The Complete Lean Enterprise: Value Stream Mapping for Administrative and Office Processes by Beau Keyte Locher & Drew

Author:Beau Keyte Locher & Drew [Locher, Beau Keyte]
Language: eng
Format: epub
ISBN: 9781563273018

Purchasing and Inventory Management

Purchasing's legacy in many companies has become a combination of sourcing new parts to the lowest bidder, pressuring suppliers for cost reductions, and replenishing raw materials when told to do so by the Materials Requirement Planning (MRP) /Enterprise Resource Planning (ERP) system. In a lean enterprise, the focus of purchasing (e.g., buyers, material planners) and inventory management personnel shifts to developing long-term relationships with capable suppliers, sourcing suppliers based on the full costs of purchased parts, and modifying inventory levels in the pull system to reflect changes in market demand or production performance. The questions to ask are:

• What effect will the use of pull/kanban material replenishment systems have on the purchasing and inventory management activity?

• What is the value of developing strategic partnerships with vendors, as opposed to selecting suppliers solely on the basis of price?

• What activities will change with the incorporation of vendor-managed inventories?

• How can you use the newly available time of purchasing and inventory management personnel to improve supplier management?

• What is the impact on the value stream if you eliminate purchase orders or replace them with blanket order agreements?

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