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PVM Ppt-1

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15 views

PVM Ppt-1

Uploaded by

Gaurav Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Introduction to

Purchasing
Purchasing is a fundamental function in any organization, responsible for
acquiring goods and services that enable operations and meet
organizational goals. It plays a crucial role in ensuring the availability of
resources, managing costs, and maintaining quality.

by Dr. Divya Sharma


Scope of Purchasing

Sourcing 1
Identifying and selecting suppliers capable of meeting
organizational needs in terms of quality, price, and
delivery. 2 Negotiation
Negotiating contracts with suppliers to secure favorable
pricing, payment terms, and service levels.
Procurement 3
Placing orders with suppliers and ensuring timely delivery
of goods and services.
4 Inventory Management
Maintaining appropriate levels of inventory to meet
demand while minimizing storage costs and
Supplier Relationship Management 5 obsolescence.
Developing and managing relationships with suppliers to
ensure ongoing performance and collaboration.
The Changing Role of Purchasing and
Supply
Strategic Focus Increased Collaboration Data-Driven Decisions

Shifting from transactional to strategic Building strong relationships with Utilizing data analytics to optimize
activities, influencing sourcing suppliers, fostering collaboration, and procurement processes, identify cost
decisions to achieve business integrating procurement into the savings, and improve supply chain
objectives. overall supply chain. visibility.
Proactive Purchasing
1 Strategic Planning 2 Supplier Relationship
Management
Develop a comprehensive
purchasing strategy aligned Foster long-term relationships
with business goals, with suppliers, prioritizing
identifying potential risks and collaboration and mutual
opportunities. benefits.

3 Innovation & 4 Risk Management


Technology
Implement proactive
Embrace innovative measures to mitigate supply
technologies to improve chain disruptions, ensuring
efficiency, transparency, and continuity and resilience.
sustainability in purchasing
operations.
Procurement Positioning
Cost Reduction Quality Assurance
Seeking competitive pricing, Ensuring suppliers meet
negotiating favorable quality standards, establishing
contracts, and implementing rigorous inspection
cost optimization strategies. procedures, and fostering
supplier accountability.

Delivery & Logistics Innovation & Value


Creation
Managing supply chain
logistics, optimizing delivery Partnering with suppliers to
timelines, and minimizing develop new products and
disruptions to ensure timely services, fostering innovation
delivery. and driving value creation
within the supply chain.
Total Acquisition Cost
and Total Cost of
Ownership
Total Acquisition Cost (TAC) Total Cost of Ownership (TCO)

Includes all direct costs Considers all costs incurred


associated with acquiring a throughout the lifecycle of a
good or service, such as good or service, including
purchase price, taxes, and acquisition, operation,
transportation. maintenance, and disposal.

Focuses on immediate costs. Focuses on long-term cost


management.
Non-Manufacturing
Organisations
Services
Purchasing services such as healthcare, IT, and professional
services.

Consumables
Procuring essential materials and supplies for daily operations,
such as office supplies, cleaning materials, and medical
supplies.

Capital Equipment
Acquiring major equipment such as computers, medical
equipment, and vehicles.
The Supply Chain Concept

Flow of Materials Information Flow


The movement of goods from raw Sharing information among supply
materials to finished products, chain partners, including demand
including transportation, storage, and forecasts, inventory levels, and order
handling. status updates.

Financial Flow Relationships


The exchange of payments among Collaborative partnerships among
suppliers, manufacturers, distributors, supply chain partners, fostering trust
and customers. and communication to enhance
efficiency and effectiveness.
Function of Procurement

Supplier Selection Contract Negotiation Order Placement


Identifying and evaluating potential Negotiating terms and conditions of Placing orders with suppliers,
suppliers based on criteria such as contracts with suppliers to ensure specifying requirements, and managing
quality, cost, and delivery performance. favorable pricing, payment terms, and order fulfillment.
service levels.

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Roles in the Purchasing
Organisation for a Large
Project
1 Project Manager 2 Procurement Specialist
Overall responsibility for the Identifies, evaluates, and
project, including procurement negotiates with suppliers,
planning, supplier selection, and ensuring compliance with
contract management. project requirements.

3 Contract Administrator 4 Logistics Coordinator


Manages the flow of materials
Manages contracts with and equipment, ensuring timely
suppliers, ensuring timely delivery to the project site.
performance and resolving any
disputes.
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