The procurement-process in six steps

Next subjects will be submitted to this title:

Logistics
Focused on the optimisation of the order process of the incoming goods

Quality
To achieve a better quality of the product as well a higher quality level of service

Supply management
To select, develop, manage (less) suppliers

Costs
To obtain all required products and services from the suppliers at the best possible price in combination with smallest number of invoices

Marketing
Bring in attention the need of procurement management to the board of directors, internal customers and external suppliers. In this I like to emphasise that my aim is focused on action and results, and not only on consulting and control.

Work out of a procurement plan

Summary for the management
The domain of trade, objectives and organisation
Procurement policy
Procurement department
Other skills in procurement department

Analyse/measure
Pareto-analyses (ABC): 80 % of the volume value is purchased by 20 % of the suppliers.

Kraljec portfolio:

Dupont-analyses:
Determines (among other things) the effect of procurement (purchase) savings on the remunerativeness of the investments.

• Quality assurance
• Procurement procedures
• Internal customer analysis
• Product analysis
• Forecast analysis
• Position/situation analysis (Who, What, When, Where, Why, How, etc.)
• Organisation analysis
• External environment
• Internal environment
• Increasement of purchasing value by purchase departement
• Increasement of professionallity in procurement
• Realising a optimal mix decentral/central purchasing
• SWOT-analyses (strong-weak-opportunities-threats)

Set out of the targets
Define the goals in a quantitative matter as well as in a quality purpose

Describe in a brief way conclusions and recommendations

Implementing the procurement plan

Plan (plan your work, work your plan)
From the audit done by mentioned tools determine and focus on key points with the highest impact to start with.

Do
Execution of plan, taking in account some deviations

Check
React as adequate as possible on deviations in “Do-phase” trough a QuickScan.

Act
Adapt the drawled up plans, solve if needed the causes of the occurring problems, so new plans can develop as such starting from analysis-phase or plan-phase.

This is the only guarantee for continuous improvement.