Purchasing and procurement in Material managementKaustubh Vartak
Purchasing is a subset of procurement. Purchasing generally refers simply to buying goods or services. Purchasing often includes receiving and payment as well.
Purchasing and procurement in Material managementKaustubh Vartak
Purchasing is a subset of procurement. Purchasing generally refers simply to buying goods or services. Purchasing often includes receiving and payment as well.
Purchasing Management
Principles of Purchasing Management OR (8 R'S)
Functions of Purchasing Management
Negotiating
Value Engineering
VALUE ANALYSIS
Receive Purchase Request
Supplier selection
Payment Authorization
Market research and Information
Selection of Source
Determination of Price and Availability
Follow Up
Stores management is part of the overall function of materials management. In order, therefore, to understand the function of the former it is desirable to have a clear understanding of what materials management stands for.
According to Alford and Beatty “storekeeping is that aspect of material control concerned with the physical storage of goods.” In other words, storekeeping relates to art of preserving raw materials, work-in-progress and finished goods in the stores.
Purchasing Management
Principles of Purchasing Management OR (8 R'S)
Functions of Purchasing Management
Negotiating
Value Engineering
VALUE ANALYSIS
Receive Purchase Request
Supplier selection
Payment Authorization
Market research and Information
Selection of Source
Determination of Price and Availability
Follow Up
Stores management is part of the overall function of materials management. In order, therefore, to understand the function of the former it is desirable to have a clear understanding of what materials management stands for.
According to Alford and Beatty “storekeeping is that aspect of material control concerned with the physical storage of goods.” In other words, storekeeping relates to art of preserving raw materials, work-in-progress and finished goods in the stores.
Introduction to Sales Management – The Sales Organization
– Determining Sales Related Marketing Policies – Sales
Functions and Policies – International Sales Management
– Personal Selling.
Sales Planning – Sales Budgets – Estimating Market
Potential and Forecasting Sales – Sales Quotes – Sales &
Cost Analysis, Sales Force Management: Hiring and Training Sales
Personnel – Time and Territory Management –Compensating Sales Personnel – Motivating the Sales Force
– Leading the Sales Force – Evaluating Sales Force
Performance.
Marketing Logistics - Distribution as Marketing Mix
Element – Distribution Resource Planning – Marketing
Channel Integration – Channel Management – Nature of
Marketing Channels – Evaluating Channel Performance-
Specialized Techniques in selling – Tele Marketing – Web
Marketing
Distribution Cost Analysis: Managing Channel Conflicts –
Channel Information Systems – Wholesaling – Retailing –
Ethical And Social Issues in Sales and Distribution
Management.
This document is for Internal Auditors who find it very difficult to handle Procurement Audit. It simplifies the approach, the people, the expectation, reactions and the strategy to successfully handle procurement mostly in oil and gas companies around the World.
Running head PURCHASING ORGANIZATION METRICS REPORT .docxtodd581
Running head: PURCHASING ORGANIZATION METRICS REPORT 1
PURCHASING ORGANIZATION METRICS REPORT 3
Purchasing Organization Metrics Report
Zachary T. Trigger
UMCG
Purchasing Management
Professor James Swaim
February 23, 2020
To obtain suppliers for the muscles from turkey legs, heart of pigs, alligator claws, corn leaves and Kelp from the Chesapeake Bay, the company would need to consider the various legal ramifications of purchasing. There is need for the company to routinely sign purchase orders and contracts which commit them to the specific terms and conditions of purchase orders and contracts. There are several essential elements of a purchase order and they include:
I. The two parties, both the company and the suppliers, must be capable of delivering
II. The subject of the matter must be legal and valid
III. There must be mutual consideration
IV. The parties must reach an agreement by offer and acceptance.
All four elements have to be present for the contract to be legal. If any of the elements is missing it makes the agreement unenforceable before a court of law.
The details of the purchase contract need to be well defined and it should not be carried out in a hasty manner. This is because, once the contract has been approved, there are no changes which can be accepted. In addition to the purchase contract, a purchase requisition should be made available as it specifies the required parts. This is important because the five items which are required by the company are part of a whole and hence the need for the purchase requisition. These contracts are aimed at binding the supplier and the company together and to provide security to the company for a source of their raw materials. Whenever the company requires the raw materials to be supplied, a purchase order has to be created. This provides a records of the details of the raw material to be supplied by the suppliers.
