Identifying And Managing Key Purchasing And Supply Management Issues Essay

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Identifying and managing Key Purchasing and Supply Management Issues

Recent years have brought several changes in business practices, technologies, increase of demands, and environmental trends. For businesses these changes represent vast challenges especially for supply chain and purchasing managers, demanding special attention to key issues related to contract management practices, lean supply chains, ethics and laws, purchasing of services, performance measurement and new trends in the field. Below is a summary identifying six purchasing and supply chain management key issues, supply chain and purchasing managers are required to identify future and actual key issues within these elements and how to manage it effectively in order to stay competitive and maintain the good performance of the company.

Key issues
Contract management

How contracts are handle it in a company could determine the success or failure of the relationship between the seller and the buyer. Despite the importance of this process, most of the companies do not spend enough time reviewing important aspects of a contract such as expectations, responsibilities, and penalties. The lack of communication and cross organizational teams also jeopardizes contractual relationships. For instance, if the contract team in a shipyard is not aligned with production schedules and capabilities, it might cause that the contract team bid for more work than production team can handle. Additionally, it is common to

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