...| The Future Role of Procurement in the Global Supply Chain | | Strategic Sourcing and Procurement | | Quiqueena Cintadita | Presented to: Tim Parker Msc. Logistics and Supply Chain Management December 10 2015 | Role of purchasing has changed from year to year. Years ago, it was considered as a job to buy materials. Now, purchasing is an essential function, which is used as a strategy by companies (Monczka et al. 2010). There are many reasons leading to the changes, such as increase in competition between companies, rise in technology, and growth in customers request (Lysons and Farrington 2012). These changes make the relationship with suppliers more important and therefore transparency is needed. Nevertheless, new concepts are needed which involves technology to keep a track to organize a global supply chain (Monczka et al. 2011). Supply chains are mergers from all activities, processes, and functions, which involve all the suppliers to support organizations or companies to deliver the products and services that customers or consumers needed (Business Dictionary). As a function, purchasing took part in the process of supply chain and all the internal organizations that related with supply chain, such as engineering, manufacturing, marketing, finance, information technology, logistics, and legal. Firstly, engineering, purchasing can help the engineering to reduce the defect. For example, in one global electronic manufacturing company, the purchaser...
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...2005 CONTENT ActPAGE The Public Procurement and Disposal Act, 2005 ……………… 45 ________________________________________________ PRINTED AND PUBLISHED BY GOVERNMENT PRINTER, NAIROBI THE PUBLIC PROCUREMENT AND DISPOSAL ACT No. 3 of 2005 45 No. 3 Public Procurement and Disposal 2005 Date of Assent: 26th October, 2005 Date of Commencement: By Notice ARRANGEMENT OF SECTIONS PART I - PRELIMINARY 1—Short title and commencement. 2—Purpose of the Act. 3—Definitions. 4—Application of Act. 5—Conflicts with other Acts. 6—Conflicts with international agreements. 7—Conflict with conditions on donated funds. PART II – BODIES INVOLVED IN THE REGULATION OF PUBLIC PROCUREMENT A — Public Procurement Oversight Authority 8—Establishment of Authority. 9—Functions of Authority. 10—Director-General of the Authority. 11—Term of office of Director-General. 12—Restrictions on activities of Director-General. 13—Terms of service. 14—Resignation of Director-General. 15—Removal of Director-General. 16—Staff. 17—Acting Director-General. 18—Financial arrangements. 19—Audit. 20—Quarterly and annual reports. 46 No. 3 Public Procurement and Disposal 2005 B – Public Procurement Oversight Advisory Board 21—Establishment of Advisory Board. 22—Composition of Advisory Board. 23—Functions of Advisory Board. 24—Procedures of Advisory Board. C – Public Procurement Administrative Review Board 25—Review Board. PART III – INTERNAL ORGANISATION OF PUBLIC ENTITIES RELATING TO PROCUREMENT 26—Threshold matrix and segregation...
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...Those are the rules I would go by. Discuss the concepts associated with managing relationships with potential or existing suppliers and the value of sound contract management (contract administration) and the legal/moral implications of not doing so. The Institute of Supply Management (ISM) sets some detailed principles that supply management personnel can abide by ethically. They include guidelines to follow which help aid in the process of handling several areas of the job, including conflicts of interest, personal purchases, and bribes. Contract administration spreads the responsibility of sound contract management over several employees to ensure that contracts are carried out effectively. With sound contract management, the procurement manager helps improve supplier performance and maintain good business relationships by making sure communication is clear, roles are clearly defined, and everyone is acting within the terms and agreements of the contract (Sollish...
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...• The PMBOK phases of Project Procurement Management: Procurement Planning, Solicitation Planning, Solicitation, Source Selection, Contract Administration, and Contract Close-Out • Be familiar with Input, Tools and Techniques, and Output for each phase) • VERY IMPORTANT: Understand the viewpoint of the PMBOK. Project Procurement Management is discussed from the perspective of the buyer in the buyer-seller relationship. The buyer is the organization seeking the service or product. The seller is the provider of the service or contract and is referred to as the vendor, the supplier, or the contractor. Project Management should be done by both the buyer and the seller. • Understand the definitions and terms. (buyer, seller, express and implied warranties, "fitness for a particular use", invitation to bid, request for proposal, etc.) • Understand the viewpoint of the reading material. Is procurement management discussed from the viewpoint of the buyer (the organization or person seeking to outsource) or the seller (the person or organization selling their services / products)? • Understand the different types of contracts: fixed price, cost plus percentage, cost plus fixed fee, cost plus incentive fee, and fixed price plus incentive fee. Know who assumes the most risk (buyer or seller) in each type of contract. Study examples of each type of contract so that you are comfortable with the different types and can adequately distinguish between each type of contract (especially the...
