type Single PurchasesMulti -year Agreements

Basic Purchasing Activities

Contract Administration Tracking Progress Expediting Progress Payments Other Life-of-Contract Activities

Developing and Managing Long-Term Supplier Relationships

Managing Change in the Supply System

Assigned ReadingMIT Sloan Management Review ndash Achieving Excellence in

Global Sourcing by Robert J Trent amp Robert M Monczka

Changes in the Business Environment

What Are Business System Changes

Changes in the Business Environment

Globalization of Trade Deregulation in many industries Product commonality across cultures and countries Formation of trade blocks (NAFTA EU) Improved transportation More sophisticated information and communications

technology

Regulation of Banks and squeeze of credit markets

Process Orientation Outsourcing Best-in-class Supplier Networks

Supply Chain Issues Co-ordination of Purchasing Requirements ndash

Pooling of Purchase and Standardization Across Departments Across Divisions Across Countries

Integration of Purchasing Inventory Management and Logistics (Design for Supply Chain)

Integration of Purchasing and Engineering with Production Planning (Design for Cost)

Supply Chain IssuesMake or Buy

OutsourcingOffshoring

Reciprocity Agreements CountertradeQuality Management and Lean

ManufacturingCycle Time Reduction

Environmental Issues ndash Sustainability amp Regulation

ROHS Halogen Free

Barbie Example1048766 An icon of international outsourcing

among other things1048766 Barbie has matured into a multi-billion-

dollar a year industry with sales and production on a global scale

1048766 Mattel Inc Barbiersquos parent company estimates that three Barbie dolls are sold every second of every day

1048766 Design is performed in California US1048766 Oil and plastic Pallet are made in Taiwan1048766 Her nylon hair is made in Japan1048766 Her body molds are made in the US1048766 She is assembled in Indonesia and

Malaysia1048766 She is clothed in China

Example - Boeing

Strategic Planning ndash Global Sourcing

Vision StatementStrategies

Long Term Action PlanCommitment of Organizational AssetsCreates Competitive Advantage

Performance Measures Metrics basedScore Cards

The initials TQRDCEB stand for

Technology Quality

Responsiveness Delivery Cost Environment Business

Strategy Development

Corporate StrategiesSupply StrategiesCommodity StudiesCommodity Strategies Individual Supplier Strategies

New strategic developments in purchasing

Leveraged purchasing and supply strategiesGlobal sourcingSupplier integration Early supplier involvement in new product development Reciprocity agreements and compensation agreementsEnvironmental issues and business integrity

1 Sellerrsquos market Buyerrsquos market

2 Increasing pressure on sales prices and margins leads to

Supply System Strategy

Key Activities Sourcing Continuity Least Total Cost

Three Flows of Supply Chain Management Information Materials Funds Manage in Both Directions

Supply System Strategy

Four Emerging TrendsOutsourcingTechnology UtilizationSustainabilityRisk Management

Guava Puree Case

In class

Risk Identification

Ties to Current Events

Sustainability and Risk Survival = Risk Management Risk Identification

Forecasting RiskSupplier Selection RiskSupplier Performance RiskLogistics Risk Inventory RiskOngoing Operations Risks (Business Continuity

Planning) Focus is on Both Immediate and Long Term Formal Evaluation and Mitigation Plans

Scotts Miracle Gro Case

Case Argument Assignments

CURRENT EVENTS

Next ClassCultural Issues in Supply MgtOutsourcingOffshoring IKEA Case In Class Discussion

Abstracts due at beginning of classScottrsquos Case ndash LectureTeam Break OutsCurrent Events ndash Bring your articlesGuest Speaker ndash Morgan Hartnell

Questions

• Slide 1
• Introduction
• Agenda for the class
• Typical Class Flowhellip Subject to change
• Class AttendanceParticipation
• Grading
• SubmittalsDue Dates
• My Contact Information
• Additional Items
• Questions
• Team Exercise
• Careers In Source and Supply Chain Management
• Importance of Supply Management to the Firm
• Importance of purchasing to business
• Types of Purchases
• Slide 16
• Basic Purchasing Objectives
• Basic Purchasing Activities
• Slide 19
• Assigned Reading
• Changes in the Business Environment
• Slide 22
• Supply Chain Issues
• Slide 24
• Barbie
• Example - Boeing
• Strategic Planning ndash Global Sourcing
• The initials TQRDCEB stand for
• Strategy Development
• New strategic developments in purchasing
• Supply System Strategy
• Slide 32
• Guava Puree Case
• Risk Identification
• Sustainability and Risk
• Scotts Miracle Gro Case
• Current Events
• Next Class
• Slide 39

Basic Purchasing Activities

SourcingFinding Potential SuppliersQualifying SuppliersSelecting the Supplier and

the Contract Type Single PurchasesMulti -year Agreements

Basic Purchasing Activities

Contract Administration Tracking Progress Expediting Progress Payments Other Life-of-Contract Activities

Developing and Managing Long-Term Supplier Relationships

Managing Change in the Supply System

Assigned ReadingMIT Sloan Management Review ndash Achieving Excellence in

Global Sourcing by Robert J Trent amp Robert M Monczka

Changes in the Business Environment

What Are Business System Changes

Changes in the Business Environment

Globalization of Trade Deregulation in many industries Product commonality across cultures and countries Formation of trade blocks (NAFTA EU) Improved transportation More sophisticated information and communications

technology

Regulation of Banks and squeeze of credit markets

Process Orientation Outsourcing Best-in-class Supplier Networks

Supply Chain Issues Co-ordination of Purchasing Requirements ndash

Pooling of Purchase and Standardization Across Departments Across Divisions Across Countries

Integration of Purchasing Inventory Management and Logistics (Design for Supply Chain)

Integration of Purchasing and Engineering with Production Planning (Design for Cost)

Supply Chain IssuesMake or Buy

OutsourcingOffshoring

Reciprocity Agreements CountertradeQuality Management and Lean

ManufacturingCycle Time Reduction

Environmental Issues ndash Sustainability amp Regulation

ROHS Halogen Free

Barbie Example1048766 An icon of international outsourcing

among other things1048766 Barbie has matured into a multi-billion-

dollar a year industry with sales and production on a global scale

1048766 Mattel Inc Barbiersquos parent company estimates that three Barbie dolls are sold every second of every day

1048766 Design is performed in California US1048766 Oil and plastic Pallet are made in Taiwan1048766 Her nylon hair is made in Japan1048766 Her body molds are made in the US1048766 She is assembled in Indonesia and

Malaysia1048766 She is clothed in China

Example - Boeing

Strategic Planning ndash Global Sourcing

Vision StatementStrategies

Long Term Action PlanCommitment of Organizational AssetsCreates Competitive Advantage

Performance Measures Metrics basedScore Cards

The initials TQRDCEB stand for

Technology Quality

Responsiveness Delivery Cost Environment Business

Strategy Development

Corporate StrategiesSupply StrategiesCommodity StudiesCommodity Strategies Individual Supplier Strategies

New strategic developments in purchasing

Leveraged purchasing and supply strategiesGlobal sourcingSupplier integration Early supplier involvement in new product development Reciprocity agreements and compensation agreementsEnvironmental issues and business integrity

1 Sellerrsquos market Buyerrsquos market

2 Increasing pressure on sales prices and margins leads to

Supply System Strategy

Key Activities Sourcing Continuity Least Total Cost

Three Flows of Supply Chain Management Information Materials Funds Manage in Both Directions

Supply System Strategy

Four Emerging TrendsOutsourcingTechnology UtilizationSustainabilityRisk Management

Guava Puree Case

In class

Risk Identification

Ties to Current Events

Sustainability and Risk Survival = Risk Management Risk Identification

Forecasting RiskSupplier Selection RiskSupplier Performance RiskLogistics Risk Inventory RiskOngoing Operations Risks (Business Continuity

Planning) Focus is on Both Immediate and Long Term Formal Evaluation and Mitigation Plans

