Non Product Related Procurement
Procurement is the acquisition of goods and/or services at the best possible total cost of ownership, in the right quantity and quality, at the right time, in the right place and from the right source for the direct benefit or use of corporations or individuals, generally via a contract.
Simple procurement may involve nothing more than repeat purchasing. Complex procurement could involve finding long-term partners – or even 'co-destiny' suppliers that might fundamentally join one organization to another.
Procurement activities are often split into two distinct categories, based on the consumption purposes of the acquired goods and services:
· Direct Procurement occurs in the manufacturing settings only. It encompasses all items that are part of finished products, such as raw material, components and parts. Direct procurement, which is the focus in supply chain management, directly affects the production process of manufacturing firms.
· Indirect Procurement activities (also called Non-Product Related Procurement), concern “operating resources” that a company purchases to enable its business. It’s comprised of a wide variety of goods and services, from standardized low value items (such as office supplies and machine lubricants) to complex and costly products and services (like heavy equipment and consulting services).
Simacon specializes on Non-Product Related Procurement with extensive experience in the following areas:
• Fleet (company cars)
• Facilities (mailroom, postage, reception, security, catering)
• Office supplies and equipment
• Packaging
• Temporary labor, recruitment
• Insurance
• IS&T and telecom
• Consulting
• Energy
• Waste
The Simacon Team will structure a service program tailored especially for your organization to provide non-product related purchasing management:
• Regular Management – Hands-on management on a monthly basis
• Interim Management - The full-time purchasing manager is absent long-term for any reason, such as sick leave or maternity
• Assistance Management - where volumes of work necessitate additional resources to assist the full-time purchasing manager
• Project Management - running specific projects at any stage from conception to ongoing service fulfillment
The Simacon Team provides the following consultancy measures and services with relations to non-product related purchasing management:
• SWOT and Gap Analysis of existing programs
• Tender process, including total project management or qualified guidance
• Travel supplier contract negotiation - e.g. office supplies or catering
• Change management
• Process improvement
• Policy development
• Bench marking
• Surveys
• Development of Management Information
• Selection and implementation of E-technology solutions
