CHAPER TWOPROCUREMENT.docx

1、CHAPER TWO PROCUREMENT商学院 双语课程供应链与物流管理Logistics & Supply Chain Management授课教案jzj授课教师：姜阵剑ContentsCHAPTER ONE The INTRODUCTION of Logistics 2Chaper two PROCUREMENT 12CHAPTER THREE MARKETING 21CHAPTER FOUR logistics INFORMATION management 32chapter five transportation 44chapter six WAREHOUSE MANAGEMENT

2、 60CHAPTER SEVEN STOCK CONTROL 69CHAPTER EIGHT LOGISTIC DECISION-MAKING 76CHAPTER NINE Logistics/Supply-Chain Management 86CHAPTER TEN MARKET ECONOMY SOLUTIONS 102CHAPTER ELEVEN NETWORK ECONOMY SOLUTIONS OF SCM 109CHAPTER TWELVE SELECTING SUPPLY CHAIN SOLUTION 121CHAPTER THIRTEEN international trade

3、 131CHAPTER FOURTEEN Logistics Best Practices 138CHAPTER FIFTEEN Best Practices Companies in SCM Action 148Chapter Two ProcurementBasic Requirements:通过学习，使学生掌握采购的定义以及影响采购成本的各种因素，了解采购系统的应用和采购合同的签署过程。Major Points:影响采购成本的各种因素。Difficult Points:采购系统的应用。2.1 DefinitionProcurement is the process of obtainin

4、g all the goods and services required by an organization from external sources. The aim is to obtain the bought-in goods and service at the lowest possible total acquisition cost. This does not mean simply the lowest possible purchase price, though that is the starting point. In fact, the total acqu

5、isition cost involves a complex mix of factors such as the following：1) Best purchase price commercially available；2) Hidden costs of stockholding and internal administration；3) Cost of poor quality and late delivery；4) Loss of interest on early payments；5) Operational and maintenance cost；6) Costs

6、arising from a negligent or failed supplier；7) Costs of disposal and/or recycling.At a more strategic level, it includes the following activities：1) Analysis of conditions and opportunities in the supply market；2) Evaluation of potential suppliers；3) Calculation of total cost of acquisition；4) Joint

7、 responsibility with users for agreeing specifications；5) Development of sourcing strategies. A table about the condition of the enterprise finance affair would illustrate the function of the lever theory. Suppose our aim is to double the profit. The enterprises total sale is a hundred million dolla

8、rs, while the profit is five million dollars. 60% of the sale is for the bought-in goods and service, the rest cost includes labor services, salary and the general management cost. The problem is: how much should we increase or reduce on the sale amount, products prices, labor services, salary and t

9、he general management cost, or the procurement amount so as to improve the profit from the present five million dollars to ten million dollars? Table 2.1 lists the changing ranges of each item for the improvement of profit. We can see from it that except for price, all the rest items should experien

10、ce a large range of changes in order to double the profit. Even for the single item of price, the severe market competition would make the rise impossible. When it comes to the cost, though its impossible for us to control the major part of the cost of the procurement, its usually possible to reduce

11、 the cost significantly through some simple devices. For instance, we can ask two suppliers to bid for the same products, cooperate closely with the suppliers to control the cost, take advantage of the quantity discount by the suppliers, or choose carefully the sources of products, transporting rout

12、s, transporting methods, etc. An insignificant percentage of the reducing in those aspects would realize a significant drop in the absolute cost and increase in the profit. SalePriceLabor Services and Salary General Management CostProcurementPresent Value+17%+5%-50%-20%-8%Sale100117105100100100Bough

13、t-in Goods and Service 607060606055Labor Services and Salary10121051010General Management Cost252525252025 Profit510L0101010Table 2.1: An example of improvement in profit by means of lever theoryThe importance of procurement not only lies in its function in the improvement of profit, but also the lo

14、wering in the base of an enterprises capital by a lower purchasing price, and thus allowing the improvement in an enterprises capital return percentage to overweight the lowering in the price. For instance, suppose the total sale in the above example is 100 million dollars, totalcost is 95 million d

