SUPPLY MANAGEMENT PROCESS

SUPPLY MANAGEMENT PROCESS

1. process

   • The supply management process begins with recognition and ends with supervision of suppliers and relationships.

2. what is?

   • It is a set of activities with a beginning and an end, which occurs in a certain sequence and operates on inputs and outputs.

3. Steps that comprise it include

   • recognize and describe the need, identify potential sources, select the font or fonts, determine the price and terms, track and facilitate, receive, pay the bill and monitor

4. The following are five key reasons to develop a vigorous proces:

   • High number of articles.
   • Large amounts of money.
   • Need for an audit trail.
   • Severe consequences due to poor performance.

5. The essential steps of the supply process are

   • Recognition of need.
   • Description of the need.
   • Identification and analysis of possible sources of supply.
   • Selection of the provider and determination of the terms.
   • Preparation and placement of the purchase order.
   • Tracking and / or fast dispatch of the order.
   • Reception and inspection.
   • Authorization and payment of the invoice.

6. The organizational structure

   • In a highly decentralized organization where supply decisions are made at the business unit, plant, or division level, it may be helpful to implement supply councils made up of site leaders.

7. Information flows

   • Outward flows
     • information arising from the supply area, for example, supplier pricing, market conditions, and supply forecasts for cash flow budgets, is sent to other units in the organization;
     • certain information, such as requests for quotes or proposals, is sent from the supply area to external sources
   • Inward flows
     • the information that comes from within the organization, includes statements about materials and service needs, and sent to the supply area;
     • Information that comes from external sources can come from suppliers (for example, prices and deliveries) or from other sources (general market conditions and import duties, etc.), and is sent to the supply area.