2. Differences between Procurement vs Purchasing Both are activities performed in relation to their goods and services, but done with a different method and approach
3. Differences between Procurement vs Purchasing “Form of buying that consists of getting goods or services by paying a certain amount of price or money. The amount of money or price paid in this case will be in accordance with the quality and quantity of the goods or services. We ensure that the right thing comes at the right place at the right time” Purchasing “Acquisition of goods and services at the best possible total cost of ownership. This is done to meet the demands of the purchaser taking into account the factors of quantity and quality, and time and location as well.” “Management of suppliers to achieve strategic business value” Procurement
5. Differences between Procurement vs Purchasing Purchasing - both individuals and groups such as companies and organizations. Procurement - mainly by companies and organizations or such other groups.
6. Steps in Procurement Information gathering Supplier contact Background review Negotiation Fulfilment Consumption Maintenance and disposal Renewal
7. Principles Principles of Procurement Get away from an adversarial relation with suppliers – the relation should be strategic and benefit both in the long run Move from price consideration to total cost of ownership – you can’t just buy cheap things and then pay huge amounts on maintenance, paper work, etc. Have minimum number of suppliers Move from short-term to long-term – thus avoiding total cost of ownership ...
8. Principles Principles of Procurement ... 5. Procurement strategy – vision of where the business should take their suppliers 6. Supplier has access to expertise company needs and often can supply multiple products, and often design and make more appropriate products 7. Reduced inventory costs. Inventory can be reduced when there is a trust based relation with suppliers. We can move from just-in-case inventory storage to just-in-time delivery of supplies 8. Streamline processes within your organisation and streamline/standardise them with your supplier
9. Principles in Public Procurement 1. Transparency 2. Competition 3. Economy 4. Efficiency 5. Fairness 6. Accountability.
32. In addition to the mandatory requirements, environmental evaluation criteria were also applied in the procurements - were regarded as a way to find a contractor who was likely to comply with the mandatory environmental requirements.
