Purchasing and Procurement Flashcards
What customers want ?
to be safe and confortable, the best product/service
- market level price
- short delivery time
- on time delivering
- better and still reliable delivering time
What’s reverse process ?
Customer => Retailer => Warehouse=> diagnostic : internal (Cie) ; external (supplier => 2nd diagnostic)
what is required to be JIT ?
- Reactivity throughout the supply chain (information flow the most important)
- Vision & monitoring
- Cost efficiency
RFI
RFQ
MOQ
Request for information
Request for quotation (Price, MOQ, LT) ask at least 3 suppliers
Minimum Order Quantity
Logistics definition
movement of material in the whole supply chaine
Supply chain definition
concepts and steps that allow the transformation of raw material into products and delivering it to the customer
Purchasing definition
executing a transaction between organizations and their suppliers to buy goods and services
Procurement definition
Refers to the acquisition of goods or services (including, order creation, receiving, payment)
5 “rights” of the global purchasing
right quality
in the right quantity
at the right time
for the right price
from the right source
OPO
PO
PR
open purchase order
purchase order
purchase request
Why purchase ?
- to consume
- to integrate
- to resell
How do we buy ? (PU)
1- identify & challenge the need
2- technical/functional specifications (check with stakeholders)
3- Sourcing (ask actual and additional supplier)
4- RFI and analysis
5- RFQ and suppliers selection
6- Negociations
(7- contract/order & 8- IS validation)
Purchasing challenges
- Profit (impact on operating margin and product quality)
- Safety (procurement risks)
- Service (reactivity ; identify and manage risks & opportunities to the purchasing act)
- Image
Purchasing missions
- Contribute to the improvement of the Cie’s results
- Contributors to the stability of the margin
- secure company’s upstream relations
Kraljic Matrice
- High supply risk + High profit impact = strategic items (partnership)
- Low supply risk + High profit impact = leverage items (purchasing power)
- Low supply risk + low profit impact = non-critical items (simple & automatic)
- High supply risk + low profit impact = bottleneck items (ensure supply)
Process definition
organized system of activities that uses ressources to transform inputs into outputs
TCO definition
Total Cost of ownership overall cost of a product or service throughout the life cycle, including direct and indirect cost (~80% hidden)
The 8 types of TCO
1- purchase price
2- cost incurred
3- cost of acquisition (proc dept ops)
4- cost of ownership (sk & depreciation)
5- cost of maintenance
6- cost of usage
7- cost of poor quality
8- cost of disposal
Most used incoterms
EXW : transport by the buyer
FCA : first carrier
DDP : delivered & unload
demanding
exigent
overheads
frais généraux
call of tender
appel offre
scope
périmètre
spare parts
pièces détachées
up stream & follow up
en amont & relance/suivi
Assessment
evaluation
Unload
Shipment
Clearance
Custom
décharger
cargaison
autorisation
douanes
out-sourcing
sous-traitance
incurred
subi