Several elements need to be clarified in the contract to ensure that there are no misunderstandings between the supplier and the company. The first is the quality of the raw materials that the suppliers will supply and this ensures consistency and surety of products the company receives. The second component highlights the cost of the raw materials, that is the price which the suppliers will supply the raw materials per unit. The duration before the raw materials are supplied should also be specified to allow the company to calculate the lead time and avoid running out of raw materials. Finally, the duration of payment should also be outlined in the contract to stipulate the time taken before payment is made.
REQUEST FOR PROPOSAL
Company name
Introduction
The company requests for proposals from qualified supplying firms to supply the raw materials required in the manufacture of products used in laboratory testing. For the production of the end product, different qua.
Running head PURCHASING ORGANIZATION METRICS REPORT .docxjeanettehully
Running head: PURCHASING ORGANIZATION METRICS REPORT 1
PURCHASING ORGANIZATION METRICS REPORT 3
Purchasing Organization Metrics Report
Zachary T. Trigger
UMCG
Purchasing Management
Professor James Swaim
February 23, 2020
To obtain suppliers for the muscles from turkey legs, heart of pigs, alligator claws, corn leaves and Kelp from the Chesapeake Bay, the company would need to consider the various legal ramifications of purchasing. There is need for the company to routinely sign purchase orders and contracts which commit them to the specific terms and conditions of purchase orders and contracts. There are several essential elements of a purchase order and they include:
I. The two parties, both the company and the suppliers, must be capable of delivering
II. The subject of the matter must be legal and valid
III. There must be mutual consideration
IV. The parties must reach an agreement by offer and acceptance.
All four elements have to be present for the contract to be legal. If any of the elements is missing it makes the agreement unenforceable before a court of law.
The details of the purchase contract need to be well defined and it should not be carried out in a hasty manner. This is because, once the contract has been approved, there are no changes which can be accepted. In addition to the purchase contract, a purchase requisition should be made available as it specifies the required parts. This is important because the five items which are required by the company are part of a whole and hence the need for the purchase requisition. These contracts are aimed at binding the supplier and the company together and to provide security to the company for a source of their raw materials. Whenever the company requires the raw materials to be supplied, a purchase order has to be created. This provides a records of the details of the raw material to be supplied by the suppliers.
Several elements need to be clarified in the contract to ensure that there are no misunderstandings between the supplier and the company. The first is the quality of the raw materials that the suppliers will supply and this ensures consistency and surety of products the company receives. The second component highlights the cost of the raw materials, that is the price which the suppliers will supply the raw materials per unit. The duration before the raw materials are supplied should also be specified to allow the company to calculate the lead time and avoid running out of raw materials. Finally, the duration of payment should also be outlined in the contract to stipulate the time taken before payment is made.
REQUEST FOR PROPOSAL
Company name
Introduction
The company requests for proposals from qualified supplying firms to supply the raw materials required in the manufacture of products used in laboratory testing. For the production of the end product, different qua ...
Mastering Local SEO for Service Businesses in the AI Era is tailored specifically for local service providers like plumbers, dentists, and others seeking to dominate their local search landscape. This session delves into leveraging AI advancements to enhance your online visibility and search rankings through the Content Factory model, designed for creating high-impact, SEO-driven content. Discover the Dollar-a-Day advertising strategy, a cost-effective approach to boost your local SEO efforts and attract more customers with minimal investment. Gain practical insights on optimizing your online presence to meet the specific needs of local service seekers, ensuring your business not only appears but stands out in local searches. This concise, action-oriented workshop is your roadmap to navigating the complexities of digital marketing in the AI age, driving more leads, conversions, and ultimately, success for your local service business.
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Mastering Multi-Touchpoint Content Strategy: Navigate Fragmented User JourneysSearch Engine Journal
Digital platforms are constantly multiplying, and with that, user engagement is becoming more intricate and fragmented.
So how do you effectively navigate distributing and tailoring your content across these various touchpoints?
Watch this webinar as we dive into the evolving landscape of content strategy tailored for today's fragmented user journeys. Understanding how to deliver your content to your users is more crucial than ever, and we’ll provide actionable tips for navigating these intricate challenges.
You’ll learn:
- How today’s users engage with content across various channels and devices.
- The latest methodologies for identifying and addressing content gaps to keep your content strategy proactive and relevant.
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Monthly Social Media News Update May 2024Andy Lambert
TL;DR. These are the three themes that stood out to us over the course of last month.
1️⃣ Social media is becoming increasingly significant for brand discovery. Marketers are now understanding the impact of social and budgets are shifting accordingly.
