Parcial Flashcards
(30 cards)
procurement
Refers to the supplies bought from outside organizations to support a company´s operations
Procurement is an important activity and closely related to
logistics because acquired goods and services must be entered into the supply chain in the exact quantities and at the precise time they are needed.
Procurement objectives
Procurement has become more strategic in nature, its primary objective is no longer to only achieve the lowest possible cost of supply
objectives
- Supporting organizational goals & objectives
- Managing the purchasing process effectively and efficiently
- Managing the supply base
- Developing strong relationship with other functional groups
- Supporting operational requirements
Supplier selection framework
- Identify need for supply
- Situation Analysis
- Identify and Evaluate Potential Suppliers
- Select Supplier
- Evaluate Decision
Situation Analysis
-Internal factors (supply policies)
-External factors (legal issues)
Identify and Evaluate Potential Suppliers
-Sources of potential information
-Establish selection criteria
-Assign weights to selection criteria
Select Supplier
Consideration of company policies (usage of minority suppliers)
Evaluate Decision
Compare actual and expected performance
Top seven benefits to e-procurement process
- Reduced Costs
- Transparent Spending
- Increased Productivity
- Eliminating Paperwork
- Increased Transaction Speed
- Standardized Buying
- Reduced Errors
E- Procurement process
Reduced Costs
Transparent Spending
Increased Productivity
Eliminating Paperwork
Increased Transaction Speed
Standardized Buying
Reduced Errors
Reduced Costs
E-Procurement saves you money by preventing duplicate spending and saving you costs associated with paper based systems
Transparent Spending
Electronically conducting your procurement makes it easier to analyze reports on your procurement systems
Increased Productivity
Once you have learned the system is less time-consuming dan traditional procurement
Eliminating Paperwork
everything can be saved and stored electronically
Increased Transaction Speed
Is both time-saving and efficient. As the electronic handling of tasks supports and simplifies the purchasing process, transaction speed is increased
Standardized Buying
Conducting purchasing electronically makes it easier for every department to confirm to company procurement standards
Reduced Errors
Electronic paperwork is streamlined and thus easier to check for errors-there´s no messy printing to get in the way either
Supply chain disruption
Modern supply chains have been adversely impacted by both COVID-19 lockdowns and, more recently, the speed of the economic recovery
Supply chain problem cascade
the decisions made and actions taken by each organization affect the performance of the entire supply chain
A product shortage at a retail store might be caused by
unsuspected problems such as labor issues, raw material shortages or clogged ports
Semiconductor shortages are disrupting the automobile industry
Meanwhile, the cost of moving a container from China to the west coast of North America is estimated to have increased by 650% since before the pandemic
The pandemic also revealed the fragility of global supply chain as
U.S. President Joe Biden and others warn of the impact on the world economy of continuing supply-chain bottlenecks
Sea ports opportunities
- 24/7 Operation in the Port of Long Beach, CA
- 40% import of USA.
- 81 ships on line.
- Hugh lines of drivers waiting even 6 to 8 hours.
- Trains
- Trucks
- Warehouses are full.
- The Trucks industry is down 80,000 drivers in the US.
