Logistics and Supply Chain Management: Drivers, Challenges, and Merits

LOGISTICS AND SUPPLY
CHAIN MANAGEMENT

EXECUTIVE SUMMARY
Global purchase and supply system of corporate sector is developing with the
involvement of certain elementary components such as technologies, business software and
skilled labour. Present report highlights the changing nature of purchasing and supply
management in different sectors. It has included the fact that approach towards strategic purchase
and supply has become extremely efficient due to different drivers of this change and most
importantly the introduction to globalisation and technologies. Since the execution of all
strategic plan related to purchase and supply management has become necessary for companies,
the aspects such as quality control, inventory management, strategic recruitment it also has
linked with modern purchasing and supply chain management activities and procedures. In this
report, emphasis has laid upon the drivers, challenges and merits of this modern approach
towards purchasing and supply systems within global and local organisations.

CONTENTS
INTRODUCTION...........................................................................................................................1
Introduction to modern purchasing and supply in organizations.................................................1
Importance of purchasing and supply in organizations...............................................................2
Purchasing and supply strategies and models..............................................................................2
Drivers to change.........................................................................................................................4
Issues persists in traditional purchase and supply........................................................................5
Challenges for strategic purchase and supply management.........................................................6
Merits of strategic purchase and supply.......................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The report is about the changed nature of developed purchase and supply chain systems and will
consists of certain purchasing and supply model and strategies implemented by global
organizations. In late 1970s, the companies and personnel have started confronting the shortage
of raw materials , after which the emphasis were given on more standardized and competitive
strategies of purchasing methods (Barney, 2012). Furthermore, the report will also highlight
drivers to the changed nature of supply and purchase systems. It will involve some descriptions
related to the merits of modern purchase and supply management utilized by modern companies,
industries and organizations.
Introduction to modern purchasing and supply in organizations
Global Purchasing and supply chain changed with times and is being continuously developing
with the help of new technological advancements.
Companies have started considering the purchasing and supply as one of the most elementary
strategic operations with the involvement of various suitable corporate activities and planning.
Previously, the purchase and supply were based upon normal and routine administrative without
the execution or aim of continuous strategic improvements.
Modern or improved version of purchasing and supplying system has introduced component of
quality management and strategic activities management control in the companies. Global
companies have started using outsourcing and e-sourcing methods for maintaining cost of
ownership, data mining and analysis of purchasing and supply processes. Organizations of
country like China is continuously giving considerable challenge to service sectors with the help
of extremely advanced purchasing and supply strategies (Glock and Hochrein, 2011). With the
involvement of technologies and business software, companies have also started paying attention
towards increasing manpower efficiencies to develop and execute desired goal completion in
terms of procurement and supply chain management. Inclusion of strategic recruitment
procedure for selecting executives such as material manager, supply managers, quality control
executives and other departmental managers to look after the compliance of designed purchasing
and supply objectives have become one of the elementary function of organizations.
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