Sourcing and Materials Management Presentation
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This document discusses sourcing stages and provides examples of their application. It describes the typical stages in a sourcing process: discovery, evaluation, selection, development and management. It then gives two examples - one detailing challenges faced by the recreational boating industry around forecasting demand and inventory management, and another outlining issues for the logistics company CEVA in securing reliable air freight capacity for shipments to China.
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Procurement and Sourcing Strategies
Procurement and sourcing involve finding suppliers and negotiating contracts to obtain goods and services for a business. There are various types of procurement like direct, indirect, and service procurement. The procurement process identifies steps to acquire necessary goods and services in a cost-effective way. Strategic procurement aims to choose suppliers that match business goals, procuring higher quality items while managing supply chain risk. Sourcing is the process of selecting suppliers to provide quality products at affordable prices through activities like market research, establishing standards, and negotiating contracts. It allows for cost management, stable supply chains, and reduced risk through strong supplier relationships.
7 step strategic sourcing
The 7 step strategic sourcing framework is a popular model developed by ATKearney consulting to help companies lower costs through strategic procurement. The 7 steps include: 1) developing a category profile through spending and supply market analysis, 2) creating a sourcing strategy, 3) generating a supplier portfolio, 4) selecting an implementation plan such as negotiations or auctions, 5) negotiating and selecting suppliers, 6) implementing agreements, and 7) continuous improvement of the sourcing process. Major companies like P&G, HUL, IBM and Dell have used this framework to achieve cost savings of 10-20%.
Strategic Sourcing
The document discusses strategic sourcing and ADMA-OPCO's plans to implement it. The goals of strategic sourcing are to increase customer satisfaction, improve internal service levels and product quality, and significantly reduce total costs through coordinated purchasing across the organization. ADMA-OPCO aims to leverage its buying power to obtain goods and services efficiently for end users. The document outlines the strategic sourcing process and opportunities for ADMA-OPCO to analyze spending, the supplier base, and develop a sourcing strategy to better meet its goals.
Purchasing ~Sourcing
The document discusses strategies for managing strategic supplier relationships and collaboration. It outlines key questions purchasing officers should consider around understanding their supply base and spend. It then covers the strategic sourcing process, including analyzing spend, identifying requirements, analyzing the market, developing a strategy, managing negotiations, awarding contracts, and implementing the strategy. It also discusses optimizing the supplier base, performing supplier financial analysis, managing risk, and improving supplier performance.
Strategic Sourcing Process
The document discusses strategies for developing model suppliers and optimizing a company's supply base. It defines attributes of model suppliers, such as managing quality systems, demonstrating technology leadership, and supporting business goals. It also outlines steps for a mature supply management process, including defining a preferred supplier base, establishing strategic partnerships, integrating suppliers, and conducting supply base segmentation. Commodity source plans are developed annually based on supplier performance data and input from stakeholders to guide one-year and three-to-five-year sourcing strategies.
Process view of scm & value chain analysis
This document discusses supply chain planning and scheduling. It begins by defining a supply chain and outlining the objectives of supply chain management. It then describes the three decision phases of supply chain management: supply chain strategy/design, supply chain planning, and supply chain operations. Finally, it discusses the process view of supply chains using the cycle view and push/pull view and analyzes value within a supply chain.
Procurement Strategy by Derek Hendrikz
The document discusses procurement strategy and outlines several key points:
1. It addresses challenges with accurately measuring costs and potential issues like human error or distortion.
2. It examines common strategic planning tools and issues they may have in fully representing an organization.
3. It outlines the structure of an effective procurement strategy, including defining the mission, strategic outcomes, and ensuring alignment with the overall organizational strategy.
SUPPLIER SELECTION AND EVALUATION
• Make Versus Buy
• Benefit of Outsourcing
• Source of Supplier Information
• Strategis Selection
• Supplier Relationship Management (SRM)
• Industry Example
Recommended
Procurement and Sourcing Strategies
Procurement and sourcing involve finding suppliers and negotiating contracts to obtain goods and services for a business. There are various types of procurement like direct, indirect, and service procurement. The procurement process identifies steps to acquire necessary goods and services in a cost-effective way. Strategic procurement aims to choose suppliers that match business goals, procuring higher quality items while managing supply chain risk. Sourcing is the process of selecting suppliers to provide quality products at affordable prices through activities like market research, establishing standards, and negotiating contracts. It allows for cost management, stable supply chains, and reduced risk through strong supplier relationships.
