Attributes of Efficient Purchasing Department.pptx

1. Procurement and
Supply Management
Attributes of Efficient
Purchasing Department
Dr. Sidath Waidyasekera
Ph.D., MBA (PIM-USJ), MCIM (UK), PG Dip Mkt (UK),
MCILT (UK), MSLIM (SL)
Chartered Marketer

2. Attributes of Efficient Purchasing Department
Proactive Vs Reactive Able to anticipate the need to of End user departments Have
an understanding on EOQ(s) Able to develop an alternative sources Able to foreseen
the future Always having Holistic View of the needs of the organization( Future
Activities, Aggregated demands, Intelligent Integration)
alternative ways and means
looking for possible

3. Stake Holders of Purchasing Cycle
User Department Stock Control/Inventory Management Purchasing Department
Stores Operations Logistics Payments Department Quality Control

4. What is Category Management?
It can be defined as a strategic end-to-end approach to
procurement, where organisations segmenttheir spending
on bought-in goodsand services. The goal is for category
management to enable procurement departments to
deliver greater value for money to their organisations.
To do this, spend across the buying organisation is divided
into ‘categories’, e.g.IT hardware, transport or stationery.

5. Procurement is undertaken and managed
according to these categories – rather than, for
instance, by department – in order to obtain the
best possible outcome for the organisation and
to maximise value for money. Often this can be
achieved
one
by economies of scale such as having
stationery contract for the whole
organisation rather than several.

6. economies of scale ?

9. What is Market Segmentation?-
Marketing

12. Definition of eProcurement
Electronic procurement, or e-procurement, is when a
company utilizes the internet (or occasionally an
intrane to acquire the goods and services it needs
to run its
business. A computerized workflow replaces paper-base
operations, streamlining all parts of the purchase proces

13. Introduction to eProcurement
eProcurement is defined as a digital B2B business
process that utilizes internet technology to
centralize purchasing workflows and streamlines
business transactions like procuring goodsand
services to reduce costs and improve purchasing
processes. eProcurement software replaces paper-
based operations by automating traditional
procurement processes and helps analyze spend for
strategic cost-saving operations between finance
and procurement. eProcurement software integrates

15. Creating anRFP
A few key phrases used in e-procurement procedures
include Request For Proposal (RFP), Request For
Information (RFI), Request For Bids (RFB), and Request
Fo Quotes (RFQ). This also entails establishing
commercial certification standards. This draws
several potential bidders and encourages them to
participate in the
business
.

16. 3. Submission of a bid
Bidders are required to register
on the e-
procurement
site
bids,
before submitting their
which mustinclude all
an
d
technical information
commercial procedures.

17. 4. Opening and judging of bids
After the vendors’ information is uploaded to
the e-procurement site, they are evaluated
for theirlegitimacy, which is where the
process of e-Auction takesplace. All supplied
information is double-checked for accuracy
and compatibility.

18. 6. Selection and Finalization
of Vendors
Following the e-Auction, one or more vendors
are chosen, and a Purchase Order is issued by
the specifications. The procurement process
comes to a close withthis phase.

19. Contract and Vendor
Management
Maintaining vendor contact information
as well as creating a catalogwith all
commercial information on bids.

21. The eProcurement Process
The traditional procurement cycle is paralleled by the e-
procurement process. In e-procurement, there are five
basic digital procedures. These steps correspond to the
stages of the traditional procurement process:
requirement definition, sourcing, solicitation,
evaluation,

22. e-Informing
All steps of the traditional procurement cycle are covere
by e-informing. It also intersects with all e-procurement
digital procedures. E-informing entails a two-way exchang
of confidential data. The communication takes place
between internal and external partners inside the
company, helping the organization to improve its e-
procurement procedures.

23. e-Sourcing
The first phase of e-procurement is e-sourcing
which includes requirement definition and
sourcing. It entailspre-qualifying potential
suppliers based on the needs of the
procurement firm to narrow down
stage.
vendors for
the assessment

24. e-Tendering
Solicitation and assessment are both parts of the e-
tendering process. It entails seeking information,
proposals, and quotes from
shortlisted. This aids in the
analysis and evaluation of
the suppliers
procurement
vendors. The
that have been
organization’s
procurement
organization employs technologies at this stage to
guarantee transparency during the selection
process.

25. e-Auctioning
E-auctioning, also known as e-reverse auctioning, is linked
to contracting and evaluation. The parties engaged at this
stage negotiate price and contract conditions. The
procurement organization purchases the products or
services from the vendor after striking an agreement.
Many buyers compete in e-auctioning to contract with one
provider by proposing greater prices. In e-reverse
auctioning, on the other hand, numerous providers
compete for a contract with a single customer by

26. e-Ordering
E-ordering occurs at the same time as contracting
and contract management. It entails generating
and
authorizing requisitions, placing orders, and receiving the
things that have been placed on hold. Completed on-call
contracts are indexed in a digital catalog at this level.
Employees can visit this catalog at any moment and place
an order. Managing suppliers and catalogs, integrating
purchase orders, e-invoicing, and e-payment are all
examples of e-procurement operations.

28. Enterprise resource planning
Enterprise resource planning (ERP) is a type of software
system that helps organizations automate and manage
core business processes for optimal performance. ERP
software coordinates the flow of data between a
company’s business processes, providing a single source
of truth and streamlining operations across the enterprise.
t’s capable of
operations,
human
linking a company’s financials, supply chain,
commerce, reporting, manufacturing, and
resources activities on one platform.

30. Ad various risks associated with
e tenderingd a heading

31. Risks: Micromanagement, Time-
Consuming Approval Chains,
Supplier Onboarding Problems,
Hacking, Data Loss

32. NMRA data loss: Software engineer further
remanded
Monday, October 18, 2021 - 12:48
Law & Order
https:
//www.dailynews.lk/2021/
10/18/law-order/262230/

33. Thank You!
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