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Module 2: Buy It: Managing Supply (ASU-WPC-SCM) - ASU's W. P. Carey School
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Module 2: Buy It: Managing Supply (ASU-WPC-SCM) - ASU's W. P. Carey School

Understanding Supply Chains: The Foundation of Organizations

The Importance of Nutrition in Supply Chains

  • The speaker recalls a childhood commercial emphasizing the importance of nutrition, stating "we are what you eat," which sets the stage for discussing supply chains.
  • The analogy is drawn between human health and organizational health, suggesting that just as our bodies need nutrients, supply chains require high-quality inputs to function effectively.

Purchasing Executives: The Shoppers of Organizations

  • Purchasing executives are likened to shoppers for their companies, responsible for acquiring quality materials and services essential for operational efficiency.
  • Individuals develop purchasing skills throughout life, making various types of purchases ranging from basic needs to more complex professional services.

Outsourcing Purchases: Risks and Considerations

  • A hypothetical scenario is presented about outsourcing purchasing decisions; it raises concerns about whether customers would be satisfied with only the cheapest options being selected.
  • Emphasizes that purchasing decisions should consider factors beyond cost, such as quality, delivery speed, and supplier flexibility.

Complexity in Corporate Purchasing

  • Highlights the complexity involved in corporate purchasing due to large quantities and diverse suppliers often located far away from the company.
  • Stresses that successful procurement requires strong relationship-building, negotiation skills, and analytical abilities among procurement specialists.

Conclusion: Interdependence on Quality Inputs

Video description

Part 2 of 12 Part introduction to purchasing, part homage to the 1970s Time for Timer You are What You Eat public service announcement, this module explains the critical role supply management plays in producing high quality products and services. Procurement managers require a specific set of varied skills to ensure your supply chain has a continuous flow of healthy materials from dependable suppliers. This is the 2nd installment in Arizona State University's twelve-part introduction to supply chain management video series developed by Eddie Davila, Jeff Hough, Randy Cates, Dawn Feldman, Dan Ichikawa, Ian Schmoel, and Matt Hardy. ASU, the W. P. Carey School of Business, and the Supply Chain Management Department are proud and happy to share this video series with supply chain management departments, supply chain instructors, career specialists in high schools and universities, as well as industry leaders in an effort to inspire a new generation of supply chain management professionals across the country and around the world. For more information, visit W. P. Carey's SCM Web site at http://wpcarey.asu.edu/scm or send an e-mail to wpcarey.scm@asu.edu.