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Extra resources for API RP 1168 1st Ed. Sept. 2008 - Pipeline Control Room Management

Sample text

In 2004, for example, the UK government was challenged by the Director of the Office of Government Commerce, John Oughton, to reduce spending in administrative departments by £7bn per annum for three years, not simply as a way of saving public money but as the catalyst for significant strategic change within central civil service. qxd 16/11/2007 03:22PM Page 26 26 Part 1 · The fundamentals of supply 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 04) We shall refer to outsourcing at several stages in the discussion.

S. Components provide a catalogue service to industrial and service firms. The catalogue covers all manner of items, ranging from transistors and resistors through to large-scale transformers and other heavy-duty equipment. This firm viewed itself primarily as a logistics and marketing operation, with purchasing performing the service role of providing the goods at the right time, right price and right quality. R. S. Components competes in a market with two other major firms, all using the same type of marketing channel (catalogue).

Driving strategy The third, and most challenging, role of purchasing and supply management is to drive strategy by providing the firm with a long-term competitive advantage. In this situation, supply is the key driver of the firm’s strategy. For example, the ability of Wal-Mart’s managers to select, evaluate and develop suppliers throughout their global supply chain is a key to the success of their lowest-price strategy. qxd 16/11/2007 03:22PM Page 19 Chapter 2 · The evolution of purchasing and supply management 19 combination of excellent supplier relationships and lean supply practices makes it extremely difficult for competitors to imitate.

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