2️⃣ Instagram’s new algorithm and latest guidance will help us maintain organic growth. Instagram continues to evolve, but Reels remains the most crucial tool for growth.
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First Things First: Building and Effective Marketing Strategy
Too many companies (and marketers) jump straight into activation planning without formalizing a marketing strategy. It may seem tedious, but analyzing the mindset of your targeted audiences and identifying the messaging points most likely to resonate with them is time well spent. That process is also a great opportunity for marketers to collaborate with sales leaders and account managers on a galvanized go-to-market approach. I’ll walk you through the methods and tools we use with our clients to ensure campaign success.
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When most people in the industry talk about online or digital reputation management, what they're really saying is Google search and PPC. And it's usually reactive, left dealing with the aftermath of negative information published somewhere online. That's outdated. It leaves executives, organizations and other high-profile individuals at a high risk of a digital reputation attack that spans channels and tactics. But the tools needed to safeguard against an attack are more cybersecurity-oriented than most marketing and communications professionals can manage. Business leaders Leaders grasp the importance; 83% of executives place reputation in their top five areas of risk, yet only 23% are confident in their ability to address it. To succeed in 2024 and beyond, you need to turn online reputation on its axis and think like an attacker.\
Key Takeaways:
- New framework for examining and safeguarding an online reputation
- Tools and techniques to keep you a step ahead
- Practical examples that demonstrate when to act, how to act and how to recover
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• Uncover the power of a foundational marketing system that dynamically communicates with prospects and customers on autopilot.
• Harness neuroscience and Tribal Alignment to transform your communication strategies, turning potential clients into fans and those fans into loyal customers.
• Discover the art of automated segmentation, pinpointing your most lucrative customers and identifying the optimal moments for successful conversions.
• Streamline your business with a content production plan that eliminates guesswork, wasted time, and money.
The digital marketing industry is changing faster than ever and those who don’t adapt with the times are losing market share. Where should marketers be focusing their efforts? What strategies are the experts seeing get the best results? Get up-to-speed with the latest industry insights, trends and predictions for the future in this panel discussion with some leading digital marketing experts.
The Secret to Engaging Modern Consumers: Journey Mapping and Personalization
In today's digital landscape, understanding the customer's journey and delivering personalized experiences are paramount. This masterclass delves into the art of consumer journey mapping, a powerful technique that visualizes the entire customer experience across touchpoints. Attendees will learn how to create detailed journey maps, identify pain points, and uncover opportunities for optimization. The presentation also explores personalization strategies that leverage data and technology to tailor content, products, and experiences to individual customers. From real-time personalization to predictive analytics, attendees will gain insights into cutting-edge approaches that drive engagement and loyalty.
Key Takeaways:
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In this presentation, Danny Leibrandt explains the impact of AI on SEO and what Google has been doing about it. Learn how to take your SEO game to the next level and win over Google with his new strategy anyone can use. Get actionable steps to rank your name, your business, and your clients on Google - the right way.
Key Takeaways:
1. Real content is king
2. Find ways to show EEAT
3. Repurpose across all platforms
Digital Commerce Lecture for Advanced Digital & Social Media Strategy at UCLA...Valters Lauzums
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5) Roll the Dice - New Business Models
2. OVERVIEWOVERVIEW
PurchasingPurchasing
Objectives of PurchasingObjectives of Purchasing
Principles of PurchasingPrinciples of Purchasing
Functions of Purchasing Department.Functions of Purchasing Department.
Methods of PurchasingMethods of Purchasing
Steps in Purchase Procedure.Steps in Purchase Procedure.
3. PURCHASINGPURCHASING
PurchasingPurchasing refers to a business or organizationrefers to a business or organization
attempting to acquire goods or services to accomplishattempting to acquire goods or services to accomplish
the goals of the enterprise.the goals of the enterprise.
All production firms have the need of supplies ofAll production firms have the need of supplies of
materials and services from external sources.materials and services from external sources.
Purchasing function may include the purchase of rawPurchasing function may include the purchase of raw
material, spare parts.material, spare parts.
The chief function of the Purchasing manager is toThe chief function of the Purchasing manager is to
satisfy the materials and supplies related tosatisfy the materials and supplies related to
requirements of other depts. This is done in accordancerequirements of other depts. This is done in accordance
with the mission, purpose, goals & objectives of thewith the mission, purpose, goals & objectives of the
firm.firm.
