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Topic 02 - Procurement Management. - Coggle Diagram

- - - - 5 RIGHTS OF PROCUREMENT
        
        RIGHT QUALITY - purchased goods are of satisfactory quality, conforms to specifications and fit for purpose
        
        RIGHT QUANTITY - purchase sufficient quantity to meet demand minimizing excess stock holding and acquisition costs with 0 stock-outs
        
        RIGHT PLACE - buy from the right sources and delivered to the correct place, packed and transported in a way to secure safe arrival in good condition
        
        RIGHT TIME - delivered at the right time to meet demand, neither late or early
        
        RIGHT PRICE - secure all the above at a reasonable, fair, competitive price
    - - 5 RIGHTS: acquire the RIGHT QUALITY of material, at the RIGHT TIME, in the RIGHT QUANTITY, to the RIGHT PLACE, at the RIGHT PRICE
      - CHARACTERISTICS:
        
        Reactive: obtaining inputs in response to requests
        
        Transactional: concerned with processing purchase orders (POs) and contracts
        
        Tactical: focused on short-term processes and goals
- - - - Involving cross-functional stakeholders at this very stage to ensure everyone's opinions are heard and to get as much support from them as possible
        
        Internal: stakeholders reside within the company, ex: managers, employees, board members,..
        
        Connected: stakeholders are outside of the company but are closely connected, ex: customers, shareholders, banks, suppliers
        
        External: stakeholders reside outside of the company and are not closely connected with the company's core offerings, ex: government, community,..
  - - - STEEPLED ANALYSIS
      - PORTER'S 5 FORCES - Threat of new entrants, Competitive Rivalry & Threats of Substitutes
      - Make-or-buy analysis
  - - - Porter's 5 forces - Bargaining power of supplier & Bargaining power of buyers
      - Kraljic Matrix
  - - - General in4 about suppliers' capabilities and services/goods
        
        RFI
      - Price of the requested services/goods
        
        Is this buy complex and/or high-value items?
        
        NO: RFQ
        
        YES: ITT