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1. Md. Asheque Kamal 2. Md. Shafiqul Islam
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We have seen the evolution of domestic and international procurement initiatives on direct materials. In support of this goal the following principles apply to the whole OrasInvest community and subsidiaries: • • • In procurement terms OrasInvest acts as one company. Lower cost Enhance flexibility & agility Improve customer service Optimize the value chain. we thought it would be interesting to know about their practices and their strategies which they apply in their day to day activities in controlling the supply chain and also planning for the future demand and supply to reach the goals in time. Greater efficiency.3 Procurement in orasinvest Ltd Procurement as a function in OrasInvest has gone through huge change over the past 5 years. The roles and activities of supply chain management function.2 Objectives of the report: After completing the analysis we will able to understand the following factors under the supply chain department of Orasinvest (BD) ltd. There is now recognition by the Board and Senior Management of the significant contribution that Procurement can (and must) make in delivering smart cost management across the business. we chose to concentrate our study on Orasinvest (BD) Ltd. within OrasInvest and across our supplier base. Decisions are influenced by the total cost of ownership. We will think and act globally and resolve domestic issues locally Page 2 of 9 . not just price. The procurement decisions we make are taken in the best interests of OrasInvest as a whole. and indirect material. 1. by using the defined common processes and platforms.Introduction : For supply chain management. 1. Since Orasinvest (BD) ltd is one of the leading service provider companies in the telecommunication business which is efficiently broadening the horizon. • • • • .
5 Strategy OrasInvest’s Procurement strategy is fully aligned with the corporate strategy of. Responsibility Supplier Management To manage risk. Our strategy is to work with suppliers. common platforms. 1. processes. by which we mean.e. 1. as a Strategic Sourcing process. security of supply. growth. The achievement of this aim will be through. whenever possible. regionally or globally). To evaluate suppliers’ business standards and performance. and use of the benchmarking method to drive continuous improvement program with suppliers. against OrasInvest requirements. integrity and quality. Our target is 100% spend coverage with 100% compliance to best leverage not only scale but appropriate management and use of resources. fast and responsive supply chain for speed to market and the development of new suppliers. Process & Policy to deliver maximum value on a sustainable basis. product stewardship i.• • We will deliver absolute compliance to our strategies.4 Vision & Mission The vision for Procurement is: Procurement. These are people defined as practitioners of OrasInvest procurement process and corporate standards. The standards we expect from our suppliers are consistent with our corporate and social responsibility strategy and reporting. To ensure that all spend in OrasInvest (excluding salaries) has been through our Procurement process regardless of where it is negotiated (locally. to a high level of competency. as shown below: Corporate Growth Procurement Innovation Strategy To provide integration of suppliers into innovations processes by application of the strategic sourcing process with a focus on securing. Ensure we have the right Procurement professionals at all levels. agreements and policy. • benchmarking procurement skills and behaviors for recruitment Productivity Smart cost management Winning organization Professional Procurement people Page 3 of 9 . where required. responsibility and winning organization. will be responsible for releasing value of spend and building sustainable competitive advantage through the integration with suppliers and internal collaboration. The mission for Procurement is: To deploy leading edge Procurement People. To have our function staffed by professional procurement people. responsibility in supply chain management. who are of the scale that delivers in built contingency and if not then back up suppliers will be identified and approved. productivity. These include quality. and working with ethical and responsible suppliers.
Clear succession planning for key procurement roles. specifying quantities. sales record. by having all procurement reporting through procurement heads and managers to procurement director at the HQ. (b) Supplier registration system OrasInvest procures Materials from registered suppliers. Preliminary Procedure (a) Application Suppliers interested in entering into business relations with OrasInvest are to contact the Purchasing and Materials Department. production system. Therefore companies wishing to do business with OrasInvest are required to register following a procedure. dates and place of delivery of the Materials to the Purchasing and Materials Department. and submit documents such as company profile. (b) Selection of a supplier qualified to submit a quotation OrasInvest procures materials. a specific supplier is selected to submit a quotation. and technical requirements such as technical skill. It then starts its procurement procedures. An effective career development program allowing interchange between different line of businesses of procurement people. training at proficient and mastery levels in OrasInvest procurement process. and rotation among subsidiaries. products brochure and technical information. however. Procurement Procedures: OrasInvest’s Procurement covers all aspects of the procurement cycle. In some specific cases. after-sales service system and delivery system. in principle. including the selection of the supplier.2 Final Procedure (a) Request for procurement Request for procurement is first made by the department requiring the procurement. contract negotiations. • 2. quality control system. education of OrasInvest procurement process. OrasInvest is to survey the submitted forms of application and accompanying materials and to make an evaluation if requirements are complied with: management requirements such as operation scale and financial condition.• • • selection of procurement specialists and development of current incumbents. so that an outline of range of products. through competitive quotations among the suppliers it selects from the list of registered suppliers. Furthermore.1. order placement and payment 2. where the Material is to be manufactured under a particular patent or where strict compatibility with existing facilities is required. OrasInvest makes Procurement Information on the main procurement items specifying Page 4 of 9 . sales points and price is well presented. OrasInvest also considers in the process the applicant's degree of co-existence with the local community and the quantity of orders within the community in comparison with that of OrasInvest. 2.
