1

Table of Contents
1. Integration & The Role of Supply Management.................. 3
1.1. Definition ............................................... 4
1.2. Internal Integration - Supply Management’s Internal Linkages
................................................................. 6
1.2.1. Operations ........................................... 7
1.2.2. Quality Assurance .................................... 8
1.2.3. Engineering .......................................... 8
1.2.4. Accounting and Finance ............................... 9
1.2.5. Marketing/Sales ...................................... 9
1.2.6. Legal ................................................ 9
1.2.8. Environmental Management, Health, and Safety ........ 10
1.3. External Integration - Supply Management’s External Linkages
................................................................ 10
1.3.1. Suppliers ........................................... 10
1.3.2. Government .......................................... 10
1.3.3. Local Communities ................................... 11
1.4. Supplier Relationship Management ........................ 11
1.4.1. Collaborative Buyer-Seller Relationships ............ 11
1.4.2. Advantages of Closer Buyer-Seller Relationships ..... 12
1.4.3. Obstacles to Closer Buyer-Seller Relationships ...... 13
1.4.4. Extra Reading – Critical Elements for Supplier
Relationship Management ....................................... 13
2. Aligning Supply Management and Enterprise Objectives........ 16
2.1. Integrative Strategy Development ........................ 19
2.2. Translating Supply Management Objectives into Supply
Management Goals ................................................ 20
2.2.1. Cost-Reduction Objective ............................ 20
2.2.2. Technology/New-Product Development Objective ........ 21
2.2.3. Supply Base Reduction Objective ..................... 21
2.2.4. Supply Assurance Objective .......................... 21
2.2.5. Quality Objective ................................... 21
3. Supply management strategy.................................. 21

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