Procurement lecture introduction to logistics supply. Efficiency and effectiveness of the procurement function patrick kakwezi and sonny nyeko kakwezi is a lecturer in department of procurement and logistics management. The manual will provide assistance to the project management community for the procurement of consultant and. Logistics is the management of the flow of goods, information and resources between the point of origin and the point of consumption. Activities of logistics are categorized into two types and those are as below. Todays supply chain challenges global supply chain with long lead times rising and shifting customer expectations increase in labor costs in developing countriesincrease in labor costs in developing countries increase in logistics costs importance of sustainability unprecedented volatility 11 unprecedented volatility number of days the price. Note that a particular element of x i can be set to 1 for all ito yield an intercept in the model. Pdf the importance of the procurement function in logistics. Logistics management modern development trends poznan 2016. The introduction to procurement and supply chain management course is an introductory level course jointly developed by undp and empower school of health. It is a business concept that evolved during the 1950s due to the increasing complexity of supplying. Zac procurement management identifies what needs to be purchased, how it is purchased, determines the technology supporting the procurement process, and conducts negotiations for productsservices. Strategic procurement management for competitive advantage. Procurement lecture introduction to logistics supply chain.
The primary objective of logistics management is to move the inventory in a supply chain effectively and efficiently to extend the desired level of customer service at the least cost as done parallel with waste management. Outsourcing project logistics to third and fourthparty logistics service providers 3pl and 4pl can help the owner organisation and the epc contractor achieve cost. What is the difference between procurement and logistics. The recipient shall ensure that procurement and supply management under the program is carried out in accordance with the approved procurement and supply management plan. Supply chain management i about the tutorial supply chain management can be defined as the management of flow of products and services, which begins from the origin of products and ends with the products consumption at the enduser. Logistics strategy and planning, organisation for logistics, management and control, integrated logistics support. Procurement agentbody crown agents government of kenya gok gtz procurement implementation unit jsideliverkemsa logistics management unit contraceptives, condoms, sti kits, hiv test kits, tb drugs, rh equipment etc e u k f w unicef kepi cold store kepi vaccines and vitamin a malaria u s a i d u s a i d u n f p a e u r o p a condoms for. Thirdparty logistics 3pli 3pl is simply the use of outside rms to perform materials management and logistics functions. Purchasing management purchasing managementis purchase. Assessment strategy if the supply chain management units are incorporated into nvqs or svqs, the assessment strategy which was approved with the nos must be implemented. Pdf msc in procurement, logistics and supply chain. Buy my analysis smash packs tailored to your exam board from the smash pack is split into two sections.
The logistics handbook a practical guide for the supply chain management of health commodities 2011. The data was presented in form of tables and pie charts. Show an understanding of procurement and the procurement process 2. Diploma in procurement and supply university of dubai. They are transportation during procurement operation, storage, handling and overall management of inventory of inputs.
Define the terms purchasing and procurement management. Now in its eleventh model, procurement principles and management has been essential learning for practitioners and school college students of shopping for and procurement for nearly 50 years. Sourcing and procurement are a vital part of the supply chain management. Procurement is a key function in the operations of an organization. The logistics management unit provides logistics information and assistance in. An integrated approach to service delivery will no doubt contribute to the timely, efficient and effective delivery of humanitarian assistance. Within this chapter, i will explore definitions and concepts of logistics and supply chain management, including the value chain, logistics management, global sourcing, and the bullwhip effect. Supply chain management can be defined as the management of flow of products and. The effective management of resources through sound procurement. If youre looking for a free download links of purchasing and supply management pdf, epub, docx and torrent then this site is not for you. Logistics and supply chain management lpu distance education. Procurement is the act of acquiring, buying goods, services or works from an external source, often via a tendering or bid process.
This section of the procurement logistics supply chain also includes the actual work with 3pls, if applicable. The vital objective of it is the complete customer satisfaction and a single organization gets involve in logistics management, it is an activity of supply chain management. Distinguish between private and public procurement 3. Supply chain management can be defined as the management of flow of products and services, which begins from. Procurement, planning, financial resources, procurement planning, public institutions. Public procurement and supply management in construction and project business. Within this research, the study undertaken is exploring the utilisation of supplier development within. Since december 31, 2006, eu member countries have had to meet weee recycling targets in that the rate of recovery for it, telecommunications, and consumer equipment is at. Describe the interdependencies of procurement with other functions in the organisation.
Pdf purchasing is the function in a firm responsible for the. Logistics is a part of supply chain that handles the transport of any material raw material, finished product acr. Procurement must be seamlessly integrated with the other aspects of logistics and functions within the organisation, such as warehousing, distribution, finance, hr, etc. Dynamic economic lot sizing model introduction to stochastic inventory models and supply contracts pdf newsboy model with pricing pdf. Procurement management is all of the processes that go into managing a companys incoming material needs for manufacturing. Objectives of logistics management in scm scm wizard. This recreation will current the reader with a mirrored image of mainstream comply with alongside notion into creating ideas and approaches. It focuses on operational purchasing requirements based on information from a limited environmental scan lysons and farrington. The resulting definition was published in the august 2005 edition of our magazine procurement professional. The components of scm procurement, transport, warehousing, and inventory management are important business processes that allow an organization to obtain optimal value for resources expended on goods and services. The introduction to procurement and supply chain management course is an introductory level course jointly developed by. The course will meet the needs of those professionals with technical and supervisory skills in logistics and supply chain management. Logistics is happening around the globe 24 hours a days seven days a week during fiftytwo weeks a year. Under the governance of national project management system, there was a requirement to produce a contracting procedure but considering the complexity and the level of information relating to the subject, a manual was produced.