7 step strategic sourcing
The 7 step strategic sourcing framework is a popular model developed by ATKearney consulting to help companies lower costs through strategic procurement. The 7 steps include: 1) developing a category profile through spending and supply market analysis, 2) creating a sourcing strategy, 3) generating a supplier portfolio, 4) selecting an implementation plan such as negotiations or auctions, 5) negotiating and selecting suppliers, 6) implementing agreements, and 7) continuous improvement of the sourcing process. Major companies like P&G, HUL, IBM and Dell have used this framework to achieve cost savings of 10-20%.
Strategic Sourcing
The document discusses strategic sourcing and ADMA-OPCO's plans to implement it. The goals of strategic sourcing are to increase customer satisfaction, improve internal service levels and product quality, and significantly reduce total costs through coordinated purchasing across the organization. ADMA-OPCO aims to leverage its buying power to obtain goods and services efficiently for end users. The document outlines the strategic sourcing process and opportunities for ADMA-OPCO to analyze spending, the supplier base, and develop a sourcing strategy to better meet its goals.
Purchasing ~Sourcing
The document discusses strategies for managing strategic supplier relationships and collaboration. It outlines key questions purchasing officers should consider around understanding their supply base and spend. It then covers the strategic sourcing process, including analyzing spend, identifying requirements, analyzing the market, developing a strategy, managing negotiations, awarding contracts, and implementing the strategy. It also discusses optimizing the supplier base, performing supplier financial analysis, managing risk, and improving supplier performance.
Strategic Sourcing Process
The document discusses strategies for developing model suppliers and optimizing a company's supply base. It defines attributes of model suppliers, such as managing quality systems, demonstrating technology leadership, and supporting business goals. It also outlines steps for a mature supply management process, including defining a preferred supplier base, establishing strategic partnerships, integrating suppliers, and conducting supply base segmentation. Commodity source plans are developed annually based on supplier performance data and input from stakeholders to guide one-year and three-to-five-year sourcing strategies.
Process view of scm & value chain analysis
This document discusses supply chain planning and scheduling. It begins by defining a supply chain and outlining the objectives of supply chain management. It then describes the three decision phases of supply chain management: supply chain strategy/design, supply chain planning, and supply chain operations. Finally, it discusses the process view of supply chains using the cycle view and push/pull view and analyzes value within a supply chain.
Procurement Strategy by Derek Hendrikz
The document discusses procurement strategy and outlines several key points:
1. It addresses challenges with accurately measuring costs and potential issues like human error or distortion.
2. It examines common strategic planning tools and issues they may have in fully representing an organization.
3. It outlines the structure of an effective procurement strategy, including defining the mission, strategic outcomes, and ensuring alignment with the overall organizational strategy.
SUPPLIER SELECTION AND EVALUATION
• Make Versus Buy
• Benefit of Outsourcing
• Source of Supplier Information
• Strategis Selection
• Supplier Relationship Management (SRM)
• Industry Example
Presentation on procurement
Nawan Laboratories is a WHO-GMP certified pharmaceutical manufacturer located in Karachi, Pakistan that was established in 1994. It produces human and veterinary medicines and exports products to markets in the Middle East, Africa, and Asia. The company has expanded its operations and certifications over the years to include additional dosage forms and export markets.
The procurement process at Nawan involves identifying needs, selecting and communicating with suppliers, negotiating purchases, issuing purchase orders, managing logistics and payments. Key elements of purchase orders include pricing, delivery terms, payments, quality specifications and other legal and commercial terms. Vendor selection is an important process that evaluates suppliers on various criteria to find reliable partners.
Supplier selection
The document discusses supplier selection and evaluation. It defines supplier selection and outlines a 7 step process for evaluating and selecting suppliers, including recognizing the need, identifying requirements, determining strategy, identifying potential suppliers, limiting the pool, evaluating, and selecting. It also discusses using Carter's 10 C's model to evaluate suppliers based on competency, capacity, consistency, cost and other factors. An example application of the process is provided where 4 potential suppliers are evaluated against the 10 C's and weighted factors to determine the best option.
Procurement Powerpoint Presentation Slides
"You can download this product from SlideTeam.net"
Use content-ready Procurement PowerPoint Presentation Slides to execute the process of acquiring goods and services from an external source via tendering. Meet customers & stakeholders demands, analyse processes, optimize strategies and ultimately reduce procurement costs. Incorporate professionally designed procurement PowerPoint PPT templates to transform your business which bring you benefits. This deck comprises of templates such as procurement strategy structure, procurement steps, procurement workflow process, procurement strategy, approach to procurement, formulating procurement strategy, creating procurement strategy, and more. Use this presentation for purchase planning, value analysis, financing, price negotiation, inventory control and stores, standards determination, etc. These procurement PowerPoint templates are completely customizable. Edit color, text, icon and font size as per your requirement. Add or remove content, if needed. Grab ready-to-use procurement PowerPoint complete presentation to go step by step process of acquiring goods and services from external suppliers. Good expression is guaranteed with our Procurement Powerpoint Presentation Slides. Communication becomes explicitly clear. https://bit.ly/3oihfzw
Supplier Relationship Management
The document discusses supplier relationship management as a key process in supply chain management. It defines supply chain management as integrating business processes from suppliers to end customers to add value. It describes supplier relationship management as providing the structure for developing and maintaining relationships with suppliers, including performance agreements to balance the needs of both parties. The goal is to improve customer service, costs, and profits through collaborative relationships rather than transactional interactions.