Scotts Miracle Gro Case

Case Argument Assignments

CURRENT EVENTS

Next ClassCultural Issues in Supply MgtOutsourcingOffshoring IKEA Case In Class Discussion

Abstracts due at beginning of classScottrsquos Case ndash LectureTeam Break OutsCurrent Events ndash Bring your articlesGuest Speaker ndash Morgan Hartnell

Questions

• Slide 1
• Introduction
• Agenda for the class
• Typical Class Flowhellip Subject to change
• Class AttendanceParticipation
• Grading
• SubmittalsDue Dates
• My Contact Information
• Additional Items
• Questions
• Team Exercise
• Careers In Source and Supply Chain Management
• Importance of Supply Management to the Firm
• Importance of purchasing to business
• Types of Purchases
• Slide 16
• Basic Purchasing Objectives
• Basic Purchasing Activities
• Slide 19
• Assigned Reading
• Changes in the Business Environment
• Slide 22
• Supply Chain Issues
• Slide 24
• Barbie
• Example - Boeing
• Strategic Planning ndash Global Sourcing
• The initials TQRDCEB stand for
• Strategy Development
• New strategic developments in purchasing
• Supply System Strategy
• Slide 32
• Guava Puree Case
• Risk Identification
• Sustainability and Risk
• Scotts Miracle Gro Case
• Current Events
• Next Class
• Slide 39

Basic Purchasing Activities

Contract Administration Tracking Progress Expediting Progress Payments Other Life-of-Contract Activities

Developing and Managing Long-Term Supplier Relationships

Managing Change in the Supply System

Assigned ReadingMIT Sloan Management Review ndash Achieving Excellence in

Global Sourcing by Robert J Trent amp Robert M Monczka

Changes in the Business Environment

What Are Business System Changes

Changes in the Business Environment

Globalization of Trade Deregulation in many industries Product commonality across cultures and countries Formation of trade blocks (NAFTA EU) Improved transportation More sophisticated information and communications

technology

Regulation of Banks and squeeze of credit markets

Process Orientation Outsourcing Best-in-class Supplier Networks

Supply Chain Issues Co-ordination of Purchasing Requirements ndash

Pooling of Purchase and Standardization Across Departments Across Divisions Across Countries

Integration of Purchasing Inventory Management and Logistics (Design for Supply Chain)

Integration of Purchasing and Engineering with Production Planning (Design for Cost)

Supply Chain IssuesMake or Buy

OutsourcingOffshoring

Reciprocity Agreements CountertradeQuality Management and Lean

ManufacturingCycle Time Reduction

Environmental Issues ndash Sustainability amp Regulation

ROHS Halogen Free

Barbie Example1048766 An icon of international outsourcing

among other things1048766 Barbie has matured into a multi-billion-

dollar a year industry with sales and production on a global scale

1048766 Mattel Inc Barbiersquos parent company estimates that three Barbie dolls are sold every second of every day

1048766 Design is performed in California US1048766 Oil and plastic Pallet are made in Taiwan1048766 Her nylon hair is made in Japan1048766 Her body molds are made in the US1048766 She is assembled in Indonesia and

Malaysia1048766 She is clothed in China

Example - Boeing

Strategic Planning ndash Global Sourcing

Vision StatementStrategies

Long Term Action PlanCommitment of Organizational AssetsCreates Competitive Advantage

Performance Measures Metrics basedScore Cards

The initials TQRDCEB stand for

Technology Quality

Responsiveness Delivery Cost Environment Business

Strategy Development

Corporate StrategiesSupply StrategiesCommodity StudiesCommodity Strategies Individual Supplier Strategies

New strategic developments in purchasing

Leveraged purchasing and supply strategiesGlobal sourcingSupplier integration Early supplier involvement in new product development Reciprocity agreements and compensation agreementsEnvironmental issues and business integrity

1 Sellerrsquos market Buyerrsquos market

2 Increasing pressure on sales prices and margins leads to

Supply System Strategy

Key Activities Sourcing Continuity Least Total Cost

Three Flows of Supply Chain Management Information Materials Funds Manage in Both Directions

Supply System Strategy

Four Emerging TrendsOutsourcingTechnology UtilizationSustainabilityRisk Management

Guava Puree Case

In class

Risk Identification

Ties to Current Events

Sustainability and Risk Survival = Risk Management Risk Identification

Forecasting RiskSupplier Selection RiskSupplier Performance RiskLogistics Risk Inventory RiskOngoing Operations Risks (Business Continuity

Planning) Focus is on Both Immediate and Long Term Formal Evaluation and Mitigation Plans

Scotts Miracle Gro Case

Case Argument Assignments

CURRENT EVENTS

Next ClassCultural Issues in Supply MgtOutsourcingOffshoring IKEA Case In Class Discussion

Abstracts due at beginning of classScottrsquos Case ndash LectureTeam Break OutsCurrent Events ndash Bring your articlesGuest Speaker ndash Morgan Hartnell

Questions

• Slide 1
• Introduction
• Agenda for the class
• Typical Class Flowhellip Subject to change
• Class AttendanceParticipation
• Grading
• SubmittalsDue Dates
• My Contact Information
• Additional Items
• Questions
• Team Exercise
• Careers In Source and Supply Chain Management
• Importance of Supply Management to the Firm
• Importance of purchasing to business
• Types of Purchases
• Slide 16
• Basic Purchasing Objectives
• Basic Purchasing Activities
• Slide 19
• Assigned Reading
• Changes in the Business Environment
• Slide 22
• Supply Chain Issues
• Slide 24
• Barbie
• Example - Boeing
• Strategic Planning ndash Global Sourcing
• The initials TQRDCEB stand for
• Strategy Development
• New strategic developments in purchasing
• Supply System Strategy
• Slide 32
• Guava Puree Case
• Risk Identification
• Sustainability and Risk
• Scotts Miracle Gro Case
• Current Events
• Next Class
• Slide 39

Assigned ReadingMIT Sloan Management Review ndash Achieving Excellence in

Global Sourcing by Robert J Trent amp Robert M Monczka

Changes in the Business Environment

What Are Business System Changes

Changes in the Business Environment

Globalization of Trade Deregulation in many industries Product commonality across cultures and countries Formation of trade blocks (NAFTA EU) Improved transportation More sophisticated information and communications

technology

Regulation of Banks and squeeze of credit markets

Process Orientation Outsourcing Best-in-class Supplier Networks

Supply Chain Issues Co-ordination of Purchasing Requirements ndash

Pooling of Purchase and Standardization Across Departments Across Divisions Across Countries

Integration of Purchasing Inventory Management and Logistics (Design for Supply Chain)

Integration of Purchasing and Engineering with Production Planning (Design for Cost)

Supply Chain IssuesMake or Buy

OutsourcingOffshoring

Reciprocity Agreements CountertradeQuality Management and Lean

ManufacturingCycle Time Reduction

Environmental Issues ndash Sustainability amp Regulation

ROHS Halogen Free

Barbie Example1048766 An icon of international outsourcing

among other things1048766 Barbie has matured into a multi-billion-

dollar a year industry with sales and production on a global scale

1048766 Mattel Inc Barbiersquos parent company estimates that three Barbie dolls are sold every second of every day

1048766 Design is performed in California US1048766 Oil and plastic Pallet are made in Taiwan1048766 Her nylon hair is made in Japan1048766 Her body molds are made in the US1048766 She is assembled in Indonesia and

Malaysia1048766 She is clothed in China

Example - Boeing

Strategic Planning ndash Global Sourcing

Vision StatementStrategies

Long Term Action PlanCommitment of Organizational AssetsCreates Competitive Advantage

Performance Measures Metrics basedScore Cards

The initials TQRDCEB stand for

Technology Quality

Responsiveness Delivery Cost Environment Business

Strategy Development

Corporate StrategiesSupply StrategiesCommodity StudiesCommodity Strategies Individual Supplier Strategies

