Page 101 - DMGT523_LOGISTICS_AND_SUPPLY_CHAIN_MANAGEMENT

Logistics and Supply Chain Management Karan Arora, Lovely Professional University

Notes Unit 5: Procurement and Manufacturing Strategies

CONTENTS
Objectives
Introduction

5.1 Procurement Strategies
5.1.1 Volume Consolidation
5.1.2 Supplier Operational Integration

5.1.3 Value Management
5.2 Sourcing Strategies
5.2.1 Shift in Sourcing Strategic Approach

5.2.2 Third Party Provider (3PL)
5.2.3 Fourth Party Logistics Provider (4PL)
5.2.4 E-Procurement

5.3 Manufacturing
5.3.1 Manufacturing Objectives
5.3.2 Manufacturing Decisions

5.4 Manufacturing Strategy
5.4.1 Formulation of Strategy
5.5 Summary

5.6 Keywords
5.7 Review Questions
5.8 Further Readings

Objectives

After studying this unit, you will be able to:

 Explain the Procurement Strategies
 Understand the Sourcing Strategies
 Discuss the Manufacturing concept
 Describe the Manufacturing Strategy

Introduction

Procurement is a process of purchasing goods, works or services, to any specific requirements.
The procurement process should be optimised, and at the most economical total cost for benefit
of the authority, supplier, or individuals. Procurement usually involves the acquisition of goods,

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