Procurement management
The document outlines key concepts in procurement management including definitions of tender, bidding documents, bid, technical specifications, contracts, WHO prequalification, post-qualification, back orders, and total price. It distinguishes between purchasing and procurement. The document also discusses strategic objectives for good pharmaceutical procurement including procuring the most cost-effective drugs in the right quantities, selecting reliable suppliers of high-quality products, ensuring timely delivery, and achieving the lowest possible total cost. Key principles of good pharmaceutical procurement are also presented.
SUPPLIER SELECTION AND DEVELOPMENT
This document discusses supplier selection and development. It emphasizes the strategic importance of selecting good suppliers and developing partnerships. Developing suppliers can help ensure they meet needs for quality, cost, and technical support. The document provides sources for finding supplier information and evaluating suppliers. It also discusses the benefits of partnerships with suppliers, including cost reductions, quality improvements, and flexibility. Supplier management involves ensuring suppliers perform as required and identifying options if they cannot meet future demands.
Supplier evaluation & selection
The document discusses supplier evaluation and selection. It provides an overview of the supplier evaluation and selection process, key criteria for evaluating suppliers, and developing surveys to aid in selection. Critical issues in supplier selection are also addressed. The presentation covers developing a multi-step process for evaluating suppliers on criteria like quality, cost, management capabilities, financial stability, and long-term relationship potential to select suppliers that minimize risk and maximize value.
Strategic Sourcing
1. Strategic sourcing is a continuous process that involves discovering, prioritizing, improving, and re-evaluating sourcing activities to achieve cost savings and meet business needs.
2. The document outlines a 9-step process for strategic sourcing, beginning with internal research to analyze company spend data, categorize spending, evaluate risks, select project scope, and conduct spend, cost structure, and total cost of ownership analyses.
3. The first step of internal research lays the groundwork for subsequent steps by gathering and analyzing internal company data to understand spending patterns and costs. This information is then used to inform strategic sourcing decisions.
VENDOR EVALUATION - RESOURCE MANAGEMENT
The document discusses vendor evaluation, which involves assessing potential vendors through quantitative analysis. It outlines several methods of purchasing and vendor evaluation, including centralized vs decentralized purchasing. The document then provides an example evaluation of three cement vendors based on quality, price, and delivery metrics. Vendor S3 received the highest composite rating of 98.27 based on accepting 99% of orders, having the second lowest price, and missing only 2% of scheduled deliveries. The analysis demonstrates how a weighted scoring system can provide an objective means to evaluate vendors.
Sourcing Process A
The strategic sourcing process involves identifying a company's current category usage, conducting a supplier and market analysis, selecting an appropriate sourcing strategy, and choosing a sourcing method. Key steps include developing requests for information and proposals, evaluating responses, negotiating with suppliers, integrating new suppliers, and monitoring market performance and supplier relationships on an ongoing basis. The process aims to identify all viable suppliers, execute the best sourcing approach, conduct negotiations to select suppliers, and operationalize agreements while monitoring the category.
Procurement Presentation
This presentation discusses the importance of procurement policies, contract management, supplier management, and performance monitoring. It outlines the benefits of these practices, which include cost savings, compliance, visibility, efficiency, and risk reduction. Specific policies and tools are also presented, such as developing procurement guidelines, tracking purchases against contracts, consolidating supply chains, defining key performance indicators for suppliers, and using software to evaluate suppliers.
Supplier evaluation criteria
The document discusses supplier performance evaluation methods for SMEs in Macedonia. It covers several key areas:
1. Supplier evaluation methods including categorical, weighted-point, and cost-ratio models. The weighted-point model is most commonly used.
2. Key performance indicators from literature including Dickson and Weber's criteria which focus on quality, delivery, price and other factors.
3. Approaches to evaluate suppliers such as linear weighting, total cost of ownership, and statistical models. Linear weighting is most popular.