New strategic developments in purchasing

Leveraged purchasing and supply strategiesGlobal sourcingSupplier integration Early supplier involvement in new product development Reciprocity agreements and compensation agreementsEnvironmental issues and business integrity

1 Sellerrsquos market Buyerrsquos market

2 Increasing pressure on sales prices and margins leads to

Supply System Strategy

Key Activities Sourcing Continuity Least Total Cost

Three Flows of Supply Chain Management Information Materials Funds Manage in Both Directions

Supply System Strategy

Four Emerging TrendsOutsourcingTechnology UtilizationSustainabilityRisk Management

Guava Puree Case

In class

Risk Identification

Ties to Current Events

Sustainability and Risk Survival = Risk Management Risk Identification

Forecasting RiskSupplier Selection RiskSupplier Performance RiskLogistics Risk Inventory RiskOngoing Operations Risks (Business Continuity

Planning) Focus is on Both Immediate and Long Term Formal Evaluation and Mitigation Plans

Scotts Miracle Gro Case

Case Argument Assignments

CURRENT EVENTS

Next ClassCultural Issues in Supply MgtOutsourcingOffshoring IKEA Case In Class Discussion

Abstracts due at beginning of classScottrsquos Case ndash LectureTeam Break OutsCurrent Events ndash Bring your articlesGuest Speaker ndash Morgan Hartnell

Questions

• Slide 1
• Introduction
• Agenda for the class
• Typical Class Flowhellip Subject to change
• Class AttendanceParticipation
• Grading
• SubmittalsDue Dates
• My Contact Information
• Additional Items
• Questions
• Team Exercise
• Careers In Source and Supply Chain Management
• Importance of Supply Management to the Firm
• Importance of purchasing to business
• Types of Purchases
• Slide 16
• Basic Purchasing Objectives
• Basic Purchasing Activities
• Slide 19
• Assigned Reading
• Changes in the Business Environment
• Slide 22
• Supply Chain Issues
• Slide 24
• Barbie
• Example - Boeing
• Strategic Planning ndash Global Sourcing
• The initials TQRDCEB stand for
• Strategy Development
• New strategic developments in purchasing
• Supply System Strategy
• Slide 32
• Guava Puree Case
• Risk Identification
• Sustainability and Risk
• Scotts Miracle Gro Case
• Current Events
• Next Class
• Slide 39

Changes in the Business Environment

What Are Business System Changes

Changes in the Business Environment

Globalization of Trade Deregulation in many industries Product commonality across cultures and countries Formation of trade blocks (NAFTA EU) Improved transportation More sophisticated information and communications

technology

Regulation of Banks and squeeze of credit markets

Process Orientation Outsourcing Best-in-class Supplier Networks

Supply Chain Issues Co-ordination of Purchasing Requirements ndash

Pooling of Purchase and Standardization Across Departments Across Divisions Across Countries

Integration of Purchasing Inventory Management and Logistics (Design for Supply Chain)

Integration of Purchasing and Engineering with Production Planning (Design for Cost)

Supply Chain IssuesMake or Buy

OutsourcingOffshoring

Reciprocity Agreements CountertradeQuality Management and Lean

ManufacturingCycle Time Reduction

Environmental Issues ndash Sustainability amp Regulation

ROHS Halogen Free

Barbie Example1048766 An icon of international outsourcing

among other things1048766 Barbie has matured into a multi-billion-

dollar a year industry with sales and production on a global scale

1048766 Mattel Inc Barbiersquos parent company estimates that three Barbie dolls are sold every second of every day

1048766 Design is performed in California US1048766 Oil and plastic Pallet are made in Taiwan1048766 Her nylon hair is made in Japan1048766 Her body molds are made in the US1048766 She is assembled in Indonesia and

Malaysia1048766 She is clothed in China

Example - Boeing

Strategic Planning ndash Global Sourcing

Vision StatementStrategies

Long Term Action PlanCommitment of Organizational AssetsCreates Competitive Advantage

Performance Measures Metrics basedScore Cards

The initials TQRDCEB stand for

Technology Quality

Responsiveness Delivery Cost Environment Business

Strategy Development

Corporate StrategiesSupply StrategiesCommodity StudiesCommodity Strategies Individual Supplier Strategies

New strategic developments in purchasing

Leveraged purchasing and supply strategiesGlobal sourcingSupplier integration Early supplier involvement in new product development Reciprocity agreements and compensation agreementsEnvironmental issues and business integrity

1 Sellerrsquos market Buyerrsquos market

2 Increasing pressure on sales prices and margins leads to

Supply System Strategy

Key Activities Sourcing Continuity Least Total Cost

Three Flows of Supply Chain Management Information Materials Funds Manage in Both Directions

Supply System Strategy

Four Emerging TrendsOutsourcingTechnology UtilizationSustainabilityRisk Management

Guava Puree Case

In class

Risk Identification

Ties to Current Events

Sustainability and Risk Survival = Risk Management Risk Identification

Forecasting RiskSupplier Selection RiskSupplier Performance RiskLogistics Risk Inventory RiskOngoing Operations Risks (Business Continuity

Planning) Focus is on Both Immediate and Long Term Formal Evaluation and Mitigation Plans

Scotts Miracle Gro Case

Case Argument Assignments

CURRENT EVENTS

Next ClassCultural Issues in Supply MgtOutsourcingOffshoring IKEA Case In Class Discussion

Abstracts due at beginning of classScottrsquos Case ndash LectureTeam Break OutsCurrent Events ndash Bring your articlesGuest Speaker ndash Morgan Hartnell

Questions

• Slide 1
• Introduction
• Agenda for the class
• Typical Class Flowhellip Subject to change
• Class AttendanceParticipation
• Grading
• SubmittalsDue Dates
• My Contact Information
• Additional Items
• Questions
• Team Exercise
• Careers In Source and Supply Chain Management
• Importance of Supply Management to the Firm
• Importance of purchasing to business
• Types of Purchases
• Slide 16
• Basic Purchasing Objectives
• Basic Purchasing Activities
• Slide 19
• Assigned Reading
• Changes in the Business Environment
• Slide 22
• Supply Chain Issues
• Slide 24
• Barbie
• Example - Boeing
• Strategic Planning ndash Global Sourcing
• The initials TQRDCEB stand for
• Strategy Development
• New strategic developments in purchasing
• Supply System Strategy
• Slide 32
• Guava Puree Case
• Risk Identification
• Sustainability and Risk
• Scotts Miracle Gro Case
• Current Events
• Next Class
• Slide 39

Changes in the Business Environment

Globalization of Trade Deregulation in many industries Product commonality across cultures and countries Formation of trade blocks (NAFTA EU) Improved transportation More sophisticated information and communications

technology

Regulation of Banks and squeeze of credit markets

Process Orientation Outsourcing Best-in-class Supplier Networks

Supply Chain Issues Co-ordination of Purchasing Requirements ndash

Pooling of Purchase and Standardization Across Departments Across Divisions Across Countries

Integration of Purchasing Inventory Management and Logistics (Design for Supply Chain)

Integration of Purchasing and Engineering with Production Planning (Design for Cost)

Supply Chain IssuesMake or Buy

OutsourcingOffshoring

Reciprocity Agreements CountertradeQuality Management and Lean

ManufacturingCycle Time Reduction

Environmental Issues ndash Sustainability amp Regulation

ROHS Halogen Free

Barbie Example1048766 An icon of international outsourcing

among other things1048766 Barbie has matured into a multi-billion-

dollar a year industry with sales and production on a global scale

1048766 Mattel Inc Barbiersquos parent company estimates that three Barbie dolls are sold every second of every day

1048766 Design is performed in California US1048766 Oil and plastic Pallet are made in Taiwan1048766 Her nylon hair is made in Japan1048766 Her body molds are made in the US1048766 She is assembled in Indonesia and

Malaysia1048766 She is clothed in China

Example - Boeing

Strategic Planning ndash Global Sourcing

Vision StatementStrategies

Long Term Action PlanCommitment of Organizational AssetsCreates Competitive Advantage

