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Table of Contents

                            CoreTrust Europe
Preface
	Science Meets Reality: A Guide for the Modern Buyer
Preface for the First German Edition (Translated from German Original Text)
	Science Meets Reality: A Guide for the Modern Buyer
Contents
1: Principles of Modern Purchasing
	1.1 Introduction
	1.2 Purposes and Aims of Purchasing
		1.2.1 Operational Purchasing
		1.2.2 Strategic Purchasing
		1.2.3 Project Purchasing
	1.3 The Growing Importance of Purchasing Within the Company
	1.4 Future Challenges to Purchasing
2: The Strategy of Purchasing
	2.1 Strategic Principles
	2.2 Principles of the Purchasing Strategy
	2.3 The Process of Developing a Strategy
		2.3.1 Strategic Analysis
			2.3.1.1 Analysis of the Internal Requirements
			2.3.1.2 Analysis of the External Environment
			2.3.1.3 SWOT Analysis
		2.3.2 Target Setting
		2.3.3 Strategy Development
			2.3.3.1 Commodity Group Strategy
			2.3.3.2 Supplier Strategy
		2.3.4 Tactical Implementation
		2.3.5 Commercial
	References
3: The Purchasing Organisation
	3.1 Introduction to the Organisation
	3.2 Structural Organisation
		3.2.1 Centralised Purchasing
		3.2.2 Decentralised Purchasing
		3.2.3 The Lead Buyer Concept
		3.2.4 Outsourcing of Purchasing Activities
	3.3 Operative Organisation
		3.3.1 The Purchasing Process
			3.3.1.1 Assessment of Demand
			3.3.1.2 Enquiry
			3.3.1.3 Evaluation of Tenders
			3.3.1.4 Award
			3.3.1.5 Purchase Order
			3.3.1.6 Order Confirmation
			3.3.1.7 Supervision and Control of Deadlines
		3.3.2 Roles in the Decision-Making Process
		3.3.3 Process Optimisation
			3.3.3.1 Quantity Contracts
			3.3.3.2 Consignment Stores
			3.3.3.3 Special Price Agreements
			3.3.3.4 General Terms and Conditions of Purchase
		3.3.4 Project Purchasing
	Reference
4: Supplier Management
	4.1 Introduction to the Supplier Management
	4.2 Supplier Strategy
	4.3 Supplier Selection
		4.3.1 Supplier Identification
		4.3.2 Supplier Analysis
		4.3.3 Supplier Selection
	4.4 Supplier Evaluation
	4.5 Supplier Development
	4.6 Supplier Controlling
	4.7 Conclusion
	Reference
5: Global Sourcing
	5.1 Principles of Global Purchasing
		5.1.1 Aims of Global Sourcing
		5.1.2 Strategies and Manifestations
		5.1.3 New Risks at the International Level
	5.2 China as an Example of Global Sourcing
		5.2.1 Incentives and Problems with Regard to Sourcing in China
		5.2.2 Sourcing in China: Development Stages
		5.2.3 Implementation
			5.2.3.1 Identification of Suitable Products
			5.2.3.2 Feasibility Studies and Market Tests
			5.2.3.3 Supplier Evaluation
			5.2.3.4 Supplier Development
		5.2.4 In-house Resistance
	5.3 Compliance
	5.4 Protection of Know-How
	5.5 Cultural Peculiarities
	5.6 Future Prospects
	Reference
6: Risk Management with Regard to Purchasing
	6.1 Principles of the Risk Management
		6.1.1 Definition of the Risk Concept
		6.1.2 Legal and Financial Framework Conditions
		6.1.3 The Economic Importance of Risks
		6.1.4 Risk Management in Purchasing
	6.2 The Risk Management Process
		6.2.1 Identifying Purchasing Risks
		6.2.2 Evaluation of the Purchasing Risks
		6.2.3 Controlling the Purchasing Risks
		6.2.4 Risk Control
	6.3 Special Safeguarding Against Supplier Risks
