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2.2 - SCM301m - Procurement Process

procurement

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Ta Thi Bich Diem (K17 HCM)
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10 views20 pages

2.2 - SCM301m - Procurement Process

procurement

Uploaded by

Ta Thi Bich Diem (K17 HCM)
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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PROCUREMENT

AND
GLOBAL SOURCING

COURSE CODE: SCM301m

https://www.coursera.org/specializations/procurement-
230815V01_SCM301m - Procurement and Global Sourcing 230815V01_SCM301m - Procurement and Global Sourcing 1
COURSE 2: PROCUREMENT
BASICS
Section 2-2: Procurement Process

https://www.coursera.org/learn/procurement-basics

230815V01_SCM301m - Procurement and Global Sourcing 2


LEARNING OBJECTIVES

• Demonstrate basic understanding of procurement of an enterprise


• Demonstrate understanding of stakeholder management in the given
context of an enterprise

230815V01_SCM301m - Procurement and Global Sourcing 3


CONTENTS

• Procurement processes
• RFQ Management process

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PROCUREMENT PROCESSES

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PROCUREMENT PROCESSES

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FORECAST AND/OR PLAN REQUIREMENT

• Beginning of purchasing cycle


• Sources of need
• Annual or biannual planning process
• New product developemnt process
• Operational needs

• Sometimes, actual needs are difficult to define clearly

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NEEDS CLARIFICATION: REQUISITIONING

• Purchase requisitions and/or statements of work


• Forecasts and customer orders (e.g. from MRP)
• New product development teams

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ELEMENTS OF A PURCHASE REQUISITION

• Description of required material or service


• Quantity required
• Estimated unit cost
• Operating account to be charged
• Date of requisition
• Date required
• Authorized signature

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SUPPLIER IDENTIFICATION AND SELECTION

• Existing supplier
• Familiarity and track record
• List of preferred suppliers
• New supplier
• Need to identify potential suppliers
• Need to evaluate and qualify

230815V01_SCM301m - Procurement and Global Sourcing 10


SUPPLIER IDENTIFICATION AND SELECTION

• Bidding vs Negotiating
• Request for quotation (RFX, RFQ, and RFP)
• Statement of Work (SOW), Specifications or Blueprints
• Supplier evaluation

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PURCHASE ORDER

• Drafted after supplier evaluation and selection is completed


• Legally-binding document
• Visibility throughout company

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RECEIVING PROCESS

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RECEIPT AND INSPECTION

• Electronic vs paper documents


• Materials packing slip
• Bill of lading
• Receiving discrepancy report

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INVOICE SETTLEMENT AND PAYMENT

• 3-way match required to pay invoice


• P.O.
• Invoice
• Receiving report
• Electronic funds transfer (EFT)
• Mostly done electronically today
• Information used to Analyze Actual requirements

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RFQ MANAGEMENT PROCESS

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THE RFQ PROCESS

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RFQ DOCUMENTS

• Invitation and description


• General terms and conditions (GTC)
• Pricing template
• Pre-qualification requirements and questionnaire
• Awarding selection criteria and weights

Reading: RFQ Management Process - Link

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REQUIRED READINGS

• Reading: 3 Ways For Procurement To Prove Its Value - link


• Reading: Procurement Metrics - link

230815V01_SCM301m - Procurement and Global Sourcing 19


KEY TAKEAWAYS

Understand the Processes:


- Procurement process
- RFQ Process

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