Performance Measures Metrics basedScore Cards

The initials TQRDCEB stand for

Technology Quality

Responsiveness Delivery Cost Environment Business

Strategy Development

Corporate StrategiesSupply StrategiesCommodity StudiesCommodity Strategies Individual Supplier Strategies

New strategic developments in purchasing

Leveraged purchasing and supply strategiesGlobal sourcingSupplier integration Early supplier involvement in new product development Reciprocity agreements and compensation agreementsEnvironmental issues and business integrity

1 Sellerrsquos market Buyerrsquos market

2 Increasing pressure on sales prices and margins leads to

Supply System Strategy

Key Activities Sourcing Continuity Least Total Cost

Three Flows of Supply Chain Management Information Materials Funds Manage in Both Directions

Supply System Strategy

Four Emerging TrendsOutsourcingTechnology UtilizationSustainabilityRisk Management

Guava Puree Case

In class

Risk Identification

Ties to Current Events

Sustainability and Risk Survival = Risk Management Risk Identification

Forecasting RiskSupplier Selection RiskSupplier Performance RiskLogistics Risk Inventory RiskOngoing Operations Risks (Business Continuity

Planning) Focus is on Both Immediate and Long Term Formal Evaluation and Mitigation Plans

Scotts Miracle Gro Case

Case Argument Assignments

CURRENT EVENTS

Next ClassCultural Issues in Supply MgtOutsourcingOffshoring IKEA Case In Class Discussion

Abstracts due at beginning of classScottrsquos Case ndash LectureTeam Break OutsCurrent Events ndash Bring your articlesGuest Speaker ndash Morgan Hartnell

Questions

• Slide 1
• Introduction
• Agenda for the class
• Typical Class Flowhellip Subject to change
• Class AttendanceParticipation
• Grading
• SubmittalsDue Dates
• My Contact Information
• Additional Items
• Questions
• Team Exercise
• Careers In Source and Supply Chain Management
• Importance of Supply Management to the Firm
• Importance of purchasing to business
• Types of Purchases
• Slide 16
• Basic Purchasing Objectives
• Basic Purchasing Activities
• Slide 19
• Assigned Reading
• Changes in the Business Environment
• Slide 22
• Supply Chain Issues
• Slide 24
• Barbie
• Example - Boeing
• Strategic Planning ndash Global Sourcing
• The initials TQRDCEB stand for
• Strategy Development
• New strategic developments in purchasing
• Supply System Strategy
• Slide 32
• Guava Puree Case
• Risk Identification
• Sustainability and Risk
• Scotts Miracle Gro Case
• Current Events
• Next Class
• Slide 39

Supply Chain Issues Co-ordination of Purchasing Requirements ndash

Pooling of Purchase and Standardization Across Departments Across Divisions Across Countries

Integration of Purchasing Inventory Management and Logistics (Design for Supply Chain)

Integration of Purchasing and Engineering with Production Planning (Design for Cost)

Supply Chain IssuesMake or Buy

OutsourcingOffshoring

Reciprocity Agreements CountertradeQuality Management and Lean

ManufacturingCycle Time Reduction

Environmental Issues ndash Sustainability amp Regulation

ROHS Halogen Free

Barbie Example1048766 An icon of international outsourcing

among other things1048766 Barbie has matured into a multi-billion-

dollar a year industry with sales and production on a global scale

1048766 Mattel Inc Barbiersquos parent company estimates that three Barbie dolls are sold every second of every day

1048766 Design is performed in California US1048766 Oil and plastic Pallet are made in Taiwan1048766 Her nylon hair is made in Japan1048766 Her body molds are made in the US1048766 She is assembled in Indonesia and

Malaysia1048766 She is clothed in China

Example - Boeing

Strategic Planning ndash Global Sourcing

Vision StatementStrategies

Long Term Action PlanCommitment of Organizational AssetsCreates Competitive Advantage

Performance Measures Metrics basedScore Cards

The initials TQRDCEB stand for

Technology Quality

Responsiveness Delivery Cost Environment Business

Strategy Development

Corporate StrategiesSupply StrategiesCommodity StudiesCommodity Strategies Individual Supplier Strategies

New strategic developments in purchasing

Leveraged purchasing and supply strategiesGlobal sourcingSupplier integration Early supplier involvement in new product development Reciprocity agreements and compensation agreementsEnvironmental issues and business integrity

1 Sellerrsquos market Buyerrsquos market

2 Increasing pressure on sales prices and margins leads to

Supply System Strategy

Key Activities Sourcing Continuity Least Total Cost

Three Flows of Supply Chain Management Information Materials Funds Manage in Both Directions

Supply System Strategy

Four Emerging TrendsOutsourcingTechnology UtilizationSustainabilityRisk Management

Guava Puree Case

In class

Risk Identification

Ties to Current Events

Sustainability and Risk Survival = Risk Management Risk Identification

Forecasting RiskSupplier Selection RiskSupplier Performance RiskLogistics Risk Inventory RiskOngoing Operations Risks (Business Continuity

Planning) Focus is on Both Immediate and Long Term Formal Evaluation and Mitigation Plans

Scotts Miracle Gro Case

Case Argument Assignments

CURRENT EVENTS

Next ClassCultural Issues in Supply MgtOutsourcingOffshoring IKEA Case In Class Discussion

Abstracts due at beginning of classScottrsquos Case ndash LectureTeam Break OutsCurrent Events ndash Bring your articlesGuest Speaker ndash Morgan Hartnell

Questions

• Slide 1
• Introduction
• Agenda for the class
• Typical Class Flowhellip Subject to change
• Class AttendanceParticipation
• Grading
• SubmittalsDue Dates
• My Contact Information
• Additional Items
• Questions
• Team Exercise
• Careers In Source and Supply Chain Management
• Importance of Supply Management to the Firm
• Importance of purchasing to business
• Types of Purchases
• Slide 16
• Basic Purchasing Objectives
• Basic Purchasing Activities
• Slide 19
• Assigned Reading
• Changes in the Business Environment
• Slide 22
• Supply Chain Issues
• Slide 24
• Barbie
• Example - Boeing
• Strategic Planning ndash Global Sourcing
• The initials TQRDCEB stand for
• Strategy Development
• New strategic developments in purchasing
• Supply System Strategy
• Slide 32
• Guava Puree Case
• Risk Identification
• Sustainability and Risk
• Scotts Miracle Gro Case
• Current Events
• Next Class
• Slide 39

Supply Chain IssuesMake or Buy

OutsourcingOffshoring

Reciprocity Agreements CountertradeQuality Management and Lean

ManufacturingCycle Time Reduction

Environmental Issues ndash Sustainability amp Regulation

ROHS Halogen Free

Barbie Example1048766 An icon of international outsourcing

among other things1048766 Barbie has matured into a multi-billion-

dollar a year industry with sales and production on a global scale

1048766 Mattel Inc Barbiersquos parent company estimates that three Barbie dolls are sold every second of every day

1048766 Design is performed in California US1048766 Oil and plastic Pallet are made in Taiwan1048766 Her nylon hair is made in Japan1048766 Her body molds are made in the US1048766 She is assembled in Indonesia and

Malaysia1048766 She is clothed in China

Example - Boeing

Strategic Planning ndash Global Sourcing

Vision StatementStrategies

Long Term Action PlanCommitment of Organizational AssetsCreates Competitive Advantage

Performance Measures Metrics basedScore Cards

The initials TQRDCEB stand for

Technology Quality

Responsiveness Delivery Cost Environment Business

Strategy Development

Corporate StrategiesSupply StrategiesCommodity StudiesCommodity Strategies Individual Supplier Strategies

New strategic developments in purchasing

Leveraged purchasing and supply strategiesGlobal sourcingSupplier integration Early supplier involvement in new product development Reciprocity agreements and compensation agreementsEnvironmental issues and business integrity