4. The study's methodology used grounded theory and questionnaires. Findings showed manufacturing is the largest industry, evaluation processes are common, and key criteria include price, quality and delivery
Top 10 Procurement KPI\'s
This document discusses 10 key performance indicators (KPIs) that are widely used to measure procurement organization performance. The KPIs include total cost savings, quality, delivery, cost avoidance, implemented cost reduction savings, procurement cycle time, percentage of spend from top suppliers, procurement ROI, managed spend as a percentage of total spend, and contract compliance. Regular measurement of these KPIs promotes continuous improvement, benchmarking against best practices, and identification of opportunities within the supply base.
Procurement: Strategies | Best Practices - May 2011
a quick summary and roadmap for transforming procurement organizations from transactional to strategic.
Procurement
Procurement involves acquiring goods, services, or works from an external source. It is important that items procured meet needs in terms of quality, quantity, time, and location, while also obtaining the best possible cost. There are various types of procurement like single, stock, vendor managed inventory, and just-in-time procurement. Procurement requires identifying needs, suppliers, negotiations, and logistics management. It is a major part of government and public spending and aims to promote competition and minimize fraud. Performance is measured through metrics like spend under management and annual savings.
Logistics and Supply Chain
The document discusses supply chain and logistics concepts including:
1) Physical distribution involves choosing warehouses and transportation carriers to deliver goods in the desired time at lowest cost. Physical distribution has expanded into supply chain management.
2) Supply chain management involves procuring inputs, efficiently converting them into finished products, and dispatching them to customers.
3) Market logistics planning involves four stages - deciding on a value proposition, developing operational excellence, implementing solutions, and deciding on a channel/network strategy.
PROCUREMENT AND SUPPLY MANAGEMENT
This chapter discusses procurement and supply management. It explains the procurement process and important materials management activities like managing vendor relationships. There are different types of purchases and items that require varying levels of attention. The chapter also covers how electronic commerce is increasingly being used for procurement activities like researching vendors, negotiating prices, and placing orders. It outlines advantages like reduced costs but also disadvantages like security and lack of personal interaction.
Logistics strategy & planning, Customer Service & Products
The document discusses key topics in logistics strategy and planning, including reasons for increased interest in logistics such as deregulation and globalization. It covers major logistics decision areas like transportation modes and warehousing approaches. Transportation modes discussed include road, water, rail, air and pipeline. The document also addresses consolidation, customer service, logistics products, pricing logistics, and risks associated with products.
Strategic Sourcing And Supplier Development Strategy
This document proposes developing strategic agreements and alliances with suppliers to minimize supply chain risks. It discusses implementing a new ERP system, qualifying suppliers globally through an updated database, and establishing a change management process. The objectives are reducing costs, increasing capacity and performance, and standardizing processes through strategic partnerships and sourcing agreements. An eight-step comprehensive sourcing solution is outlined. The supplier development strategy examines consolidating redundant suppliers through a selection policy and implementing solutions like vendor managed inventory programs.
Procurement process snippet
This document outlines the steps in defining a business need and developing a procurement strategy. The key steps are:
1. Define the business need by capturing requirements, obtaining stakeholder buy-in, and estimating budgets.
2. Develop a procurement strategy through activities like a team kick-off meeting, market research to identify potential solutions, defining success criteria, and agreeing on a procurement approach.
3. Evaluate and select suppliers by developing a pre-qualification strategy to filter suppliers, scoring and notifying suppliers, launching a tender, and further assessing and filtering suppliers to create a shortlist.
Procurement And Materials Management
There are different types of relationships that can exist in a supply chain. An integrated hierarchy is where a firm controls all activities from raw material sourcing to distribution. A semi-hierarchy is where firms are owned by the same parent company but operate independently. Co-contracting involves long-term alliances between organizations through equity sharing or technology transfers. Coordinated contracting uses sub-contractors for specific tasks. Coordinated revenue links include licensing and franchising agreements.
Procurement best practices
Checks budget availability
create a requisition
- Checks budget availability
- Requisition is routed to
- If budget available, requisition is
Assistant for budget check
approved
- If budget available, requisition
- If not, requisition is rejected
is approved
- Requisition is routed to Buyer
- If not, requisition is rejected
Buyer:
- Requisition is routed to Buyer
- Prepares solicitation documents
- Issues solicitation
- Evaluates bids
- Awards contract/PO
- Manages contract
34
Procurement Methods
Open Competition
Limited Competition
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What's hot
Presentation on procurement
Nawan Laboratories is a WHO-GMP certified pharmaceutical manufacturer located in Karachi, Pakistan that was established in 1994. It produces human and veterinary medicines and exports products to markets in the Middle East, Africa, and Asia. The company has expanded its operations and certifications over the years to include additional dosage forms and export markets.