4. The key issues involved in purchasing are:-The key issues involved in purchasing are:-
QuantityQuantity
QualityQuality
TimeTime
PlacePlace
5. OBJECTIVES OF PURCHASINGOBJECTIVES OF PURCHASING
Purchase of satisfactory material.Purchase of satisfactory material.
Proper negotiations with suppliers.Proper negotiations with suppliers.
Co-ordination with other departments.Co-ordination with other departments.
Timely deliveries.Timely deliveries.
Continuous and regular supply.Continuous and regular supply.
Minimized wastages.Minimized wastages.
QualityQuality
To control the qty. of materialTo control the qty. of material
Information about new material and processes, which canInformation about new material and processes, which can
reduce the cost of production and improve the performance ofreduce the cost of production and improve the performance of
the product.the product.
7. FUNCTIONS OF PURCHASINGFUNCTIONS OF PURCHASING
DEPARTMENTDEPARTMENT
1.1. Processing theProcessing the
requisition:-requisition:-
Purchase requisitionPurchase requisition
No………. Date………..No………. Date………..
S.NoS.No QtyQty
ReqdReqd
Qty. andQty. and
OtherOther
details ofdetails of
the itemthe item
PricePrice SuggestSuggest
eded
SupplierSupplier
BalancBalanc
e ine in
storesstores
Required By……… Authorized By...…Required By……… Authorized By...…
8. 2.2. Location and Choice of suppliersLocation and Choice of suppliers:-:-
Some guiding factors for the choice of supplierSome guiding factors for the choice of supplier
Reliability of SupplyReliability of Supply:- Past performance specially:- Past performance specially
in the time of crisis as well as sound financialin the time of crisis as well as sound financial
position of a supplier classifies him to beposition of a supplier classifies him to be
reliable.reliable.
Assurance of timely deliveryAssurance of timely delivery
After sales serviceAfter sales service
Attitude with regard to the goods rejected by theAttitude with regard to the goods rejected by the
purchaserpurchaser
Technical assistanceTechnical assistance
9. 3.3. Placing orders:-Placing orders:-
All purchases should be made through a purchase order in
a specified form and duly signed by some authorized
person.
PURCHASE ORDER
To
_____________ Date……
Order No……
Description of item
PRICE
Date of Supply…… Other reqd’s
Signature…………….
10. As a rule original copy is sent to the supplier,As a rule original copy is sent to the supplier,
one copy is retained by the purchase departmentone copy is retained by the purchase department
and one copy is sent to the concernedand one copy is sent to the concerned
department requiring the ordered items.department requiring the ordered items.
11. 4.4. Follow-up or progressing the purchaseFollow-up or progressing the purchase
orders:-orders:-
Receiving the ordered material at the right timeReceiving the ordered material at the right time
is most important for an org. Late deliveries canis most important for an org. Late deliveries can
close the enterprise. For this follow up theclose the enterprise. For this follow up the
purchase order after waiting for some reasonablepurchase order after waiting for some reasonable
time is essential. The priority of follow-uptime is essential. The priority of follow-up
operations should be given according to theoperations should be given according to the
importance or classification of items e.g. ‘A’importance or classification of items e.g. ‘A’
class items are to be given top most priority.class items are to be given top most priority.
12. 5. Invoices received from suppliers are checked and5. Invoices received from suppliers are checked and
verified with order specificationverified with order specification
6. Delay in availability of requisitioned material should6. Delay in availability of requisitioned material should
be conveyed to concerned departments in time.be conveyed to concerned departments in time.
7. To maintain records regarding suppliers , their7. To maintain records regarding suppliers , their
performance in past, products with them, probableperformance in past, products with them, probable
delivery period for each order etc.delivery period for each order etc.
8. To dispose off outdated and scrapped items.8. To dispose off outdated and scrapped items.
9. Control stores operation of receiving the items from9. Control stores operation of receiving the items from
vendors and issuing it to concerned department ofvendors and issuing it to concerned department of
the organisation.the organisation.
10. To handle damages and demurrage claims.10. To handle damages and demurrage claims.
13. 1.1. Purchasing according to requirements.Purchasing according to requirements.
