Procurement Management

(Group 3)
 Project Evaluation 2
I
 01 Supplier Optimization
 choosing an optimum mix of vendors who can provide the best prices and terms

Requiring Suppliers to Adopt TQM, Total Quality

02 Management
 Vendors are required to provide increasing quality service with zero or minimum defects

03 Global Sourcing
 Sourcing from many vendors, other than local ones, regardless of their country of origin

Purchasing 04 Vendor Development

 Work Together to Focus Understanding offer to help them and work together in

Strategies & order to get that product done correctly and on time.

Techniques 05 Risk Management

 Being prepared for the negative effects of natural or human disaster

06 Green Purchasing
 This strategy supports the need for recycling and purchasing products
that can reduce the negative impact on the environment.

07 Learning to Psychologize Suppliers

 Catching the attention of the suppliers to establish a long-
term buyer-supplier relationships.
 Efficient Purchasing Strategies

01 Blanket Order
A long-term contract
between a supplier and an
organization that states the
supplier will provide goods
or services at a set price
02
Many Supplier Strategy
The supplier responds to
the demands and
specifications for a
request for quotation, with
the order going usually to
03
Few Supplier Strategy
Results in long-term
relationship with suppliers
allows suppliers to lower
their production costs
and transaction costs
over a specific time period. the lowest bidder

04
Vertical Integration Strategy
The buyer strives to buy its
suppliers or to produce its
own goods or services
previously being purchased
05
Backward Vertical Strategy
The firm or company buy
its own suppliers.
06
Forward Vertical Integration
The supplier makes
the finished products.
Produce or Purchase Decision
Produce Decision Factors:
Lower Production Cost
A low-cost producer is a company in a specific industry that
can produce goods at a lower cost than other producers.

Incompatible Suppliers
Disagreement or conflict between two or
more channel partners, whereby the actions of one partner or

Operations impact sales, profitability, and the business.

Assurance of quality of materials
A process that ensures the goods or services you
acquire meet your company's standards.

Protection of Design
A registered design protects the visual appearance of a product or
item and gives you exclusive rights for that appearance to the extent
that, if necessary, there is a legal right to stop an unauthorized party
from producing or using your design.

Increase profit margin

Improving the difference between the revenue and the
cost of goods or services purchased by a business
 Purchasing key models
The Buy-grid Framework
You can simply impress your
audience and add a unique zing and
appeal to your Presentations. I hope
and I believe that this Template will
your Time, Money and Reputation.
The Buy-grid Framework
You can simply impress your
audience and add a unique zing and
appeal to your Presentations. I hope
and I believe that this Template will
your Time, Money and Reputation.
Modified Re-buy
You can simply impress your
audience and add a unique zing and
appeal to your Presentations. I hope
and I believe that this Template will
your Time, Money and Reputation.

The Buy-class Framework

You can simply impress your
audience and add a unique zing and
appeal to your Presentations. I hope
and I believe that this Template will
your Time, Money and Reputation.
The Buy-class Characteristics
You can simply impress your
audience and add a unique zing and
appeal to your Presentations. I hope
and I believe that this Template will
your Time, Money and Reputation.
 Receiving Purchased Goods: Guidelines

- All packaging should be carefully examined for any visible evidence of damage, particularly the
purchase is fragile or costly.
- Any damage to the package, no matter how slight, should be noted on the carriers and receivers
delivery receipt.

HOW TO DEAL WITH DAMAGED ITEMS RETURNING GOODS TO SUPPLIER

 Notify the supplier in writing within 15  Get a return authorization number and have
days of receipt of the damaged procedures as to how and when a return
merchandise shipment should be made.
 Follow the steps
 Purchasing Document
A document that is used to authorize a purchase of goods, services, or works from a supplier or vendor.

Purchase requisition Form Canvas

is an internal is an activity done by Purchasing to compare
document used by an employee to purchase prices, quality and the ability of supplier to deliver the
goods or services on behalf of their firm. requirement.
 Purchasing Document

Purchase Order Delivery receipt

an official document that A document stating the type
buyers send to sellers to document the sale of and quantity of goods that have arrived at a
products and services to be delivered at a late place, which the buyer signs to show that they
date. have received the goods:
 Purchasing Document

Receiving report Delivery report

Used to document the contents of a delivery to Used to document the
a contents of a delivery to a business. This form is
business. The form is filled out by the receiving filled out by the receiving staff of the business
staff of the business accepting the delivered accepting the delivered goods.
goods.
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