Procurement Logistics
• Purchasing: The goal is to obtain materials, services, or products at the best possible cost,
which meets the needs and time constraints of the organization.
•
Orientation Relation with suppliers; connection
between suppliers and company
Objects Raw material and semi-finished products
Function Obtain most suitable goods and services at
most reasonable prices, delivered when
required
• Core processes: Market research/requirements planning, make or buy decisions, supplier
management, ordering, order monitoring
Strategic Sourcing Operative Procurement
Decision between one or more suppliers Decide to keep on stock or order on
demand
Buy single parts or pre-assembled modules Decide how much inventory to keep and
where
Buy from local or foreign supplier Decide how frequently to order
Select suppliers Decide how much to order
• Strategic Sourcing: Ensuring availability of suppliers through finding sources and
guaranteeing supply, ensuring alternatives and knowledge
• Operative Procurement: Ensuring internal customer receives needed items from suppliers
• Strategic Sourcing consists of Material Categorization, Strategy Choice, Supplier Evaluation
and Supplier Relationship Management
•
,• ABC Analysis
• Steps to do ABC Analysis
, • XYZ Analysis
• Coefficient of Variation = Std deviation/ Mean
• Traditional vs Relationship Purchasing
• Portfolio of Buyer- Supplier Relationship: The Bensaou Model
• Purchasing: The goal is to obtain materials, services, or products at the best possible cost,
which meets the needs and time constraints of the organization.
•
Orientation Relation with suppliers; connection
between suppliers and company
Objects Raw material and semi-finished products
Function Obtain most suitable goods and services at
most reasonable prices, delivered when
required
• Core processes: Market research/requirements planning, make or buy decisions, supplier
management, ordering, order monitoring
Strategic Sourcing Operative Procurement
Decision between one or more suppliers Decide to keep on stock or order on
demand
Buy single parts or pre-assembled modules Decide how much inventory to keep and
where
Buy from local or foreign supplier Decide how frequently to order
Select suppliers Decide how much to order
• Strategic Sourcing: Ensuring availability of suppliers through finding sources and
guaranteeing supply, ensuring alternatives and knowledge
• Operative Procurement: Ensuring internal customer receives needed items from suppliers
• Strategic Sourcing consists of Material Categorization, Strategy Choice, Supplier Evaluation
and Supplier Relationship Management
•
,• ABC Analysis
• Steps to do ABC Analysis
, • XYZ Analysis
• Coefficient of Variation = Std deviation/ Mean
• Traditional vs Relationship Purchasing
• Portfolio of Buyer- Supplier Relationship: The Bensaou Model
