Purchasing Reporting

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PURCHASING AND

PROCUREMENT
Reported by: Cherry Espejon

PURCHASING PROCUREMENT
LOGISTIC
MANAGEMENT

SUPPLIERS

PRODUCTION

MATERIAL
MANAGEMENT
PURCHASING
LOGISTIC
MANAGEMENT
PHYSICAL
DISTRIBUTION

CUSTOMER/
CONSUMER
PURCHASING
ACTIVITIES
SEARCH FOR
QUALIFIED SUPPLIERS

RECEIVE AND
VERIFY
ROLE OF PURCHASING IN TOTAL
CUSTOMER SATISFACTION

Working
towards the Ensuring on
best quality time deliveries
products
ACCESS TO
EXTERNAL
STRATEGIC ROLE OF MARKET
PURCHASING &
PROCUREMENT
SUPPLIER
DEVELOPMENT
AND
RELATIONSHIP
MANAGEMENT
RELATIONSHIP TO OTHER
FUNCTIONS
Phase 1 Preliminary Phase

Phase 2 Identify Potential

FIVE STEP
Phase 3 Screen and Select PURCHASING
PROCESS
Phase 4 Establish Relationship

Phase 5 Evaluate Relationship


MAJOR PURCHASE CATEGORIES

Component parts
Raw materials
Operating supplies
Support equipment
Process equipment
Services
EVALUATING
SUPPLIERS
SELECTING SUPPLIERS
QUALITY MANAGEMENT

is the act of overseeing all


activities and tasks that
must be accomplished to
maintain a desired level of
excellence.
JUST-IN-TIME

It is the concept of continuous


improvement so that it becomes
the central managerial focus.
IMPORTANCE OF
BUYER-SUPPLIER
COMMUNICATION
This allow the supplier to acquire
raw materials in a stockless
production mode and to supply the
buyer without inventory build-ups.
PURCHASE AGREEMENTS

It is the agreement that the


buyer expects and receive the
exact quantity
VALUE ANALYSIS

CONTROL OF
INBOUND
TRANSPORTATION

SUPPLIER
DEVELOPMENT
PURCHASING
RESEARCH AND
PLANNING

• Effective Purchase
Planning
• Market Research’s
Method
SUPPLY
STRATEGY
QUESTION
Cost reduction Cost reduction
programmes Cost avoidance

Price change management

Forward Buying vs Speculative PURCHASING


Buying COST
MANAGEMENT
Volume contracts

Stockless purchasing(blanket orders)


VENDOR
MANAGED
INVENTORY(VMI)
SUPPLIER MANAGED INVENTORY
MANAGING SUPPLIER
RELATIONSHIP
Mutual trust

Openness

Shared risk and


shared rewards
TYPES OF RELATIONSHIP

TYPE I

TYPE II

TYPE
III
THE PARTNERSHIP MODEL
DRIVERS Decision to
FACILITATORS
Compelling create or Suportive
reasons to partner adjust environmental factors
partnership that enhance
partnership growth

COMPONENTS
Joint activities and
Drivers set expectation of
processes that build and FEEDBACK TO
outcomes sustain the partnership Drivers
Facilitators
Components
OUTCOMES
The extent to which performance
meets expectations
HAVE A GREAT
WEEKEND!

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