1 Sellerrsquos market Buyerrsquos market

2 Increasing pressure on sales prices and margins leads to

Supply System Strategy

Key Activities Sourcing Continuity Least Total Cost

Three Flows of Supply Chain Management Information Materials Funds Manage in Both Directions

Supply System Strategy

Four Emerging TrendsOutsourcingTechnology UtilizationSustainabilityRisk Management

Guava Puree Case

In class

Risk Identification

Ties to Current Events

Sustainability and Risk Survival = Risk Management Risk Identification

Forecasting RiskSupplier Selection RiskSupplier Performance RiskLogistics Risk Inventory RiskOngoing Operations Risks (Business Continuity

Planning) Focus is on Both Immediate and Long Term Formal Evaluation and Mitigation Plans

Scotts Miracle Gro Case

Case Argument Assignments

CURRENT EVENTS

Next ClassCultural Issues in Supply MgtOutsourcingOffshoring IKEA Case In Class Discussion

Abstracts due at beginning of classScottrsquos Case ndash LectureTeam Break OutsCurrent Events ndash Bring your articlesGuest Speaker ndash Morgan Hartnell

Questions

• Slide 1
• Introduction
• Agenda for the class
• Typical Class Flowhellip Subject to change
• Class AttendanceParticipation
• Grading
• SubmittalsDue Dates
• My Contact Information
• Additional Items
• Questions
• Team Exercise
• Careers In Source and Supply Chain Management
• Importance of Supply Management to the Firm
• Importance of purchasing to business
• Types of Purchases
• Slide 16
• Basic Purchasing Objectives
• Basic Purchasing Activities
• Slide 19
• Assigned Reading
• Changes in the Business Environment
• Slide 22
• Supply Chain Issues
• Slide 24
• Barbie
• Example - Boeing
• Strategic Planning ndash Global Sourcing
• The initials TQRDCEB stand for
• Strategy Development
• New strategic developments in purchasing
• Supply System Strategy
• Slide 32
• Guava Puree Case
• Risk Identification
• Sustainability and Risk
• Scotts Miracle Gro Case
• Current Events
• Next Class
• Slide 39

Barbie Example1048766 An icon of international outsourcing

among other things1048766 Barbie has matured into a multi-billion-

dollar a year industry with sales and production on a global scale

1048766 Mattel Inc Barbiersquos parent company estimates that three Barbie dolls are sold every second of every day

1048766 Design is performed in California US1048766 Oil and plastic Pallet are made in Taiwan1048766 Her nylon hair is made in Japan1048766 Her body molds are made in the US1048766 She is assembled in Indonesia and

Malaysia1048766 She is clothed in China

Example - Boeing

Strategic Planning ndash Global Sourcing

Vision StatementStrategies

Long Term Action PlanCommitment of Organizational AssetsCreates Competitive Advantage

Performance Measures Metrics basedScore Cards

The initials TQRDCEB stand for

Technology Quality

Responsiveness Delivery Cost Environment Business

Strategy Development

Corporate StrategiesSupply StrategiesCommodity StudiesCommodity Strategies Individual Supplier Strategies

New strategic developments in purchasing

Leveraged purchasing and supply strategiesGlobal sourcingSupplier integration Early supplier involvement in new product development Reciprocity agreements and compensation agreementsEnvironmental issues and business integrity

1 Sellerrsquos market Buyerrsquos market

2 Increasing pressure on sales prices and margins leads to

Supply System Strategy

Key Activities Sourcing Continuity Least Total Cost

Three Flows of Supply Chain Management Information Materials Funds Manage in Both Directions

Supply System Strategy

Four Emerging TrendsOutsourcingTechnology UtilizationSustainabilityRisk Management

Guava Puree Case

In class

Risk Identification

Ties to Current Events

Sustainability and Risk Survival = Risk Management Risk Identification

Forecasting RiskSupplier Selection RiskSupplier Performance RiskLogistics Risk Inventory RiskOngoing Operations Risks (Business Continuity

Planning) Focus is on Both Immediate and Long Term Formal Evaluation and Mitigation Plans

Scotts Miracle Gro Case

Case Argument Assignments

CURRENT EVENTS

Next ClassCultural Issues in Supply MgtOutsourcingOffshoring IKEA Case In Class Discussion

Abstracts due at beginning of classScottrsquos Case ndash LectureTeam Break OutsCurrent Events ndash Bring your articlesGuest Speaker ndash Morgan Hartnell

Questions

• Slide 1
• Introduction
• Agenda for the class
• Typical Class Flowhellip Subject to change
• Class AttendanceParticipation
• Grading
• SubmittalsDue Dates
• My Contact Information
• Additional Items
• Questions
• Team Exercise
• Careers In Source and Supply Chain Management
• Importance of Supply Management to the Firm
• Importance of purchasing to business
• Types of Purchases
• Slide 16
• Basic Purchasing Objectives
• Basic Purchasing Activities
• Slide 19
• Assigned Reading
• Changes in the Business Environment
• Slide 22
• Supply Chain Issues
• Slide 24
• Barbie
• Example - Boeing
• Strategic Planning ndash Global Sourcing
• The initials TQRDCEB stand for
• Strategy Development
• New strategic developments in purchasing
• Supply System Strategy
• Slide 32
• Guava Puree Case
• Risk Identification
• Sustainability and Risk
• Scotts Miracle Gro Case
• Current Events
• Next Class
• Slide 39

Example - Boeing

Strategic Planning ndash Global Sourcing

Vision StatementStrategies

Long Term Action PlanCommitment of Organizational AssetsCreates Competitive Advantage

Performance Measures Metrics basedScore Cards

The initials TQRDCEB stand for

Technology Quality

Responsiveness Delivery Cost Environment Business

Strategy Development

Corporate StrategiesSupply StrategiesCommodity StudiesCommodity Strategies Individual Supplier Strategies

New strategic developments in purchasing

Leveraged purchasing and supply strategiesGlobal sourcingSupplier integration Early supplier involvement in new product development Reciprocity agreements and compensation agreementsEnvironmental issues and business integrity

1 Sellerrsquos market Buyerrsquos market

2 Increasing pressure on sales prices and margins leads to

Supply System Strategy

Key Activities Sourcing Continuity Least Total Cost

Three Flows of Supply Chain Management Information Materials Funds Manage in Both Directions

Supply System Strategy

Four Emerging TrendsOutsourcingTechnology UtilizationSustainabilityRisk Management

Guava Puree Case

In class

Risk Identification

Ties to Current Events

Sustainability and Risk Survival = Risk Management Risk Identification

Forecasting RiskSupplier Selection RiskSupplier Performance RiskLogistics Risk Inventory RiskOngoing Operations Risks (Business Continuity

Planning) Focus is on Both Immediate and Long Term Formal Evaluation and Mitigation Plans

Scotts Miracle Gro Case

Case Argument Assignments

CURRENT EVENTS

Next ClassCultural Issues in Supply MgtOutsourcingOffshoring IKEA Case In Class Discussion

Abstracts due at beginning of classScottrsquos Case ndash LectureTeam Break OutsCurrent Events ndash Bring your articlesGuest Speaker ndash Morgan Hartnell

Questions

• Slide 1
• Introduction
• Agenda for the class
• Typical Class Flowhellip Subject to change
• Class AttendanceParticipation
• Grading
• SubmittalsDue Dates
• My Contact Information
• Additional Items
• Questions
• Team Exercise
• Careers In Source and Supply Chain Management
• Importance of Supply Management to the Firm
• Importance of purchasing to business
• Types of Purchases
• Slide 16
• Basic Purchasing Objectives
• Basic Purchasing Activities
• Slide 19
• Assigned Reading
• Changes in the Business Environment
• Slide 22
• Supply Chain Issues
• Slide 24
• Barbie
• Example - Boeing
• Strategic Planning ndash Global Sourcing
• The initials TQRDCEB stand for
• Strategy Development
• New strategic developments in purchasing
• Supply System Strategy
• Slide 32
• Guava Puree Case
• Risk Identification
• Sustainability and Risk
• Scotts Miracle Gro Case
• Current Events
• Next Class
• Slide 39

