Table of Contents
Integrated Supply Basics
Today's environment of competitive business strategies requires all aspects of an organization to improve efficiencies, validate costs, and optimize the supply chain. The purchasing and supply function is no exception. In their role of managing suppliers and the goods and services necessary to meet organization objectives, purchasing and supply managers must strive to establish a working model with suppliers that makes the most of that relationship. Integrated supply strategies are coming into play as a means to add value.
Benefits of Integrated Supply
Organizations successful in utilizing integrated supply programs have achieved many benefits including:
Integrated Supply Opportunities
Integrated supply agreements can take many forms. A supplier's involvement may come at a nontraditional time, such as in new product development, or in a more traditional capacity, such as supplier-managed inventory. The extent to which a supplier is integrated can also vary.
Finalizing the Integrated Supply Agreement
A basic integrated supply agreement should have the following components:
Drew Curtis, C.P.M., CPIM
Drew Curtis is manager of strategic sourcing programs for Northeastern United States and Eastern Canada for TTI, Inc., at their regional office in Tewksbury, Massachusetts. Mr. Curtis holds a bachelor's degree at the University of New Hampshire and an MBA from Rivier College. He has over 20 years materials/purchasing management experience in high-tech industries and has held positions with Cabletron Systems, Nashua Corporation, and MKS Instruments. He has spoken at NAPM's 83rd Annual International Purchasing Conference and at the APICS International Conference regarding supplier management programs and strategies.
J. Don Etheridge, P.E., C.P.M.
Don Etheridge is a commodity manager with NCR in Atlanta, Georgia. He holds a bachelor's degree in Mechanical Engineering from Auburn University and an MBA from the University of North Carolina at Wilmington. A licensed professional engineer (P.E.), he has worked in engineering and procurement positions for Corning, Carolina Power & Light, and the U.S. Navy's Nuclear Power Program. Mr. Etheridge has written articles that have appeared in Purchasing Today® magazine.
- Carter, P., Carter, J., Monczka, R., Slaight, T., and Swan, A., "The Future of Purchasing and Supply: A Five- and Ten-Year Forecast," NAPM and Center for Advanced Purchasing Studies, 1998
- Gause, S., Cameron and Barkley Company, Wilmington, North Carolina
- Gentry, J., and Dobler, D., Glossary of Key Purchasing Terms, Second Edition
- Manufacturers Alliance, Outsourcing + Insourcing = Best Sourcing, Manufacturers Alliance Economic Report, December 1997
- O'Shea, D., NAPM InfoEdge, September 1998
- Ore, N.J., and Ferguson, W.C., "Engarde! Defend Yourself from Being Outsourced!" 82nd Annual International Purchasing Conference Proceedings, NAPM
- Quinn, J.B., The Intelligent Enterprise, Dartmouth Press, 1993
- Rice, C.S., Corning Incorporated, Wilmington, North Carolina
- Thomas, J.L., "Integrated Supply — Myths and Realities," 81st Annual International Purchasing Conference Proceedings, NAPM
FOR FURTHER READING
- Callahan, D. L., "A Case Study in JIT 'Point of Use' Materials Supply," 81st Annual International Purchasing Conference Proceedings, NAPM
- Cunningham, R., "The Ultimate Goal — Balancing Inventory Service Level," APICS — The Performance Advantage, August 1998
- Oreskovich, R., "Purchasing's Role in Inventory Management," NAPM InfoEdge, July 1997
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