Syrian Virtual University (SUV)

Supply Chain Management (SCM)

Supplier Relationship Management (SRM)

Bassam Badran, Ph.D.

Eighth Session

Procurement
.
.
.
).(SRM
.SRM
.
).Economic Order Quantity (EOQ
.Performance Management

)(TCO
) (TCO

.

.
) :
.1 .Purchasing Price
.2 .Acquisition Costs
.
.
.3 .Usage Cost
.4 End of Life
.Cost

TCO Calculation for One Purchase Option

Cost Elements

Cost Measures
Purchase Price
Supplier quote: $1200 per PC

Software License A

Supplier quote: $300 per PC

Software License B

Supplier quote: $100 per PC

Software License C

Supplier quote: $50 per PC

Acquisition Costs

Sourcing

2 FTE @ 85K and $ 170K for 2 months

Administration

1 PO @ $150, 12 invoices @ 40 each

Usage Costs

Installation

$700 per PC (PC move, install, network)

Equipment Support

$120 per month per PC Supplier quote

Network Support

$100 per month supplier quote

Warranty

$120 per PC for a 3-year warranty

Opportunity cost - lost

Productivity

Downtime 15 hours per PC /year @ $30/hour

End of Life

Salvage Value

$36 per PC

(( )TCO)

Equipment

Procurement
:Procurement )(
) (TCO
.
Purchasing Procurement
(1 expediting
(2 (3
.

.
.

Procurement


.
.



) (
) (.

( )Procurement
Direct procurement and indirect procurement
TYPES

FEATURES

Direct procurement

Indirect procurement

Raw material and

production goods

MOR supplies

Capital goods
and services

Quantity

Large

Low

Low

Frequency

High

Relatively high

Low

Value

Industry specific

Low

High

Nature

Operational

Tactical

Strategic

Examples

Crude oil in petroleum

industry

Lubricants, spare parts

Machinery,
computers

Procurement
.1 .
.
.
.2 .
) request for quotation (RFQ
) request for proposals (RFP
) request for information (RFI
). request for tender (RFT
:
.
:

.

Procurement
:
.
:
.
.3 .
.
.4 .
.
.

10

Procurement
.5 .

.
.6 .
.
.7 .
.

11

Key Performance Indicators

Procurement
:
.1 .
.
.
.2 .

.
.

12

Key Performance Indicators

Procurement
.3 .
.
.4 .

.
.
.5 .ROI )
(
.

13

Key Performance Indicators

Procurement
.6 .
.
.7 .
)
(.
.8 .
.

14

Key Performance Indicators

Procurement
.9 .

.
.10 .

.

15

Negotiation

. :
.
.
) ( .

.

.
.
)
(.

16

Negotiation

.
.
)
(.
.
.
.
.

.
.
.

17

Negotiation

.

.

.
.

18

Procurement
.
.
.

).(SRM
.SRM
.
).Economic Order Quantity (EOQ
.Performance Management

19

SRM


.
:

.
.
.
.

) ( .

20

21

SRM
.1 .
.

.
:
o .
o .
.2 Governance .

.

.

.

22

Governance

SRM

23

SRM
.3 . Material Management


.


.
.4 .
.
:
.
Service Level
.Agreement SLA

.
.

24

SRM SRM
.
:
.
.SRDM
.
: )(
.
.
Supplier Relationship Data Management
) (1 .(SRDM
(2
.

25

Procurement
.
.
.
).(SRM
.SRM
.

).Economic Order Quantity (EOQ

.Performance Management

26

)(EOQ

.Stock Out
.
.EOQ
3.1 .
:
.
) .(3.2
.

) .(3.3

27

28

29

)(EOQ
: (UC) Unit Cost
(RC) Reorder Cost .(HC) Holding Cost
: Q T .D

.1 .stock cycle
.2 .
.3 .

30

) ( = ) (
Q=D*T

= + + .
)TC = UC + RC + HC (One stock Cycle

31

32

33

(EOQ)

Qo

2 RC D
HC

Qo HC
RC
2 D
2

34

Procurement
.
.
.
).(SRM
.SRM
.
).Economic Order Quantity (EOQ

.Performance Management

35

.
).Key Performance Indicators (KPI


Critical Success factors
).(CSF

:

36

)( :
.Purchasing
.Inbound transp.
.Packaging
.Inventory Management
.Warehousing
.Manufacturing
.
.Order Processing
Outbound

.transp.

)( :
.
.
.
.
.

37

.1 )(.
.1.1 .
.2.1 .
order-to-delivery
.
.3.1 . .

.

38

.2 )(.
.1.2 .

.
.2.2 .
.
.3.2 .
.

39

.3 )(.
.1.3 .
.2.3 .
.3.3 .
.4.3 .

40

.4 .
.1.4 . (1 (2
(3 ) economies of scope
( (4 .
.2.4 .
.3.4 .

41

.5
.
.1.5 .
.2.5 .