TAILIEUCHUNG - Ebook Supply management (8th edition): Part 2
(BQ) Part 2 book "Supply management" has contents: Total cost of ownership, price and cost analysis, methods of compensation, contract formation and legal issues, contract and relationship management, ethics and social responsibilities, production and inventory control,.and other contents. | Cost Manage111ent Historically, purchasing managers and buyers treated price as the only cost, ignoring the total cost of ownership (TCO). Almost all material, parts, sub assemblies and even services have significant costs beyond the initial price. Think of the simple example of the automobile life cycle costs of mileage, maintenance, insurance, etc. 301 PART 4 302 T Cost Management o maintain global competitiveness, supply professionals must become enablers at revealing syner gistic opportunities while balancing customer desires against cost. Some 40 years ago, the . Air Force introduced the concept of life cycle costing. Instead of addressing only operating character istics and flyaway costs, we analyzed the cost of owning and operating a weapon system over its expected life. T he private sector has learned much from the Department of Defense in what has come to be known as the Total Cost of Ownership. We believe that every supply manager, every program manager, every de sign engineer-in fact, every decision maker-must be familiar with and support the principles described in Chapter 13, "Total Cost of Ownership." Obtaining the right price is one of supply management's most important responsibilities. As described in Chapter 14, a supply professional has a wonderful and evolving arsenal of tools to help satisfy this role. As addressed in Chapter 15, the traditional tools of price and cost analysis have been augmented with sophisticated ways of dealing with cost and technology uncertainty. Some of these compensation methods, together with the award fee, help align buyer and supplier objectives. Negotiation techniques, as discussed in Chapter 16, have evolved to a set of principles and practices which help buyers and suppliers plan for and address all issues of the forthcoming relationship, ensure an understanding of all issues, and arrive at an agreement in which both parties reap synergistic .
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