Procurement Flashcards
What is procurement?
Procurement is the process of getting supplies.
What is a process?
A process is a series of actions that you take in order to achieve a result.
What is process oriented?
The process-oriented focuses on processes, systems, or procedures rather than results or underlying causes
What is Strategic goals ?
A strategic goal is a long-term, “big picture” objective for a business
What is Strategic objectives ?
Strategic objectives are statements that indicate what is critical or important in your organizational strategy. In other words, they’re goals you’re trying to achieve in a certain period of time—typically 3-5 years.
What is a strategy?
A detailed plan for achieving long-term goals.
Manage
To be in charge of smth.
Which are 10 steps in the procurement process?
- Need recognition
- Need description or specification
- Sourcing
- Supplier selection
- Ordering
- Monitoring
- Receipt and inspection
- Payment
- Documentation
- Relationship management
What is need recognition?
Need recognition is the process of identifying that a good or service is required and determining the timing of the requirement.
What is need description or specification?
Need description or specification is describing the need in sufficient detail to ensure that the correct good or service is procured, in the correct quality, at the correct time, at the correct place.
What is sourcing in procurement?
The sourcing process refers to both the identification of potential suppliers in the market as well as the variety of goods or services that may supply the need.
What is supplier selection?
Sourcing and supplier selection involves three processes:
i. Investigating and qualifying potential suppliers
ii. Evaluating the qualifying suppliers’ bids
iii. Choosing the supplier or suppliers to provide the good or service
What is ordering?
Ordering is the process of making the purchase from the supplier.
What is monitoring?
There are two components of monitoring:
1) “Follow-up” is the process of routine contact with the supplier as to the status of the order.
2) “Expediting” occurs when there is an unanticipated early requirement for the good or service or the supplier has missed a delivery commitment.
What is receipt and inspection ?
Receipt and inspection involves taking delivery of the good or service and checking that it meets the specified requirement.
What is payment?
Payment is the process of clearing the invoice for the good or service and issuing payment.
What is documentation in the procurement process?
Documentation includes completion of all the paperwork related to the goods and services purchased
What is Relationship management?
Relationship management is the process of managing internal and supplier relationships (ongoing liaison with the supplier : failures, repair, maintenance, follow up, ,feedback on performance, expectations, improvement steps , “Balanced score cards”.
What is Supply chain resilience?
Supply chain resilience is the supply chain’s ability to be prepared for unexpected risk events, responding and recovering quickly to potential disruptions to return to its original situation or grow by moving to a new, more desirable state in order to increase customer service, market share and financial performance.
