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This 2 page Class Notes was uploaded by Ameya Margaj on Friday February 6, 2015. The Class Notes belongs to MGO 637 at University at Buffalo taught by Dominic LoTempio in Spring2015. Since its upload, it has received 114 views. For similar materials see Purchasing and Global Supply Management in Business, management at University at Buffalo.
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Date Created: 02/06/15
Lecture 2 2215 Outsourcing Out of your shop Offshore Out of your country Insourcing Again to your shop Inshore In your country Assignment 1 on 16TH February PO Purchase Order SOP Standard Operating Procedure Purchase Order is a contract You offer them they accept Quote is not an offer Boilerplate standard You should have something as a standard format of the company Standing order will have at least 1quantity or 2 Start and end date Price will be stable unless any negotiation takes place Blanket order will have a time frame or a amount but the PRICE CANNOT uctuate within that time frame Done if we do multiple purchases Generally time frame is 1 year Example Gas cylinders Blanket Order rst order in a material purchase release Blanket purchase orders for general routine purchases 3 way match PO Invoice Receiving report MRO Maintenance repair and operating Capital equipment Land machinery anything for uplifting the business Capital purchase for which you will be paying for over a year MRO Purchasing can use Blanket Order for purchasing MRO items are generally non value added items Typically MRO items not tracked Usually not expensive Best buck without much labor Capital purchase sensitive to economy uctuations Requisition request document of need P card Procurement card is a company authorized credit card P card used for small routine items Things to take from in uence say certain things in a certain way it can have some effect Giving ppl a reason makes them want to help you Turqoise high price doesn39t mean high quality and vice versa Become informed before buying anything so you get the best out of your buck Terms 0 Memorandum is a written noticeor document conveying something Usually inter company Like an issued message to someone Not official 0 Addendum document adding to the contract Is official Sometimes changing regulations speci cations etc 0 Amendment more or less for Government Ex Constitution39s amendment clause some type of a change in the document Both parties sign Sometimes interchangeable with addendum 0 MOU Memorandum of Understanding Is same as an agreement or a contract Chapter 3 H Policy guidelines which the company abides But they are not a set of quothow to instructions Has some advantages and disadvantages De nes who has what purchasing authority MWBE Minority andor Woman Business Enterprise MWBE39s are smaller and have low revenue While optimizing supply chain you tend to cut down MWBE39s MWBE39s tend to be support business are more or less service oriented Support MWBE39s to grow the local economy get good publicity Supplier fully quali ed satisfy criteria meet standard performance requirements price competitive Low cost country sourcing how39s it affect local economy noticeable negative publicity quality change Implement back through supply chain by looking at tier 23 companies and their policies Reason for multiple sourcing not overload one vendor one vendor can supplement second vendor Can increase rm39s reliance on vendors Nondisclosure agreements any information considered con dential and must remain between two companies
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