		6.3.1 Analysis of the Supplier Portfolio
		6.3.2 Reactive Risk Management
		6.3.3 Active Risk Management
		6.3.4 Pre-emptive Risk Management
		6.3.5 Long-Term Measures
	References
7: Methods and Tools for Everyday Purchasing
	7.1 Procurement Market Research
		7.1.1 Types of Procurement Market Research
		7.1.2 Procedure
		7.1.3 Sources of Information
		7.1.4 Areas of Application
	7.2 Value Analysis
	7.3 ABC Analysis
	7.4 Portfolio Technique
		7.4.1 Commodity Groups Portfolio
		7.4.2 Supplier Portfolio
	7.5 Price Structure Analysis
	References
8: The Purchasing Negotiation
	8.1 The Principles of a Purchasing Negotiation
		8.1.1 Motives for Purchasing Negotiations
		8.1.2 Negotiating Strategies
	8.2 Preparation
		8.2.1 Organisational Preparation
		8.2.2 Supplier Negotiation Form
		8.2.3 Negotiation Targets
	8.3 Communication and Body Language
		8.3.1 The Communication Square
		8.3.2 Nonverbal Communication
	8.4 Negotiating Stages
	8.5 Negotiating Methods
		8.5.1 Competitive Negotiating
			8.5.1.1 Basic Pattern of Competitive Negotiating
			8.5.1.2 The Power Factor
			8.5.1.3 The Time Factor
			8.5.1.4 The Information Factor
			8.5.1.5 The Complexity Factor
			8.5.1.6 ``Dirty Tricks´´
		8.5.2 The Harvard Concept
	8.6 Peculiarities in International Negotiations
		8.6.1 The Ritual of Exchanging Business Cards
		8.6.2 The Beginning of the Talks
		8.6.3 Laughing: An Asiatic Means of Managing Conflicts
		8.6.4 Lose One´s Face
		8.6.5 Other Peculiarities
		8.6.6 Conclusion
	8.7 Evaluating the Success of Negotiations
	References
9: Personnel Development in Purchasing
	9.1 The Principles of Personnel Development
	9.2 Requirements for the Modern Buyer
		9.2.1 Identifying Potential with the Transactional Analysis
	9.3 Purchasing as a Managerial Function
	9.4 A Career in Purchasing
	Reference
10: e-Procurement
	10.1 Basics of e-Procurement
		10.1.1 Conceptual Definition
		10.1.2 Basic Types of e-Sourcing Models
			10.1.2.1 e-Tender
			10.1.2.2 e-Auction
			10.1.2.3 e-Collaboration
		10.1.3 Basic Types of e-Ordering Models
			10.1.3.1 Sell-Side Models
			10.1.3.2 Buy-Side Models
			10.1.3.3 e-Marketplace Models
		10.1.4 Aims of e-Procurement
			10.1.4.1 Financial Objectives
			10.1.4.2 Process Objectives
			10.1.4.3 Information Goals
			10.1.4.4 Market Objectives
	10.2 Practical Application of e-Auctions
		10.2.1 Preparing for the e-Auction
		10.2.2 Supplier Acquisition
		10.2.3 Creating an Electronic Invitation to Tender
		10.2.4 Executing an Auction Event
		10.2.5 Verification of Auction Results
		10.2.6 Long-Term Implementation of e-Auctions
	10.3 Determining the Potential of e-Ordering
		10.3.1 Requirements and Supplier Analysis
		10.3.2 Consideration of Representative Market Solutions
			10.3.2.1 Marketplace Solution: Mercateo
			10.3.2.2 Simple-System Procurement Platform
			10.3.2.3 Pool4Tool System Solution
		10.3.3 Cost-Benefit Analysis
			10.3.3.1 Cost Analysis
			10.3.3.2 Potential Benefits in the Procurement Process
			10.3.3.3 Further Potential
		10.3.4 Critical Success Factors
			10.3.4.1 Utilising Technological Potential
			10.3.4.2 Learning and Adjustment Effects
			10.3.4.3 Considering the Consequences of Delegation
			10.3.4.4 Using the Compound Effect and Network Effects
			10.3.4.5 Further Recommendations
	References