Sourcing And Procurement Process Pdf

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Knowledge-based services KBS comprise a major portion of services acquired by public organizations. However, their procurement is not well managed; consequently, inefficiencies abound.

Analysis of sourcing & procurement practices : a cross industry framework

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Ioannis G. Download PDF. A short summary of this paper. Signature of Author Those firms have been chosen for their overall supply chain excellence and the research builds on empirical data from case studies, literature survey and interviews with industry experts.

By assessing the empirical data and the various practices, a framework is proposed to address the different options that the firms can use relative to the organizational structure of the Procurement Department. Lastly, this thesis identifies the factors that affect these options. I will start first with my advisor Dr. Blanco who helped me improve the framework, the model and my research.

His close attention and support gave me the opportunity to explore in more depth this research question. I would also like to thank Dr. Lapide for giving me the opportunity to participate in the Supply Chain project as well as for his thoughthl contributions.

Additionally, I thank Dr. Caplice and Dr. Singh for their contribution to my thinking and their thoughtll comments as well as Mrs. Srethapakdi, Englezos, Tan, An and Kurapov for their comments. I also want to express my gratitude to Mrs. Lappin, Karsten and Timmermans for their invaluable contribution to my understanding of the Procurement function and their thoughtll comments.

Their advice and observations were very important and contributed to the results of this thesis. I also want to thank all my fellow students for their help and their contribution to my learning. Lastly, I want to thank my family; my parents Argiro and Georgios as well as my brother Panagiotis.

Your invaluable support helped me achieve my goals. Without you I wouldn't have come here. To all of you my sincerest gratitude. Thank you ALL. Aerospace Industry Profile Apparel Industry ProJile Automotive Industry Profile Ell. Computer Industry Profile v. Telecommunications Industry Profile vi. CPG Industry Profile vii. Pharmaceuticals Industry Profile viii. Petroleum Industry Profile ix.

Overview This Research Project is intended to describe the business models and the practices that companies have developed and employ in the functional area of Procurement. Part of the Supply Chain Project, a multiyear research effort to identify and analyze the factors that are critical to the success of future supply chains, this study maps out innovations that underpin successful supply chains as far into the future as the year The focus will be in recognizing the practices that best - of - breed organizations use so as to achieve superior competitive advantage.

Both are made up of supply chain executives from leading companies and play a crucial role in helping to shape the work and generate new ideas. This includes the identification of the macro factors that have shaped the supply chains as well as the industry challenges, the strategies, the operating models and the principles that companies use in designing their supply chains.

Phase In Phase I1 the research aims to develop supply chain principles in the functional areas of supply chain and leverage what is learned during the first phase. The work highlights what actions organizations should take to help ensure supply chain success. Phase In the last Phase of SC the research will focus on developing Supply Chain models and scenarios, analyze them and make recommendations on kture trends and best models for corporate action. Within this framework, 21 Thesis Projects have already been completed and submitted in addition to 3 Working Papers and 8 Conference proceedings for Phase I.

As stated before this is an ongoing research to be completed in - More precisely, the research questions that this study answers are: What are the different models that thought leaders propose for the functional area of procurement? Identification and categorization with respect to their applicability academic - business models. Are there any specific principles that are commonly leveraged fiom companies in order to achieve superior performance?

What is the relationship the companies have with their suppliers and the depth of this relationship? How are firms organized so as to achieve better collaboration with their suppliers? How do firms determine the focus of their relationships? How do those organizations measure the effectiveness of those relationships? What are the technological levers used to support the Procurement Strategy? All of those questions will have to be analyzed with respect to the specific market each company operates.

Procurement has been a rather neglected area within the organizations. Although the cost of raw material that a company purchases is roughly one of the major contributors to the Cost of Goods Sold, few companies seem to have rationalized their procurement processes especially in the strategic level so as to achieve a competitive cost advantage. Therefore the rationalization of corporate spending has increased awareness among professionals and academicians to find out whether there are models that can be leveraged to improve the corporate procurement strategy.

Some organizations have already moved towards this direction and achieved superior performance in terms of streamlining the processes and gaining a cost related advantage. Furthermore, of particular importance is the identification of links between the corporate strategy and its sub - elements. For example is the cost leadership strategy decision somehow linked with the procurement process, or procurement decisions tend to be independent of that?

Understanding the decision making process of organizations and the levers used will help us rationalize those processes and make recommendations for fbture reference. It is divided in three steps which are described below. The first step is to develop deep understanding of the h c t i o n of Procurement as well as understanding the current trends and models that are used. For this purpose a detailed research on published material was conducted. More precisely, the goal of this level is to connect the state of the art practices and concerns with the academic justification in order to provide a theoretical basis.

The next step is to develop a list of practices that are proposed either in the academic literature or in the business press that corporations use for their procurement.

These practices have also been identified in interviews with industry experts for their applicability. In this step there were identified patterns I trends I characteristics of the procurement practices and they were linked to specific markets and business models. The last step was the synthesis of the validation process; an attempt to develop procurement models that are used by the industry leaders and to present those differentiation factors that offer competitive advantage.

