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
The Purchasing Process
Presentation outline :-
 Overview of purchasing cycle.
 Purchasing objectives.
 What are the core tasks of purchasing.
 The vulnerability in supply markets.
 How to overcome vulnerability in supply markets?!
Purchasing process
 purchasing process describes the actual process for
goods and services procurement including
purchasing order creation , vendor selection and
relations, and merchandise receiving techniques.
• Use purchasing
skills, market
research, cost
research, negotiation
for best value.
• Manage customers
and suppliers
relationship.
• Decide on sourcing
strategy maximize
competition.
• Make or buy
decision.
-Identify need.
-Define need and
specification.
-Obtain
approvals
-decide source
approach.
-research and
select suppliers.
-decide on terms.
-Issue and
evaluate tenders.
-negotiate and
award contracts.
-manage supplier
performance and
internal and
external
relationships
Purchasing objectives :-
 Support operational requirements.
 Manage the purchasing process Efficiently and
Effectively.
 Supply Base Management.
 Develop strong relationships with other functional
groups.
 Support organizational goals and objectives.
 Develop integrated purchasing strategies that support
organizational strategies.
Purchasing core tasks:-
 Ensuring supply continuity to the organization.
 Purchasing practice innovation and product
research.
 Minimize the vulnerability in supply markets.
 Verified purchasing performance indicators.
 Purchasing represents the organization as an
attractive trading partner.
The vulnerability in supply markets:
 lack of knowledge is not surprising given the
complexity of today’s typical supply chain. Yet, as
we will argue, the complexity of the chain -which is
tending to increase rather then diminish -brings
with it higher levels of risk and hence vulnerability.
 However, contemporary developments in business
thinking have in many instances reduced supply
chain vulnerability to ‘everyday’ supply chain risks.
By improving their internal efficiency and the
effectiveness.
How to overcome vulnerability in supply markets ?
It was possible to identify four issues that foster success in supply
chain continuity management:
 Risk awareness among top managers.
 Risk management as an integrated part of supply chain
management.
 Each individual employee in each entity must have
a) risk awareness and
b) understanding of his/her role in the processes.
 Understanding that changes in business strategy change supply
chain risk profiles.
ThankYou..

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The purchasing process

  • 2. Presentation outline :-  Overview of purchasing cycle.  Purchasing objectives.  What are the core tasks of purchasing.  The vulnerability in supply markets.  How to overcome vulnerability in supply markets?!
  • 3. Purchasing process  purchasing process describes the actual process for goods and services procurement including purchasing order creation , vendor selection and relations, and merchandise receiving techniques.
  • 4. • Use purchasing skills, market research, cost research, negotiation for best value. • Manage customers and suppliers relationship. • Decide on sourcing strategy maximize competition. • Make or buy decision. -Identify need. -Define need and specification. -Obtain approvals -decide source approach. -research and select suppliers. -decide on terms. -Issue and evaluate tenders. -negotiate and award contracts. -manage supplier performance and internal and external relationships
  • 5. Purchasing objectives :-  Support operational requirements.  Manage the purchasing process Efficiently and Effectively.  Supply Base Management.  Develop strong relationships with other functional groups.  Support organizational goals and objectives.  Develop integrated purchasing strategies that support organizational strategies.
  • 6. Purchasing core tasks:-  Ensuring supply continuity to the organization.  Purchasing practice innovation and product research.  Minimize the vulnerability in supply markets.  Verified purchasing performance indicators.  Purchasing represents the organization as an attractive trading partner.
  • 7. The vulnerability in supply markets:  lack of knowledge is not surprising given the complexity of today’s typical supply chain. Yet, as we will argue, the complexity of the chain -which is tending to increase rather then diminish -brings with it higher levels of risk and hence vulnerability.  However, contemporary developments in business thinking have in many instances reduced supply chain vulnerability to ‘everyday’ supply chain risks. By improving their internal efficiency and the effectiveness.
  • 8. How to overcome vulnerability in supply markets ? It was possible to identify four issues that foster success in supply chain continuity management:  Risk awareness among top managers.  Risk management as an integrated part of supply chain management.  Each individual employee in each entity must have a) risk awareness and b) understanding of his/her role in the processes.  Understanding that changes in business strategy change supply chain risk profiles.