Purchasing and Supply
Process
Marek Vinš
3LG626
Purchasing and Supply Process
Definition
vinsm@[Link]
Process: activities or tasks that produce a specific service or
product for customers
Purchasing and Supply Process
Traditional purchasing process
vinsm@[Link]
Phases of traditional purchasing process
Identification
Ordering Post-ordering
of need
Purchasing and Supply Process
Traditional purchasing process
vinsm@[Link]
Identification of need
Definition of need
Specification of a product
Purchasing and Supply Process
Traditional purchasing process
vinsm@[Link]
Ordering
Supplier
Inquiry
Offer
Offers evaluation
Order (or contract)
Confirmation of order
Purchasing and Supply Process
Traditional purchasing process
vinsm@[Link]
Post-ordering
Note about possibility to pick up goods (see INCOTERMS)
Transportation of goods
Delivery of goods
Incoming inspection
Delivery note
Order fulfillment
Invoice
Evaluation of supplier/delivery
Purchasing and Supply Process
Traditional purchasing process
vinsm@[Link]
Follow up actions
Warehousing
Handover to production
Handover to customer
What other things we have to deal with?
Claims, packaging
Purchasing and Supply Process
Traditional purchasing process
vinsm@[Link]
Problems of traditional process
Activities not adding value
Time consuming and costly administration (7 documents issued
with newly ordered materials)
Time consuming administration both internally and on supplier’s
side
Purchasing and Supply Process
How to simplify purchasing
vinsm@[Link]
How to make it more simple?
Electronic purchasing system (ideally with standardized offer)
Internet, E-commerce (E-inquiry)
EDI (Electronic Data Interchange)
Open or frame-purchase orders
Consignment stock
JIT
Kanban