PPT REPORT successful and smooth production of our

products
SLIDE#1
PROCUREMENT ISSUES
SLIDE#2
-In order to provide a product, a firm needs
certain inputs, including raw materials, labor
and energy.
-The firms overall objective is to obtain the best
inputs from around the world in order to
produce products efficiently.
-The degree of vertical integration that is
desirable and the origin or inputs and supplies
of the outputs are the two major issues that
manager face to relative to obtaining inputs.
SLIDE#3
DEGREE OF INTEGRATION
-The degree of vertical integration depends on
the degree to which a firm is its own supplier
and market
-At one extreme, a firm can seek to make all of
its inputs which is also known as “Backward
Integration”
SLIDE#4
NATIONAL ORIGIN
-National origin of supplies can have a political
and social implications as well.
-Consumer boycotts have often been organized
against company’s products because the
company uses inputs originating in foreign
location viewed negatively by consumer.
SLIDE#5
TIMING ISSUES
-Timing of shipments and receipt of supplies are
also important considerations.
-The trade-off are among shipping cost, carrying
cost, and the risk of being out of stock of
needed items.
 Location of Facilities
 Type of Facilities
 Coordination Facilities
 Total Quality of Facilities
SLIDE#7
OPERATIONAL STRATEGIES OF GLOBAL
CORPORATIONS
SLIDE#8
INPUTS VERSUS MARKETS
-If source of inputs are relatively close to major
markets, then facilities can be convenient for
both. From many global companies, it’s not the
case, as inputs from around the world and
markets can come in different parts of the
world. This Factor must be investigated regular
relative to inputs as well as intermediate and
finished products to select appropriate places of
production facilities.
SLIDE#9
CONCENTRATED VERSUS DISPERSED
-Centralized or Concentrated Strategy, when
decision-making and authority are centralized
around a small group of people at the top of
organization, this is referred to as centralized.
Decision are made in a concentrated location,
which might make them challenging to access
and manage, which can be a bad things. On the
order hand, Dispersed Strategy in a company
with a dispersed workforce, co-worker are
spread out among both onsite and remote
locations. It can also refers to workplace where
teams work on different times, such as split
shifts at the same location or hybrid on site and
remote work spanning numerous time zones.

SLIDE#6
PRODUCT ISSUES
The following are the things that we should plan
properly for the facilities for us to have a
SLIDE#10
DISTINCTIVE CHARACTERISTICS OF LOCATION

 Different climatic conditions can affect

the appropriate design of facilities.
 Different cultural conditions can affect
the appropriate design for facilities.
 Different physical characteristics of
people have taken into account in
designing facilities.
 Government regulations can affect the
appropriate design of facilities.