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Articles on procurement and supply chain management in English.

Specializing in procurement and supply chain division

If the specializing in procurement and supply chain division should contribute to the achievement of organizational goals, it is necessary to equip professionals and clearly define the areas of responsibility for them. Specialization of procurement professionals helps them to develop expertise in specific areas and may require in the overall structure of specialized groups. Most of the large supply and procurement divisions consist of four general areas: management and sourcing of goods, material flow management, administrative tasks, and research related to supply.

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Total quality management

Total quality management (TQM) is a philosophy and management system that focuses on meeting the demands of consumers. In the process of TQM consumer can be both internal and external, as well as any link in the supply chain, receiving materials from the previous chain link .

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Cross-functional supply teams

Cross-functional teams consist of the employees of different functions and are engaged in tasks associated with supplies. It is widely believed that cross-functional teams with good professionals are to achieve better results in problems solving and provide higher profit organization as a whole at a lower cost, shorter terms, and so that the persons concerned are eager to perceive their results. Effective cross-functional teams save time through using not the serial, but parallel approach. For instance, if the development of a new process, its design, build and implementation of the workers involved major stakeholder groups, this process will face less difficulty from the outset, it will be eagerly accepted and … Читать далее →

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Supplier’s certification

No matter how perfect description of the application is, a procurement executive should always find out whether the suppliers really deliver what is required. This is done using quality assurance, testing, inspection and quality control. Usually, before placing an order with a new supplier, and often before the supplier requesting a quote, procurement verify potential or quality assurance directly to the supplier's premises. This is done in order to make sure that the supplier can produce products that meet specifications and provide the required quality standards. Once this approach is used in contracts for defense contracts, now it is widely used in all high-technology areas and in almost all more … Читать далее →

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Continuous improvement in procurement

Continuous improvement, which is sometimes called Japanese term "kaizen"  is engaged in the relentless pursuit of improving a product or process in the small workflow. This is a component of the concepts of ”just in time" and total quality management (TQM). Implementing continuous improvement should be based on well-formulated and structured approach to the use of common tools required to solve problems, in particular Pareto analysis, histograms, correlation diagrams, charts, cause-and- effect relationships, control charts and diagrams of the process.

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Radio Frequency Identification

RFID tags contains a chip and an antenna, which sends a signal, using the energy of the reader. This signal contains information about the package or its contents. There are a variety of types of electronic tags that vary the parameters of memory, frequency, power, and cost.

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«Kanban» system

"Kanban" is a simple and effective system of control, which helps to realize the system ‘just in time’ in practice. "Kanban" in Japanese means " card " , the use of such cards has become a major element in many control systems used in Japanese companies , including Toyota, whose system of " Kanban " attracted great attention of specialists around the world.

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Material Requirements Planning (MRP)

Demand for raw materials, components, parts depends on the schedule of the assembly line , which is produced finished products . For example, for everyone must collect the car windshield, a steering wheel, four tires, plus one spare. Similarly, many of the goods for service and maintenance depend on the performance graph works. At the heart of the reception, which is called planning resource requirements (MRP), is an understanding based on demand.

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Outsourcing. Part 1.

Over the past twenty years, outsourcing has become a separate branch of business. The number of consulting companies, providing this kind service is growing.  Accenture, for instance, makes a specialty out of providing services of this type. Information technology specialists, IBM associated with outsourcing as a major part of the business.

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Outsourcing. Part 2

The main change in the different types of relations in outsourcing is the degree of management control in the two companies. The presence or absence of management control can be analyzed using a special tool, a continuum of "make or buy" (see Fig. 1) 

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