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Purchasing and e-Procurement (Commercial and logistics purchasing…
Purchasing and e-Procurement
Commercial and logistics purchasing
Commercial purchasing is the analysis, planning, implementation and management aimed to develop, expand and maintain the relationship with suppliers market to meet the companies short and long term requirements. For the best corporate benefits in a contribution.
active, market-oriented business activity
Strategic importance to company
Aimed to develop and preserving relationships with suppliers
Purchasing logistics- Is to make sure that the right amount of products are available to the applicant right time and price.
Commercial purchasing aims to minimize purchasing costs.
Purchasing logistics aims for the best cost price by looking into the whole chain.
The Purchasing department is responsible for settling any dispute between a a supplier and user of the product.
Purchasing functions per business type
Five main functions
Contribute to continue the business process
maximum contribution in the trading results and minimize cost
Minimize the vulnerability for the supplies from purchasing market
External representation for the company in suppliers market
Contribution to product and further innovation
Make sure its not too dependent on few suppliers
Strategic purchasing process
Complex supply market depend on factors: If there is a shortage of material. Technological development, barriers allowed a start to new suppliers, if there is a monopoly of suppliers.
Purchasing Management. taken most up of purchasing normal products.
Material Management: Strong relationship between purchasing and production control. Most to do with getting the production
process to run smoothly.
Sourcing Management; Helps with giving extra attention to the items that need extra attention.
Supply Management: Getting suppliers from one supplier or politically unstable country to bring more value in the cost price for the final product.
4 Purchasing situations
E-Procurement
Sourcing Catalog Services: Helping find new suppliers. A catalog with as many suppliers as possible. Showing standard prices. Trying to reduce the chance of supply risk.
Electronic tendering: Determining which supplier will be part of a certain purchasing package. Sending RFIs (requests for information) . this allows for more equal treatment of suppliers. improved control for tendering.
Ordering catalog systems: Its an engine in the ordering catalog system for selected contracted suppliers, chosen products and services, contract prices. This helps to increase the operational purchasing functions, an improved use of agreed contracts, better for purchasing monitoring.
Operational Purchasing management
A process in repetiting the order every day to make sure that the order is fulfilled without any errors.
This is often done in business that follow the MRP and JIT model
There is outside factors as well that need to be taken to account. Like the political situation in the country business is done, as well as the labour situation for the country.
Supplier assessment
The supplier is primary duty for the purchasing department.
Important in the assessment is the Vendor Rating, Supplier performance, subject. For a subjective method there is a vendor rating card used by the buyer to keep a record the suppliers quality.
Delivery reliability: How well a supplier is able to met the delivery commitments.