reading

Prof. Dr. Willi Darr

University of Applied Sciences Hof

Procurement and Logistics Management

Alfons-Goppel-Platz 1 | D-95028 Hof/Saale

Hardcover	ISBN 978-3-347-03017-6
Paperback	ISBN 978-3-347-03016-9
E-Books	ISBN 978-3-347-03018-3

Bibliografische Information der Deutschen Nationalbibliothek
Bibliographic Information of the German National Library

Die Deutsche Nationalbibliothek verzeichnet diese Publikation in der Deutschen Nationalbibliografie; detaillierte bibliografische Daten sind im Internet über http://dnb.dnb.de abrufbar.

The Deutsche Nationalbibliothek lists this publication in the Deutsche Nationalbibliografie; detailed bibliographic data can be found on the Internet at http://dnb.dnb.de.

Das Werk einschließlich seiner Teile ist urheberrechtlich geschützt. Jede Verwertung, die nicht ausdrücklich vom Urheberrechtsgesetz zugelassen ist, bedarf der vorherigen Zustimmung. Dies gilt insbesondere für den Nachdruck, für Vervielfältigung, Bearbeitungen, Mikroverfilmungen und die Einspeicherung und Verarbeitung in elektronischen Systemen.

The work including its parts is protected by copyright. Any use that is not expressly permitted by copyright law requires prior consent. This applies in particular to reprinting, duplication, processing, microfilming and storage and processing in electronic systems.

Cover and design by tredition & Willi Darr

Translated by Sally Rendl

Originaltitel: Grundfragen des Einkaufsmanagements, tredition Verlag 2017

Herstellung und Verlag | Printed and published by
tredition GmbH, Halenreie 40-44, D-22359 Hamburg, Germany

Foreword

Procurement respectively procurement management in companies has received a significant boost in importance in recent years. The increasing outsourcing of services to suppliers and the simultaneous commissioning of international suppliers have changed the tasks and professional profile of buyers in terms of their contribution to corporate value creation. Without procurement management (purchasing management), corporate strategies and the achievement of sustainable competitive advantages can no longer be achieved. Procurement has become a central success factor in companies.

Thus, the knowledge of procurement management and the skills of the buyers form an essential pillar for entrepreneurial decisions and strategies. Knowledge of the basic interrelationships of procurement management is and will be a natural part of any training and further education. This book provides a fundamental contribution by showing and explaining central elements and interrelationships. It is suitable for an introduction to procurement management and therefore a helpful reading for students and practitioners.

I wish every reader a joyful reading and helpful insights into his or her own conceptual world of procurement management.

Willi Darr

Contents

Contents

List of tables

List of figures

List of abbreviations

1. Basics

a. The term procurement (purchasing)

b. Procurement objects

c. Purchasing process

d. Procurement management

e. Goals of procurement management

2. Importance of procurement management

a. Historical overview

b. Outsourcing

c. Leverage effect of purchasing

d. Decreasing transfer costs

e. Development in the procurement/sales markets

f. Production development

g. Fluctuating exchange rates and raw material prices

3. Management of the procurement organization

a. Preliminary remarks

b. Organization of the primary organization

c. Hierarchical significance of procurement management

d. Classification principles of the organization

e. Secondary organization

f. Purchasing Offices

g. Qualification of the buyers

4. Material management

a. A brief overview

b. Outsourcing as a decision problem

c. Stocks as a decision problem

i. Stocks as value

ii. Quantity planning

iii. Strategic aspects of material management

5. Supplier management

a. Overview of the tasks of supplier management

b. Supplier structure

c. Supplier relationships

d. Supplier evaluation

6. Risk management and compliance

a. Risk and crisis

b. Legal basis for risk management

c. Phases of risk management

d. Compliance

e. Risk, compliance and crisis

f. Supplementary literature references

7. In conclusion

8. List of references

List of tables

Table 1.1: Overview of procurement (purchasing) management tasks

Table 1.2: 7x3 Target matrix of procurement management

Table 3.1: Comparison of the three forms of primary organization of purchasing

Table 3.2: Advantages and disadvantages of the three forms of primary organization of purchasing

Table 4.1: Coordination mechanisms based on the theory of transaction costs

Table 5.1: Advantages of Single Sourcing and Multiple Sourcing in comparison

Table 5.2: A comparison of the advantages of Traditional Sourcing and Modular Sourcing

Table 5.3: The purchasing advantages and purchasing disadvantages of Global Sourcing

Table 5.4: The Supplier Power/Purchaser Power Portfolio

List of abbreviations

AktG	Aktiengesetz
ATO	Assemble to Order
BME	Bundesverband Materialwirtschaft und Einkauf e.V.
DIN	Deutsches Institut für Normung
EC	External cost
EICC	Electronic Industry Citizenship Coalition
EK	Einkauf (buyer, buying department)
EK 1,2,3	Einkaufspreis 1, 2, 3 (buying price 1, 2, 3)
EN	Europäische Norm
f.	folgend
GmbHG	GmbH Gesetz h Order frequency
HGB	Handelsgesetzbuch
IC	Internal cost
ISO	International Organization for Standardization
Kb	Fixed costs per order
IDW	Institut der Deutschen Wirtschaftsprüfer
MTS	Make to Stock
MTO	Make to Order
OPP	Order Penetration Point
OWiG	Gesetz über Ordnungswidrigkeiten
p	price
p.	page
PS	Prüfungsstandard
Q	Annual requirement
	Critical stock level
S	Maximum target stock
T	Time of regular check
TC	Transaction cost
TCO	Total Cost of Ownership
TfS	Together for Sustainability
TÜV	Technischer Überwachungsverein
UK	United Kingdom
US	United States
X	Order quantity
X_opt	Optimum order quantity
Z	Storage interest rate