The procurement process at Nawan involves identifying needs, selecting and communicating with suppliers, negotiating purchases, issuing purchase orders, managing logistics and payments. Key elements of purchase orders include pricing, delivery terms, payments, quality specifications and other legal and commercial terms. Vendor selection is an important process that evaluates suppliers on various criteria to find reliable partners.
Supplier selection
The document discusses supplier selection and evaluation. It defines supplier selection and outlines a 7 step process for evaluating and selecting suppliers, including recognizing the need, identifying requirements, determining strategy, identifying potential suppliers, limiting the pool, evaluating, and selecting. It also discusses using Carter's 10 C's model to evaluate suppliers based on competency, capacity, consistency, cost and other factors. An example application of the process is provided where 4 potential suppliers are evaluated against the 10 C's and weighted factors to determine the best option.
Procurement Powerpoint Presentation Slides
"You can download this product from SlideTeam.net"
Use content-ready Procurement PowerPoint Presentation Slides to execute the process of acquiring goods and services from an external source via tendering. Meet customers & stakeholders demands, analyse processes, optimize strategies and ultimately reduce procurement costs. Incorporate professionally designed procurement PowerPoint PPT templates to transform your business which bring you benefits. This deck comprises of templates such as procurement strategy structure, procurement steps, procurement workflow process, procurement strategy, approach to procurement, formulating procurement strategy, creating procurement strategy, and more. Use this presentation for purchase planning, value analysis, financing, price negotiation, inventory control and stores, standards determination, etc. These procurement PowerPoint templates are completely customizable. Edit color, text, icon and font size as per your requirement. Add or remove content, if needed. Grab ready-to-use procurement PowerPoint complete presentation to go step by step process of acquiring goods and services from external suppliers. Good expression is guaranteed with our Procurement Powerpoint Presentation Slides. Communication becomes explicitly clear. https://bit.ly/3oihfzw
Supplier Relationship Management
The document discusses supplier relationship management as a key process in supply chain management. It defines supply chain management as integrating business processes from suppliers to end customers to add value. It describes supplier relationship management as providing the structure for developing and maintaining relationships with suppliers, including performance agreements to balance the needs of both parties. The goal is to improve customer service, costs, and profits through collaborative relationships rather than transactional interactions.
Procurement management
The document outlines key concepts in procurement management including definitions of tender, bidding documents, bid, technical specifications, contracts, WHO prequalification, post-qualification, back orders, and total price. It distinguishes between purchasing and procurement. The document also discusses strategic objectives for good pharmaceutical procurement including procuring the most cost-effective drugs in the right quantities, selecting reliable suppliers of high-quality products, ensuring timely delivery, and achieving the lowest possible total cost. Key principles of good pharmaceutical procurement are also presented.
SUPPLIER SELECTION AND DEVELOPMENT
This document discusses supplier selection and development. It emphasizes the strategic importance of selecting good suppliers and developing partnerships. Developing suppliers can help ensure they meet needs for quality, cost, and technical support. The document provides sources for finding supplier information and evaluating suppliers. It also discusses the benefits of partnerships with suppliers, including cost reductions, quality improvements, and flexibility. Supplier management involves ensuring suppliers perform as required and identifying options if they cannot meet future demands.
Supplier evaluation & selection
The document discusses supplier evaluation and selection. It provides an overview of the supplier evaluation and selection process, key criteria for evaluating suppliers, and developing surveys to aid in selection. Critical issues in supplier selection are also addressed. The presentation covers developing a multi-step process for evaluating suppliers on criteria like quality, cost, management capabilities, financial stability, and long-term relationship potential to select suppliers that minimize risk and maximize value.
Strategic Sourcing
1. Strategic sourcing is a continuous process that involves discovering, prioritizing, improving, and re-evaluating sourcing activities to achieve cost savings and meet business needs.
2. The document outlines a 9-step process for strategic sourcing, beginning with internal research to analyze company spend data, categorize spending, evaluate risks, select project scope, and conduct spend, cost structure, and total cost of ownership analyses.
3. The first step of internal research lays the groundwork for subsequent steps by gathering and analyzing internal company data to understand spending patterns and costs. This information is then used to inform strategic sourcing decisions.
VENDOR EVALUATION - RESOURCE MANAGEMENT
The document discusses vendor evaluation, which involves assessing potential vendors through quantitative analysis. It outlines several methods of purchasing and vendor evaluation, including centralized vs decentralized purchasing. The document then provides an example evaluation of three cement vendors based on quality, price, and delivery metrics. Vendor S3 received the highest composite rating of 98.27 based on accepting 99% of orders, having the second lowest price, and missing only 2% of scheduled deliveries. The analysis demonstrates how a weighted scoring system can provide an objective means to evaluate vendors.
