...MRO sourcing goes global Harold Montilla Instructor Lori Deere INF 336 Project Procurement Management May 14, 2012 MRO sourcing goes global It is critical for any organization or business to seriously analyze and implement maintenance, repair and operations (MRO) goods and services that will help the company achieve it organizational goals. Johnson, Leenders, & Flynn (2010) explain "Identifying and streamlining key business processes to reduce costs, grow revenues, and manage assets represents an opportunity in most organizations" (p. 77). This is important when applying the concept to maintenance, repair and operations (MRO) goods and services for any company or organization . Scott Singer (as cited in Avery, 2009) tells us "You want a superior unit price, a fair and reasonable mark up and a fulfillment model that provides the service you need" (line 3). With the advent of the globalization of world markets, companies have been forced to transform their strategic plan to accommodate these new emerging markets and competitors around the globe. This has forced companies to direct their efforts to create a strategic plan for taking care of their maintenance, repair and operations (MRO) goods and services associated to the sourcing strategy. In efforts to alleviate much of the challenges to maintenance, repair and operations (MRO) goods and services of The Department of Defense (DoD), the Defense Logistic Agency (DLA) was created to serve as a government entity...
Words: 808 - Pages: 4
...AIR BERLIN & EASYJET FINANCIAL COMPARISON 2009 -2011/12 MARKING GRID FOR STUDENTS |CRITERIA |Total marks |COMMENTS | | |available | | | |% | | |Quality of presentation: |7.5 |Professional presentation expected | |correct referencing / bibliography| |Font size 12 Times New Roman | | | |Standard margin sizes, headers & footers | | | |In text citations and Harvard style Referencing where appropriate | | | |All tables, graphs, charts and calculations to be placed in the appendix and | | | |cross referred to in the main text. | | | |Report style language – not essay | |Structure of Report |7.5 |Should include:- ...
Words: 916 - Pages: 4
...Business process notes. Structure options for large organizations * Centralized: Authority and responsibility for mot supply related functions are assigned to a centralized power. Advantages and disadvantages of centralization Advantages would be: * Greater buying specialization * Ability to pay for talent * Consolidation of requirements – clout * Coordination of policies and procedures * Effective planning and research * Common suppliers * Proximity to major organizational decision makers * Critical mass * Firm brand recognition and stature * Reporting line – power * Strategic focus * Cost of purchasing low Disadvantages would be: * Narrow specification and job boredom * Lack of job flexibility * Corporate staff appears excessive * Tendency to minimize legitimate differences in requirements * Lack of recognition of unique needs * Focus on corporate requirements, not on business unit strategic requirements * Distance from users * Tendency to create organizational silos * Customer segments require adaptability to unique situations * Top management not able to spend time on suppliers * Lack of business unit focus * High visibility of purchasing costs Potential advantages and disadvantages of decentralization Advantages would be: * Easier coordination communication with operating department * Speed of response * Effective use of local reserves Disadvantages would...
Words: 1923 - Pages: 8
...Cost Saving Strategies in Household MRO’s Cost Saving Strategies in Household MRO’s Businesses all have different goals, some are simply trying to make a profit; others are trying to make an impact in their environment. However, the bottom line is that they all need revenue to continue to operate. This revenue is used for all sorts of things from manufacturing, procurement, employee wages and so forth but there is one area that most people do not fully realize and that is the day to day cost of maintenance, repair and operations (MRO). In simple terms MRO is basically the things that are needed to keep the company running from toilet paper and cleaning products to things needed to perform repairs on their machines. However this situation is very similar to how households are run since as in businesses things break down, food runs out, and floors need to be kept clean. Using strategies that global businesses use to help keep their MRO’s in check are also important strategies for households to consider. One of the most important techniques that business’s use is to understand how they spend their revenue. They use what is called spend analysis to gather information about where and how their money is going and from this they can utilize some risk management skills to help alleviate some poor spending habits. A great example of this is to help control maverick buying which is unauthorized buying decisions (Avery, 2009). In a household this also holds true. Typically there...