In addition. The total estimated value is not exceeding US$ 25.000.quantities and delivery dates. Page 5 of 9 . The technical department of YONDEN requiring Materials examines whether submitted specifications for quotation meet the specifications requested by OrasInvest. the price may be only one of other considerations in award of the contract. Next. OrasInvest shows specifications for purchasing Materials defining the contracting terms and conditions. Depending upon the complexity of the requirement and the value of the commodity to be procured. uncomplicated goods and services of standard and firm specifications (“off-the-shelf” items). They must be approved by this department.000 • ITB – Invitation to Bid Is issued for the procurement of goods and services of standard and firm specifications (“offthe-shelf” items) of a total estimated value in excess of US$ 25. The evaluation is based on price and price related factors. This system is that suppliers propose another method for lowering procurement costs without losing functions requested originally. The supplier approved the proposal is selected as the priority supplier qualified to request for quotation by OrasInvest. (c) Submission and examination of specifications for quotation At first. and the specifications requested by OrasInvest. • RFP – Request for Proposal Is issued for the procurement of goods and services where the technical specifications or characteristics cannot be precisely determined. OrasInvest encourages the alternative quotation of “VE Proposal” in order to promote lowering procurement costs. the solicitation is issued as a Request for Quotation (RFQ) or as an Invitation to Bid (ITB) or as a Request for Proposal (RFP): • RFQ – Request for Quotation Is issued for the procurement of simple. OrasInvest asks suppliers to submit specifications for quotation according to specifications for purchase. The evaluation of offers is based on price and other price related factors. or are of a complicated / specialized technical nature which requires significant input form the supplier. By evaluating the proposals.
are designed to save both time and money Page 6 of 9 . however. Payment is made. (f) Conclusion of contract When the negotiation is finalized.(d) Integrated SCM application using ORACLE. a contract in a form called purchased order prescribed by OrasInvest is drawn up. These processes. (h) Other terms OrasInvest does not disclose to the third party any confidential information gained during the course of transaction without prior consent of the supplier. The risks for a company without proper procurement procedures are overspending. OrasInvest may claim damages if Materials are delivered after the due date. to meet quality standards and to ensure timeliness of delivery. Another common procurement procedure is to create a short list of pre-approved vendors for specific commodities. The supplier is required to do the same.. Vendors are added to the list through a bidding process that is conducted on a scheduled basis. Many people who do not have any accounting or procurement training resent the steps involved in a purchasing request. the failure to achieve good value and purchasing fraud. This process is designed to be transparent and to provide the firm an opportunity to obtain discounts in price. in principle. inspection and payment OrasInvest inspects Materials delivered to confirm that they meet the requirements of OrasInvest. (g) Delivery. as per payment terms.
Whether the procurement policy involves the establishment of construction procurement procedures. delivery dates. Typically. objectivity. • In applying this principle. and even review any procurement contracts that are currently in place. These areas include bid tendering. Orasinvest an electronic procurement firm will have a complete software package that the firm will operate and manage on behalf of the client. or proposed Page 7 of 9 . auction management. a solid policy will benefit the organization by keeping costs in line and clearly defining how purchases will be made.Procurement Services: • • The purpose of a procurement service or department is the same. the Company will seek to preserve the highest standards of integrity. a procurement contract includes business provisions. 4. the chief procurement officer usually provides overall leadership to the purchasing team and ensures that procurement policies and procedures are followed. and other legal terms and conditions applicable to the transaction. and quality for the organization. Contracted service firms that offer procurement solutions are typically focused on providing expertise in the traditional procurement services. courtesy and professionalism and will look to suppliers to set similar standards. Programs of this type also make it possible to quickly track order fulfillment. to obtain the best possible combination of price. compare their services with those of their competitors. 5. Generally. or governs purchases made by a manufacturer or a charity.Procurement Contracts: Most procurement contracts are written agreements that specify each party’s obligations in relation to the transaction.Ethical Code • In all dealings with suppliers and potential suppliers. payment information. efficiency. and negotiate the best possible terms. Purchasing agents and managers often have the authority to enter into procurement contracts with vendors. requests for proposal review. detailed price lists. he also is constantly in search of better quality products and better prices. and contract negotiations. Most procurement services focus on a specific aspect of procurement. This department is responsible for finding prospective vendors that can provide the services needed. those purchasing on behalf of the Company should follow the guidance set out below: o Declaration of Interest: There is a general duty to disclose at the earliest possible stage any financial or other interest that the person may have in any transaction. as long as the contracts meet with company standards and regulations 6.Procurement Policies: • • Whether at a small company or a large one. fairness. service.3.
mugs or calendars. prevents the effective operation of fair competition should be avoided. in the long term. 6. between the Company and a third party. Concussion Supply chain management ensures the movement of right product with a smarter. The disclosure of such interest should be made in writing to the Company Secretary. o Inducement: No person acting on behalf of the Company may accept any inducement from any supplier or potential supplier or their agents. faster and efficient way to the right customer and the right time. any arrangement which. distribution strategy. o Confidentiality and Accuracy of Information: The confidentiality or information received in the course of purchasing and procurement transactions should be respected and should never be used for personal gain. o Competition: While bearing in mind the advantages to the Company of maintaining a continuing relationship with a Supplier. Page 8 of 9 .Under the supply chain management. However. place and price. other than items of very small intrinsic value such as business diaries. o Hospitality: Modest hospitality is an accepted courtesy of a business relationship. information given in the course of duty should be true and fair and never designed to mislead. etc.transaction. the recipient should not allow him/herself to reach a position whereby he/she might be deemed by others to have been influenced in making a business decision as a consequence of accepting such hospitality. one has to focus on distribution network. should not be accepted. building a competitive environment and synchronizing supply with demand . o Business Gifts: Business gifts. The main objective of supply chain management is to create net value. information and inventory management.
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