OTHER SUPPLY RESPONSIBILITIES

Supply management represents more than traditional procurement activities involving the supplier
selection and the acquisition of goods and services. Supply has significant involvement in a wide
range of supply chain activities such as warehousing, transportation and logistics
1. Receiving:
Receiving is the first step in the internal supply chain and is a critical part of the acquisition
process – represents the point in the supply chain at which there is closure of the contract with the
supplier and the buying firm accepts responsibility for the goods
Supply will most likely be involved in the resolution of issues that arise from the receiving
process such as quality concerns or discrepancies in volumes or prices
2. Logistics and warehousing
Supply can involve a wide range of logistics activities because of the need to control inventory
levels and to coordinate material availability with production
Warehousing and inventory storage can either be an internal function or outsourced to a 3PL.
Consequently, supply can be involved with direct accountability for warehouse personnel or for
supplier selection and oversight
Logistics activities occur throughout every organization from material receipt to shipment of
finished goods. Supply may involve in raw planning and storage
3. Inbound and outbound transportation
An integral part of acquiring goods and services is ensuring proper and cost-effective delivery and
that coordination inbound and outbound transportation helps to reduce costs and improve
utilization of transportation-related resources. Supply has control over both types of transportation
(JIT system, FOB destination)
4. Production planning
Since planning requires coordinating the delivery and storage of key raw materials with suppliers,
some organizations designate responsibility for production planning to supply. Supply also must
work closely with other key functions such as sales and marketing when anticipating demand
during production planning
5. Accounts payable
Some organizations today are giving supply the responsibility for processing accounts payable in
which the potential benefits are familiarity with the supplier and order, opportunities to reduce
transaction costs and headcount and ability for supply to ensure that payments for suppliers are
made on time
6. Investment recovery
Represents effective, efficient, and profitable recovery and disposal of scrap, surplus, obsolete,
and waste materials and assets generated within the firms. Some ways which supply can
simultaneously reduce cost and make improvements in environmental performance are:
• Reducing the obsolescence and waste of maintenance, repair and operating supplies
through better materials and inventory management
• Substantially reducing scrap and materials losses
• Reducing the use of hazardous materials through more timely and accurate materials
tracking and reporting systems
• Supplier selection also play a major role in corporate environmental management
strategies