You are here

Purchasing and Supply Chain Management

Purchasing and Supply Chain Management

Fourth Edition

October 2020 | 608 pages | SAGE Publications, Inc
Purchasing and Supply Chain Management introduces students to purchasing as it relates to the supply chain and other functions and systems within an organization, such as marketing, logistics, and operations. Author W. C. Benton, Jr. draws from more than 30 years of practice, instruction, research, and consulting experience to teach students proactive collaboration, negotiation, and analytics. Through a step-by-step approach, readers will gain data-driven purchasing skills crucial for the next generation of professionals. The Fourth Edition is fully updated with new real-world cases, the latest research, and current coverage of key trends in the field. 

Included with this title:

The password-protected Instructor Resource Site (formally known as Sage Edge)
offers access to all text-specific resources, including a test bank and editable, chapter-specific PowerPoint® slides. Learn more.

About the Author
Part I: Introduction to Purchasing and Supply Chain Management
Chapter 1: Purchasing and Supply Chain Management

Purchasing Managers, Buyers, and Purchasing Agents

The Evolution of the Purchasing and Supply Management Function

The Supply Management Process

Purchasing Dollar Responsibility

Integrated Supply Management (ISM)

Organizing for Purchasing

Reporting Structure

Professionalism within Purchasing and Supply Management


Chapter 2: Purchasing Decisions and Business Strategy

The Relationship Between Purchasing and Competitive Strategy

Supply Chain Strategy

Supplier Relationship Quality (SRQ)

The Integrated Buying Model

The Strategic Sourcing Plan

Purchasing Strategy Trends


Appendix: Supply Chain Relationship Quality Study

Chapter 3: The Legal Aspects of Purchasing

Authority of the Purchasing Manager

Contracts and Purchase Orders


Execution of Contracts and Purchase Orders by the Purchasing Manager

The Legal Impact of the Information Age

Purchasing and Ethics

Women and Minority Compliance


Part II: Materials Management
Chapter 4: Materials Management

Materials Requirements Planning and Capacity Requirements

Throughput Time—Velocity

Order Cycle

Customer Satisfaction


Specifying Materials

Maintenance, Repair, and Operating (MRO) Supplies



Chapter 5: Inventory Management

Independent Versus Dependent Demand

Inventory Management Overview

ABC Classification of Inventory Items

Independent Demand

Dependent Demand Systems


Appendix: Areas Under the Normal Curve

Chapter 6: Just-in-Time (Lean) Purchasing

Lean Production Systems

Just-In-Time Production System

Kanban Production Control System

Significance of JIT Purchasing

Purchasing Benefits

Implementation of JIT Purchasing

Role of Culture

Critical Analysis of the JIT Concept


Part III: Fundamentals of Purchasing and Supply Chain Management
Chapter 7: Purchasing Procedures, E-Procurement, and Systems Contracting

Purchasing Procedures

Systems Contracting


Reverse Auctions

Electronic Data Interchange (EDI) and Purchasing

Radio Frequency Identification (RFID)

Adopting New Technologies


Appendix: Systems Contract Agreement

Chapter 8: Supplier Selection and Evaluation

The Buy Decision: Outsourcing

Sources of Supplier Information

Strategic Source Selection

Supplier Relationship Management

Supplier Relationship Management Programs

Supplier Development Programs

Supplier Evaluation Programs

Single Versus Multiple Sources

Industry Examples


Chapter 9: Strategic Outsourcing

Why Do Organizations Outsource Business Processes?

The Hidden Costs of Outsourcing

Core Competencies

Outsourcing Trends

Elements of Strategic Outsourcing


Chapter 10: Global Sourcing

Costs of Global Sourcing

Currency Exchange Rates

Organizational and Behavioral Issues

Global Sourcing as a Strategic Sourcing Option


Importance of Negotiations

Global Provider Opportunism

U.S. Export Administration Regulations

Foreign Trade Zones


Appendix: Outsourcing Policy Example

Chapter 11: Supply Partnerships and Supply Chain Power

Benchmark Supplier Partnerships: Chrysler Corporation

Partnerships: Definition and Overview

The Evolving Supply Chain Strategy

Supply Chain Partnerships

Power Influences on Supply Chain Relationships


Chapter 12: Total Quality Management (TQM) and Purchasing

Total Quality Management and Supply Chain Management

TQM Implementation Problems

Quality Requirements for Suppliers

Statistical Process Control, Six Sigma, and the Taguchi Method

Quality Awards and Certifications

Continuous Improvement and the Supplier

Engineering and Design


Appendix A: The Taguchi Method

Appendix B: Acceptance Sampling

Part IV: Price/Cost Analysis and Negotiation Strategies
Chapter 13: Price Determination

