Procurement & Tender
Management
Shantha Indrajith (PhD (Econ &
Mgt), PhD (Legal Studies)
BuB-FBA Orientation FBA PROGRAMMES
Introduction BOT
CAM
• Let’s suppose you (HP/Lenovo) want to sell computers. Identify computer parts
you want.
• List 13 items needed to manufacture a computer
Introduction BOT
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Introduction BOT
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Introduction BOT
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• Can a single company produce a computer completely?
• Where does value creation in computer business take place?
• What are the core competencies of the brand company?
• Who is governing the computer supply chain?
• What is the role of contract manufacturers? Why is final assembly being done in
China and not in the EU or Canada?
• Why is packaging being done in Eastern Europe or Mexico and not in China; and
why not in Northern Europe or Canada, where the consumers are located?
Introduction BOT
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• What modes of transport should be used?
• How long does it take to move a container from Hong Kong to Hamburg?
• What is the size of a container? What are typical container shipping rates?
• What can be problematic about sourcing raw materials from the Congo?
• How would you calculate the CO2 emissions of a computer?
• How could a linear supply chain become circular?
• What role will machine learning play? How will the supply chain change in the age of
automation?
• What is the potential role of 3D printing? Is a “supply” chain about “supply” or is “demand”
actually the factor that we should be looking? Is a supply “chain” actually a “chain”?
Linear Supply Chain BOT
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Circular Supply Chain BOT
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Linear and Circular BOT
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Supply Chain
Introduction-Procurement Manager at HP/Lenovo BOT
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Hewlett Packard Enterprise (HPE) does rely on other companies for various computer
components. While HPE designs and markets computer systems, they don't manufacture all the
individual parts. They source components like memory, storage, processors, and even some
power supplies and cases from other manufacturers.
Components: HPE utilizes components from various companies. For example, they source
memory from companies like Samsung, SK Hynix, and Kioxa. Storage is provided by companies
like WD and Seagate. Processors and chipsets are sourced from Intel, AMD, and Nvidia.
Manufacturing Partners: HPE also partners with companies like Foxconn, Flex, and Pegatron for
manufacturing motherboards and other parts.
Why this approach? This allows HPE to focus on design, integration, and marketing, while
leveraging the expertise and scale of other companies for specialized manufacturing.
Introduction-Procurement Management BOT
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A Procurement management is the entire purchasing process, from sourcing to
contract management, ensuring the company acquires goods and services at the best
value while maintaining quality and meeting business needs. This involves strategic
sourcing, supplier relationship management, contract negotiation, and cost
reduction, all while ensuring compliance with company policies and legal regulations.
In procurement, sourcing refers to the process of identifying, evaluating, and
selecting suppliers to provide goods or services. It's a critical part of the broader
procurement cycle, focusing specifically on finding the right vendors to meet an
organization's needs. Sourcing involves market research, supplier selection,and
negotiation..
Introduction-Procurement BOT
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Contract management in procurement is the process of overseeing contracts from
creation to completion, ensuring both parties fulfill their obligations. It involves
activities like drafting, negotiation, execution, and monitoring, aiming to optimize
procurement processes, control costs, and enhance supplier relationships. Effective
contract management is crucial for mitigating risks, ensuring compliance, and
maximizing the value of procurement investments.
Key Responsibilities:
Strategic Sourcing:
Identifying and evaluating potential suppliers, conducting market research, and
developing sourcing strategies aligned with business goals.
Negotiation:
Negotiating contracts with suppliers to secure the best possible prices, terms, and
conditions.
Introduction-Procurement BOT
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Supplier Relationship Management:
Building and maintaining strong relationships with key suppliers, ensuring quality, timely
delivery, and adherence to contract terms.
Contract Management:
Managing contracts, ensuring compliance with all terms and conditions, and resolving any
disputes or issues that may arise.
Cost Management:
Identifying and implementing cost-saving opportunities, optimizing procurement processes,
and reducing overall procurement costs.
Risk Management:
Identifying and mitigating potential risks associated with the supply chain, such as supply
shortages, price fluctuations, and geopolitical instability.
Introduction-Procurement BOT
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Compliance:
Ensuring all procurement activities comply with company policies, legal regulations,
and ethical standards.
Collaboration:
Working closely with other departments, such as sales, production, and engineering,
to understand their needs and ensure the procurement process supports overall
business objectives.
Performance Management:
Monitoring supplier performance, tracking key metrics, and identifying areas for
improvement.
Inventory Management:
Working with inventory teams to ensure sufficient on-hand supplies for operations.
Introduction-Procurement and SCM BOT
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Procurement is a critical component of the broader concept of supply chain
management (SCM). While procurement focuses on acquiring goods and services,
supply chain management encompasses the entire process from sourcing to delivery,
including procurement, production, inventory management, supplier relationship,
logistics, customer service, and other functions. In essence, procurement is a subset
of supply chain management, responsible for sourcing and purchasing the necessary
inputs for the business.
Introduction-Procurement and SCM BOT
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thank you Dr. Shantha
Indrajith H.
Liyanage