Words: 1301 - Pages: 6
...Renea Layne INF 336 Project Procurement Management Professor Brian Kraus July 23, 2013 Describe the differences between needs identification and defining commercial equivalents and discuss why it is preferable to separate into two stages. There are numerous steps that include the need for identification that is based upon production as well as service delivery timelines and schedules. The places that these must be met along with communicated with is through the verification of the greatest importance. Outlaw (2009) believes that product specifications, standards, and requirements are set forth through ISO certification or the industry certification can and will play very important roles. While also the need for identification they must also consider compliance and quality assurance. Even though price is a primary consideration purchasing agreements devoid the specification consideration, transportation costs, manufacturer capacity, rating and/or ISO certification would increase risks to the company (Avery, 1996; Cutchins, 2009). Because it is based on the aforementioned process, the purchasing managers can then investigate the products availability. This often draws with the established relationship of vendors as well as manufacturers, purchasing managers and can discern whether offering meet the minimum requirement specifications, and whether delivery or quality may be problematic and which requirements could be utilized. With this, the first step that would be...
Words: 1075 - Pages: 5
...Introduction “The procurement function is constantly evolving, with many organisations going through significant transformations over the past decade. Now more than ever, there is a considerable emphasis on the integration phase and the focus has shifted to delivering the value proposition through collaboration and partnerships.” (http://www.procurementleaders.com/forum-zurich) Financial crises have been troubling our economies and it seems that every new crisis has a bigger impact than the one before. As a result, top management is looking more and more towards procurement with the goal to improve their bottom line. But lately procurement has shifted from strictly operational to a more strategic function. Hot topics are not only low cost sourcing, but also supplier integration to become more innovative, procurement technology’s contribution towards profitability and growth, and how social media affects talent management (http://spendmatters.com/uk/procurement-hot-topics-agenda-2014-part-2/). However, the measurement of procurement contribution is often a very sensitive subject. There are no clear boundaries between the various functions involved and thus tensions are bound to occur when it comes to target savings per function at the end of the year. Among today’s hot topics is also the identification of effective processes for managing supply chain risks and corporate social responsibility. Many organisations have their CSR statements but good intentions have ...
Words: 1868 - Pages: 8
...ABSTRACT E-commerce made Supply Chain Management (SCM) technically viable and unleashed the practice of SCM. The Kenya Sugar Industry and particularly Sony Sugar Industry, due to its own characteristics, have not utilised E-commerce for Supply Chain Management as widely as it could have. The purpose of this exploratory study is to increase the understanding of the determinants for adoption of E-commerce in SCM within Kenya and its apparent industry of this study. The study will also aim at testing the value of supply chain structure and company strategies in explaining E-commerce adoption. Questionnaires, mail and email surveys will be conducted to collect the data. Simple interviews and regressions will be used to achieve the objectives and answer the questions generated. The results of this study will be used to confirm whether the literature that perceives E-commerce characteristics and Sony Sugar’s characteristics influence the E-commerce adoption level although not every factors of these two groups will be expected to do so. The study will also show that one of the factors in supply chain structure, E-procurement, is significantly related to the e-commerce adoption level. Key words: E-commerce, Supply Chain, Supply Chain Management, Kenya Sugar Industry, Sony Sugar Industry. LIST OF FIGURES 1. FIGURE 1 Supply chain model in E-Commerce environment 2. FIGURE 2 the E-Procurement Process 3. FIGURE 3 The Independent and the Dependent...
Words: 16393 - Pages: 66
...Net marketplaces. • Identify the role of private industrial networks in transforming the supply chain. • Explain the role of private industrial networks in supporting collaborative commerce. Key Terms total inter-firm trade, p. 770 B2B commerce, p. 770 Internet-based B2B commerce (B2B e-commerce), p. 771 automated order entry systems, p. 771 seller-side solutions, p. 771 electronic data interchange (EDI), p. 772 buyer-side solutions, p. 772 hub-and-spoke system, p. 772 vertical market, p. 772 horizontal markets, p. 772 B2B electronic storefronts, p. 772 Net marketplace, p. 772 private industrial networks, p. 773 procurement process, p. 775 supply chain, p. 775 direct goods, p. 776 indirect goods, p. 776 MRO goods, p. 776 contract purchasing, p. 776 spot purchasing, p. 776 multi-tier supply chain, p. 777 legacy computer systems, p. 778 materials requirement planning (MRP) system, p. 778 enterprise resource planning (ERP) system, p. 778 supply chain management (SCM), p. 779 tight coupling, p. 779 supply chain management (SCM) systems, p. 782 collaborative commerce, p. 783 e-distributor, p. 790 e-procurement Net marketplaces, p. 791 value chain management (VCM) services, p. 791 exchange, p. 800 liquidity, p. 801 industry consortium, p. 802 trans-organizational business process, p. 806 collaborative resource planning, forecasting, and replenishment (CPFR), p. 810 Brief Outline Volkswagen Builds its B2B Net...
