C.d. Universitaria de Nuevo León, September 4th, 2014

Universidad Autónoma De Nuevo León Facultad De Contaduría Pública y Administración

International Business Program

PURCHASING

Prof. Gabriel Mayagoitia.

Evidence 1

THE START1900

During these years almost all the society regarded the purchasing as a clerical activity , which means this activity was related to work office in the keeping of records, the transcribing of documents, or the handling of correspondence, but only this ones.

1910

In his period that is during the World War I and II, the purchasing functions in a company increased in

importance in relation to the necessities of obtaining raw materials, services, and supplies to keep the mines and

factories running, taking control over this activities improving their amount of functions.

1910

1945

1950 197019601945

1950

During 1950 the purchasing department continued gaining place, the processes got more refined, and

started the introduction of more trained professionals. Also in this

years purchasing was consider still as clerical but in a staff-support position.

1960

During this decade the integrated materials systems started their introduction, the materials became part of the strategic planning of a production company, and the importance of department as a total, increased.

1970

In the 70’s was an oil embargo and the

shortages of basic raw materials turned the focus of the business

world to the purchasing department, becoming

basic to every organization.

trained professionals

INTEGRATED MATERIAL SYSTEMS

EVENTS DURING THIS DECADE EMPHASIZED AGAIN THE CRUCIAL

ROLE PLAYED BY SUPPLY AND SUPPLIERS.

1970

1980

After the increase of the importance in the purchasing department with the oil embargo during the 70’s started the introduction of the strategy of just-in-time with an emphasis on inventory control and supplier quality; quantity, timing, and dependability, and the company that had this characteristics in their purchasing department obtained a competitive advantage.

THE IMPORTANCE OF THIS DEPARTMENT

The introduction of The Chain Reaction that symbolically expresses how a step bring us to another. And the purchasing department started to think in how their process worked.

1980

The value proposition of purchasing continued to increase.

The cost-savings by this department became the buzzword.

Different questions became the order of the day for a buyer like:¿Are we buying at right cost?¿Supplier is producing it at right quantity or not?¿Whether supplier is producing the right product or not?¿Whether material will come at right time or not?¿Whether buyer is buying for the company or for personnel gain?

As the decade of the 1990s unfolded, it became clear that organizations must have an efficient and effective supply function if they are to compete successfully with both domestic and international firms.

Purchasing evolved into strategic sourcing, contracts were more long term, and supplier relationship building and supplier relationship management started.

1990

Companies began to realize that by having their purchasers negotiate or ask for discounts on the goods or services they bought, they were actually able to reduce prices and as a result improve the profitability of the company.

Purchasing’s value started to become more and more apparent.

COST SAVINGS BECAME THE TERM OF THE

DAY.

1990

2000

Purchasing-led cost savings initiatives gain mass appeal.

Strategic sourcing became increasingly adopted with companies seeking to consolidate and leverage their enterprise wide spend, sign contracts with one supplier or a select few suppliers

Control over maverick buys through software

Reducing the total hours of build in a product

Having a staff person from key, volume suppliers housed on site to work closely with production control to ensure flawless communication, delivery and problem solving.

Non-production spend analysis and solutions

China sourcing (low cost country sourcing and production)

Coordination across the Supply Chain

Use of auctions

2000

2010Advances…

2010-Present

Consideration

for sourcing

domestically

Supplier interaction,  quality issues and problem solving.

Significantly

more

automation

Global

business

environment

More complexity

The emerging versions of purchasing will demand:a strategic focus, a customer service focus, a capacity to interpret financial, political, legal, operational and other supply chain risks, and the capacity on the part of practitioners to operate as a senior executive.

REFERENCES:• Johnson, P. F., Leenders, M. R., & Flynn, A. E. (2011).

Purchasing and supply management (14th ed.). New York: McGraw-Hill/Irwin.

• Procurement History. (n.d.). E-Think. Retrieved August 14, 2014, from http://www.e-thinkinc.com/procurement/procurement-history /

• The Procurement (Purchasing) Evolution,-1970-2012. (n.d.). The Procurement (Purchasing) Evolution,-1970-2012. Retrieved August 14, 2014, from http://www.gea-consulting.com/hvac-blog/bid/75187/The-Procurement-Purchasing-Evolution-1970-2012

• What is Bitcoin?. (n.d.). CNNMoney. Retrieved August 14, 2014, from http://money.cnn.com/infographic/technology/what-is-bitcoin /

• https://blu184.mail.live.com/mail/ViewOfficePreview.aspx?messageid=mga-FFs2km5BGXhtidZ1x55g2&folderid=flinbox&attindex=0&cp=-1&attdepth=0&n=484322

• Introduction and History of Purchasing,(Jan 9, 2014), Retrieved September, 3th, 2014, from http://www.informit.com/articles/

• article.aspx?p=2165644&seqNum=2• https://www.google.com.mx/search?q=raw+material+1930&sourc

e=lnms&tbm=isch&sa=X&ei=IsgGVO-0OOiDiwKn54Eo&ved=0CAYQ_AUoAQ&biw=1280&bih=675#q=competitive+advantage&tbm=isch&facrc=0%3Bventaja%20competitiva&imgdii=_&imgrc=_

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