Eagle Manufacturing

Week1 Case: Careers in purchasing and supply management

Name: YongLin Zhu

ID: 14237708

1. Does purchasing sound like a class (or career) you would be interested in? Why or why not?

Yes, purchasing is one of the core processes of any business or governmental organization. It involves working with engineers, operations, and quality people and suppliers to help the firm obtain necessary suppliers, materials and services. And purchasing is one of the basic processes that are common to all organizations. It is the process of acquiring goods, services, and equipment from another organization in a legal and ethical manner.

2. Share with your classmates what you know about the function of purchasing.

Total Cost of Ownership

As we know, cost management plays an undeniable character in purchasing process. Total cost of ownership is a current issue on cost management for a company in business activities. Total cost of ownership includes all the costs related to the procurement and use of a product. It including all related costs in disposing of the products and materials after its usefulness ends.

Price and Cost Analysis

There is another issue in purchasing process which is price and cost analysis. The right price to purchase materials could influence the organizations’ success. Generally, the right price in business activities refers to a price that is reasonable and fair between seller and buyer. There are many variables and relationships must be considered by the organizations before it takes the price and cost analysis.

Procurement outsourcing

Procurement outsourcing means that the companies focus on the development of their own core competitiveness, at the same time they outsource the whole or part of the purchasing business activities to the suppliers. The supplier can help the manager to make the decision by analysis and understand the relevant knowledge of the supply market

3. Can you identify someone who might be a mentor during your early...