PROCUREMENT AND SUPPLY MANAGEMENT

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PROCUREMENT AND SUPPLY MANAGEMENT

• Week 4

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AGENDA

• INTRODUCTION
• MATERIALS MANAGEMENT
• Procurement
• Importance of Item and Service
• Special Case of Procurement Price
• Other Activities
• SUMMARY AND CONCLUSIONS

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INTRODUCTION

• Inbound for One, Outbound for Other
• Adding
• Value
• Cost
• Complexity
• Coordinate
• Inbound
• Outbound

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AGENDA

• MATERIALS MANAGEMENT
• Procurement
• Importance of Item and Service
• Special Case of Procurement Price
• Other Activities

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MATERIALS MANAGEMENT

• Procurement
• Consider
• Price
• Cost
• Quality

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MATERIALS MANAGEMENT

• Procurement
• Activities

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MATERIALS MANAGEMENT

• Importance of Item and Service
• Quadrant Analysis

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MATERIALS MANAGEMENT

• Managing Procurement Process
• Determine Type of Purchase
• Straight Re-buy
• Modified Re-buy
• New Buy

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MATERIALS MANAGEMENT

• Managing Procurement Process
• Determine Level of Investment
• Time
• Information

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MATERIALS MANAGEMENT

• Managing Procurement Process
• Procure
• Evaluate
• User Needs Met
• Investment Necessary

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MATERIALS MANAGEMENT

• Supplier Relationships
• Dimensions
• Rationalization
• Partnerships
• Competitive Advantage

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• Supplier Relationships
• Selection Criteria

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MATERIALS MANAGEMENT

• Procurement Price
• Sources of
• Commodities
• Price Lists
• Quotations
• Negotiations

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• Procurement Price
• Measurement Approaches

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• Procurement Price
• Total Procurement Price

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MATERIALS MANAGEMENT

• Other Activities
• Warehousing
• Varies by Value
• Varies by Location in Supply Chain

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MATERIALS MANAGEMENT

• Other Activities
• Production Planning and Control
• Forecast Demand
• Pull from Stock
• Produce
• Procure

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MATERIALS MANAGEMENT

• Other Activities
• Transportation
• Control
• Choice
• Cost

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MATERIALS MANAGEMENT

• Other Activities
• Receiving
• Inspection
• Claims
• Quality
• Salvage and Scrap Disposal

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SUMMARY AND CONCLUSIONS