Karteikarten
Purchasing lecture 2
Karten in diesem Stapel (18)
- 1Purchasing process (management)Purchasing and Supply Management (PSM) has become into the spotlight as an important as an important, strategic and critical business activity to deal with a multitude of stakeholders in multi-tier supply networks
- 2Purchasing process models (PPM)Organizations in practice use PPMs to help standardize, minot and control their purchasing activities. It is a way to express what purchasing is and how it should be conducted in that specific organization.
- 3Different PPMs1. decision-making model - buying decisions
2. linear process models - sourcing
3. strategic process models - supplier management
4.cyclical process models - continuous process
5. hybrid linear-cyclical process models - 4Purchasing process in practiceseparating responsibilities is very important. Keep track of the process and have different people from different responsibilities check and monitor the purchasing process. it is important to help the supplier to keep on delivering their product.
- 5Purchasing process in practiceoverspecification
supplier or brand specifications
Inadequate supplier selection
insufficient contracting expertise
too much emphasis on price
administrative organization - 6Nature of public procurement1. public accountability
- legitimacy of procurement process is important
- public insitutions are subject to european laws
- process is procedure driven instead of result driven -> negative effect on efficiency
2. not subject to free markets
- public institutions are funded by money from taxes
- not always a drive to create best value for tax payer
- sometime focus on other than commercial goals: support local economy, sustainable investments - 7Public procurement law- scope; all government institutions
- public procurement directives; works (constructions), supplies (buy, rent, lease of products that are not part of works), services (everything else)
- framework agreements - 8Key principles in public procurement1. non-discrimination
2. equality
3. transparency
4. proportionality; fairness of the tender/ realistic demands and procedures - 9Process of best value procurement/sourcing performance1. preparation
- choosing project
- setting up shortlist
- inviting suppliers
2. tender selection; and interviews
- past performance
-RAVA
planning
- interviews
3. pre-award
- kick off
- pre-award period
- formal award meeting
4. execution - 10Characteristics of servicesServices are intangible, more difficult to demonstrate, cannot be stored, production and consumption simultaneously, production/consumption/sale on the same location, cannot be transported
- 11Pitfalls in services purchasing management1. outsourcing when outsourcing is not recommended
2. complexity of cost structures and delivery models
3. decentralized (expenses happen at different locations) and hence fragmented spending
4. increasing rather than decreasing supply base - 12Difficulties in service purchasing1. describing the service (specification)
2. evaluating the service in advance of the purchase (complicates selection) or even hindsight (performance evaluation)
3. capturing the service in the right type of contact including all legal issues
4. high interdependency/ ongoing interaction between buyer and seller
5. service are diverse
6. continuous cost focus, value focus hardly adopted - 13Identifying the content of the service- specifying in more detail what you want to see happening backstage (increased visibility), and what resources to be used (input)
- specifying what activities you want to buy (throughput) -> very useful technique is flowcharting
- specifying what you see and know of as desired performance (output specification)
- specifying outcome (often linked to specific form of contract (risk sharing/gain sharing) - 14Four ways to specify servicesinputs: in detail what you want to see happening backstage
activities: technique; flowcharting
output: for example number of miles
outcome: financially responsible, if you dont achieve this output - 15A strategic segmentation of services (wynstra et al)The research suggest that managers should adopt a contingent rather than a best practice approach when buying business services and managing business service suppliers. the effectiveness of particular buyer-seller interaction processes, strongly depends on how the purchased service is going to be used by the buying organization.
- 16three types of business services; component services- component services; aimed at the customer of the buying firm and are delivered directly to this end customer; key objective is ensure a fit between the service being purchased and the buying company's existing offerings. people from marketing should be strongly involved, since they are knowledgeable about end-customer requirements
- 17three types of business services; instrumental servicesaimed at the buying firm and influence their primary processes. key objective is to make sure that the services have the desired effect on the buying company's processes. functional departments at which the service is directed should be involved in ongoing interaction. business development may also be involved since the service can have a impact on the functioning of organizations.
- 18Three types of business services; consumption servicesaimed at the buying firm and do not influence their primary processes. key objective is to ensure that the service supports various core organizational processes in a way that facilitates the buying organization in carrying out their primary tasks. depending on the service the internal customer (functional departments) can be strongly involved in the ongoing interaction
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- Karteikarten am Purchasing lecture 2, erstellt von Elisa Vink am 30/09/2020.
- Erstellt von
- Elisa Vink
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