2. Overview
• Procurement & its areas
• Shift from transactional to strategic
• Procurement life cycle
• Sourcing strategies
• Total cost of ownership
• Spend analysis
• Supplier evaluation
• Packaging Procurement
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3. • purchasing goods, services, or other works
• discovering and agreeing to terms
• using tendering or competitive bidding process
• focusing on impact of procurement decisions on the organization's overall business
• working cross-functionally to achieve firms strategic goals.
Procurement
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4. • Direct Materials & Services
• Raw Material
• Packaging Material
• Contract Manufacturing
• Toll Manufacturing
• Indirect Materials & Services
• Machines & MROs
• Logistics
• Warehousing
• IT Software, Hardware, SLAs
• Marketing & Sales
• EPC Projects
• Admin, HR, Finance
Procurement Areas
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7. 2. Develop Sourcing Strategy
Leverage
Use competitive marketplace to
reduce cost
Consolidate Volume as a
negotiation tool
Strategic
Ensure availability of supply
Focus on relationship building
Process integration and innovation
Non- Critical
Simplify and streamline purchasing
process
Reduce No of suppliers and
simplify ordering
Bottleneck
Search for alternatives
Strengthen relationships
Category
Positioning
Matrix
Sourcing Strategies
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8. 10
Total Cost of Ownership
• Instill Total Cost of Ownership mindset
• Move away from looking at just lowest price
• More focus on best value
• Evaluation of all factors that make up the cost of goods and services
Total Cost of Ownership = P + (O+T+M+W+E)- S
P = Purchase Cost
O = Operating Costs
T = Training Costs
M = Maintenance Costs
W=Warehousing Costs
S=Salvage Value
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14. Duplex Board
Grey back board
250 – 350 gsm
Bleach Board
Pure white board
300 - 350 gsm
Supplier Base:
• Century Paper Mill
• Bullehshah Paper
Mill
Supplier Base:
• Century Paper Mill
• Bullehshah Paper
Mill
Packaging Procurement – Hardpack
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