Advantage of written and implied policies:

Policies are a means for executive management to communicate its leadership and
views.
Policies provide a framework for consistent decision making and action.
Policies help ensure that personnel act in a manner consistent with executive or
functional management's expectations.
An effective policy defines the rules and procedures that apply to all employees.

Disadvantage of written and implied policies

Employees may view policies as a substitute for effective management.

Policies are not a set of how-to instructions designed to provide specific answers
for every business decision.
Policy development can restrict innovation and flexibility.
Policies are often difficult to communicate throughout large organizations.

Characteristics of effective policies:

action-oriented
relevant
concise
timely and current

Examples of irregular dealings with suppliers

accepting bribes from suppliers

accepting late bids
owning a stake in a supplier's company
cronyism

principles that support positive buyer-supplier relationships

Treating suppliers fairly and with integrity.

Providing prompt payment to suppliers.
Encouraging suppliers to submit innovative ideas with joint sharing of benefits.
Establishing a fair process to award purchase contracts.

elements that must be part of an environmental management system required by the ISO 14000
certification process
relationship management skills

Ability to act ethically.

Ability to listen effectively.
Ability to communicate.
Ability to use creative problem-solving.

the different methods that supply management will apply to achieve integration

Cross-functional or cross-organizational committees and teams

Information systems such as videoconferencing and webmail
Process-focused organizations that are dedicated to certain processes
Co-location of suppliers and customers

characteristics that define a collaborative buyer-supplier relationship

one or a limited number of suppliers for each purchased item or family of items
a win-win approach to reward sharing
open exchange of information
a credible commitment to work together during difficult times

benefit of using a cross-functional sourcing team

Reduced time to complete a task.

Increased innovation.
Joint ownership of decisions.
Enhanced communication between functions or organizations.

requirement of being an effective team member

a.
b.
c.
d.
e.

Understands the team's task.

Has time to commit to the team.
Has the ability to work with others in a group.
Can assume an organizational rather than strict functional perspective.

how supply management should monitor and anticipate activity in its supply market

forecasting long-term supply and prices for its basic commodities

mentoring technological innovations that impact its primary materials or make
substitute materials economically attractive
evaluating other potential suppliers as well as existing suppliers
providing visibility to new product requirements