Based on your experience or readings, discuss the interaction between Purchasing and Supply Management and the operational groups in a manufacturing or service organization - in particular product design, quality management, forecasting/planning, project management, and inventory control.
To what extent does Purchasing and Supply Management participate in the use of Manufacturers Resource Planning (MRP II) or Enterprise Resource Planning (ERP) in the private sector?
What is the role of Purchasing and Supply Management in the development of supply chain strategy for a manufacturing organization?
There is close interaction between purchasing and supply management. Purchasing is done on the basis of supply management. In my company, the purchasing is done on the basis of source identification, ease of access, and the positioning of the supplier. Supply management actively seeks to increase opportunities of purchase whereas at the same time it mitigates risks of supply. The supply management interacts with purchasing in such a way that the strategic objectives of the organization are achieved.
This interaction is related to product design because the product design is done on the basis of inputs purchased. Supply management tries to ensure that the purchases are made in such a way that product design objective are achieved. Purchasing is important to quality management as the quality of inputs determine the ...
Purchasing and Supply Management is discussed very comprehensively in this explanation..