MindMap Gallery International Engineering Construction Project Procurement Management Reading Notes Chapter 10
Reading Notes on Procurement Management of International Engineering Construction Projects, a total of four sections: Section 1: Supplier Management Section 2: Strategic Procurement Section 3: International e-commerce Section 4: Application of information technology in procurement and its development trends
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Avatar 3 centers on the Sully family, showcasing the internal rift caused by the sacrifice of their eldest son, and their alliance with other tribes on Pandora against the external conflict of the Ashbringers, who adhere to the philosophy of fire and are allied with humans. It explores the grand themes of family, faith, and survival.
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Chapter 10 Prospects and Trends of International Engineering Procurement
Section 1 Supplier Management
Supplier Management Overview
Concepts and Characteristics of Supplier Management
Supplier management concept: A unit that can provide raw materials, engineering equipment, services and all other resources of the enterprise for enterprise production. Suppliers can be either production enterprises or circulation enterprises.
Characteristics of supplier management
Supply relationship: it may be competition, cooperation, strategy, or shared destiny
Cost management: refers to the overall cost from issuing procurement requirements to product sales and after-sales services and disposal
Demand-oriented, customer-centered
learning and education
management and leadership
Supplier Management Content and Performance Metrics
Main contents of supplier management
develop
choose
Review
Performance Evaluation
It is the focus of supplier management work, has a direct impact on cost structure, and is the core content
information management
Supplier Performance Metrics
Quality: Conformity of product to requirements
Pass rate
rejection rate
cost
Costs for all links from product demand to product acquisition
Service fees after the product is sold
Product recycling fees
Product disposal costs
Delivery time
Calculation method
by batch
Statistics by quantity
Usually expressed as a percentage
Serve
It is one of the activities for suppliers to realize self-added value.
technology
The technical strength of the supplier determines the advanced nature of the purchased products
Supplier development management
Supply development and review process
Supplier information collection
Basic information survey
Supplier self-assessment
ISO certificate
business license
Initial supplier evaluation
Conduct an initial assessment and establish contact
Quotation/Negotiation
Submit a quotation, and the purchaser will negotiate and negotiate on the quotation.
Submit samples/evaluate samples
Picture file
specifications
sample
The supplier prepares samples based on the information and submits them to the purchaser for evaluation.
On-site audit
After the sample evaluation is qualified, the supplier will be audited on-site.
Log in to qualified suppliers
Suppliers who have passed the audit will be logged into the list of qualified suppliers.
Supplier management
Create supplier information
Vendor Code
supplier level
Supply product name
Product number
Supplier’s place of registration
Contact information
Supplier performance appraisal
One of the important contents of procurement management
Conducted once a month
Involve as many procurement stakeholders as possible
The evaluation results are fed back to the supplier and corrective action requirements (Supplier Corrective Action Requipment, SCAR) are issued to suppliers who fail the evaluation.
If the company fails to pass the continuous assessment, a new supplier will be developed or a similar substitute will be developed as appropriate.
Management of qualified suppliers
Approved Vendor List (AVL)
Regularly update the AVL list
Evaluate supplier performance within AVL
Hierarchical management of AVL suppliers
Elimination management of supplier supply qualifications
Problems with supplier management
single source of supply
It refers to purchasing a certain kind of material or outsourced parts from only one supplier.
Ensure smooth and safe supply
It may cause supply interruption and external rejection, leaving no alternative suppliers, affecting the security of the supply chain.
Possible problems with single source
supply relationship
Supply relationship is one of the important contents of supplier management
The relationship is determined based on the importance level of the supply materials.
To manage relationships with suppliers at different levels
Price/quality/delivery/geographic location factors
Price/quality factors:
Price mainly refers to the total price (cost) spent to obtain the supplier's products or services
Supplier product price
Supplier service price
Quality mainly refers to the conformity of the products or services provided by the supplier with the expectations of the purchaser
Delivery on-time factors/Purchase lead time/Geographical location factors Delivery on-time
On-time delivery means delivering to the designated location on time according to the time and location required by the purchaser.
The geographical location of the supplier determines the purchase cost of the product to a certain extent
transportation cost
Inventory costs
administrative costs
Product delivery time
Product lead time
Procurement lead time
Problems in supplier performance appraisal
There are no integrated stakeholders during the assessment
The assessment indicators are unreasonable
Supplier recognition system
Performance appraisal results are not communicated
Supplier communication and information sharing
Procurement department supports external communication throughout the supply chain
Product technical communication
Quality communication
Delivery time
price
contract
Information delivery is not timely
Supplier Management Solutions
Single source solution
Developing two or more suppliers during supplier development
Create safety stock
Develop long-term supply relationships with suppliers
Develop alternatives
Acquire supply sources or produce in-house
Supply Relationship Solutions
General supplies
Such materials are characterized by low value and low risk
The method of such supplier management is to simplify the procurement process and reduce acquisition costs
Leverage Materials
Such supplies are profit-driven, high value and low risk
Such materials have a great impact on the supplier's cost, and there are many factors to consider in the relationship with the supplier.
price
Payment Terms
Serve
Discount
brand
bottleneck supplies
Such materials have the characteristics of ensuring supply security, low value and high risk
Supplier management focuses on ensuring supply security and production continuity
critical supplies
Such materials are of critical importance, high value and high risk to the purchaser
The focus of management is to develop and manage long-term, close relationships with suppliers, and seek to maximize the interests of both parties through cooperation.
