P. Fraser Johnson,
University of Western Ontario Anna E. Flynn
ISBN: 0078024099 Copyright year: 2015
Book Preface
Purchasing and supply management has become increasingly visible in a world where supply is a major determinant of corporate survival and success. Supply chain performance influences not only operational and financial risks but also reputational risk. Extending the supply chain globally into developing countries places new responsibilities on supplier and supply, not only to monitor environmental, social, political, and security concerns but also to influence them. Thus, the job of the supply manager of today goes way beyond the scope of supply chain efficiency and value for money spent to search for competitive advantage in the supply chain. Cost containment and improvement represent one challenge; the other is revenue enhancement. Not only must the supply group contribute directly to both the balance sheet and the income statement; it must also enhance the performance of other members of the corporate team. Superior internal relationship and knowledge management need to be matched on the exterior in the supply network to assure that the future operational and strategic needs of the organization will be met by future markets. The joy of purchasing and supply management lives in the magnitude of its challenges and the opportunities to achieve magnificent contributions.
For more than 80 years this text and its predecessors have championed the purchasing and supply management cause. Based on the conviction that supply and suppliers have to contribute effectively to organizational goals and strategies, this and previous editions have focused on how to make that mission a reality.
A great deal has happened in the supply field since the fourteenth edition was published. Continuing advances in MIS and technology provide new ways to improve supply efficiency and effectiveness. New security, environmental, and transparency requirements and the search for meaningful supply metrics have further complicated the challenges faced by supply managers all over the world. As a consequence, several changes and updates have been made to the fifteenth edition. First, the new edition provides an opportunity to incorporate the latest theory and best practice in supply chain management into the text. Wherever appropriate, real-world examples and current research is used to illustrate key points. Second, the application of information technology to supply chain processes continues to change rapidly, including the evolution of cloud-based computing. The text has been updated accordingly, including a major revision to Chapter 4. Third, there are also several important emerging issues – including sustainability, challenges of managing risk in a global supply chain, and collaboration – that are addressed in this text. Lastly, nearly one-third of the cases have been replaced with new cases that cover topics such as negotiation, outsourcing, risk management and sustainability. Thus, the examples in the text and more than 45 real-life supply chain cases afford the chance to apply the latest research and theoretical developments in the field to real-life issues, opportunities, decisions, and problems faced by practitioners.
In this edition the focus on decision making in the supply chain has also been strengthened considerably. The chapter sequence reflects the chronological order of the acquisition process. Criteria for supply decisions have been identified in three categories: (1) strategic, (2) operational, and (3) additional. It is the third category with balance sheet and income statement considerations, all dimensions of risk, environmental, and social considerations that is growing in relevance, making sound supply decisions an even more complex challenge.
Since the sixth edition nearly 40 years ago, Michiel R. Leenders has been an author of this text. As Professor of Operations at the Ivey Business School, Mike has been one of the great leaders in the supply field for more than half a century. His accomplishments include authorship of three other procurement books, founding director of the Ivey Purchasing Managers Index, and a long list of articles and presentations at international conferences. In 2003, Mike received the International Federation of Purchasing and Materials Management’s highest research honor in the form of the Hans Ovelgonne Award. Mike did not participate in this edition, although his past contributions are still evident throughout this text.
A book with text and cases depends on many to contribute through their research and writing to expand the body of knowledge of the field. Thus, to our academic colleagues our thanks for pushing out the theoretical boundaries of supply management. To many practitioners, we wish to extend our gratitude for proving what works and what does not and providing their stories in the cases in this text. Also many case writers contributed their efforts so that approximately one-third of all the cases in this edition are new.
Case contributors in alphabetical order included: Carolynn Cameron, Garland Chow, Jorge Colazo, Jenni Denniston, Dominque Fortier, Manish Kumar, Glen Luinenberg, Eric Silverberg, Dave Vannette, and Marsha Watson.
The production side of any text is more complicated than most authors care to admit. At McGraw Hill–Irwin, Christina Kouvelis, Thomas Hayward, Kaylee Putbrese, and Michelle Valenti and many others contributed to turn our efforts into a presentable text.
The support of Dean Bob Kennedy and our colleagues at the Ivey Business School has been most welcome.
The assistance of the Institute for Supply Management in supporting the continuous improvement of supply education is also very much appreciated.
P. Fraser Johnson Anna E. Flynn
2015