purchase process model van Weele

Specify

Select

Contract

Order

Receive Check

After Care

−Purchase requirements?

•Functionalities

•technical and quality characteristics of the required components

•Logistic challenges

−Internal analyse to determine specification and selection requirements

Step 1: Sourcing strategy

•Single vs. multiple sourcing

•Fixed price, inclusive settlement of costs?

Step 2: Request for Proposal and Information (RFP and RFI)

•Create potential suppliers list (longlist)

•Send out RFI to potential suppliers on longlist

Step 3: Request for Quotation (RFQ)

•Suppliers are asked to provide a detailed offering

•Procurement analyses the different RFQ’s

2. Select

Step 4: Pre-selection based upon outcome of RFQ, considering

•pricing

•Capability & capacity

•Quality assurance

•Time

•location

Step 5: The selected potential Suppliers will participate in a final Tender.

−Supplier(s) are selected and a contract or agreement will be prepared.

−Contract giver vs contract acceptor (!)

−Outcome: Contract in place between buyer and supplier

Content of contract:

•Stakeholders

•Duration of contract

•General provision of services agreed upon

•Confidentiality

•Ownership and Intellectual Property rights

•Rates and pricing

•Payment Conditions

•Invoicing

•Force Majeur...

−Additional Q Agreements and SLA’s could be signed. (SLA=

Service Level Agreement)

•Agreements regarding quality level of a product/service

•Rights and duties of each party

•Purpose: Identifty customer needs, framework, simplify complex

subjects, avoid conflicts, encourage dialogues, …

•Measure the performance and partnership.

( 2 options)

A.Order = contract

− Contract is an order placement and has to be executed immediately

B.Contract captures the delivery of products/services for a longer time, based upon specific bookings or orders

5.Receive check

−Follow-up if the contract are honored and respected

•On time delivered?

•Quantity/quality conform the order?

•Check on certificates & documents and CMR

- Continious Improvement, based upon reports (KPI), regular audits & Supplier Management.

6.After Care

−Claims handling

−Vendor rating

−Archive

−Retaining supplier information

−Update suppliers list

−Evaluation of the supplier based on the requirements of the specification