15、ollars, while capital of the enterprise is 50 million dollars, 20 million of which is inventory. The cost of bought-in material occupies 50% of the sale. According to the following Modal of Standard Capital Return Rate of Table 2.1(Unit: 10,000 dollars): Figure 2.1： A Model of Procurement Capital Re

16、turn RateHow much would be the rise in capital return rate if purchasing price could drop by 5%? Due to the function of lever theory, such a small range of changes in price would increase the profit by 50%.On the other hand, the drop in price would make the inventory value drop to 95% of the origina

17、l; when purchasing price drop by 5%, total capital would drop 50005%=2.5million dollars, profit would rise to 7.5 million dollars, total capital would thus change to 92.5million dollars, gross profit rate 7.5%, inventory 19million, total capital 49 million, capital base of the enterprise would be lo

18、wered, and the turnover speed would then rise from the original 2.00 to 2.04, capital return rate from 10% to 15.2% with a rise of 53%.2.2 Application of Procurement SystemsProcurement systems can enable the integration of procurement actions with those of the wider logistics functions .Computerized

19、 procurement systems have been developed and implemented using purchasing software, MRP and MRP II software, electronic data interchange (EDI), enterprise resource planning (ERP) software and supply chain management (JIT) software.Enterprise resource planning (ERP) automates the tasks involved in pe

20、rforming a business process and gives them transparency across the whole organization. For example order fulfillment involves taking an order from a customer, delivering it and invoicing for it. Modules within the ERP system can include customer-relationship management, supply-chain management; dema

21、nd planning, component management, product data management, and transportation managementAutomatic planning and scheduling (APS) is generally a module of an ERP or MRP system, which gathers and analyses data on sales, purchases, production and inventory to ensure that the right materials required fo

22、r the production process are always available at the right time.Just in time (JIT) is a philosophy which minimizes stockholding by matching deliveries to the point in time when they are required for consumption. It is most applicable to manufacturing where specific quantities and quality of parts ar

23、e required for production lines. JIT relies on the co-ordination of production and purchasing to ensure synchronization of supplies and manufacture. Control right through the supply chain is key because the supplies must be of the right quality and quantity, as well as being delivered at precisely t

24、he right time. Electronic data interchange (EDI) enables direct electronic links with suppliers but this is now being superseded by Web-based e-procurement systems.Because there are many buyers and many suppliers, all in different supply chains and relationships, there are various options as to loca

25、tion for e-procurement systems. In the sell side model, the supplier mounts software that enables each buyer to browse and purchase. This could be a single supplier or consortia. In the buy side model, the suppliers have to bring their offerings to the buyer. Marketplaces are where third parties set

26、 up an electronic portal to connect buyers and sellers. This is called the marketplace mode or portal model or, when it serves a vertical market, the vortal model. All these e-procurement options rely on the creating and maintenance of electronic catalogues and an interface or integration with inter

27、nal computer systems. The online auction allows suppliers to tender in a transparent process managed by the buyer or its agent, and buyers can use standardized criteria for making purchasing decisions in automated auctions. The move to trading networks and multiple supply chains, along with the tran

28、sparency created by the instant exchange of information, will fundamentally alter buyer-seller relationships. 2.3 Procurement Planning and SpecificationsProcurement planning should generate the necessary information to formulate procurement plans. A procurement plan may include the following: 1) Sch

29、edule of required goods and services with estimated quantities and required delivery dates (linked to supply lead times);2) Contracts requiring renewal with expiry dates and lead time for renegotiation. A contract plan for a specific contract must allow adequate time for pre-contract or upstream con

30、tract activities, such as: risk assessment, strategy development, identifying and evaluatingpotential suppliers, issuing and receiving tenders, evaluating tenders and drafting the contract.In formulating these plans, procurement must be mindful of the requirements placed on suppliers, such as time a

31、llowed for return of tenders. Once a contract has been placed, procurement must ensure that agreed contractual requirements are incorporated into the overall plan. Supplier performance can then be measured against this.Specification is a description of what a customer wants from a supplier. The purp

32、ose of a specification is to communicate to a supplier what is required, so that the product or service supplied meets the needs of the organization. Specifications can be: simple, for example if they relate to products in everyday use; complex, for example for services with performance standards and performance monitoring requirements; framed in such a way as to allow the supplier to provide innovative s