Category: Supply and transport management

Sourcing is the process of identifying, selecting and developing suppliers. Sourcing is the process involved in identifying potential vendors, conducting negotiations with them and then signing purchasing agreements with them to provide goods or services that meet your company needs. Read More …

Need or problem recognition This is the first stage of purchasing cycle, where the user department identifies/recognizes the need to be fulfilled. User department refers to any department within the organization that is need of goods or services to be Read More …

Function Centralized purchasing In this type of purchasing all purchasing activities are done at the head office of the organization and the supply effects through Head office to the branch office. It is very common in government organization. In considering Read More …

Sourcing: This is a high value adding activity that is concerned with matching purchasing requirements with sources of supply, ensuring continuity of supply, exploring alternatives sources of supply and validating the supplier compliance necessary to meet or exceed buyer criteria Read More …

The purchasing department can be further structured into three general approaches according to Commodity or function, project or product and matrix. Commodity Approach The commodity approach is the most commonly used by companies. In this approach, the purchasing function is Read More …

The Purchasing Handbook defines purchasing as “the body of integrated activities that focuses on the acquisition of materials, supplies and services needed to reach organizational goals. In a narrow sense, purchasing describes the process of buying: in a broader context, Read More …

Relationship between Supply department and Sales Department Your sales department depends on your Supply department to have the inventory in place to fulfill completed sales. Your Supply department in turn depends on your sales department to allow enough lead time Read More …

A joint venture (JV) is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. In Read More …

A consortium is an association of two or more individuals, companies, organisations or governments with an objective of participating in a common activity or pooling their resources for achieving a common goal Advantages of Consortium You can share your decisions Read More …

In a departmental line organization, there is a chief executive at the top. Under him, there are a number of departments each headed by a departmental manager. Each departmental head drives his authority to his immediate subordinates. These subordinates in Read More …