Corporate objectives for procurement - Revision history

Editor at 19:24, 16 March 2021

2021-03-16T19:24:39Z

← Older revision		Revision as of 19:24, 16 March 2021
Line 41:		Line 41:
	* Difference between procurement and purchasing.		* Difference between procurement and purchasing.
	* Economic Order Quantity EOQ.		* Economic Order Quantity EOQ.
		+	* Enterprise resource planning ERP.
	* Integrated supply team.		* Integrated supply team.
	* Job order contracting.		* Job order contracting.

Editor at 17:49, 25 August 2020

2020-08-25T17:49:43Z

← Older revision		Revision as of 17:49, 25 August 2020
Line 40:		Line 40:

	* Difference between procurement and purchasing.		* Difference between procurement and purchasing.
		+	* Economic Order Quantity EOQ.
	* Integrated supply team.		* Integrated supply team.
	* Job order contracting.		* Job order contracting.
Line 46:		Line 47:
	* Procurement strategy.		* Procurement strategy.

−	[[Category:Cost_/_business_planning]] [[Category:Procurement]]	+	[[Category:DCN_Guidance]] [[Category:Cost_/_business_planning]] [[Category:Procurement]]

Editor at 17:36, 3 August 2020

2020-08-03T17:36:49Z

← Older revision		Revision as of 17:36, 3 August 2020
Line 39:		Line 39:
	= Related articles on Designing Buildings Wiki =		= Related articles on Designing Buildings Wiki =

		+	* Difference between procurement and purchasing.
	* Integrated supply team.		* Integrated supply team.
	* Job order contracting.		* Job order contracting.

Editor at 17:14, 3 August 2020

2020-08-03T17:14:48Z

← Older revision		Revision as of 17:14, 3 August 2020
Line 1:		Line 1:
	= Introduction =		= Introduction =

−	Procurement involves the purchase goods or services. It must be carefully managed to ensure ~~good~~ value is obtained, the correct goods or services are purchased, a high level of quality is received, timescales are met and good relationships are maintained between the procurer and the supplier. Establishing a procurement strategy at the outset is key to a successful outcome.	+	Procurement involves the purchase goods or services. It must be carefully managed to ensure value is obtained, the correct goods or services are purchased, a high level of quality is received, timescales are met and good relationships are maintained between the procurer and the supplier. Establishing a procurement strategy at the outset is key to a successful outcome.

	= Five objectives of corporate procurement =		= Five objectives of corporate procurement =

−	One approach to the corporate objectives for ~~procurement~~ includes five basic principles. These are sometimes referred to the five Rs:	+	One approach to the corporate objectives for purchasing includes five basic principles. These are sometimes referred to the five Rs:

	# Right quality		# Right quality

Editor at 08:15, 28 July 2020

2020-07-28T08:15:03Z

← Older revision		Revision as of 08:15, 28 July 2020
Line 5:		Line 5:
	= Five objectives of corporate procurement =		= Five objectives of corporate procurement =

−	~~The~~ basic principles ~~associated with purchasing~~ are sometimes referred to the five Rs:	+	One approach to the corporate objectives for procurement includes five basic principles. These are sometimes referred to the five Rs:

	# Right quality		# Right quality

Designing Buildings at 06:32, 28 July 2020

2020-07-28T06:32:37Z

← Older revision		Revision as of 06:32, 28 July 2020
Line 1:		Line 1:
	= Introduction =		= Introduction =

−	~~The procurement process is~~ the ~~method used to~~ purchase goods or services. ~~The process~~ must be carefully managed to ensure good value is obtained, the correct goods or services are purchased, a high level of quality is received, timescales are met and good relationships are maintained between the procurer and the supplier. Establishing a procurement strategy at the outset is key to a successful outcome.	+	Procurement involves the purchase goods or services. It must be carefully managed to ensure good value is obtained, the correct goods or services are purchased, a high level of quality is received, timescales are met and good relationships are maintained between the procurer and the supplier. Establishing a procurement strategy at the outset is key to a successful outcome.

