Procurement Chap 2

7/25/2019 Procurement Chap 2

1/18

CHAPTER 2

SOURCING MANAGEMENT


2/18

WHAT IS SOURCING ?

Sourcing is the process of t!ing "#ntge of purchsing

opportunities $% continu&&% re#ie'ing current nee"s ginst

purchsing opportunities (

In this chpter 'e 'i&& &ern ho' to generte n" "ocu)ent

re*uire)ents + con#e% the) the) to supp&iers n" use the) in

%our supp&ier se&ection process


3/18

CREATING AN, ORGANI-ING RE.UIREMENT

Ne' re*uire)ents re "e#e&ope" $% the using department /the

"eprt)ent tht 'i&& ctu&&% recei#e the goo"s n" ser#ices 0(

Specifictions n" su$se*uent chnges for the stn"r"

pro"ucts n" ser#ices re usu&&% "ocu)ente" n" fi&e" $% the

,OCUMENT CONTRO1 section responsi$&e for ph%sic&&%

)intining the orgnition3s specifiction(

Ho'e#er+ there re no for)& processes 'ithin the orgnition

for "e#e&oping specifictions+ it is the responsi$i&it% of theRE.UISITIONER /the in"i#i"u& inititing the re*uest0


4/18

CONTINUE,4(

0 RO1ES AN, RESPONSI5I1ITIES 6 the responsi$i&t% for

creting n" )intining specifictions gener&&% resi"es

'ith the user or the using "eprt)ent (

$0 PRO7ECT TEAM6 the "e#e&op)ent of co)p&e8re*uire)ents often t!es pro9ect oriente" nture ( This

te) is co)pose" of technic& e8perts+ users+ n"

ofcourse+ the procure)ent "eprt)ent+ consu&tnts re

often in#oe" to ssist the) ( This te) )!es the fin&se&ection


5/18

CONTINUE,4((

c0 CUSTOMER INPUT6 in situtions 'here the

co)ponents or ser#ice $eing perfor)e" re critic& to the

opertion of the orgnition + custo)ers p&% n

i)portnt ro&e in the "e#e&op)ent of specifiction("0 OTHER INPUTS6 $esi"es the intern& user or engineer+

the )ost co))on ""ition& infor)tion "eti&ing the

specifiction co)es fro) the e8isting or potenti&

supp&iers of the ite) to $e purchse" (


6/18

,E:E1OPING SPECI;ICATION < ;ORMAT

Written specifiction pro#i"es pr)eters or stn"r"s tht supp&ier )ust )eet for the purchse to $e ccepte" $% the

$u%er(

H#ing TIGHT specifiction + one tht c&er&% n" co)p&ete&%

"efines the orgnition=s inten"e" purchse+ he&ps pre#ent

pro$&e)s &ter on (

Specific for)ts #r% fro) orgnition to orgnition n" cn

rnge fro) #riet% of 'ritten "escriptions to "eti&e" "r'ings

or e#en ctu& s)p&es (

There re t'o e&e)ents to consi"er 'hen "e#e&oping

specifiction( ;irst the ctu& "escription of the pro"uct+ 'ht it

&oo!s &i!e or ho' it functions n" secon" e&e)ent is the

e#&ution of perfor)nce &i!e )esures of *u&it%+ stn"r"s+

$ench)r!ing (


7/18

SPECI;ICATION TRAPS

Unnecessri&% stricter specifictions thn ctu&

perfor)nce 'ou&" si)p&% "" cost 'ith out $enefits(

The% )% e&i)inte potenti& supp&iers 'ho re un$&e

to perfor) to the higher re*uire)ents n" thuse&i)inte price re"ucing co)petition(

Specifictions tht re too &oose or open+ or 'ith

i)portnt "eti&s )issing + ten"s to in#ite unccept$&e

*u&it% n" cn crete cost&% ris!s (


8/18

1OCATING AN, ,E:E1OPING SOURCES

O; SUPP1>

The nture of source fro) 'hich the purchse is )"e

cn #r% 'i"e&% n" is "epen"ent on the nture of

purchse ite)+ the in"ustr% in 'hich the purchse is

$eing )"e n" the sie of purchse( The procure)ent profession&s )ust "e#e&op n

un"erstn"ing of ho' #rious supp&ier t%pes cn ffect

the sourcing "ecisions (


9/18

1OCATING AN, ,E:E1OPING SOURCES O;

