Buying and selling in a complex world - Tasks of a purchaser

7 important questions on Buying and selling in a complex world - Tasks of a purchaser

What are the primary activities in Porter's procurement process model?

1. Inbound logisitics: Relationships with suppliers and everything that has to do with receive, store materials.

2. Operations: All the activities required to go from input to output.

3. Outbound logistics: Include all activities to collect, store and distribute the output.

4.Marketing and sales: Inform buyers about the products and try to sell them the products.

5. Service: All activities to make sure the products keep working after the purchase is done.

What are the secondary activities in Porter's procurement process model?

1. Procurement: Acquistion of inputs, resources, for the firm

2. HR Management: Recruiting, hiring, training, developing,..

3. Technological development: R&D

4. Infrastructure: Ties the various parts of the organisation together.

What is procurement's position in the value chain?

It does not only reduce costs in the firm but it also add value to the products when done properly. Offers knowledge about the source of materials, quality, and it also increases efficiency.
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What is strategic procurement?

The long-term business strategy that sets the overall direction for procurement.

What is tactical procurement?

Negotiating with suppliers, sourcing with suppliers, benchmarking. Specifying, selecting and contracting. You try to reduce the total cost of ownership and improve the quality of the procurement process.

What is operational procurement?

Order, monitor, aftercare. The main activities are making purchase order, order follow-up on delvieries (backorders), check delivery dates, order follow-up on quantity, quality and on invoices.

What is a backorder?

When for exmample ordering 10 items of a product and the supplier can only deliver 8 on time, you will have a backorder of 2 items.

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