Strategic Planning ndash Global Sourcing

Vision StatementStrategies

Long Term Action PlanCommitment of Organizational AssetsCreates Competitive Advantage

Performance Measures Metrics basedScore Cards

The initials TQRDCEB stand for

Technology Quality

Responsiveness Delivery Cost Environment Business

Strategy Development

Corporate StrategiesSupply StrategiesCommodity StudiesCommodity Strategies Individual Supplier Strategies

New strategic developments in purchasing

Leveraged purchasing and supply strategiesGlobal sourcingSupplier integration Early supplier involvement in new product development Reciprocity agreements and compensation agreementsEnvironmental issues and business integrity

1 Sellerrsquos market Buyerrsquos market

2 Increasing pressure on sales prices and margins leads to

Supply System Strategy

Key Activities Sourcing Continuity Least Total Cost

Three Flows of Supply Chain Management Information Materials Funds Manage in Both Directions

Supply System Strategy

Four Emerging TrendsOutsourcingTechnology UtilizationSustainabilityRisk Management

Guava Puree Case

In class

Risk Identification

Ties to Current Events

Sustainability and Risk Survival = Risk Management Risk Identification

Forecasting RiskSupplier Selection RiskSupplier Performance RiskLogistics Risk Inventory RiskOngoing Operations Risks (Business Continuity

Planning) Focus is on Both Immediate and Long Term Formal Evaluation and Mitigation Plans

Scotts Miracle Gro Case

Case Argument Assignments

CURRENT EVENTS

Next ClassCultural Issues in Supply MgtOutsourcingOffshoring IKEA Case In Class Discussion

Abstracts due at beginning of classScottrsquos Case ndash LectureTeam Break OutsCurrent Events ndash Bring your articlesGuest Speaker ndash Morgan Hartnell

Questions

• Slide 1
• Introduction
• Agenda for the class
• Typical Class Flowhellip Subject to change
• Class AttendanceParticipation
• Grading
• SubmittalsDue Dates
• My Contact Information
• Additional Items
• Questions
• Team Exercise
• Careers In Source and Supply Chain Management
• Importance of Supply Management to the Firm
• Importance of purchasing to business
• Types of Purchases
• Slide 16
• Basic Purchasing Objectives
• Basic Purchasing Activities
• Slide 19
• Assigned Reading
• Changes in the Business Environment
• Slide 22
• Supply Chain Issues
• Slide 24
• Barbie
• Example - Boeing
• Strategic Planning ndash Global Sourcing
• The initials TQRDCEB stand for
• Strategy Development
• New strategic developments in purchasing
• Supply System Strategy
• Slide 32
• Guava Puree Case
• Risk Identification
• Sustainability and Risk
• Scotts Miracle Gro Case
• Current Events
• Next Class
• Slide 39

The initials TQRDCEB stand for

Technology Quality

Responsiveness Delivery Cost Environment Business

Strategy Development

Corporate StrategiesSupply StrategiesCommodity StudiesCommodity Strategies Individual Supplier Strategies

New strategic developments in purchasing

Leveraged purchasing and supply strategiesGlobal sourcingSupplier integration Early supplier involvement in new product development Reciprocity agreements and compensation agreementsEnvironmental issues and business integrity

1 Sellerrsquos market Buyerrsquos market

2 Increasing pressure on sales prices and margins leads to

Supply System Strategy

Key Activities Sourcing Continuity Least Total Cost

Three Flows of Supply Chain Management Information Materials Funds Manage in Both Directions

Supply System Strategy

Four Emerging TrendsOutsourcingTechnology UtilizationSustainabilityRisk Management

Guava Puree Case

In class

Risk Identification

Ties to Current Events

Sustainability and Risk Survival = Risk Management Risk Identification

Forecasting RiskSupplier Selection RiskSupplier Performance RiskLogistics Risk Inventory RiskOngoing Operations Risks (Business Continuity

Planning) Focus is on Both Immediate and Long Term Formal Evaluation and Mitigation Plans

Scotts Miracle Gro Case

Case Argument Assignments

CURRENT EVENTS

Next ClassCultural Issues in Supply MgtOutsourcingOffshoring IKEA Case In Class Discussion

Abstracts due at beginning of classScottrsquos Case ndash LectureTeam Break OutsCurrent Events ndash Bring your articlesGuest Speaker ndash Morgan Hartnell

Questions

• Slide 1
• Introduction
• Agenda for the class
• Typical Class Flowhellip Subject to change
• Class AttendanceParticipation
• Grading
• SubmittalsDue Dates
• My Contact Information
• Additional Items
• Questions
• Team Exercise
• Careers In Source and Supply Chain Management
• Importance of Supply Management to the Firm
• Importance of purchasing to business
• Types of Purchases
• Slide 16
• Basic Purchasing Objectives
• Basic Purchasing Activities
• Slide 19
• Assigned Reading
• Changes in the Business Environment
• Slide 22
• Supply Chain Issues
• Slide 24
• Barbie
• Example - Boeing
• Strategic Planning ndash Global Sourcing
• The initials TQRDCEB stand for
• Strategy Development
• New strategic developments in purchasing
• Supply System Strategy
• Slide 32
• Guava Puree Case
• Risk Identification
• Sustainability and Risk
• Scotts Miracle Gro Case
• Current Events
• Next Class
• Slide 39

Strategy Development

Corporate StrategiesSupply StrategiesCommodity StudiesCommodity Strategies Individual Supplier Strategies

New strategic developments in purchasing

Leveraged purchasing and supply strategiesGlobal sourcingSupplier integration Early supplier involvement in new product development Reciprocity agreements and compensation agreementsEnvironmental issues and business integrity

1 Sellerrsquos market Buyerrsquos market

2 Increasing pressure on sales prices and margins leads to

Supply System Strategy

Key Activities Sourcing Continuity Least Total Cost

Three Flows of Supply Chain Management Information Materials Funds Manage in Both Directions

Supply System Strategy

Four Emerging TrendsOutsourcingTechnology UtilizationSustainabilityRisk Management

Guava Puree Case

In class

Risk Identification

Ties to Current Events

Sustainability and Risk Survival = Risk Management Risk Identification

Forecasting RiskSupplier Selection RiskSupplier Performance RiskLogistics Risk Inventory RiskOngoing Operations Risks (Business Continuity

Planning) Focus is on Both Immediate and Long Term Formal Evaluation and Mitigation Plans

Scotts Miracle Gro Case

Case Argument Assignments

CURRENT EVENTS

Next ClassCultural Issues in Supply MgtOutsourcingOffshoring IKEA Case In Class Discussion

Abstracts due at beginning of classScottrsquos Case ndash LectureTeam Break OutsCurrent Events ndash Bring your articlesGuest Speaker ndash Morgan Hartnell

Questions

• Slide 1
• Introduction
• Agenda for the class
• Typical Class Flowhellip Subject to change
• Class AttendanceParticipation
• Grading
• SubmittalsDue Dates
• My Contact Information
• Additional Items
• Questions
• Team Exercise
• Careers In Source and Supply Chain Management
• Importance of Supply Management to the Firm
• Importance of purchasing to business
• Types of Purchases
• Slide 16
• Basic Purchasing Objectives
• Basic Purchasing Activities
• Slide 19
• Assigned Reading
• Changes in the Business Environment
• Slide 22
• Supply Chain Issues
• Slide 24
• Barbie
• Example - Boeing
• Strategic Planning ndash Global Sourcing
• The initials TQRDCEB stand for
• Strategy Development
• New strategic developments in purchasing
• Supply System Strategy
• Slide 32
• Guava Puree Case
• Risk Identification
• Sustainability and Risk
• Scotts Miracle Gro Case
• Current Events
• Next Class
• Slide 39

New strategic developments in purchasing

Leveraged purchasing and supply strategiesGlobal sourcingSupplier integration Early supplier involvement in new product development Reciprocity agreements and compensation agreementsEnvironmental issues and business integrity

