SCMN 2150: EXAM 2 (STRAW)

Procurement The purchase of merchandise or services at the optimal total cost, the correct quantity, the correct time, and the correct quality. The tactical aspect of the buy process. The goal is to get exactly what they want when they need it. Day to day purchasing function. Strategic Sourcing An institutional procurement process that continuously improves and re-evaluates the purchasing activities of a company. Focus on continuous improvement of procurement Strategic focuses on continuous improvement. It is a more engaged and company wide focus on sourcing that is heavily data driven What is the difference between strategic sourcing and traditional purchasing? Evaluating data on suppliers, capabilities, savings, and quality How do you seek continuous improvement with strategic sourcing? 1. Identify material & service needs 2. Evaluate/Find supplier options 3. Select best suppliers 4. Release order to supplier 5. Monitor orders and evaluate performance What are the five steps in the procurement process? Identify Material and Service needs The cycle begins with the identification of what is needed Quality, volume, time, etc. Tri