Procurement Process Flashcards
What is Maritime Procurement?
The purchase of any type of goods and services
What is the name of the two purchase type a company can do?
Primary and secondary purchase
What is the difference between primary and secondary purchase
Primary purchase=Raw materials and purchase of goods. This is the purchase that is directly needed for the company
Secondary purchase = Can be investment purchase or operation and maintenance purchases. Not the direct things needed for the company to produce/sell/make the product
What is New purchase ?
Purchase of a single product from an unknown supplier (unknown supplier means increased risk)
What is one time purchase ?
This is basically in most cases an investment done by the company
What is repurchase?
There is a routine in the purchase where you buy from the same supplier over a longer period of time
What is modified repurchase?
A place between “one time purchase” and “repurchase”. Has mainly in common with repurchase. It can be the same but you change supplier from time to time.
What can modified purchase come from?
Negotiations
Check prices in the market to secure the best prices
Purchase new products from previous suppliers
Why is primary purchase so important?
This is because 80% of the cost comes from this area and therefore it’s important to put in a good work in these purchases to ensure a good price.
How many steps is it in the procurement process?
15
Wha can happen if the procurement process is involved late?
Wil probably be completed poorly because of the limited opportunity and maybe time
What is digitization of the procurement process ?
Is is the procurement process done over the computer. This can be p registrations and documentation, information, decision support, communication
What is an framework agreement ?
Agreement between two parties that recognize that the parties have not come to a final agreement on all matters but they have come to an agreement on enough matters to move forward. Further details will then be agreed in the future