1 Sellerrsquos market Buyerrsquos market

2 Increasing pressure on sales prices and margins leads to

Supply System Strategy

Key Activities Sourcing Continuity Least Total Cost

Three Flows of Supply Chain Management Information Materials Funds Manage in Both Directions

Supply System Strategy

Four Emerging TrendsOutsourcingTechnology UtilizationSustainabilityRisk Management

Guava Puree Case

In class

Risk Identification

Ties to Current Events

Sustainability and Risk Survival = Risk Management Risk Identification

Forecasting RiskSupplier Selection RiskSupplier Performance RiskLogistics Risk Inventory RiskOngoing Operations Risks (Business Continuity

Planning) Focus is on Both Immediate and Long Term Formal Evaluation and Mitigation Plans

Scotts Miracle Gro Case

Case Argument Assignments

CURRENT EVENTS

Next ClassCultural Issues in Supply MgtOutsourcingOffshoring IKEA Case In Class Discussion

Abstracts due at beginning of classScottrsquos Case ndash LectureTeam Break OutsCurrent Events ndash Bring your articlesGuest Speaker ndash Morgan Hartnell

Questions

• Slide 1
• Introduction
• Agenda for the class
• Typical Class Flowhellip Subject to change
• Class AttendanceParticipation
• Grading
• SubmittalsDue Dates
• My Contact Information
• Additional Items
• Questions
• Team Exercise
• Careers In Source and Supply Chain Management
• Importance of Supply Management to the Firm
• Importance of purchasing to business
• Types of Purchases
• Slide 16
• Basic Purchasing Objectives
• Basic Purchasing Activities
• Slide 19
• Assigned Reading
• Changes in the Business Environment
• Slide 22
• Supply Chain Issues
• Slide 24
• Barbie
• Example - Boeing
• Strategic Planning ndash Global Sourcing
• The initials TQRDCEB stand for
• Strategy Development
• New strategic developments in purchasing
• Supply System Strategy
• Slide 32
• Guava Puree Case
• Risk Identification
• Sustainability and Risk
• Scotts Miracle Gro Case
• Current Events
• Next Class
• Slide 39

Supply System Strategy

Key Activities Sourcing Continuity Least Total Cost

Three Flows of Supply Chain Management Information Materials Funds Manage in Both Directions

Supply System Strategy

Four Emerging TrendsOutsourcingTechnology UtilizationSustainabilityRisk Management

Guava Puree Case

In class

Risk Identification

Ties to Current Events

Sustainability and Risk Survival = Risk Management Risk Identification

Forecasting RiskSupplier Selection RiskSupplier Performance RiskLogistics Risk Inventory RiskOngoing Operations Risks (Business Continuity

Planning) Focus is on Both Immediate and Long Term Formal Evaluation and Mitigation Plans

Scotts Miracle Gro Case

Case Argument Assignments

CURRENT EVENTS

Next ClassCultural Issues in Supply MgtOutsourcingOffshoring IKEA Case In Class Discussion

Abstracts due at beginning of classScottrsquos Case ndash LectureTeam Break OutsCurrent Events ndash Bring your articlesGuest Speaker ndash Morgan Hartnell

Questions

• Slide 1
• Introduction
• Agenda for the class
• Typical Class Flowhellip Subject to change
• Class AttendanceParticipation
• Grading
• SubmittalsDue Dates
• My Contact Information
• Additional Items
• Questions
• Team Exercise
• Careers In Source and Supply Chain Management
• Importance of Supply Management to the Firm
• Importance of purchasing to business
• Types of Purchases
• Slide 16
• Basic Purchasing Objectives
• Basic Purchasing Activities
• Slide 19
• Assigned Reading
• Changes in the Business Environment
• Slide 22
• Supply Chain Issues
• Slide 24
• Barbie
• Example - Boeing
• Strategic Planning ndash Global Sourcing
• The initials TQRDCEB stand for
• Strategy Development
• New strategic developments in purchasing
• Supply System Strategy
• Slide 32
• Guava Puree Case
• Risk Identification
• Sustainability and Risk
• Scotts Miracle Gro Case
• Current Events
• Next Class
• Slide 39

Supply System Strategy

Four Emerging TrendsOutsourcingTechnology UtilizationSustainabilityRisk Management

Guava Puree Case

In class

Risk Identification

Ties to Current Events

Sustainability and Risk Survival = Risk Management Risk Identification

Forecasting RiskSupplier Selection RiskSupplier Performance RiskLogistics Risk Inventory RiskOngoing Operations Risks (Business Continuity

Planning) Focus is on Both Immediate and Long Term Formal Evaluation and Mitigation Plans

Scotts Miracle Gro Case

Case Argument Assignments

CURRENT EVENTS

Next ClassCultural Issues in Supply MgtOutsourcingOffshoring IKEA Case In Class Discussion

Abstracts due at beginning of classScottrsquos Case ndash LectureTeam Break OutsCurrent Events ndash Bring your articlesGuest Speaker ndash Morgan Hartnell

Questions

• Slide 1
• Introduction
• Agenda for the class
• Typical Class Flowhellip Subject to change
• Class AttendanceParticipation
• Grading
• SubmittalsDue Dates
• My Contact Information
• Additional Items
• Questions
• Team Exercise
• Careers In Source and Supply Chain Management
• Importance of Supply Management to the Firm
• Importance of purchasing to business
• Types of Purchases
• Slide 16
• Basic Purchasing Objectives
• Basic Purchasing Activities
• Slide 19
• Assigned Reading
• Changes in the Business Environment
• Slide 22
• Supply Chain Issues
• Slide 24
• Barbie
• Example - Boeing
• Strategic Planning ndash Global Sourcing
• The initials TQRDCEB stand for
• Strategy Development
• New strategic developments in purchasing
• Supply System Strategy
• Slide 32
• Guava Puree Case
• Risk Identification
• Sustainability and Risk
• Scotts Miracle Gro Case
• Current Events
• Next Class
• Slide 39

Guava Puree Case

In class

Risk Identification

Ties to Current Events

Sustainability and Risk Survival = Risk Management Risk Identification

Forecasting RiskSupplier Selection RiskSupplier Performance RiskLogistics Risk Inventory RiskOngoing Operations Risks (Business Continuity

Planning) Focus is on Both Immediate and Long Term Formal Evaluation and Mitigation Plans

Scotts Miracle Gro Case

Case Argument Assignments

CURRENT EVENTS

Next ClassCultural Issues in Supply MgtOutsourcingOffshoring IKEA Case In Class Discussion

Abstracts due at beginning of classScottrsquos Case ndash LectureTeam Break OutsCurrent Events ndash Bring your articlesGuest Speaker ndash Morgan Hartnell

Questions

• Slide 1
• Introduction
• Agenda for the class
• Typical Class Flowhellip Subject to change
• Class AttendanceParticipation
• Grading
• SubmittalsDue Dates
• My Contact Information
• Additional Items
• Questions
• Team Exercise
• Careers In Source and Supply Chain Management
• Importance of Supply Management to the Firm
• Importance of purchasing to business
• Types of Purchases
• Slide 16
• Basic Purchasing Objectives
• Basic Purchasing Activities
• Slide 19
• Assigned Reading
• Changes in the Business Environment
• Slide 22
• Supply Chain Issues
• Slide 24
• Barbie
• Example - Boeing
• Strategic Planning ndash Global Sourcing
• The initials TQRDCEB stand for
• Strategy Development
• New strategic developments in purchasing
• Supply System Strategy
• Slide 32
• Guava Puree Case
• Risk Identification
• Sustainability and Risk
• Scotts Miracle Gro Case
• Current Events
• Next Class
• Slide 39

Risk Identification

Ties to Current Events

Sustainability and Risk Survival = Risk Management Risk Identification

Forecasting RiskSupplier Selection RiskSupplier Performance RiskLogistics Risk Inventory RiskOngoing Operations Risks (Business Continuity

