Procurement definition, process, and models

Transcription

1 Procurement definition, process, and models Lecture week 37 (part 2), Extended Enterprise Johan Versendaal Lecture overview What is Procurement? E-Procurement a demo Procurement models

2 Procurement definitions All activity that requires an invoice Procure-to-pay process Open Buying on the Internet ( ) RosettaNet ( PIP 3A1: Request Quote PIP 3A4: Request Purchase Order Exostar, an aerospace consortium and marketplace Procurement objects OBI Open Buying on the Internet

3 RosettaNet ( Exostar procurement process (

4 E-procurement of indirect materials Demo Baan E-Procurement Demo Personalized experience

5 Demo Browse catalogue Demo Manage requisitions (1)

6 Demo Manage requisitions (2) Demo Route for approval & submit

7 Demo Process purchase orders Demo Receive materials

8 E-procurement of direct materials Buying Organization Supplier ERP Web services - service-calls - service-calls E-enabling software XML-formats -PO - Changed PO -Open POs -PO Ack - Changed PO Ack - ASN -Invoice - Special Delivery Notice Portal enabled Procurement models

9 Porter s value chain Organizational infrastructure Technology development Procurement Profit margin Inbound logistics production Outbound logistics Marketing & sales service Porter s five forces model New entrants Threat of new entrants Supplier power Competitors Customer power Suppliers Customers Rivalry Threat of substitute products/services Substitute products/services

10 Van Weele s Procurement process Procurement process Tactical / Strategic Operational Customer Determine Product specifications Supplier selection Contracting Ordering Logistics Evaluation After care Evaluation Supplier Customers Customers D-BOI-model Strategy Information Management & Control Primary process Organization & Processes

11 Kraljic-matrix Leverage competitiveness Supply chain cooperation High Leverage type of products Strategic type of products Impact on financial result Routine type of products Bottleneck type of products Low Low Efficiency Supply risk Secure supply High Procurement maturity model Retail Automotive Pharma Chemicals Computer Electronics Telco Govern. Financial services Food and beverages Transaction orientation Commercial orientation Purchase coordination Process orientation Supply chain orientation Value chain orientation Time

12 Procurement performance Product costs/prices Manage material prices/costs Lower material prices/costs Purchasing effectiveness Product quality Purchase department involvement with new products Quality of purchased products Efficient purchasing process Purchasing result Purchasing logistics Order & inventory policy Trustworthiness of supplier delivery Employees Purchasing efficiency Purchasing organization Management Procedures and policy ICT Supplier development model Supplier Preferred supplier Supply partner Developing partner Type of relation Operational Operational Tactical Strategic Timing Short term One year Mid term Long term Quality According to supplier; QC at supplier According to supplier; QC at supplier and buyer Coordination & check; QC at supplier Coordination & check; QC at Supplier (incl.design) Logistics Orders Contracts and call-offs Logistic systems Coupled logistic systems; EDI Type of contract From order to order Contracts (one year) Contracts (> 1 year) Collaborative engineering type of contracts Price/costs Price Price and quantity price breaks Price and cost reduction program Open cost price calculation

13 Papers Journal of Strategic Information Systems: Theory comparison Supply Chain Management: Partnering for product innovation Journal of Production Planning & Control: Assessment of a-procurement projects To be accessed via BSCW, if you do not have access to the particular papers, send a mail (referencing this course) to: bscwadmin@cs.uu.nl, or mhoed@cs.uu.nl. Upcoming Reflection on literature research (15 September, 9-10 am) Introduction new assignment (15 September, am) Apply procurement model to case study (15 September, 11 am-1 pm Submission of assignment week 37 (this week) before 18 September 5 pm Lecture on business/it-alignment, procurement/italignment, and World Class Purchasing (20 September, pm) Find respondent!!!