The Purchasing Decision

Price-Setting Strategy


Price Determination

The Learning Curve

Pricing Strategy

Project Pricing

The Price/Cost Analysis Process


Appendix A: The Robinson–Patman Act—General Price Discrimination

Appendix B: Unit Factors for Progress Functions

Appendix C: Estrada Systems

Chapter 14: Bargaining and Negotiations

Distributive Versus Integrative Bargaining

Psychological Bargaining Framework

Economic Bargaining Framework

An Experiment in Distributive Bargaining

Planning for a Formal Negotiation

An Intergrated Model of the Buyer–Seller Interaction


Part V: Special Purchasing Applications
Chapter 15: Purchasing Transportation Services

Transportation’s Role in Purchasing

Three Transportation Purchasing Examples

The Impact of the North American Free Trade Agreement (NAFTA) on Domestic Transportation


Chapter 16: Equipment Acquisition and Disposal

The Capital Equipment Acquisition Process

Disposal of Capital Equipment

Purchasing New Versus Used Capital Equipment

Lease Versus Borrow-and-Purchase Example


Appendix A: Federal Acquisition Regulation; Electronic and Information Technology

Appendix B: Discount Rates

Chapter 17: Health Care Purchasing and Supply Management

Purchasing, Supplies, and Services

Health Care Supply Chain Management

Methods of Supply Management

Complicating Factors Unique to Health Care for Inventory Control

Current Trends

Acquisition of Capital Equipment Process Overview

Group Health Insurance


Appendix: Purchasing Health Care Plans

Chapter 18: Sourcing Professional Services

Service Sector Characteristics and Strategies

Outsourcing and the Service Sector

Managing Outsourced Services

Purchasing Professional Services


Appendix A: Preliminary Exploratory Interviews

Appendix B: FHWA Project Example

Appendix C: Fortune 500 Company Example



Instructor Resource Site

The open-access Student Study Site makes it easy for students to maximize their study time, anywhere, anytime. It offers flashcards that strengthen understanding of key terms and concepts, as well as learning objectives that reinforce the most important material.

For additional information, custom options, or to request a personalized walkthrough of these resources, please contact your sales representative.
Student Study Site

The open-access Student Study Site makes it easy for students to maximize their study time, anywhere, anytime. It offers flashcards that strengthen understanding of key terms and concepts, as well as learning objectives that reinforce the most important material.

For additional information, custom options, or to request a personalized walkthrough of these resources, please contact your sales representative.
Key features
  • New coverage includes:
    • effect of COVID-19 on the health care supply chain
    • selecting, managing, and monitoring complex global outsourcing services
    • professional service sector procurement
    • professionalism, ethics, and the law
  • Expanded coverage includes:
    • Health care purchasing and supply chain management
    • e-procurement technology
    • price/analysis, negotiations, and the competitive bidding trap
    • supply chain relationship management
    • New real-world case studies based on practical organizational situations reinforce the lessons learned from chapters.
    • Revised chapter summaries allow students to review the material in direct relation to chapter-opening learning objectives.


  • A focus on the interrelationships of purchasing with the rest of the functional and system areas of the organization takes into account finance, marketing, accounting, logistics, supply chain management, and operations management.
  • Specialized topical areas cover the latest trends in the industry not often covered in other texts, such as transportation services, equipment acquisition and disposal, health care services, and professional sourcing services.
  • An emphasis on globalization reflects the increasing importance of supply chain partnerships, global sourcing, and total quality management.

Sage College Publishing

You can purchase or sample this product on our Sage College Publishing site:

Go To College Site

This title is also available on SAGE Knowledge, the ultimate social sciences online library. If your library doesn’t have access, ask your librarian to start a trial.