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...Advantages and disadvantages of Centralized Purchasing by V S Rama Rao on October 3, 2009 The centralized purchasing avails the following advantages: 1) As the duplication of efforts in buying function is eliminated, its cost will be relatively less and it will be managed efficiently 2) The Manager of manufacturing departments, departmental heads and office managers are relieved from the responsibility of purchasing their own requirements. They can concentrate in their assigned areas of activities in a better way. 3) It is possible to tap the advantage of the specialized skill of the buying staff. 4) Bulk buying strengthens the bargaining position of the buyer. Moreover, the advantage of the quantity discount can be tapped. Direct contact with the suppliers will be possible which will eliminate the link of the intermediaries 5) It enables to develop and maintain good relations with the suppliers. Moreover, it facilitates the supplier to maintain relations with few buyers and thus it enables him to pass over some benefits on buyers. 6) It will enable the purchase of standardized items through standardized procedure. 7) It will reduce the inventory carrying costs. The minimum level of inventory are not maintained at different centers but at centralized center which reduce investments in inventories along with the other incidental storing costs. The central buying staff manages the stock levels, recording material usage, lead time and prices effectively. 8) The receiving...
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...Quarterly 25 (2008) 155 – 180 E-government policy and practice: A theoretical and empirical exploration of public e-procurement Catherine A. Hardy ⁎, Susan P. Williams Information Policy and Practice Research Group, Discipline of Business Information Systems, Faculty of Economics and Business, The University of Sydney, Sydney, NSW 2006, Australia Available online 19 April 2007 Abstract The purpose of this paper is to theoretically and empirically explore how public e-procurement policies are translated into practice. The theoretical argument draws on actor network theory (ANT), coupled with Colebatch’s [Colebatch, H. K. (2002). Policy (2nd ed.). Maidenhead, Open University Press.] social construct of policy, to analyze the actors, actions, and circumstances through which understanding of public e-procurement comes to stabilize (or not) into a coherent policy for action. Drawing on three case studies of central government agencies in Italy, Scotland, and Western Australia, we suggest new intellectual perspectives and methodological heuristics that may assist researchers and practitioners analytical efforts in examining sociotechnical change and the implications for policy development and implementation. © 2007 Elsevier Inc. All rights reserved. Keywords: E-government; E-procurement; Actor network theory; Social construction of policy 1. Introduction Public e-procurement, as an information system (IS) enabled innovation in government, is transforming technological platforms and the...
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...Business process notes. Structure options for large organizations * Centralized: Authority and responsibility for mot supply related functions are assigned to a centralized power. Advantages and disadvantages of centralization Advantages would be: * Greater buying specialization * Ability to pay for talent * Consolidation of requirements – clout * Coordination of policies and procedures * Effective planning and research * Common suppliers * Proximity to major organizational decision makers * Critical mass * Firm brand recognition and stature * Reporting line – power * Strategic focus * Cost of purchasing low Disadvantages would be: * Narrow specification and job boredom * Lack of job flexibility * Corporate staff appears excessive * Tendency to minimize legitimate differences in requirements * Lack of recognition of unique needs * Focus on corporate requirements, not on business unit strategic requirements * Distance from users * Tendency to create organizational silos * Customer segments require adaptability to unique situations * Top management not able to spend time on suppliers * Lack of business unit focus * High visibility of purchasing costs Potential advantages and disadvantages of decentralization Advantages would be: * Easier coordination communication with operating department * Speed of response * Effective use of local reserves Disadvantages would...
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...Introduction………………………………………………………………………..……...3 The 3PL market…………………………………………………………………………...4 Procurement As competitive advantage…………………………………………………4 1. Center-led procurement…………………………………………………………..5 2. Strategic sourcing………………………………………………………………….5 3. Supplier integration……………………………………………………………….6 4. Enterprise spend management……………………………………………………6 5. Cross-industry benchmarking…………………………………………………….7 6. E – Procurement…………………………………………………………………...7 Advantages of Apple’s procurement……………………………………………………..8 Disadvantages of Apple’s Procurement…………………………………………………..9 Conclusion…………………………………………………………………………………10 Introduction: When Apple design guru Jony Ive wanted a new feature for the next MacBook: a small dot of green light above the screen, shining through the computer’s aluminum casing to indicate when its camera was on, the problem? It’s physically impossible to shine light through metal. Apple discovered it could use a customized laser to poke holes in the aluminum small enough to be nearly invisible to the human eye but big enough to let light through. Applying that solution at massive volume was a different matter. Apple needed lasers, and lots of them. Most of Apple’s customers have probably never given that green light a second thought, but its creation speaks to a massive competitive advantage for Apple: Operations. This is the world of manufacturing, procurement, and logistics in which the new chief executive officer, Tim Cook, excelled, earning him...