Quality/Price/Delivery/Geographical Location Solutions
Quality control and quality assurance from the aspects of quality, purchase price and cost.
To monitor the quality of incoming materials from suppliers, suppliers, purchasers, and third-party subcontracting inspections and tests can be adopted
Conduct regular audits of suppliers
Develop JIT (Just In Time) based on delivery punctuality, procurement cycle and geographical area.
Pay attention to the control of logistics and choose reasonable transportation methods and routes.
Advocates to effectively reduce procurement and logistics costs in production activities
Require high-level quality supply from suppliers
Good supplier relationships and accurate demand forecasts
Solutions to supplier performance appraisal issues
Stakeholders jointly participate in assessment
Optimize performance indicators for supplier assessment
Award for quality suppliers
Solutions for communication and information sharing with suppliers
Optimize the procurement organizational structure
Supplier Conference
open information query system
Section 2 Strategic Procurement
The core is to establish a supply partnership with the lowest total cost
The connotation of strategic procurement: the process of planning, implementing, and controlling strategic and operational procurement decisions
Strategic Procurement Principles
Lowest total acquisition cost
Establish core capabilities for strategic procurement
Establish a win-win strategic partnership
checks and balances
Organization and implementation of strategic procurement
Four basic steps for effective strategic supplier management
Supplier classification selection
Supplier strategic relationship development
supplier negotiation
Supplier performance evaluation
Section 3 International E-Commerce
The components of e-commerce
subtopic
Classification of e-commerce
Business-to-Business (B2B)
Business-to-Consumer (B2C)
Business-to-Business-to-Consumer (Business-to-Business-to-Consumer, B2B2C)
Typical e-commerce business model
Online direct selling
Bidding mode or demand collection mode
online auction
Customization
Problems caused by international e-commerce
cultural issues
Administrative issues
Economic issues
Impact on accounting assumptions
Benefits of e-commerce to businesses
expansion of globalization
Supply chain improvements
new business model
Supplier specialization
Improve procurement efficiency
Improve customer relations
Section 4 The application of information technology in procurement and its development trends
The impact of information technology on procurement
The speed of information processing and exchange has been greatly improved
Ability to obtain more international supply market information
24/7 business activities
Achieve paperless office
Increase opportunities to save procurement costs
Strengthen information management
Application of information technology in procurement management
Inventory management system
Obtain accurate cargo warehousing information
Record the movement of goods
Convert goods picking requirements into warehouse operation tasks
Warehouse Balance and Value Assessment
Automatically issue replenishment requirements
Monitor production and usage to provide data support for demand management
By recording the true situation of damage, decay, and loss of goods, we encourage inventory managers to take corresponding warehouse management measures to ensure that the goods are in good condition.
Generate warehouse credentials
Generate warehouse management ledgers or reports
Management Information System (MIS)
Information processing, collection, storage, transmission, processing and query
Auxiliary affairs management, planning, materials, equipment, sales, etc.
Assist decision-making, measure enterprise operation, assist enterprise decision-makers in decision-making, enterprise management, enterprise's future behavior, control enterprise's future behavior, and help enterprises achieve their goals
Material Requirements Planning (MRP)
The following basic data must be available before formulating material requirements planning
master production schedule
Bill of Materials (BOM)
Inventory records
lead time
Enterprise Resource Planning (ERP)
ERP Advantages
Integrate enterprise process automation
Reduce process costs
Improve efficiency and flexibility
Data normalization
Share data and experiences company-wide
Information needed for real-time production decisions
Faster customer response and improved customer service
Promote communication and data sharing within the enterprise
Helps facilitate supply chain management and supplier relationships
Information technology development trends
Procurement Information Management System (PMIS)
Supplier management
Quality Level: Quality Management System
Supply performance: contract performance rate, delivery time
Supply capacity: material supply cycle
Price level: price advantage of similar products
After-sales service and honest management: honest management, technological improvement
Material library maintenance
Procurement process
Classification of purchasing information
Basic characteristics of purchasing information
Prospects of Procurement Information Management
SMART principle
Specific detailed
Measurable Measurable
Attainable
Relevant
Time-based