Procurement and production in logistics involve planning and managing the purchasing of materials from external suppliers to support manufacturing or trading activities. Key aspects of procurement include determining standards, researching and selecting suppliers, negotiating prices, and managing inventory and payments. Production involves creating products and materials. Together, procurement and production aim to ensure the right materials are obtained at the best price and conditions to efficiently support operations and customer needs while promoting stable supplier relationships.

2. KIM CHÂU
THANH NGÂN THANH SƯƠNG
MỸ KIM
HỒNG HẠNH QUỲNH TRÂM
NGUYỄN HƯƠNG
TÚ HỒNG

3. Main points of topic
Clarify the position in
logistics circle
People in charge of it
WHO?
Giving definition
WHAT?
The importance of the
activities
WHY?
Choosing suppliers
WHERE?
WHEN?
02
01
05
04
03

4. 01
WHAT
What is procurement and
production in logistics ?

5. the development and expansion of
the purchasing function.
creation of products and materials
from external suppliers
assist manufacturers or traders to
perform well in
low-cost
DEFINITION

6. (1) Planning to buy
(2) Determination of
standards
(3) Research and selection of
suppliers
(4) Value analysis
(5) Finance
(6) Price negotiation
(7) Purchases
(8) Supply Contract
Management
(9) Inventory Control
(10) Payment and other
related functions.
PROCUREMENT INVOLVES

7. SYSTEM
procurement management
through computer systems
BEST
At the best price
With the best conditions
RULE
methods used to ensure good
procurement management
BASIC PRINCIPLES

8. Logistician
requirements
WHO

9. negotiating networking dealing with
numbers
solving
problem
INQUIREMENT
logisticians in procurement

10. WHEN
Position in business
strategy

11. include packaging materials,
manufacturing details and
warehousing considerations.
Product Policy
Terms and Conditions
focuses on the “fine
print.”
mean the difference
between the success
and failure
how a company
decides to obtain the
materials needed for
manufacturing
Purchasing
Strategy
Communications Strateg

12. When does it make
sense to concentrate
production at a few
choice locations?
Concentrated
production makes
sense
Concentrated
production doesn’t
makes sense

13. JIT SYSTEM
Consist of :
• defining the production flow
• setting up the production area
When
• put into production is smooth
and unobstructed

14. Where
choose the best place
to buy

15. 01
The reputation
of the supplier
Some of criteria :
04
Supplier customer
service
02
05
Sustainability and
sustainability of
suppliers
Quality of
products/services
03
06
Supplier's
financial risk
Product/service
price and payment
method

16. WHY
Purposes of
Procurement & Production
IN LOGISTICS

17. Purposes
● Ensure the ‘right’
● Operate in existing
● Achieve customer
response
● Decreasing batch sizes
● Track and tracing
● Ensure the stable flow
● Promote the relationship
● Find out how to choose good
suppliers
● Make sure to buy the right
materials
● Best price and conditions
● Help the process quick
Procurement Production

18. Q&A