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Additional info for Global Purchasing and Supply Management: Fulfill the Vision, 2nd Edition
Examples might be hides for a tannery, wood for a paper mill, or lumber for a furniture plant. There are fewer such exceptions today than in past years. In general, most single-plant companies have centralized control of the buying function. The second, more common connotation of the term implies central purchasing control, usually at headquarters, even when there are several plants in different locations, run by division managers. Conversely, if there are several independent purchasing groups reporting to the individual plant managers and not to one purchasing head, purchasing is decentralized.
In the ensuing chapters, we will discuss strategies to optimize the process of purchasing and supply management, within a global context. Chapter 3 STRATEGIC PURCHASING SUPPLY INITIATIVES Experienced CPOs have had days that they thought were going to be easy, only to see them become extremely challenging. Other times, they’ve walked into the office in the morning knowing they were going to be busy with several major tasks—only to lean back in their chair that afternoon with everything done. “What’s next,” they’ve wondered and discovered that their busy day had somehow become routine.
Similarly the doing loop at the plant are reminded that they must track and report supplier quality performance. The planning people will work with the supplier to change processes to achieve the six-sigma goals, while the doing people will monitor and report progress over time. So, we have a team effort. The planners monitor and help the doers, while the doers get the job done day-to-day. How this works is one of the strategies described in Chapter 3 that explains the down-to-earth way buying teams operate.