Words: 5003 - Pages: 21
...All Free Papers Browse Papers Read full version paper Policies, Processes, And Methods Of Operations Management At Harley-Davidson Motor Company Policies, Processes, And Methods Of Operations Management At Harley-Davidson Motor Company Join AllFreePapers.com Category: Business Autor: rita 18 December 2013 Words: 2487 | Pages: 10 Introduction The role of operations management (OM) requires a great deal of responsibility. No matter the size or type of business, the technique and knowledge applied by an operations manager when planning, organizing, staffing, leading and controlling, can make or break a company (Heizer & Render, 2011). Harley-Davidson Motor Company is a prime example of a goods producing organization with a history of unstable performance and successful achievements all affected by OM role. The following paper is an overview pertaining to policies, processes, and methods of OM at Harley-Davidson and acknowledgment of how todays' OM decisions affect HD's future as the number one motorcycle manufacturer. Background Harley-Davidson was founded in 1903 in Milwaukee, WI, by William Harley and brothers' Walter, William, and Arthur Davidson. In 1929, 241 U.S. motorcycle manufacturers were in business but the Depression would find only Harley-Davidson and Indian remaining, until Indian closed its doors in 1953 (H-D History, 2012). Harley-Davidson would spend the following decades in aggressive financial struggles, periods of lowly manufacturing, and...
Words: 2697 - Pages: 11
...companies that make up the sector manufacture everything from jet engines and drilling rigs to simple fasteners and filters. Broadly speaking, though, E&M firms fall into a number of sub-sectors including Aerospace and Aviation and Industrial and Construction Equipment. The overall sector, like all industries, faces a myriad of issues around volatility, including dealing with natural disasters and supplier disruptions. But these issues aren’t the only ones that keep sector executives up at night. E&M CEOs also worry about how to transform their frequently large and conservative companies into agile enterprises capable of meeting new competition and opportunity head on with faster, leaner and more resilient operations. Global market dynamics are driving the need for transformation. As emerging markets grow and new markets emerge, demand is dispersing geographically. Demand is also fragmenting as a result of increasingly complex requirements from customers both for new product customization and post-sale support and service. Customers want – and expect – more choice on configuration options, faster cycle times, more frequent upgrades and robust aftersales service. All of this occurs in the face of mounting competition from new entrants, and intensifying cost pressures. Where in the past E&M companies earned healthy profits on selling equipment, growing competition is squeezing those margins. At the same time, customer demand is driving a paradigm...
Words: 5054 - Pages: 21
...Introduction to Supply Chain Management Technologies Second Edition Introduction to Supply Chain Management Technologies Second Edition David Frederick Ross CRC Press Taylor & Francis Group 6000 Broken Sound Parkway NW, Suite 300 Boca Raton, FL 33487-2742 © 2011 by Taylor and Francis Group, LLC CRC Press is an imprint of Taylor & Francis Group, an Informa business No claim to original U.S. Government works Printed in the United States of America on acid-free paper 10 9 8 7 6 5 4 3 2 1 International Standard Book Number-13: 978-1-4398-3753-5 (Ebook-PDF) This book contains information obtained from authentic and highly regarded sources. Reasonable efforts have been made to publish reliable data and information, but the author and publisher cannot assume responsibility for the validity of all materials or the consequences of their use. The authors and publishers have attempted to trace the copyright holders of all material reproduced in this publication and apologize to copyright holders if permission to publish in this form has not been obtained. If any copyright material has not been acknowledged please write and let us know so we may rectify in any future reprint. Except as permitted under U.S. Copyright Law, no part of this book may be reprinted, reproduced, transmitted, or utilized in any form by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying, microfilming, and recording, or in any information storage or retrieval...
Words: 158845 - Pages: 636
...than 40 real-life supply chain cases afford the opportunity to apply of the acquisition process. Criteria for supply decisions have been organized into three categories: (1) strategic, (2) operational, and (3) additional. In this third category, new factors such as balance sheet and income statement considerations, dimensions of risk, and environmental and social considerations are considered. Visit the text’s Online Learning Center at www.mhhe.com/Johnson14e Michiel R. Leenders, D.B.A., PMAC Fellow Professor of Purchasing Management Emeritus Richard Ivey School of Business The University of Western Ontario Anna E. Flynn, Ph.D., C.P.M. Formerly Clinical Associate Professor Supply Chain Management Thunderbird School of Global Management Formerly Associate Professor Institute for Supply Management TM Johnson Leenders Flynn Purchasing and Supply Management Johnson Leenders Flynn MD DALIM #1093963 06/05/10 BLUE GREEN P. Fraser Johnson, Ph.D. Leenders Purchasing Management Association of Canada Chair Associate Professor, Operations Management Richard Ivey School of Business The University of Western Ontario Purchasing and Supply Management company issues and opportunities. Fourteenth Edition Purchasing and Supply Management joh77899_fm_i-xviii.indd i 6/9/10 10:05 PM The McGraw-Hill/Irwin Series Operations and Decision Sciences OPERATIONS MANAGEMENT Beckman and Rosenfield, Operations, Strategy:...
