Supply Chain Management

Operational Procurement
Reza Md. Shehab
Procurement

• What is procurement
• What is the ideal flow of procurement
• How Procurement contribute in business
• How to set authority matrix in procurement function
Sectors of the economy
The primary sector: The secondary sector:
 Extraction of raw  Conversion and processing of raw
materials: drilling, mining, materials into finished goods
quarrying... (manufacturing),
 Fishing, forestry,  Electricity & water utilities and
agriculture… construction.

The tertiary sector:

banking, logistics, consultancy
and retailing.
Type of Organization

Non-profit
organisations

Public sector
Private
organisations
enterprises
1. Private enterprises:

represent more than half of GDP and half

of employment worldwide in most of the

=
developing and developed country through
SME organization
Main objective: Is to maximize the profit,
Quality has relevancy with cost. Human
rights sometime becomes irrelevant matter
for ensuring profits.

Prothom-Alojobs
1. Private enterprises:
Challenge

Limited product
range
Depend on
Loan , Grand
or Bank Bank

Lack professionals
and technology Constraint of
capital

Prothom-Alojobs
2. Public organizations:
Service Sector

General health services: DMCH, Communication: T&T, teletalk

Education:
Public Universities

LAW
Court

Defenses
and Law & Order:
Emergency services: fire service
Police, RAB, APBN

Prothom-Alojobs
2. Public organizations:

Private companies are driven by profit, whereas public organizations are driven by
accountability to the public

Increasing pressure to ensure

“better governance” =

 Value for money

 Work is conducted ethically
 Decisions based on clear and objective criteria
 All parties treated fairly, and have equal access

Prothom-Alojobs
3. Non-profit organisations

E.g.: Foundations
Co-operatives
Professional associations
Non-profit Academic institutions, etc.
organisations
 Funding from members or sponsors
 Grants
 Income from fees for services

Procurement essentially as in the private sector but

may be required to follow guidelines of major
sponsors or donors, etc.
Prothom-Alojobs
Focus
Corporate
strategy

Purchasing & supply

objectives

Purchasing & supply

strategy

Prothom-Alojobs
Key differences amongst different types
of organizations

Feature Private Public Non-profit

Individuals and other
Control Government Individuals and organisations
enterprises
Shareholders and accumulated Taxation, grants, public debt Sponsors (grants, donations),
Funding
profit and fees for services members and fees for services
Typically, the effective and
A belief, value, ideology or
Prime goal Typically, to optimise profit efficient provision of public
service to be provided
services
Accountability To shareholders To the public To sponsors or members
Competition Typically yes Typically no Generally not relevant
The law (in general)
Laws, regulations and The law (in general)
The law (in general) procedures applicable to the Major sponsors may impose
Constraints
Any self-imposed constraints public sector constraints
Changes in government policy Any self-imposed constraints
/ politics

Prothom-Alojobs
About AdvantEdge
We provide innovative and quality training and consulting solutions to create competitive
advantage for individuals and businesses.
We Empower Individuals, Solve Problems, Improve Businesses - through practical and
easy-to-use models.
Our programs: Our Solutions:
 Corporate Strategy Consulting
 Public Training  Supply Chain Network Design and Optimization
 In-house customized training on various Soft skills  Value Stream Mapping and Optimization
and technical competence  Compliance and Sustainability audit
 International Certifications in Supply Chain [CSCP],  Project feasibility study and Implementation
Project Management [PMP], HR [HRCI]  Implementation of Balanced Score Card and
Performance Management
 Team-building facilitations, off-site workshops  Operations Re-structuring
 Youth Employment Program  Head Hunting & Recruitment Solutions

We work with a diverse group of affiliated resources and networks. Our team’s global experience
together with deep understanding of the local perspectives, we solve complex business problems in
creative and innovative ways.
Thank You