Sourcing Process A
The strategic sourcing process involves identifying a company's current category usage, conducting a supplier and market analysis, selecting an appropriate sourcing strategy, and choosing a sourcing method. Key steps include developing requests for information and proposals, evaluating responses, negotiating with suppliers, integrating new suppliers, and monitoring market performance and supplier relationships on an ongoing basis. The process aims to identify all viable suppliers, execute the best sourcing approach, conduct negotiations to select suppliers, and operationalize agreements while monitoring the category.
Procurement Presentation
This presentation discusses the importance of procurement policies, contract management, supplier management, and performance monitoring. It outlines the benefits of these practices, which include cost savings, compliance, visibility, efficiency, and risk reduction. Specific policies and tools are also presented, such as developing procurement guidelines, tracking purchases against contracts, consolidating supply chains, defining key performance indicators for suppliers, and using software to evaluate suppliers.
Supplier evaluation criteria
The document discusses supplier performance evaluation methods for SMEs in Macedonia. It covers several key areas:
1. Supplier evaluation methods including categorical, weighted-point, and cost-ratio models. The weighted-point model is most commonly used.
2. Key performance indicators from literature including Dickson and Weber's criteria which focus on quality, delivery, price and other factors.
3. Approaches to evaluate suppliers such as linear weighting, total cost of ownership, and statistical models. Linear weighting is most popular.
4. The study's methodology used grounded theory and questionnaires. Findings showed manufacturing is the largest industry, evaluation processes are common, and key criteria include price, quality and delivery
Top 10 Procurement KPI\'s
This document discusses 10 key performance indicators (KPIs) that are widely used to measure procurement organization performance. The KPIs include total cost savings, quality, delivery, cost avoidance, implemented cost reduction savings, procurement cycle time, percentage of spend from top suppliers, procurement ROI, managed spend as a percentage of total spend, and contract compliance. Regular measurement of these KPIs promotes continuous improvement, benchmarking against best practices, and identification of opportunities within the supply base.
Procurement: Strategies | Best Practices - May 2011
a quick summary and roadmap for transforming procurement organizations from transactional to strategic.
Procurement
Procurement involves acquiring goods, services, or works from an external source. It is important that items procured meet needs in terms of quality, quantity, time, and location, while also obtaining the best possible cost. There are various types of procurement like single, stock, vendor managed inventory, and just-in-time procurement. Procurement requires identifying needs, suppliers, negotiations, and logistics management. It is a major part of government and public spending and aims to promote competition and minimize fraud. Performance is measured through metrics like spend under management and annual savings.
Logistics and Supply Chain
The document discusses supply chain and logistics concepts including:
1) Physical distribution involves choosing warehouses and transportation carriers to deliver goods in the desired time at lowest cost. Physical distribution has expanded into supply chain management.
2) Supply chain management involves procuring inputs, efficiently converting them into finished products, and dispatching them to customers.
3) Market logistics planning involves four stages - deciding on a value proposition, developing operational excellence, implementing solutions, and deciding on a channel/network strategy.
PROCUREMENT AND SUPPLY MANAGEMENT
This chapter discusses procurement and supply management. It explains the procurement process and important materials management activities like managing vendor relationships. There are different types of purchases and items that require varying levels of attention. The chapter also covers how electronic commerce is increasingly being used for procurement activities like researching vendors, negotiating prices, and placing orders. It outlines advantages like reduced costs but also disadvantages like security and lack of personal interaction.
Logistics strategy & planning, Customer Service & Products
The document discusses key topics in logistics strategy and planning, including reasons for increased interest in logistics such as deregulation and globalization. It covers major logistics decision areas like transportation modes and warehousing approaches. Transportation modes discussed include road, water, rail, air and pipeline. The document also addresses consolidation, customer service, logistics products, pricing logistics, and risks associated with products.
Strategic Sourcing And Supplier Development Strategy
This document proposes developing strategic agreements and alliances with suppliers to minimize supply chain risks. It discusses implementing a new ERP system, qualifying suppliers globally through an updated database, and establishing a change management process. The objectives are reducing costs, increasing capacity and performance, and standardizing processes through strategic partnerships and sourcing agreements. An eight-step comprehensive sourcing solution is outlined. The supplier development strategy examines consolidating redundant suppliers through a selection policy and implementing solutions like vendor managed inventory programs.