Historically built on procurement, operations and logistics foundations. This is a brief introductory tutorial that explains the methodologies applied in the rapidly. Scmlectures lecture notes 110 supply chain management. Strategic procurement management is the process of planning, implementing, evaluating, and controlling strategic and operating purchasing decisions for directing all activities of the purchasing function toward opportunities consistent with the.
We believe that this introduction to project logistics management will give the reader some appreciation of the complexity. Supply chain management covers the application of procurement, purchasing and supply, logistics, transport, and operations management, within and between international boundaries. And supply management the conceptual framework professional storyboarding rules of thumb pdf purchasing and supply. Procurement planning is the process of identifying and consolidating requirements to be acquired. The first section provides concise, detailed analysis strands written in.
But this offering was not intended to be definitive,only the starting point for a bigger debate. Military logistics in military logistics, logistics officers manage how and when to move resources to the places they are needed. Lesson 1 overview of procurement lesson outcome at the end of the lesson, students should be able to. An area of management that has been observed to absorb more than 30% of the sales dollar for some firms, that is an essential element in meeting customer goals, and that can be essential to a firms competitive strategy. World bank training program managing procurement and. Customer relationship management customer service management demand management order fulfillment manufacturing flow management procurement product development and commercialization returns.
Logistics strategy and planning, organisation for logistics, management and control, integrated. Diploma in procurement and supply advanced diploma in procurement and supply professional diploma in procurement and supply for each quali. A bachelors degree in procurement and logistics management can land you into one of the rewarding jobs in the field of business. Logistics management is defined as a process of management which joins the movement of products, services, data and capital from the stage of raw materials to the consumer end product. Purchasing is the function in a firm responsible for the professional management of a firms interface with the supply market, to ensure its supply with the necessary goods and services provided. E procurement e logistics internet auctions emarkets electronic business process optimization business object. Outsourcing logistics what is the difference between 3pl and 4pl. Msc in procurement, logistics and supply chain management msc. At its core, procurement logistics is the sourcing of materials needed to manufacture products. Objective the procurement and supply management plan should provide information on the health products required by the program that will be funded under the new grant. Definition of the council of logistics management clm logistics is the process of planning, implementing, and controlling the efficient, costeffective. Supply chain management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Tactical procurement management tactical procurement is typically a subset of activities and processes within the strategic procurement management approach.
You know what procurement as well as logistics is, but what you may wonder about is how important these are from the perspective of a business organisation. In other words, this part of the supply chain focuses on purchasing. Long term commitments and multiple functionstrue strategic partnership compared with traditional logistics supplier relationships. The activities themselves are divided into two distinct but interdependent phases, upstream and downstream of the award of the contract. Logistics management ppt with pdf the flow of products and storage of products in an organization and outside of an organization is called as logistics. Since the procurement and supply management plan covers two or three years of implementa. Find materials for this course in the pages linked along the left. To achieve this, the following subsets of the above broader objective need to be achieved in supply chain management. Supply chain management involves the management of flows between and among stages in a supply chain to maximise total supply chain profitability decision phases three categories depending on the frequency of each decision and the time frame over which a decision has an impact, supply chain strategy or design supply chain planning. Lecture notes logistics and supply chain management. The master specialization in purchasing and supply management at the university of twente is one of the few programmes dedicated at the training of purchasers. Explain the perspectives on procurement in business management. In military science, maintaining ones supply lines while disrupting those of the enemy is a crucialsome would say the most crucialelement of military stratagy, since an armed force without resources and.
Download purchasing and supply management pdf ebook. Objectives to firm up procurement arrangement for investment operations of the project. Procurement logistics operational guide log digital. View notes procurement lecture from omgt 1082 at royal melbourne institute of technology. It focuses on operational purchasing requirements based on information from a limited environmental scan. Indicative content the indicative content is an indication of the. Pdf strategic procurement management lecture notes by. Procurement and logistics management notes document size. Supplier development is a term used in supply chain when working with identified suppliers to improve the performance for the buying organisation. Making available these inputs on time at minimum cost is the essence of inbound logistics. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third party service providers, and customers.
A 4pl where they control the cash flow and accounts and inventory for the employing company, whereas a 3pl simply ensures the building of the productservice. Activities of a procurement performance cycle come under the scope of inbound logistics. A dissertation submitted in part fulfilment of the degree of msc in procurement, logistics and supply chain management with the university of salford, in conjunction with the robert kennedy college, 2017. At chalmers university of technology purchasing is part of research and education in the wider. Free notes on procurement and logistics management. Aug 21, 2018 buy my analysis smash packs tailored to your exam board from the smash pack is split into two sections. Com elements of logistics management additional notes scorebms.
A dictionary definition of logistics is the branch of military science having to do with procuring, maintaining, and transporting material, personnel, and facilities. Logistics management is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers requirements. The cips contract management guide is intended to cover all those activities associated with contract management. Purchasing v procurement purchasing refers to actual buying. Com mobile 98900 75900 1 elements of ligistics management logistics management consists of eight elements called wings of logistics. Purchasing and supply notes pdf ent 324 principles of purchasing and supply is a one semester, two credit unit. Procurement planning manufacturing planning distribution planning demand planning. Clearly,the definition encapsulates a broad commercial role ranging from external resource. Quantity and location of inventory including raw materials, workinprocess.