Lecture 2 Princ of Proc
Lecture 2 Princ of Proc
Lecture 2 Princ of Proc
E. To buy efficiently and wisely, obtaining by ethical means the best value
for every money.
f. To negotiate effectively in order to work with suppliers who will seek mutual
benefit through economically superior performance.
from procurement.
greatest returns.
The idea was that specialist supplies staff could do the bidding of the more strategic
elements of the organisation, and employ their skills at a secondary ‘support’ level.
There came a more general realisation that procurement might contribute more effectively
The idea that procurement and supply was merely a support activity is somewhat being
the ‘make or buy’ decision or strategic commercial relationship which is giving the function a
• cycle-time reduction.
Little more was expected of procurement than to battle some cost out of the
contract and then hand the relationship back to the business to manage.
business in strategic conversations about how the supply chain can be optimised to
deliver the greatest returns.
It is now concerned with the flow of materials from raw state to use
and disposal.
materials are putting into practice integrative ideas, which are, at least in part,
7. Customer focus.
EXTERNAL ORGANISATIONAL FACTORS
this respect.
Recycling
Concern for the use of returnable packaging and many other related
concerns all have implications for procurement and are affecting perceptions
EXTERNAL ORGANISATIONAL FACTORS
Competitor activity
1. automation
2. ‘outsourcing’ policies
Organisations must be able to develop new practices and products efficiently and
effectively.
procurement on the one hand and production, marketing, finance etc. & with
As product life cycles get shorter, reaction times are being compressed.
Structural changes
Performance measurement