Procurement process snippet
This document outlines the steps in defining a business need and developing a procurement strategy. The key steps are:
1. Define the business need by capturing requirements, obtaining stakeholder buy-in, and estimating budgets.
2. Develop a procurement strategy through activities like a team kick-off meeting, market research to identify potential solutions, defining success criteria, and agreeing on a procurement approach.
3. Evaluate and select suppliers by developing a pre-qualification strategy to filter suppliers, scoring and notifying suppliers, launching a tender, and further assessing and filtering suppliers to create a shortlist.
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Procurement: Strategies | Best Practices - May 2011
Procurement: Strategies | Best Practices - May 2011
Logistics strategy & planning, Customer Service & Products
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Strategic Sourcing And Supplier Development Strategy
Strategic Sourcing And Supplier Development Strategy
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Procurement And Materials Management
There are different types of relationships that can exist in a supply chain. An integrated hierarchy is where a firm controls all activities from raw material sourcing to distribution. A semi-hierarchy is where firms are owned by the same parent company but operate independently. Co-contracting involves long-term alliances between organizations through equity sharing or technology transfers. Coordinated contracting uses sub-contractors for specific tasks. Coordinated revenue links include licensing and franchising agreements.
Procurement best practices
Checks budget availability
create a requisition
- Checks budget availability
- Requisition is routed to
- If budget available, requisition is
Assistant for budget check
approved
- If budget available, requisition
- If not, requisition is rejected
is approved
- Requisition is routed to Buyer
- If not, requisition is rejected
Buyer:
- Requisition is routed to Buyer
- Prepares solicitation documents
- Issues solicitation
- Evaluates bids
- Awards contract/PO
- Manages contract
34
Procurement Methods
Open Competition
Limited Competition
Purchasing, Procurement, Vendor, Contract and RFP Process Management with Sha...
Using the Document management, Collaborative and Self service features of SharePoint to implement a turn key procurement management business solution, that will streamline the procurement process, help you comply with regulations, enable you manage contracts, empower self service and participative procurement, aid in informed procurement decisions, in executing an effective procurement strategy and make your procurement function hassle free. Optimus BT is a leader in providing Procurement software and other turnkey solutions using SharePoint.
Basics Of Procurement Process
The document discusses the procurement process in SAP. It involves determining requirements through a purchase requisition or MRP, sourcing suppliers through requests for quotation, selecting vendors, and generating a purchase order. The purchasing, warehousing, and invoice verification departments are then involved in goods receipt, and invoice and payment processing. Special procurement types like stock transfers, subcontracting, and consignment are also outlined.
purchasing process
The document summarizes the key aspects of the purchasing process. It describes the functions of purchasing as handling routine work, supporting decision-making, and assisting with reporting. It outlines the internal perspective of the purchasing process flow. It discusses how purchasing fits within an organization's supply chain and the benefits of managing the supply chain. It also notes potential problems that can occur in supply chain management initiatives and ways to mitigate these issues.
Supply Chain Management, Procurement, Sourcing, Acquire, and Logistics
The document provides an overview of supply chain management. It discusses key concepts like evolution of SCM, global SCM and logistics, procurement processes, push vs pull systems, and the role of SCM professionals. It also covers newer developments like e-procurement, RFID, and SCM software. The document is a presentation on SCM delivered by an IIM graduate that contains diagrams, definitions, and examples to explain SCM concepts.
MATERIAL PURCHASING PROCEDURES
Purchasing is the formal process of buying goods and services. The purchasing process can vary from one organization to another, but there are some common key elements.
The process usually starts with a demand or requirements this could be for a physical part (inventory) or a service. A requisition is generated, which details the requirements (in some cases providing a requirements speciation) which actions the procurement department. A request for proposal (RFP) or request for quotation (RFQ) is then raised. Suppliers send their quotations in response to the RFQ, and a review is undertaken where the best offer (typically based on price, availability and quality) is given the purchase order.
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This document discusses strategic procurement and the (im)possibilities of e-procurement tools. It outlines Zuiderent's approach to procurement strategy and strategic consulting services. It also discusses trends in best value procurement and vested outsourcing that require market knowledge, pre-procurement dialogue, and mutual goals in contracting. Finally, it notes that while procurement tools focus on administrative processes, complex projects require more interaction and communication between buyers and suppliers.