	= Five objectives of corporate procurement =		= Five objectives of corporate procurement =

−	The ~~six~~ basic principles associated with purchasing are sometimes referred to the five Rs:	+	The basic principles associated with purchasing are sometimes referred to the five Rs:

	# Right quality		# Right quality
Line 15:		Line 15:
	== Right quality ==		== Right quality ==

−	The most appropriate ~~materials~~ for a project may not always be the most expensive or the highest quality. ~~The suitability~~ is instead based on a combination of factors, including cost, characteristics and application requirements. These factors should be established by personnel who are ~~most suitable for the task. They should be~~ knowledgeable in the technical aspects of the project and able to verify the quality of ~~the materials~~.	+	The most appropriate items for a project may not always be the most expensive or the highest quality. Suitability is instead based on a combination of factors, including cost, characteristics and application requirements. These factors should be established by personnel who are knowledgeable in the business and technical aspects of the project and are able to verify the quality of items supplied.

	== Right quantity ==		== Right quantity ==

−	Accurate purchasing can be based on a type of inventory management referred to as economic ordering quantity (EOQ). When calculated properly, the EOQ formula can help an organisation keep the size of an order at a minimum while still maintaining enough inventory to support the activities of the project. However, it is important to acknowledge that EOQ can only be calculated when procurement demands are constant over a 12 month period and new orders are only delivered when the entire back inventory is depleted.	+	Accurate purchasing can be based on a type of inventory management referred to as economic ordering quantity (EOQ). When calculated properly, the EOQ formula can help an organisation keep the size of an order at a minimum while still maintaining enough inventory to support the activities of the project.

	{\|		{\|
Line 31:		Line 31:
	== Right price ==		== Right price ==

−	~~As previously stated, the most appropriate materials for a project may not always be the most expensive or the highest quality. The same holds true regarding price.~~ The lowest bid isn’t always the most suitable bid for the project. However, every attempt should be made to negotiate a reasonable price ~~for materials~~ based on specifications that have been carefully researched.	+	The lowest bid isn’t always the most suitable bid for the project. However, every attempt should be made to negotiate a reasonable price based on specifications that have been carefully researched.

	== Right source ==		== Right source ==

−	Selecting the most suitable vendor ~~to supply materials~~ can not only contribute to a beneficial outcome ~~of the project~~, it can also help to establish a self sustaining procurement strategy. Vendors can serve as partners who inform clients about possible factors - such as supply chain interruptions, pricing changes, additional potential partners and so on - that may have an impact on market conditions linked to the outcome of a project.	+	Selecting the most suitable vendor can not only contribute to a beneficial outcome, it can also help establish a self sustaining procurement strategy. Vendors can serve as partners who inform clients about possible factors - such as supply chain interruptions, pricing changes, additional potential partners and so on - that may have an impact on market conditions linked to the outcome of a project.

	= Related articles on Designing Buildings Wiki =		= Related articles on Designing Buildings Wiki =

Editor at 18:30, 27 July 2020

2020-07-27T18:30:43Z

← Older revision		Revision as of 18:30, 27 July 2020
Line 2:		Line 2:

	The procurement process is the method used to purchase goods or services. The process must be carefully managed to ensure good value is obtained, the correct goods or services are purchased, a high level of quality is received, timescales are met and good relationships are maintained between the procurer and the supplier. Establishing a procurement strategy at the outset is key to a successful outcome.		The procurement process is the method used to purchase goods or services. The process must be carefully managed to ensure good value is obtained, the correct goods or services are purchased, a high level of quality is received, timescales are met and good relationships are maintained between the procurer and the supplier. Establishing a procurement strategy at the outset is key to a successful outcome.
−
−	~~In the construction industry, the term 'procurement' is often used to refer to the selection of the main contractor for the construction of the works.~~

	= Five objectives of corporate procurement =		= Five objectives of corporate procurement =

Editor at 18:00, 27 July 2020

2020-07-27T18:00:56Z

← Older revision		Revision as of 18:00, 27 July 2020
Line 5:		Line 5:
	In the construction industry, the term 'procurement' is often used to refer to the selection of the main contractor for the construction of the works.		In the construction industry, the term 'procurement' is often used to refer to the selection of the main contractor for the construction of the works.