Words: 188430 - Pages: 754
...than 40 real-life supply chain cases afford the opportunity to apply of the acquisition process. Criteria for supply decisions have been organized into three categories: (1) strategic, (2) operational, and (3) additional. In this third category, new factors such as balance sheet and income statement considerations, dimensions of risk, and environmental and social considerations are considered. Visit the text’s Online Learning Center at www.mhhe.com/Johnson14e Michiel R. Leenders, D.B.A., PMAC Fellow Professor of Purchasing Management Emeritus Richard Ivey School of Business The University of Western Ontario Anna E. Flynn, Ph.D., C.P.M. Formerly Clinical Associate Professor Supply Chain Management Thunderbird School of Global Management Formerly Associate Professor Institute for Supply Management TM Johnson Leenders Flynn Purchasing and Supply Management Johnson Leenders Flynn MD DALIM #1093963 06/05/10 BLUE GREEN P. Fraser Johnson, Ph.D. Leenders Purchasing Management Association of Canada Chair Associate Professor, Operations Management Richard Ivey School of Business The University of Western Ontario Purchasing and Supply Management company issues and opportunities. Fourteenth Edition Purchasing and Supply Management joh77899_fm_i-xviii.indd i 6/9/10 10:05 PM The McGraw-Hill/Irwin Series Operations and Decision Sciences OPERATIONS MANAGEMENT Beckman and Rosenfield, Operations, Strategy:...
Words: 188430 - Pages: 754
...Luisa Sanchez Fastenal Group 5 Luisa Sanchez Fastenal Group 5 Contents Executive Summary 3 Background 4 Strategy 5 SWOT ANALYSIS 6 Strengths 6 Weakness 8 Opportunities 8 Threats 10 Problems 11 Strategic Alternatives 13 Bibliography 19 Appendix 1 19 Appendix 2 20 Appendix 3 21 Executive Summary Fastenal has more than 2,600 stores with more than 10,000 employees working under them. The stores are all over the United State, Canada, Mexico, Central and South America, Europe and Asia. They have local distribution centers to serve their entire local stores worldwide. The company has invested in things that make a difference for their customers, continuously improving a many-sided service network, which includes a strict quality management system by their engineering teams, and testing laboratories around the world. The company also introduced industrial vending machines, which has become widely used industrial vending system in the world. Fastenal also has manufacturing divisions in North America, where they can custom engineer parts to customer specifications. A downturn in the economy and other factors may affect customer spending, which could harm their operating results. A downturn in either the national or the local economy where the stores operate could negatively affect sales at their stores and their level of profitability. Due to these factors, Fastenal has been adjusting their strategy as they go a long to be the number...
Words: 5295 - Pages: 22
...lOMoARcPSD Summary: Book " Purchasing and Supply Chain Management ", Arjan J. van Weele Purchasing Management (Maastricht University) Distributing prohibited | Downloaded by Paulina Gali?ska (p.s.galinska@gmail.com) lOMoARcPSD No one cares if you are fair or not. Use this summary, share it with you friends and good luck studying for your exam. Summary Purchasing and Supply Chain Management – Van Weele 6th Edition Jonas Heller Distributing prohibited | Downloaded by Paulina Gali?ska (p.s.galinska@gmail.com) lOMoARcPSD Summary: Purchasing and Supply Chain Management 10/19/14 TABLE OF CONTENT Chapter 1: The Role of Purchasing in the Value Chain ............................................................................................................... 5 The role of Purchasing and in the Value Chain (P.5) .............................................................................................................. 5 Main differences between buying for primary activities and buying for support activities (P. 7): ........................................ 6 Definition of the concepts (p.7) ............................................................................................................................................. 6 Importance of Purchasing to Business (P.12): ....................................................................................................................... 7 Classification of purchasing goods (p. 15):...
Words: 13195 - Pages: 53