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Consumable Materials
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Pmbok 4th edition chapter 12 - Project Procurement Management
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Sourcing and Materials Management Presentation
- 1. Procurement and Materials Management MGT 4333.01 Kelsey Holmes Nate Landreth Sean McDermott Jeremy Carter April 26, 2010 SOURCING
- 3. Sourcing Sourcing Stages Examples • Recreational Boating Industry • CEVA Logistics Summary
- 4. Sourcing Sourcing Stages Examples • Recreational Boating Industry • CEVA Logistics Summary
- 5. Sourcing Stages Discovery Evaluation Selection Development Management
- 6. Discovery Stage Helpsbuyersdeterminepotentialsuppliers Supplier web sites Supplier information files Supplier catalogs Trade Registers & Directories Trade Journals Phone Directories Filling of Mailing Pieces Sales Personnel Trade Shows Company Personnel Other Supply Management Departments Professional Organizations Discovery Evaluation Selection Development Management
- 7. Evaluation Stage 3 Questions Is the supplier strategically important? Is the product or service being purchased considered strategic? Are there other short-term alternatives available? Discovery Evaluation Selection Development Management
- 8. Evaluation Stage - Evaluation Methods Supplier Surveys Financial Condition Analysis Third Party Evaluators Evaluation Conference Facility Visits Capability Analysis Quality Capacity Management Service Flexibility Information Technology Discovery Evaluation Selection Development Management
- 9. Evaluation Stage - Summary Summary Analysis Weighted-factor analysis development of the factors and weights assign a rating based on the findings Discovery Evaluation Selection Development Management
- 10. Selection Stage Method Bidding Negotiations Combination Invitation for Bids or Request for Proposal Discovery Evaluation Selection Development Management
- 11. Development Stage Most over looked Can have the greatest impact on the buyer Work together to improve Product Processes Quality Costs Profits Discovery Evaluation Selection Development Management
- 12. Management Stage Ensures Performance Analyze and verify capabilities and results Discovery Evaluation Selection Development Management
- 13. Sourcing Sourcing Stages Examples • Recreational Boating Industry • CEVA Logistics Summary
- 15. Facts Average owner’s income is $100,000 a year Past Production motto of new boats was to “build them as fast as possible they would sell” Industry thought it was immune from the economic swings of “outside market” Rising cost of living Recession and less spending
- 16. Examplesof effecton industry Genmar - Ranger series 28 percent decline between 2007 and 2008 other boats lines were down 55 percent from normal levels Brunswick manufacturer - Bayliner, Crestliner, Lund, and Mercury boat motors Half of the factor shut down only ran about 50 percent of it marina operation in 2008 National boat sales down 65 percent from the first quarter of 2009 to the same quarter in 2008
- 17. What lead tocurrent boatshortages? Caused by Dealers and Sales Representatives Assumed people would buy in good and bad markets Bad forecasting and measurements of inventory needed Lack of attention to demand, price, quality, cost of the end product Lack technology advancement used in other industries (SAP) Lack of feedback from consumers (CRM) Local legislation and environmental regulation
- 18. Results Increases production accuracy Less inventory, manufacturer and dealers Increase ability to meet consumer desires (customer feedback) Lowers costs More affordable for consumers Increases sales Increases profit margins
- 19. Sourcing Sourcing Stages Examples • Recreational Boating Industry • CEVA Logistics Summary
- 22. Industry Norms Suppliers are selected based on price, quality, and availability Suppliers compete for CEVA’s freight Guaranteed capacity can help CEVA attain low contract rates
- 23. Chinas Supply Problem Freight forwarders are competing for limited airline space Customers demand on time delivery Airlines can increase rates
- 24. Solution CEVA should consolidate shipments and guarantee enough capacity every day to acquire low contract rates with a single airline into China.
- 25. Plan of Action Accurately forecast demand for future shipments Consolidate freight at a single location for export Successfully distribute orders at final destination Key Competencies for Success • Communication • Coordination • Cross functional teams • Integration of purchasing and operations managers
- 26. Sourcing Sourcing Stages Examples • Recreational Boating Industry • CEVA Logistics Summary
Editor's Notes
- Genmar - Ranger series 28 percent decline between 2007 and 2008 other boats lines were down 55 percent from normal levels Brunswick manufacturer - Bayliner, Crestliner, Lund, and Mercury boat motors closed or shut down around half of it 28 factories in 2007 only ran about 50 percent of it marina operation in 2008 overall the nations boat sales in this segment were down almost 65 percent from the first quarter of 2009 to the same quarter in 2008
- caused by Dealers and Sales Representatives assumed people would buy in good and bad markets bad forecasting and measurements of inventory needed lack of attention to demand, price, quality, cost of the end product lack technology advancement used in other industries (SAP) lack of feedback from consumers (CRM) Local legislation and environmental regulation New restrictions on boats in various waterways, dictating production and sales of watercrafts in certain areas push by organizations such as the National Association of State Boating Law Administration example: Florida’s push for more restrictive boating while drinking (laws like Operation Dry Water), negative influence on potential boat buyers