Procurement process

Реферат, 22 Декабря 2011, автор: пользователь скрыл имя

Описание

Procurement is a logistics function and it also plays a very important role supply chain management. With the increase in outsourcing of goods and services, the procurement function is very significant in the organization. Procurement today is a highly technical, scientific field. “Most industries spend from 40 to 60 percent of their revenues on materials and services from sources outside of the organization”1.

Содержание

1. Definition 4
2. Procurement process. 5
3. Procurement Importance Matrix 8
4. Managing the Procurement Process. 12
Conclusion 14
Bibliography 15

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fy">     On the basis of chapter 3 it can be concluded that not all purchased items are equal importance. Using the criteria of risk and value, the quadrant technique classifies items into four importance categories: generics, commodities, distinctives, and criticals. Generic have low risk, low value; commodities have low risk, high value; distinctives have high risk, low value; and criticals have high risk, high value.

     Finally, the last chapter describes the managing of a procurement process. So, the procurement process activities can be more effectively managed by following a four-step process: (1) determine type of purchase; (2)determine necessary level of investment; (3) perform the procurement process; (4) evaluate the effectiveness of the procurement process.

 

     

Bibliography

  1. Ballou, Ronald H. Business logistics - supply chain management
  2. Bea Amor. Article “The Importance of Procurement and How Total Cost Analysis Improves the Procurement Decision” http://www.associatedcontent.com/article/932167/the_importance_of_procurement_and_how.html?cat=3
  3. Coyle J.J., Bardi E.J., Langley C.J., The management of business logistics : a supply chain perspective – 7th ed. (Mason (Ohio) : Thomson/South-Western, 2003)
  4. Douglas M. Lambert, James R. Stock, Lisa M. Ellram, Fundamentals of logistics management (Irwin/McGraw-Hill Series in Marketing, 1998)
  5. Rushton Alan, Croucher Phil, Baker Peter. The handbook of logistics and distribution management  –3rd ed.

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