Advanced Techniques in Supply Chain Management
Some of the most critical disciplines under supply chain management are to wit; purchasing, procurement, and strategic sourcing. These three are related in that in a way or the other, they each complement each other. This is apparent from the definition, which implies that; procurement refers to the various mechanisms involved in a business obtaining goods and services and purchasing refers to the obtaining of such commodities for continued attainment of a business’ goals. On the other hand, strategic sourcing involves various aspects of procurement and purchasing, their study and possible perfection to meet specific needs (Lummus et al., 2001). Ideally, strategic sourcing is considered a tactical discipline and herein lies the difference between these three phenomena. An in-depth analysis indicates that the difference between procurement and purchasing is a rather superficial one, with procurement referring to the process of obtaining goods and services and purchasing referring to one of the steps involved in the said process. However, strategic sourcing is the process of developing the best economic practices in supply; usually with great attention to the cost of production (Lummus et al., 2001).
Production operations in the supply chain refer to the processes involved in the actual manufacturing of the raw materials into finished products. Ideally, the role of the production operations is th…
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