Lesson 3
Lesson 3
AND PROCUREMENT
Starter: Check your knowledge of key terms in
inventory management and procurement by
choosing the best definitions for these terms.
Economies of scale:
-Reducing costs per unit by increasing
production.
-Cutting costs by reducing output.
Buffer stock:
-Goods kept in store to cover seasonal demand
e.g. Christmas sale.
-Goods kept in store to cover unforeseen
shortages or fluctuations in demand.
Factory gate pricing:
-Transport costs are not included in the
purchase price of a product.
-The price is lower because you buy directly
from the manufacturer.
Supply chain:
-The close co-operation of all parties involved
in the making, selling, and delivering of a
product.
-Network of stores that supply customers with a
wide variety of products.
Tender
-An assessment or calculation of the
approximate cost or value of a product or
service.
-An offer for goods or services that follows a
request for a quotation made by an official
body/ authority , e.g. local government.
1. Your opinion
- Every solution/ method/ way always has two
sides, including N
- If sb do st (N), sb will get both sides including
advantages and disadvantages
2. As for positive, pros structure
3. However, with regard to negative, cons
structure
** Question
- What do you think about doing st
- How do you feel about doing st
- What are your thoughts on doing st
- Do you think that we should do st
- Do you agree with doing st
1. Do you think that we should open up new route
from Haiphong to Shanghai?
1.1. Agree
- I totally agree with this
- It is beneficial for customer to transport their cargo
with cheaper freight
- It can make our company have more customers of
industrial zones
1.2. Disagree
- I’m against this idea
- It is unsuitable for doc employees to handle their
tasks
- It can make them work overtime and create a lot of
mistakes
1.3. Both sides
- If we open up a new route to ABC port, it will have
both advantages and disadvantages
- As for positive, it enables our company to earn
higher revenue
- With regard to negative, it can make employees
face working overtime/ burden workload/ heavy
workload
2. Do you agree with establishing online shop?
2.1.
- I think I’m in favor of this idea
- It is useful for us to show/ introduce/ advertise our
product to customer
- It can enable customer to choose clothes without
going to store
2.2
- I oppose this opinion
- It is difficult for us to control and manage online
orders
- It can make customer choose wrong size and
wrong color, especially with luxurious items
Dear colleagues
We are currently looking into all areas of
procurement to see how we can optimize
processes and save costs.
Perhaps you could get back to us with a few
suggestions regarding possible improvements
in your own department or work environment.
Our method is to apply electronic process and
electronic documentation (based on online
environment). How do you think about this
solution?
Thanks in advance for your co-operation.
Regards
Luke
Dear Ana
1.Please find attached / for three new products /
your request / our quotation / according to.
Please find attached our quotation for st
according to your request/ order
2.Our prices / annual consumption figures / the
basis of / your forecast of / are calculated on.
Our prices are calculated on the basis of
your forecast of annual consumption figures
3.As requested / pallets to / we will deliver on /
Barcelona or Madrid.
As requested we will deliver on pallets to A
and B
4.For a / we can offer you / of 2.5% / contract
term of / a discount / at least two years.
For a contract term of at least two years we
can offer you a discount of 2.5%
5.In the attached / all prices / have been listed in
/ your requirements / quotation sheet / columns
according to.
In the attached quotation sheet all prices
have been listed in columns according to
your requirements
6.If you have / me know / any further questions /
please let.
If you have any further questions please let
me know
7.We look / hearing from / forward to / you soon.
We look forward to hearing from you soon
Regards
Enrique
QUOTATIONS
OVER TO YOU
1. What do you thinks of the strategic sourcing
approach?
2.How are goods purchased in your country?
3.Do you buy goods for your company? What is
the standard procedure?