SUPP1>

1OCA1 + ,OMESTIC OR INTERNATIONA16

1oc& supp&ier cn pro#i"e fster response ti)e s 'e&& s &o'

freight costs(

Where s+ $u%ing orgnitions cn "e#e&op greter co)petitionsi)p&% $% e8pn"ing their geogrphic& rnge of its sourcing

pro#i"ing the) 'ith $etter pricing n" 'i"er choices (

1e" ti)e + in#entor% cost+ f&uctution in currenc% rtes +

co))uniction gps+ shipping cost+ "uties etc shou&" $econsi"ere" 'hich going for g&o$& sourcing


10/18

T>PES O; COMPETITION

( OPEN COMPETITION6

)u&tip&e supp&iers re #i&$&e to fi&& %our re*uire)ents

n" the% re 'i&&ing to negotite $ecuse of tough

co)petition (2( SO1E SOURCE6

the% re the on&% source #i&$&e to )eet $u%ers

re*uire)ent ( The% re often the resu&t of go#ern)ent

crete" )onopo&%+ such s &oc& uti&it% ( Here the $u%er=s

negotition po'er is 'e!(


11/18

T>PES O; COMPETITION CONTINUE,4((

@( TECHNICA1 OR 1IMITE, SOURCE6

It is &so !no'n s &i)ite" co)petition (it is $ecuse on&%

&i)ite" supp&iers re #i&$&e for prticu&r pro"uct "ue

to ptents or &i)ite" pro"uction cp$i&it%(( PARTNERSHIPB 7OINT :ENTURE6

on occsions + orgnitions 'i&& for) 9oint #enture to

crete source of supp&% to 9oint&% shre the e8penses of"e#e&oping ne' techno&og%(


12/18

1OCATING SUITA51E SUPP1IERS

There re so )n% '%s to &octe potenti& supp&iers (

It rnges fro) using on&ine serch engines (

Using $usiness "irectories n" in"ustri& gui"es(

C&&ing co&&egues or

Atten"ing net'or! cti#ities(


13/18

,ETERMINING CHANGING MARET

P1ACE ;ACTORS

( NATURE O; COMPETITION6 the nture of co)petition in n%prticu&r )r!et #ries (for e8)p&e 6 the pro"uct $eing

purchse" is contro&&e" $% ptente" )nufcturing techno&og%

+so their 'i&& $e un&i!e&% n% co)petition(

$( TECHNO1OG>6 the $u%er shou&" consi"er '%s to continuous&%)onitor e8isting supp&iers n" their techno&ogic& position

re&ti#e to their co)petitor so tht the ongoing chnges "o not

"#erse&% ffect their orgnitions o'n co)petiti#e position

c( PER;ORMANCE6supp&iers )% so)e ti)e scrifice the *u&it%+)% h#e "e&i#er% "e&%s +cut in ser#ices n" *u&it% fi&ures

"ue to econo)ic hr"ships (


14/18

O5TAINING 5I,S AN, PROPOSA1S

The% re integr& e&e)ents in the procure)ent

process (

When c&er specifiction e8ists the $u%er 'i&& so&icit

co)petiti#e $i" or re*uest for *uottion /R;.0


15/18

5I,,ING GUI,E1INES

WHAT IS 5I,,ING?

it is co)petiti#e process tht en$&es the $u%ers

to &e#erge se#er& potenti& sources of supp&%

through sing&e cti#it% to o$tin the )ost

f#or$&e $usiness ter)s (


16/18

CONTINUE,4(((

A nu)$er of con"itions shou&" $e consi"ere" in or"er to

$e successfu&6( PRO:I,ING C1EAR CONTENT 6 A $i" shou&" pro#i"e

sufficient infor)tion $out the re*uire)ent so tht the

supp&ier 'i&& $e $&e to offer the e8ct pricing n" other

onfor)tion to successfu&&% o$tin the purchse or"er(

$( ENSURE RESONSI51E COMPETITION6 the$u%er shou&"

pre*u&if% the supp&iers to ensure tht the $i"s returne" 'i&& $e

responsi#e to the orgnition& nee"s(

c( HO1, AN OPEN PRE5I, CON;ERENCE6 'here && the

potenti& supp&iers h#e the opportunit% to recei#e "#nce

$riefing on the $i"


17/18

;ORMU1ATING A 5I,

SEA1E, 5I,6 t%pic&&% use" in go#ern)ent Dre&te"

contrcting + the se&e" $i" is n offer su$)itte" in

se&e" en#e&ope tht is opene" 'ith the other $i"s t

pre#ious&% "esignte" ti)e POSTE, O;;ER TO 5U>6 $i"s poste" in pu$&ic or

on&ine + gener& pu$&ic hs open ccess to it (

AUTOMATE, 5I,,ING6 it is co))on to"% to

generte uto)te" $i"s using nu)$er of co)puter D

$se" processes


18/18

Thn! %ou

Procurement Chap 2

Documents

Transcript of Procurement Chap 2