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...Project Procurement Process Kristen R. Dinger University of Maryland University College PMAN 641 Author Note Kristen R. Dinger, Graduate Student, Project Management, UMUC Correspondence concerning this article should be addressed to Kristen Dinger. Contact: Kristen.r.dinger@gmail.com Abstract Project procurement is concerned with establishing, maintaining and continuing to grow the relationships that one has with suppliers. The relationships made, aid in the procurement of goods and services for a project. Establishing the relationships needed to procure the appropriate goods for a project are critical in the completion of the project life. Once the relationship between the vendor and the project company is established goods and services can be procured in a timely manner. There are four major processes concerned with procurement. They are as follows: Plan procurements, Conduct procurements, Control procurements, and Close procurements. Within the analysis, each process will be thoroughly reviewed, in ordinance of importance, in the process of project procurement. Project Procurement Process Project procurement starts with establishing, then maintaining, and then closing the relationship with the supplier in order to obtain a material or service. There are four main process involved with project procurement. Each of the four process outlines a distinct step that is required in order to procure goods...
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...3 1. Company Background 4 BRIEF INTRODUCTION OF THE ORGANIZATION 4 BESTWAY CEMENT LIMITED 4 BESTWAY CEMENT HATTAR 4 BESTWAY CEMENT CHAKWAL LINE I & II 4 MUSTEHKAM CEMENT 5 BESTWAY GROUP 5 BESTWAY FOUNDATION 6 MISSION STATEMENT 6 ESTABLISHMENTS 6 2. Procurement 8 Procurement Department Organization: 8 Procurement System: 8 Capital Procurement: 14 Operational Procurement: 18 Categorical Distribution of Goods to be Procured: 19 Routine Items: 19 Leverage Items: 19 Bottleneck Items: 19 Critical Items: 19 International Procurement 20 Factories’ Procurement 25 Modes of Payment 25 Payment against Documents 26 Procurement Standards being Followed 26 Risks Factors 26 Overcoming Risks 26 Executive Summary This project report is based on work assigned basically to study the procurement process of any reputable organization. After due analysis we chose Bestway cement limited to work on, because it has made tremendous achievements in less two decades so we shall how well the procurement department is playing its due role in achieving such esteem position. In our supply chain management project our study focused area are the Bestway cement limited procurement process. In start of our study we are giving the brief introduction of Bestway cement limited. This is basically a UK based company which is one of the largest overseas investor in our economy. The Bestway cement limited has a major contribution in cement production in Pakistan...
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...* Table of Contents 1 Introduction 1 2 Elements of E-Procurement 1 2.1 Systems 1 2.1.1 ERP 1 2.1.1.1 The implementation process and life cycle 2 2.1.1.2 Key success factors (KSFs) 3 2.1.1.3 Project preparation 3 2.1.1.4 Technology selection 4 2.1.1.5 Implementation/ development: 5 2.1.2 EDI 5 2.2 Necessary Support Technologies 7 2.2.1 E-Catalogues 7 2.2.2 E-Auctions 8 2.2.3 Market Places 11 3 Strength and Weaknesses of Implementing E-Procurement 13 3.1 Strengths 13 3.2 Weaknesses 14 4 Critical Success Factors for the Implementation of E-Procurement 15 4.1 Supplier and contract management 16 4.2 End-user behavior and e-procurement business processes 16 4.3 Information and e-procurement infrastructure 17 5 Case Study 18 6 Future Outlook/ Conclusion 19 List of References II Introduction During the last decade and especially in the last couple of years, the internet has finally found its position in business operations. While the use of internet has been rather the exception than the norm, it is now becoming more and more common to streamline processes and eliminate wasteful processes through the use of the internet. This can especially be seen in the purchasing operations of many firms nowadays, as many companies see the importance of efficient procurement and change from slow and often expensive, paper-based orders to e-procurement. It seems as though this style of procurement can be of great advantage to every firm, but there are also drawbacks. The...