Planning) Focus is on Both Immediate and Long Term Formal Evaluation and Mitigation Plans

Scotts Miracle Gro Case

Case Argument Assignments

CURRENT EVENTS

Next ClassCultural Issues in Supply MgtOutsourcingOffshoring IKEA Case In Class Discussion

Abstracts due at beginning of classScottrsquos Case ndash LectureTeam Break OutsCurrent Events ndash Bring your articlesGuest Speaker ndash Morgan Hartnell

Questions

• Slide 1
• Introduction
• Agenda for the class
• Typical Class Flowhellip Subject to change
• Class AttendanceParticipation
• Grading
• SubmittalsDue Dates
• My Contact Information
• Additional Items
• Questions
• Team Exercise
• Careers In Source and Supply Chain Management
• Importance of Supply Management to the Firm
• Importance of purchasing to business
• Types of Purchases
• Slide 16
• Basic Purchasing Objectives
• Basic Purchasing Activities
• Slide 19
• Assigned Reading
• Changes in the Business Environment
• Slide 22
• Supply Chain Issues
• Slide 24
• Barbie
• Example - Boeing
• Strategic Planning ndash Global Sourcing
• The initials TQRDCEB stand for
• Strategy Development
• New strategic developments in purchasing
• Supply System Strategy
• Slide 32
• Guava Puree Case
• Risk Identification
• Sustainability and Risk
• Scotts Miracle Gro Case
• Current Events
• Next Class
• Slide 39

Sustainability and Risk Survival = Risk Management Risk Identification

Forecasting RiskSupplier Selection RiskSupplier Performance RiskLogistics Risk Inventory RiskOngoing Operations Risks (Business Continuity

Planning) Focus is on Both Immediate and Long Term Formal Evaluation and Mitigation Plans

Scotts Miracle Gro Case

Case Argument Assignments

CURRENT EVENTS

Next ClassCultural Issues in Supply MgtOutsourcingOffshoring IKEA Case In Class Discussion

Abstracts due at beginning of classScottrsquos Case ndash LectureTeam Break OutsCurrent Events ndash Bring your articlesGuest Speaker ndash Morgan Hartnell

Questions

• Slide 1
• Introduction
• Agenda for the class
• Typical Class Flowhellip Subject to change
• Class AttendanceParticipation
• Grading
• SubmittalsDue Dates
• My Contact Information
• Additional Items
• Questions
• Team Exercise
• Careers In Source and Supply Chain Management
• Importance of Supply Management to the Firm
• Importance of purchasing to business
• Types of Purchases
• Slide 16
• Basic Purchasing Objectives
• Basic Purchasing Activities
• Slide 19
• Assigned Reading
• Changes in the Business Environment
• Slide 22
• Supply Chain Issues
• Slide 24
• Barbie
• Example - Boeing
• Strategic Planning ndash Global Sourcing
• The initials TQRDCEB stand for
• Strategy Development
• New strategic developments in purchasing
• Supply System Strategy
• Slide 32
• Guava Puree Case
• Risk Identification
• Sustainability and Risk
• Scotts Miracle Gro Case
• Current Events
• Next Class
• Slide 39

Scotts Miracle Gro Case

Case Argument Assignments

CURRENT EVENTS

Next ClassCultural Issues in Supply MgtOutsourcingOffshoring IKEA Case In Class Discussion

Abstracts due at beginning of classScottrsquos Case ndash LectureTeam Break OutsCurrent Events ndash Bring your articlesGuest Speaker ndash Morgan Hartnell

Questions

• Slide 1
• Introduction
• Agenda for the class
• Typical Class Flowhellip Subject to change
• Class AttendanceParticipation
• Grading
• SubmittalsDue Dates
• My Contact Information
• Additional Items
• Questions
• Team Exercise
• Careers In Source and Supply Chain Management
• Importance of Supply Management to the Firm
• Importance of purchasing to business
• Types of Purchases
• Slide 16
• Basic Purchasing Objectives
• Basic Purchasing Activities
• Slide 19
• Assigned Reading
• Changes in the Business Environment
• Slide 22
• Supply Chain Issues
• Slide 24
• Barbie
• Example - Boeing
• Strategic Planning ndash Global Sourcing
• The initials TQRDCEB stand for
• Strategy Development
• New strategic developments in purchasing
• Supply System Strategy
• Slide 32
• Guava Puree Case
• Risk Identification
• Sustainability and Risk
• Scotts Miracle Gro Case
• Current Events
• Next Class
• Slide 39

CURRENT EVENTS

Next ClassCultural Issues in Supply MgtOutsourcingOffshoring IKEA Case In Class Discussion

Abstracts due at beginning of classScottrsquos Case ndash LectureTeam Break OutsCurrent Events ndash Bring your articlesGuest Speaker ndash Morgan Hartnell

Questions

• Slide 1
• Introduction
• Agenda for the class
• Typical Class Flowhellip Subject to change
• Class AttendanceParticipation
• Grading
• SubmittalsDue Dates
• My Contact Information
• Additional Items
• Questions
• Team Exercise
• Careers In Source and Supply Chain Management
• Importance of Supply Management to the Firm
• Importance of purchasing to business
• Types of Purchases
• Slide 16
• Basic Purchasing Objectives
• Basic Purchasing Activities
• Slide 19
• Assigned Reading
• Changes in the Business Environment
• Slide 22
• Supply Chain Issues
• Slide 24
• Barbie
• Example - Boeing
• Strategic Planning ndash Global Sourcing
• The initials TQRDCEB stand for
• Strategy Development
• New strategic developments in purchasing
• Supply System Strategy
• Slide 32
• Guava Puree Case
• Risk Identification
• Sustainability and Risk
• Scotts Miracle Gro Case
• Current Events
• Next Class
• Slide 39

Next ClassCultural Issues in Supply MgtOutsourcingOffshoring IKEA Case In Class Discussion

Abstracts due at beginning of classScottrsquos Case ndash LectureTeam Break OutsCurrent Events ndash Bring your articlesGuest Speaker ndash Morgan Hartnell

Questions

• Slide 1
• Introduction
• Agenda for the class
• Typical Class Flowhellip Subject to change
• Class AttendanceParticipation
• Grading
• SubmittalsDue Dates
• My Contact Information
• Additional Items
• Questions
• Team Exercise
• Careers In Source and Supply Chain Management
• Importance of Supply Management to the Firm
• Importance of purchasing to business
• Types of Purchases
• Slide 16
• Basic Purchasing Objectives
• Basic Purchasing Activities
• Slide 19
• Assigned Reading
• Changes in the Business Environment
• Slide 22
• Supply Chain Issues
• Slide 24
• Barbie
• Example - Boeing
• Strategic Planning ndash Global Sourcing
• The initials TQRDCEB stand for
• Strategy Development
• New strategic developments in purchasing
• Supply System Strategy
• Slide 32
• Guava Puree Case
• Risk Identification
• Sustainability and Risk
• Scotts Miracle Gro Case
• Current Events
• Next Class
• Slide 39

Questions

• Slide 1
• Introduction
• Agenda for the class
• Typical Class Flowhellip Subject to change
• Class AttendanceParticipation
• Grading
• SubmittalsDue Dates
• My Contact Information
• Additional Items
• Questions
• Team Exercise
• Careers In Source and Supply Chain Management
• Importance of Supply Management to the Firm
• Importance of purchasing to business
• Types of Purchases
• Slide 16
• Basic Purchasing Objectives
• Basic Purchasing Activities
• Slide 19
• Assigned Reading
• Changes in the Business Environment
• Slide 22
• Supply Chain Issues
• Slide 24
• Barbie
• Example - Boeing
• Strategic Planning ndash Global Sourcing
• The initials TQRDCEB stand for
• Strategy Development
• New strategic developments in purchasing
• Supply System Strategy
• Slide 32
• Guava Puree Case
• Risk Identification
• Sustainability and Risk
• Scotts Miracle Gro Case
• Current Events
• Next Class
• Slide 39