Eskom Procurement Book 2015

Chapter 4 Llewellyn R. Roberts and Robert J. Trent PROCUREMENT AS A SUPPORT AND STRATEGIC FUNCTION WITHIN COMPANIES 4.1 Introduction. ................................................................................................62 4.2 Defining Corporate Strategy........................................................................62 4.3 Procurement and Corporate Strategy.........................................................63 4.4 Procurement Strategy Development Process.............................................65 4.5 Key Sourcing Strategies..............................................................................71 4.6 Procurement as a Support Function. ..........................................................80 4.7 Evolving Sourcing Strategies and Best Practices.......................................85 4.8 Concluding Remarks...................................................................................88 4.9 References..................................................................................................88 Chapter 5 David Pooe and Chengedzai Mafini SUPPLIER RELATIONSHIP MANAGEMENT AND DEVELOPMENT AND SUPPLY-BASE LOCALISATION 5.1 Introduction. ................................................................................................92 5.2 Supplier Selection and Evaluation. .............................................................92 5.3 Supplier Relationship Management (SRM).................................................95 5.4 Types of Buyer-Supplier Relationships.....................................................105 5.5 Dealing with Disputes in Buyer-Supplier Relationships. ...........................107 5.6 Supplier Development...............................................................................109 5.7 Supply Base Localisation.......................................................................... 115 5.8 Concluding Remarks.................................................................................124 5.9 References................................................................................................124 5.10 Appendix...................................................................................................127 Chapter 6 Llewellyn R. Roberts and Robert J. Trent TOTAL COST OF OWNERSHIP (TCO) 6.1 Introduction. ..............................................................................................130 6.2 Total Cost of Ownership (TCO).................................................................130 6.3 Types of Total Cost Models.......................................................................133 6.4 Total Cost Elements..................................................................................137 6.5 Calculating Total Landed Cost at Chefs Supply........................................140 6.6 Concluding Remarks.................................................................................144 6.7 References................................................................................................144 Chapter 7 Yusuf Justin Holcraft NEGOTIATION 7.1 Introduction. ..............................................................................................146 7.2 Negotiation Overview................................................................................146 7.3 Negotiation Strategy..................................................................................148 7.4 Negotiation Process..................................................................................149 7.5 Negotiating Steps......................................................................................152 7.6 Tactics.......................................................................................................156 7.7 Concessions..............................................................................................158 7.8 Negotiating Power.....................................................................................161 7.9 Guidelines for Team Negotiating...............................................................163

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