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    Procurement: Acquisition & Total Cost of Ownership

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    Gopi Chand Vemuri
    The document discusses various aspects of procurement including: - Direct procurement involves purchasing raw materials and production goods while indirect procurement includes maintenance, repair, and operating supplies. - Acquisition covers the entire lifecycle from conceptualization to disposal. - The main procurement processes are open bidding, closed tender, and limited enquiry. Key steps involve information gathering, supplier contact, negotiation, and fulfillment. - Purchasing steps include acquisition, bidder selection, bidding, evaluation, negotiation, and close out. Vendor performance is rated on quality, delivery, cost, capability, and service.

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    Procurement: Acquisition & Total Cost of Ownership

    Uploaded by

    Gopi Chand Vemuri
    12 views6 pages
    The document discusses various aspects of procurement including: - Direct procurement involves purchasing raw materials and production goods while indirect procurement includes maintenance, repair, and operating supplies. - Acquisition covers the entire lifecycle from conceptualization to disposal. - The main procurement processes are open bidding, closed tender, and limited enquiry. Key steps involve information gathering, supplier contact, negotiation, and fulfillment. - Purchasing steps include acquisition, bidder selection, bidding, evaluation, negotiation, and close out. Vendor performance is rated on quality, delivery, cost, capability, and service.

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    Purchase

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    The document discusses various aspects of procurement including: - Direct procurement involves purchasing raw materials and production goods while indirect procurement includes maintenance, repair, and operating supplies. - Acquisition covers the entire lifecycle from conceptualization to disposal. - The main procurement processes are open bidding, closed tender, and limited enquiry. Key steps involve information gathering, supplier contact, negotiation, and fulfillment. - Purchasing steps include acquisition, bidder selection, bidding, evaluation, negotiation, and close out. Vendor performance is rated on quality, delivery, cost, capability, and service.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    Download as pptx, pdf, or txt
    12 views6 pages

    Procurement: Acquisition & Total Cost of Ownership

    Uploaded by

    Gopi Chand Vemuri
    The document discusses various aspects of procurement including: - Direct procurement involves purchasing raw materials and production goods while indirect procurement includes maintenance, repair, and operating supplies. - Acquisition covers the entire lifecycle from conceptualization to disposal. - The main procurement processes are open bidding, closed tender, and limited enquiry. Key steps involve information gathering, supplier contact, negotiation, and fulfillment. - Purchasing steps include acquisition, bidder selection, bidding, evaluation, negotiation, and close out. Vendor performance is rated on quality, delivery, cost, capability, and service.

    Copyright:

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    of 6

    PROCUREMENT

    Acquisition & total cost of ownership


    •SUPPLIER QUALITY
    •EXPEDITING
    •LOGISTICS
    •PURCHASING
    •EXPEDITING
    TYPES OF PROCUREMENT
    Direct procurement and indirect procurement
    TYPES

    Direct procurement Indirect procurement


     
    Maintenance , repair Capital
    Raw material and
    and operating goods and
    production goods
    supplies services

    Quantity Large Low Low


    Frequency High Relatively high Low
    Value Industry specific Low High
    FEATURES Nature Operational Tactical Strategic

    Crude oil in petroleum Machinery,


    Examples Lubricants, spare parts
    industry computers
    ACQUISITION
    Wider than procurement –covering the whole life span

    •Conceptualization
    •Initiation
    •Design
    •Development
    •Test
    •Contracting
    •Production
    •Deployment
    •Logistic support
    •Modification
    •Disposal
    PROCUREMENT PROCESSES
    OPEN BIDDING
    CLOSED TENDER
    LIMITED ENQUIRY

    PROCUREMNT ELEMENTS
    PURCHASING
    ACQUISITION FOR BUSINESS GOALS

    PROCUREMENT STEPS
    INFORMATION GATHERING
     SUPPLIER CONTACT
    NEGOTIATION
    FULFILLMENT
    CONSUMPTION, MAINTENANCE AND DISPOSAL
    RENEWAL
    STEPS IN PURCHASING

    Acquisition
    Selection of bidder
    Bidding process
    Technical evaluation
    Commercial evaluation
    Negotiation
    Post award administration
    Order close out
    VENDOR RATING

    Quality
    Delivery Schedule adherence
    Cost/Price
    Capability
    Service

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