The document discusses procurement, inventory management, and key performance indicators (KPIs) for inventory management at Fresenius Medical Care. It defines procurement and purchasing, explains the procurement cycle and inventory management process. Inventory management aims to create value throughout the supply chain by planning, forecasting, and controlling materials and goods. Important KPIs for inventory management include customer service, quality, availability, on-time delivery, reduced inventory costs like holding, ordering, and transportation costs.

1. Procurement & Inventory Management, FMC Supply Chain Dept (c) Copyright 21/09/2017
Tahir Bin Aleem
Manager Supply Chain
Procurement & Inventory Management

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 Supply Chain
Management
 Difference Between
Procurement &
Purchasing
 Procurement Cycle
 Inventory Management
 KPI’s of Inventory
Management

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Supply Chain Management
The Designing, Planning, Execution,
Control, and Monitoring of activities with
the objective of:
 Creating Value
 Building Competitive Advantage
 Leveraging Worldwide Logistics
 Synchronizing Supply with Demand

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Procurement Vs Purchasing
Procurement:
 Need Assessment
 Strategic Selection of Supplier
 Negotiations
Purchasing:
 How goods / services are purchased
 Payment mode
 Delivery date / location

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The process of planning, forecasting,
organizing, monitoring and controlling raw
materials, semi-finished goods, finished
goods and services with the objective of
creating value at each step through out
the supply chain.
Related with:
• Procurement
• Purchasing
• Logistics
• Warehousing
Inventory Management

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Q-A-A-S
Importance of Inventory Management
Quality
• Quality Products delivered to customer
Affordable
• At Optimal Landed Cost
Available
• Readily Available
Sustainable
• With the promise of Same service level every time

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Inventory Management KPI’s
Customer Service
Target
Quality
Availability
On-Time Delivery
Reduce Inventory
Cost
Holding Cost
Ordering Cost
Transportation Cost