Presentation on procurement
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Transcript of Presentation on procurement
INPUT OUTPUT PROCESS (PROCUREMENT )
Delivered By:
ABDUL FAHIM
BEM/15505
COMPANY INTRODUCTION:
• INTRODUCTION• Nawan Laboratories (Pvt.) Ltd. Pakistan is a quality
conscious Human & Veterinary pharmaceutical manufacturer located in Karachi, Pakistan since 1994.
Nawan possesses the expertise, knowledge and technical know-how to produce and market pharmaceutical products. Under the modern manufacturing facility, our experienced and dedicated pharmacists, chemists, microbiologists, biotechnologists, biochemists & quality control assurance managers and other skilled personnel strictly control all processes & ensure quality outcome of the product.
HISTORYHISTORY• Emerging in 1994, with a limited range of health care products is now a W.H.O-G.M.P
certified pharmaceutical unit which has diversified its operations into Human Pharmaceuticals, Poultry Medicines, Livestock Medicines, and expanded its market to Middle east & African Countries, Nawan Laboratories (Pvt.) Ltd has come a long way in its development and progress.
• Historical Highlights
• 1994• Construction of W.H.O-G.M.P Standard factory at Korangi Industrial Area Karachi -
Pakistan and earned certification to produce injections, Tablets, Capsules, Suspensions, Ampoules, Liquid, Powder, Bolus, Granules and Aerosol dosage forms.
• 2000• Started Veterinary Pharmaceutical export to Middle eastern, African and Far eastern
countries.• 2005• Started Human Pharmaceutical export to African and Far eastern countries.• 2009• Becoming one of the fastest growing Human and Veterinary Pharmaceutical company
in Pakistan.
A picture is better than 1000 words!!
- A supply chain consists of
Supplier Manufacturer Distributor Retailer Customer
Upstream
Downstream
Supply Chain Processes
Physical distributionPhysical supply(Materials management)
Business logistics
Sources ofsupply
Plants/operations Customers
• Transportation• Inventory maintenance• Order processing• Acquisition• Protective packaging• Warehousing• Materials handling• Information maintenance
• Transportation• Inventory maintenance• Order processing• Product scheduling• Protective packaging• Warehousing• Materials handling• Information maintenance
Internal supply chain
Traditional Scope of the Supply Chain
UNDERSTANDING PROCUREMENT AS A CONCEPT
InputSupplier
SCM(Procurement)
OutputQC/Production
SOP (Standard Operating Procedure)
• Procurement steps• Procurement life cycle in modern businesses usually
consists of 7 steps:
1. Identification of need:
2. Supplier Identification:
3. Supplier Communication:
4. Negotiation:
5. Purchase Orders:
6. Logistics Management: expediting, shipment, delivery
7. Payment:
Purchase Order Contents
1. Total Amount
2. Delivery Date and Terms
3. Payment Terms
4. Bank Guarantees
5. Currency Fluctuation or Exchange Rates
6. Packaging Terms
7. Inspection and Quality
8. Taxes
9. Insurance
10. Warranty Terms
11. Documentation
12. PO Acceptance
13. General Terms and Conditions
Letterhead PO#
Vendor Ref#
Quote Ref#
Order Date
Delivery Address
Vendor Selection
Vendor evaluation Critical decision Find potential vendors Determine the likelihood of them becoming
good suppliers Vendor Development
Training Establish policies and procedures
Vendor Selection
Negotiations
Cost-Based Price Model - supplier opens books to purchaser
Market-Based Price Model - price based on published, auction, or indexed price
Supply Chain Strategies
Negotiating with many suppliers Long-term partnering with few
suppliers Just In Time
SUGGESTIONS
Many Suppliers
Purchasing is typically based on price
Suppliers compete with one another
Supplier is responsible for technology, expertise, forecasting, cost, quality, and delivery
Few Suppliers
Buyer forms longer term relationships with fewer suppliers
Create value through economies of scale and learning curve improvements
Suppliers more willing to participate in JIT programs and contribute design and technological expertise
Cost of changing suppliers is huge impact
Just In Time (JIT)
“the right material, at the right time, at the right place, and in the exact amount”, without the safety net of inventory.
The philosophy of JIT is simple:
the storage of unused inventory is a waste of resources.
JIT inventory systems expose hidden cost of keeping inventory.
THANK YOU