Discussion Question 7 Procurement

Based on your experience or readings, discuss the interface between Purchasing and Supply Management and Logistics Management – specifically with respect to selection of a third party logistics provider, analysis of the total cost of ownership, use of e-procurement capability, integration of the transportation (in-coming and out-going) spend, and management of just-in-time inventory control. How do Purchasing and Supply Management and Logistics Management “fit” within the framework of distribution management – particularly control of in-process and finished goods inventory? What is the role of Purchasing and Supply Management and Logistics Management professionals in the implementation of a supply chain management strategy? NOTE: Your response should include comments and/or observations relative to each of the items associated with this week's discussion topic. You can divide your response into paragraphs – one each for each item. Moreover, your initial response should address each of these items. Subsequent responses can constitute a commentary on your classmates' comments/observations on any one or all items. Although no specific length or size of each item is required, your response to each item should focus on the salient points or key aspects corresponding to the nature of each item. Activity: Submit response to Week 7 multiple-choice question set on the Friday of the seventh week.

Logistics management is the part of supply and purchase management. Logistics management is responsible for organizing the products and services that are being offered from the point to point origin of consumption. Supply and purchase management is focused towards ensuring that demands of customers are adequately met. Logistic management manages all the material flow and identifies the overall time involved in offering the products to customers. In case of a third party logistic provider, the warehouse creates the link between the purchasing and supply management and logistics...