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Technology helps companies automate procurement tasks like finding suppliers, comparing prices, and managing contracts. It also allows tracking inventory levels and analyzing spending patterns to help organizations save money and make informed decisions. The document discusses how procurement decisions impact a supply chain through quality control, cost management, inventory management, and risk mitigation. It also explains that a procurement plan lists procurement requirements over time while a procurement schedule includes milestones and timelines for each step in the procurement process.

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61 views2 pages

Group Study888

Technology helps companies automate procurement tasks like finding suppliers, comparing prices, and managing contracts. It also allows tracking inventory levels and analyzing spending patterns to help organizations save money and make informed decisions. The document discusses how procurement decisions impact a supply chain through quality control, cost management, inventory management, and risk mitigation. It also explains that a procurement plan lists procurement requirements over time while a procurement schedule includes milestones and timelines for each step in the procurement process.

Uploaded by

mandocdocmica55
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Casey Dela Cruz

Alexis Alfonso
Michael Pasion
Michaela Mandocdoc

1. How does technology contribute with procurement?

Technology helps with procurement by streamlining the purchasing process. It allows


companies to automate tasks like finding suppliers, comparing prices, and managing contracts.
Software tools can also track inventory levels and analyze spending patterns, helping
organizations make informed decisions and save money. Overall, technology makes
procurement faster, more efficient, and more transparent.

2. IMPACT OF PROCUREMENT DECISIONS ON THE SUPPLY CHAIN

• QUALITY CONTROL
DECISIONS ON SUPPLIER SELECTION DIRECTLY INFLUENCE THE QUALITY OF RAW
MATERIALS AND COMPONENTS. HIGH-QUALITY INPUTS LEAD TO BETTER END
PRODUCTS, FEWER PRODUCTION HICCUPS, AND A STRONGER MARKET
REPUTATION.

• COST MANAGEMENT
THE COST NEGOTIATED BY PROCUREMENT IS A SIGNIFICANT FACTOR IN THE
OVERALL COST OF GOODS SOLD (COGS). COST-EFFECTIVE PROCUREMENT ENABLES
COMPETITIVE PRICING STRATEGIES AND CAN IMPROVE PROFIT MARGINS.

• INVENTORY MANAGEMENT
THE TERMS AND TIMING OF PROCUREMENT AFFECT INVENTORY LEVELS. JUST-IN-
TIME PROCUREMENT POLICIES, FOR EXAMPLE, CAN MINIMIZE INVENTORY HOLDING
COSTS BUT REQUIRE PRECISE TIMING AND RELIABILITY.

• RISK MITIGATION
SUPPLIER DIVERSIFICATION STRATEGIES IN PROCUREMENT CAN SHIELD THE
SUPPLY CHAIN FROM DISRUPTIONS CAUSED BY GEOPOLITICAL EVENTS, NATURAL
DISASTERS, OR SUPPLIER INSOLVENCY

4. What is the difference between a procurement plan and a procurement


schedule?
The procurement plan is a list of all procurement requirements expected to be procured over a
certain period, six months or more. This list includes a description of each requirement, the
procurement category (goods, works, services), the procurement method, the allocated funds
and the department for which the procurement is being carried out; sometimes an estimated
contract award date is also included. The procurement schedule, in contrast, includes all the
information that is on the procurement plan; but what differentiates the two is that the
procurement schedule also includes all milestones and specific time periods for each step in the
procurement process, from the preparation of the terms of reference or technical specifications
up to the award of the contract. The procurement schedule may also be used to monitor the
results of the procurement process for each requirement and the overall performance of the
procuring entity.

5. A procurement schedule is a plan that outlines all of the steps necessary to


procure a particular item or service. This can help to ensure that all required steps are taken,
and that the right items are obtained in the correct amount and at the correct cost.

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