Supply Strategy
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Purchasing Plan for Penfield Inc.
Mission Statement:
Penfield Incorporateds Purchasing Department Mission is to provide cost savings to our corporate operations, while ensuring honesty, superiority and effectiveness as we achieve a top in class procurement process. Our teamwork is based on open cooperation within departments and creative solutions with customer-focused goals.
Vision Statement:
The goals of the Purchasing Department is to provide material and support at the best value for the entire company in a timely manner, and stimulate participation in Penfield Incorporateds process with current, new, and local vendors to continually reduce costs and provide value to its customers.
Goals & Objectives:
Penfield Incorporateds Purchasing Department goal is to maintain a continuous supply of goods and services for all departments of the company, ensuring delivery of an acceptable quality of goods and services in a timely manner at the best possible price. In order to attain these goals, Purchasing has the following objectives:
Purchase goods and services for the companys use at the maximum end-use value per dollar spent, securing competitive bids when appropriate.
Develop reliable alternate sources of supply to meet company requirements.
Treat all prices and technical information submitted by suppliers as confidential in order to preserve a good business reputation and obtain competitive prices.
Maintain liaison with vendors providing goods/services to the company, including the resolution of complaints regarding those goods/services.
Maintain inventories of purchased goods so as to meet the use requirements of the company at the lowest possible cost.
Verify that budgeting is available before making a commitment to purchase goods or services.
Because Penfield Inc.s reputation and credibility are so important to maintaining good, long-term business relations, Purchasing insists on fairness and honesty in all transactions. At no time will Purchasing staff knowingly involve itself with deceptive or dishonest vendor practices.
Purchasing and Inventory Data from 2005
Metal Commodities
Steel
2005 Purchases
On-hand Inventory
Certified Supplier
Nucor
$10,000,000
$1,000,000
US Steel
$5,000,000
$500,000
Apple
$1,000,000
0
*Dumpy
$500,000
$10,000,000
$100,000
$50
Command
$150,000
$1,000
Roemer
$2,000,000
$500,000
Total
$18,750,000
$12,001,500
* Obsolete Inventory from 1995
Suppliers Continued
Copper
2005 Purchases
On-hand Inventory
Certified Supplier
$5,000,000
$4,000,000
There are other copper suppliers but the Old Purchasing Director was to lazy to get another supplier
Mechanical Commodities
Circuit Boards
2005 Purchases
On-hand Inventory
Certified Supplier
Northern
$2,000,000
$100,000
Fast Boards
$1,000,000
$50,000
Trostel
$2,000,000
$100,000
Preco
$1,000,000
$50,000
Total
$6,000,000
$300,000
Fasteners
2005 Purchases
On-hand Inventory
Certified Supplier