−	= ~~Six~~ objectives of corporate procurement =	+	= Five objectives of corporate procurement =

−	The six basic principles associated with purchasing are sometimes referred to the ~~six~~ Rs:	+	The six basic principles associated with purchasing are sometimes referred to the five Rs:

	# Right quality		# Right quality
Line 14:		Line 14:
	# Right price		# Right price
	# Right source		# Right source
−	~~# Right place~~

	== Right quality ==		== Right quality ==
Line 25:		Line 24:

	{\|		{\|
−	\| [[File:EOQFormula.jpg]]	+	\| [[File:EOQFormula.jpg\|link=File:EOQFormula.jpg]]
	\|}		\|}

Line 40:		Line 39:
	Selecting the most suitable vendor to supply materials can not only contribute to a beneficial outcome of the project, it can also help to establish a self sustaining procurement strategy. Vendors can serve as partners who inform clients about possible factors - such as supply chain interruptions, pricing changes, additional potential partners and so on - that may have an impact on market conditions linked to the outcome of a project.		Selecting the most suitable vendor to supply materials can not only contribute to a beneficial outcome of the project, it can also help to establish a self sustaining procurement strategy. Vendors can serve as partners who inform clients about possible factors - such as supply chain interruptions, pricing changes, additional potential partners and so on - that may have an impact on market conditions linked to the outcome of a project.

−	= Related articles on ~~Desiging~~ Buildings Wiki =	+	= Related articles on Designing Buildings Wiki =
		+
		+	* Integrated supply team.
		+	* Job order contracting.
		+	* Procurement policy.
		+	* Procurement route.
		+	* Procurement strategy.

	[[Category:Cost_/_business_planning]] [[Category:Procurement]]		[[Category:Cost_/_business_planning]] [[Category:Procurement]]

Editor: Created page with "= Introduction = The procurement process is the method used to purchase goods or services. The process must be carefully managed to ensure good value is obtained, the correct go..."

2020-07-27T17:54:16Z

Created page with "= Introduction = The procurement process is the method used to purchase goods or services. The process must be carefully managed to ensure good value is obtained, the correct go..."

New page

= Introduction =

The procurement process is the method used to purchase goods or services. The process must be carefully managed to ensure good value is obtained, the correct goods or services are purchased, a high level of quality is received, timescales are met and good relationships are maintained between the procurer and the supplier. Establishing a procurement strategy at the outset is key to a successful outcome.

In the construction industry, the term 'procurement' is often used to refer to the selection of the main contractor for the construction of the works.

= Six objectives of corporate procurement =

The six basic principles associated with purchasing are sometimes referred to the six Rs:

# Right quality
# Right quantities
# Right time
# Right price
# Right source
# Right place

== Right quality ==

The most appropriate materials for a project may not always be the most expensive or the highest quality. The suitability is instead based on a combination of factors, including cost, characteristics and application requirements. These factors should be established by personnel who are most suitable for the task. They should be knowledgeable in the technical aspects of the project and able to verify the quality of the materials.

== Right quantity ==

Accurate purchasing can be based on a type of inventory management referred to as economic ordering quantity (EOQ). When calculated properly, the EOQ formula can help an organisation keep the size of an order at a minimum while still maintaining enough inventory to support the activities of the project. However, it is important to acknowledge that EOQ can only be calculated when procurement demands are constant over a 12 month period and new orders are only delivered when the entire back inventory is depleted.

{|
| [[File:EOQFormula.jpg]]
|}

== Right time ==

The timing of purchases should be scheduled so materials are available - in the proper quantities and at the appropriate time. Inventory management methods should be put in place to trigger reordering based on historical data that tracks both material usage rates and necessary lead time (for delivery purposes). Since carrying excess inventory can be costly, it’s important to track this data closely and accurately.

== Right price ==

As previously stated, the most appropriate materials for a project may not always be the most expensive or the highest quality. The same holds true regarding price. The lowest bid isn’t always the most suitable bid for the project. However, every attempt should be made to negotiate a reasonable price for materials based on specifications that have been carefully researched.

== Right source ==

Selecting the most suitable vendor to supply materials can not only contribute to a beneficial outcome of the project, it can also help to establish a self sustaining procurement strategy. Vendors can serve as partners who inform clients about possible factors - such as supply chain interruptions, pricing changes, additional potential partners and so on - that may have an impact on market conditions linked to the outcome of a project.

= Related articles on Desiging Buildings Wiki =

[[Category:Cost_/_business_planning]] [[Category:Procurement]]