2.2. Purchasing for some definite future period.Purchasing for some definite future period.
3.3. Market Purchasing.Market Purchasing.
4.4. Speculative Purchasing.Speculative Purchasing.
5.5. Contract Purchasing.Contract Purchasing.
6.6. Scheduled Purchasing.Scheduled Purchasing.
METHODS OF PURCHASINGMETHODS OF PURCHASING
14. PURCHASING ACCORDING TO THEPURCHASING ACCORDING TO THE
REQUIREMENTS:REQUIREMENTS:
This method is appropriate for those items which areThis method is appropriate for those items which are
not of regular and common use in the productionnot of regular and common use in the production
process. These items are generally not stored inprocess. These items are generally not stored in
inventories. And Purchasing department should keep ainventories. And Purchasing department should keep a
record of reliable and trustworthy suppliers who wererecord of reliable and trustworthy suppliers who were
sincere to the organisation in pastsincere to the organisation in past..
15. PURCHASING FOR SOME DEFINITEPURCHASING FOR SOME DEFINITE
FUTURE PERIOD:FUTURE PERIOD:
This method of purchasing is generally used for thoseThis method of purchasing is generally used for those
items, which are regularly consumed, but theitems, which are regularly consumed, but the
consumption is comparatively low and the priceconsumption is comparatively low and the price
changes for these items are not much.changes for these items are not much.
16. MARKET PURCHASINGMARKET PURCHASING::
Purchase of goods usually in smaller quantities or in anPurchase of goods usually in smaller quantities or in an
emergency without contract or negotiationsemergency without contract or negotiations..
17. SPECULATIVE PURCHASINGSPECULATIVE PURCHASING::
When purchasing is done purely from the point of viewWhen purchasing is done purely from the point of view
of taking advantage of a speculated rise in price of theof taking advantage of a speculated rise in price of the
commodity.commodity.
The intent is not to buy for the internal consumptionThe intent is not to buy for the internal consumption
but to resell the commodity at a later date when thebut to resell the commodity at a later date when the
prices have gone up & to make a profit by selling.prices have gone up & to make a profit by selling.
The items may be those that are needed for internalThe items may be those that are needed for internal
consumption but the qty. shall be much more than theconsumption but the qty. shall be much more than the
requirement so as to take the advantage of the comingrequirement so as to take the advantage of the coming
price rise.price rise.
18. CONTRACT PURCHASING:CONTRACT PURCHASING:
In this, the purchase department enters into agreement withIn this, the purchase department enters into agreement with
various suppliers to supply the items at some future periodvarious suppliers to supply the items at some future period
periodically.periodically.
In contract purchasing, a purchaser agrees to buy goods to beIn contract purchasing, a purchaser agrees to buy goods to be
paid for in a series of installments, each comprising a proportionpaid for in a series of installments, each comprising a proportion
of the capital and an interest element.of the capital and an interest element.
After a final payment, legal ownership passes to the user.After a final payment, legal ownership passes to the user.
19. SCHEDULED PURCHASINGSCHEDULED PURCHASING::
The purchasing is scheduled according to theThe purchasing is scheduled according to the
requirements of the various departments or of therequirements of the various departments or of the
organisation.organisation.
20. STEPS IN PURCHASE PROCEDURESTEPS IN PURCHASE PROCEDURE
1.1. Various departments are requested to send their requirementsVarious departments are requested to send their requirements
on a proper requisition form.on a proper requisition form.
2.2. Purchasing dept. consolidated the requirements from variousPurchasing dept. consolidated the requirements from various
departments to know the total requirement for each item.departments to know the total requirement for each item.
3.3. Market exploration is made to locate the goods and services ofMarket exploration is made to locate the goods and services of
desired quality and quantity at the reasonable price.desired quality and quantity at the reasonable price.
4.4. Potential suppliers are identified from catalogues, quotationsPotential suppliers are identified from catalogues, quotations
and past records.and past records.
5.5. Purchase order in specified form is prepared and sent to thePurchase order in specified form is prepared and sent to the
approved suppliers. Purchase order is the commitment of theapproved suppliers. Purchase order is the commitment of the
buyer to the supplier establishing a contractual relationshipbuyer to the supplier establishing a contractual relationship
between buyer and seller.between buyer and seller.
21. 6. After some time of placing the order, follow up6. After some time of placing the order, follow up
process starts to get quickly delivery of the items.process starts to get quickly delivery of the items.
7. Items received are compared with purchase order.7. Items received are compared with purchase order.
8. Defective items i.e. items which are not in8. Defective items i.e. items which are not in
accordance with the specifications laid down in theaccordance with the specifications laid down in the
purchase order are returned to the supplier onpurchase order are returned to the supplier on
credit note of exchange.credit note of exchange.