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Chapter 4 Llewellyn R. Roberts and Robert J. Trent

PROCUREMENT AS A SUPPORT AND STRATEGIC FUNCTION WITHIN

COMPANIES

4.1 Introduction. ................................................................................................62

4.2 Defining Corporate Strategy........................................................................62

4.3 Procurement and Corporate Strategy.........................................................63

4.4 Procurement Strategy Development Process.............................................65

4.5 Key Sourcing Strategies..............................................................................71

4.6 Procurement as a Support Function. ..........................................................80

4.7 Evolving Sourcing Strategies and Best Practices.......................................85

4.8 Concluding Remarks...................................................................................88

4.9 References..................................................................................................88

Chapter 5 David Pooe and Chengedzai Mafini

SUPPLIER RELATIONSHIP MANAGEMENT AND DEVELOPMENT AND

SUPPLY-BASE LOCALISATION

5.1 Introduction. ................................................................................................92

5.2 Supplier Selection and Evaluation. .............................................................92

5.3 Supplier Relationship Management (SRM).................................................95

5.4 Types of Buyer-Supplier Relationships.....................................................105

5.5 Dealing with Disputes in Buyer-Supplier Relationships. ...........................107

5.6 Supplier Development...............................................................................109

5.7 Supply Base Localisation.......................................................................... 115

5.8 Concluding Remarks.................................................................................124

5.9 References................................................................................................124

5.10 Appendix...................................................................................................127

Chapter 6 Llewellyn R. Roberts and Robert J. Trent

TOTAL COST OF OWNERSHIP (TCO)

6.1 Introduction. ..............................................................................................130

6.2 Total Cost of Ownership (TCO).................................................................130

6.3 Types of Total Cost Models.......................................................................133

6.4 Total Cost Elements..................................................................................137

6.5 Calculating Total Landed Cost at Chefs Supply........................................140

6.6 Concluding Remarks.................................................................................144

6.7 References................................................................................................144

Chapter 7 Yusuf Justin Holcraft

NEGOTIATION

7.1 Introduction. ..............................................................................................146

7.2 Negotiation Overview................................................................................146

7.3 Negotiation Strategy..................................................................................148

7.4 Negotiation Process..................................................................................149

7.5 Negotiating Steps......................................................................................152

7.6 Tactics.......................................................................................................156

7.7 Concessions..............................................................................................158

7.8 Negotiating Power.....................................................................................161

7.9 Guidelines for Team Negotiating...............................................................163