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Tackling real-world supply chain management challenges by applying research, experience and knowledge.

SCRC Article Library: Introduction: Procurement : A Tutorial

Introduction: Procurement : A Tutorial

Published on: Jan, 26, 2011

by: Robert Handfield, Ph.D.

Introduction

Overview
Learning Objectives
Tutorial Outline

h2. Overview

A world-class procurement staff must continuously work to improve the efficiency and effectiveness of what we call the procurement process. This is the process used to:

  • Identify opportunities.
  • Identify business requirements.
  • Analyze the business, supply chain and suppliers to generate options.
  • Create a strategic sourcing plan.
  • Implement the plan through negotiation of value-adding agreements.
  • Establish on-going supplier management and continuous improvement in performance.

The challenges in ensuring that this process occurs effectively and efficiently is the theme of this tutorial. Until an organization is able to streamline the day-to-day procurement process, other important strategic activities that help their organization become more competitive will continuously be put “on hold”. This course introduces topics and ideas associated with purchasing in multiple industries.

Learning Objectives

By then end of this tutorial, you will be able to:

  • Distinguish between types of goods and services purchased.
  • Understand the fundamental objectives of procurement.
  • Describe the procurement process.
  • Understand how supply chain professionals should interact with procurement on a day-to-day basis.

h2. Tutorial Outline

  • Types of goods and services purchased
  • Role of procurement within an organization
  • The purchasing process
  • Understanding legislation related to procurement
Developing good contracts
Purchasing law
  • The “new purchasing” and supply management workplace

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