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...executive management over the years. This scenario is attributed to the exploitation of emerging Information & Communication technologies to realize the potential of revolutionizing, streamlining and improving supply chain operations (Patterson, Grimm & Corsi, 2003; Cagliano, Caniato & Spina, 2003). Particularly, electronic procurement or e-procurement has been established as a significant aspect of electronic business operational excellence (Barua, Konona, Whinston & Yin, 2001). Prior to commencing, one should first define the term e-procurement used in this context. According to Davila, Gupta & Palmer 2003, any ICT contrived to expedite the acquisition of goods and services over the net by either a public or private organization can be defined as e-procurement. These include software, B2B market exchanges, B2B auctions and purchasing consortia purported to atomize workflow, influence organisational spend, as well as seek out contemporary sourcing opportunities virtually (Davila et. al, 2003). E-procurement is evident as several norms. Some of the general types include, but are not limited to; - Electronic systems supporting conventional procurement such as - Web- enabled Electronic Data Exchange (EDI-IT) - EDI functions as an application that enables the transmission of messages between computer programs of 2 differing entities. The migration to open networks allows messages to be communicated in batches and eliminates for data duplication. A concern with EDI would be...
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...Healthcare Supply Chain Management Supply Chain Management plays a vital role in our hospitals today. With the growing cost of healthcare and new technologies, it is vital for hospitals to run as efficiently as possible and without jeopardizing care. To the materials manager and to the financial minds of a hospital the area of supply chain is a tedius task at best, the kind of planning, strategizing and measuring that seldom goes recognized and rewarded. The work involved with inventory control fits tightly within that description. In many hospitals today, it is easy for inventory control to go astray and become uncontrolable. This is the case with I Care Healthcare System. Too many people with too much access to too much product procurement are controlling supplies and equipment coming into the facility without any regulation or little oversight. While the blame for over-ordering is frequently pointed at nursing staff, famous for squirreling away unseen, already paid-for stocks of goods, they are not the only offenders. More accurately, when it comes to inventory, it's the system that fails a hospital, not its people, over what is essentially an asset management issue. Currently I Care Healthcare System uses a mainframe that was develped internally with an outdated materials management system that allows you to generate purchase orders, but is lacking in running reports that track the usage. This is not uncommon in the hospital materials management environment. The process...
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...Conducting and Closing Procurements NAME;BRIAN TONY Institution; USIU Conducting and Closing Procurements Introduction For any project to be implemented, goods and services must be availed to be utilized. This is achieved through procurement whereby interested external suppliers are contracted to provide the goods and services needed. The procurement process ought to be planned in order to establish a formal and working relationship with the external suppliers. At the end of a project the procurement has to be closed and the formal relationship with the external supplier for that project then ends. Project procurement has a number of processes including planning and research, conducting the procurement, administration of the procurement and closing the procurement. Each of these components has a role in the success of the procurement process. (Sanghera, 2014) High-level process steps for conducting project procurements The process of conducting project procurements incudes an exercise whereby responses are obtained from sellers, selection of a seller who the project finds suitable and awarding the contract to this seller. This process involves utilization of various inputs, tools and techniques to obtain desirable output. The process of conducting project procurement is multistep and the process includes five major steps as follows: Specification is the first step whereby a decision is made on which products required...
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...ROLE OF ENTERPRISE INFORMATION SYSTEMS IN THE PROCUREMENT PROCESS Ashley Wright What is procurement? Steps taken to acquire raw materials or finished goods Also known as “Requisition-to-pay” process People, data, documents and information are essential components of procurement Who relies on procurement? Manufacturers Raw Legal/ Purchasing Contract Materials B2B Model Management Vendor Management Resellers Finished Goods B2C Model Purchasing Cost Business owners, management and shareholders Consumers Analysis Inventory Analysis Business Models B2B commerce- Business-to-Business When a business sells directly to another business Includes transactions for raw materials & finished goods Examples: Wood to make a skateboard, helmet, first aid kit B2C commerce- Business-to-Consumer When a business sells directly to the consumer Includes online transactions or internet retailing Examples: Airline tickets, eBay, Wal-Mart online Raw Materials to the Consumer Business-to-Business Business-to-Consumer Producer Manufacturer Distributor Retailer Consumer Business-to-Business (B2B) Commerce Manufacturers use B2B commerce to: Acquire Raw Materials from a Producer Manufacturer assembles raw material into a good End product sold to Distributor or Reseller Resellers use B2B commerce to: Acquire Finished Goods from a Distributor ...
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