This step ultimately includes the development of case studies that refer to those models which will enhance the understanding of the fbnctional business models. The sources of the data come fiom reviewing business practices and interviewing industry experts. Bearing in mind the limited time availability effort was made to develop a precise list of practices and structuring the interviews in order to minimize the number of interactions.

For the purposes of cross industry analysis, it is more beneficial to focus on tangible inputs that are directly related to the end product and can lead to patterns. Later on, this study provides the definitions of the directlindirect material and services.

We can understand that the importance of logistics in the modem societies is even greater due to the geographic distance between raw materials and final consumption. Different industries seem to have different supply chains since the specific characteristics of those industries stress those differences which in turn showcase an effective or ineffective in some occasions way of klfilling the customer needs.

The companies have to match the internal capabilities to the external environment so as to gain competitive advantage. In an attempt to improve efficiency, the company has to pay more attention to the procurement organization.

In this context, every reduction in the cost is significant for the end consumer and the sourcing of raw materials might lead to significant cost reduction.

A very simple example drawn from the Council of Supply Chain Management Professionals Annual Conference helps illustrate the impact of sourcing decisions. However the effort to reduce spending may be lower than the effort to increase sales and marketing. Conclusively, the motivation of this research stems from the point that a company can improve its cost structure and offer the same product or service in a significant lower cost, improve the overall efficiency and gain a competitive advantage.

The next section presents an overview of the procurement function, the decisions, the various organizational levels of decision making and the processes of procurement and sourcing. Section 3 presents the 9 different industries that are studied throughout this thesis, defines them and describes the supply chains.

Relative to the procurement specific analysis, Section 4 is a cross industry study of the various practices that the firms are using in their procurement function.

The following section presents a framework that identifies different organizational architectures based on the characteristics of the inputs and the supplierhuyer power differential.

The next section, Section 6, presents the macro - economic trends that affect the procurement practices. Last but not least, section 7 includes some concluding remarks and proposals for extending this research. Most organizations are trying to use the existing knowledge and experience regarding effective sourcing.

Purchasing has been extensively studied in the late 19" and in the 20" century mainly to measure the performance of the administration of an organization Leenders et. Many articles and academic work has been published in this topic and increased awareness has been drawn especially in purchasing. However, as many authors propose, purchasing is different from procurement, sourcing and more generally supply management, with purchasing involving more operational decisions and the rest focusing on the strategic decisions.

Along these lines, Jain and Laric suggest a conceptual framework for supplier selection which consists of five steps, namely: measurement of buyer's and seller's strengths, assignment of the parties into strategic strength quadrants, evaluation of purchase need and assignment into relevant field, determination of negotiation strategy and tactics to be followed, incorporation of environmental impact into the matrix, and selection of the most appropriate purchase price.

This model is intended to aid price negotiation. It is used mainly for the tactical 1 operational level and not for the strategic, although the authors suggest that purchasing should be also considered in the strategic level.

Procurement

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Strategic sourcing is a process that creates efficiencies across all spend categories, minimizes supply risks with improved supplier selection, and gives visibility into pricing and forecasting. Strategic sourcing is a procurement process that connects data collection, spend analysis, market research, negotiation, and contracting. It stops short of the actual purchase of and payment for goods and services. Strategic sourcing best practices include: digitizing documents, participating in a digital business network, and automating workflows. The process can be broken down into four steps:.

Skip to search form Skip to main content You are currently offline. Some features of the site may not work correctly. DOI: Loppacher and R. Luchi and R. Cagliano and G.

What is Strategic Sourcing?

Procurement is the process of finding and agreeing to terms, and acquiring goods , services , or works from an external source, often via a tendering or competitive bidding process. Procurement generally involves making buying decisions under conditions of scarcity. If sound data is available, it is good practice to make use of economic analysis methods such as cost-benefit analysis or cost-utility analysis. Procurement as an organizational process is intended to ensure that the buyer receives goods, services, or works at the best possible price when aspects such as quality, quantity, time, and location are compared. Almost all purchasing decisions include factors such as delivery and handling, marginal benefit , and price fluctuations.

Warehouse management fulfilment strategies 10 Choosing an optimal picking system Since every business enterprise is out to procure at least cost possible, cost management brings a lot of business to suppliers who offer least cost, holding other factors constant. Logistics Management is a small portion of Supply Chain Management that deals with management of goods in an efficient way. The register allows a business owner to quickly retrieve information on an asset including its description, purchase date, location, purchase price, accumulated depreciation. Download the Policy PDF.

ГЛАВА 62 Коммандер и Сьюзан стояли у закрытого люка и обсуждали, что делать. - Итак, внизу у нас погибший Чатрукьян, - констатировал Стратмор.  - Если мы вызовем помощь, шифровалка превратится в цирк. - Так что же вы предлагаете? - спросила Сьюзан.

На каждой руке всего по три пальца, скрюченных, искривленных.

3 Comments

  1. Omabdecess1990 10.05.2021 at 22:04

    Summing up the processes, Supply Management captures the strategic level to which procurement and sourcing decisions are taken identifying a need, indicating.

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  3. Chloe H. 17.05.2021 at 04:39

    He is a graduate of Carleton University with a Bachelor of Arts honours degree in communication studies as well as the Algonquin College public relations program.