Q&A

Q.1. What is a Supply Chain Management ?

 Answer 1.
The design and management of processes
 across organizational boundaries
 with the goal of matching supply and demand
 in the most cost effective way.
“A supply chain is the network of all the activities
involved in delivering a finished product/service to the
customer
Sourcing of: raw materials, assembly, warehousing,
order entry, distribution, delivery Supply Chain
Management is the vital business function that
coordinates all of the network links
Coordinates movement of goods through supply chain
from suppliers to manufacturers to distributors
Promotes information sharing along chain like forecasts,
sales data, & promotions
Q.2.
Why so Difficult to Match
Supply and Demand?
Answer. 2. Uncertainty in demand and/or
supply
Changing customer requirements
Decreasing product life cycles
Fragmentation of supply chain ownership
Conflicting objectives in the supply chain
Conflicting objectives even within a single
firm
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3. How Supply Chain Performance Measures ?
• Answer 3:
• Cost
• Total Supply Chain Cost is the sum of all supply chain
costs for all products processed through a supply chain
during a given period
• Inventory Turnover is the ratio of the cost of goods sold to
the value of average inventory.
• Weeks of inventory is the ratio of average inventory to the
average weekly sales
• Customer Service
• Average Response Time is the sum of delays of ordering,
processing, and transportation between the time an order is
placed at a customer zone and the time the order arrives at
the customer zone
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Q. 5. Why do firms outsource ?
Answer 5. Organizations reasons
 focus on service
 Focus on core capabilities
 transform the organization
 increase the flexibility
Operational Reasons:
 Improve performance ( quality , productivity
etc..)
 Obtain expertise, skill, and technology )
 Risk Management
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Financial Reasons :-
 Transfer of assets to the outsourcing partner
 Free up resources for investment in other purposes

Cost driven reasons :-

 Transform fixed cost into variable cost .
 Reduce costs through outsourcing partner efficiencies .

Revenue Driven Reasons :-

 Expend and Grow with the help of another organization
.
 Obtain access to outsourcing partner’s network

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Q.6. What is Procurement ?
A.6. The term “procurement” refers to the
process of acquiring goods, service and civil
works. The process spans the whole cycle
from identification of needs through the end
of a services contract or the useful life of an
asset.
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Q.7. List the stages in the purchasing process
may be summarized ?
A. 7. The main stages are :-
Recognition of needs
Specification
Make –or-buy decision
Source indication
Source selection
Contracting
Contract management
Receipt, possibly inspection
Payment
Fulfillment of needs
Q. 8. Is purchasing a service activity?
A.8. Previously it was considered as service
activity however this idea has been somewhat
discredited with the recognition of its in
issues such as “make or buy” decisions or
strategic commercial relationship give the
function an strategic role
Q.9. How do we do Competitor activity ?
A.9. When attempting to develop new ideas
pressure is often place on an organization to
look at what levels of performance
competitors and other organizations are
achieving .
Q.10. How Advancing technology affects
in buying ?
A.10. Most business now specialize in
narrower range of activities and are
compelled to buy a greater proportion of their
requirements from those who have the
specialist expertise, patents, intellectual
property or design right associated with
complex or advanced technology
Q.11. How the Finite resources effects in
purchasing ?
A.11. Some natural resources have, of course,
always been finite. However increasing
recognition that their use and consumption
needs to be planned has had a profound effect
on the role of purchasing in contributing to the
planned and responsible use of these
resources whether driven by simple economic
forces or growing sense of social responsible
Q.12. what role Innovation plays in the
organization ?
A.12. The pace of change has quickly over the
years. Organization must be able to develop
new practices and products quickly and
effectively
Q.13.What it takes Innovation in the
Organization ?
A.13. The pace of change has quickly over the
years. Organization must be able to develop new
practices and products quickly and effectively
Q.14. How E-commerce involve in
procurement ?
A.14. The pace of technology progress means
that organizations must have plans in place to
handle development, and purchasing needs to
be actively involved .
Q. 16 . List the twenty –first century
perspectives for
procurement ?.r?
Q.17. Show the total
organization expenditure ?
 Q. 18 . What is Strategic
procurement?
A.18. A proactive strategic procurement
operation can give the organization in
represent a competitive advantage by reducing
waste in value chain. However purchasing
strategies can be developed isolation
Q.19. Distinction between Public Procurement and In-house
provision ?

A.19. Public procurement refers to acquisitions

of goods, works, and services from entities
outside the procurement entity itself; while;
In-house provision of goods, works and services
refers to acquisition through the government’s
own employees and organization;
Q.20. indicate key objectives of public procurement
?
A.20.
Value for money
Integrity
Accountability
Equal opportunities and treatment
for providers
Fair treatment of service providers
Public markets to international
trade; and,
Efficiency in the procurement
process
Q.21. what are the Key Principles for Implementing Procurement
Objectives ?
A.21. Transparency
publicity for contract opportunities;
publicity for the rules governing each procedure;
rule-based decision making; and
mechanism for verification and enforcement ;
Competition
best contract terms;
enhance transparency; and
regulate the functioning of the international
market;
Equal Opportunities and Treatment
bidding opportunities; and
similar treatment during and after contract award;
Q.22. What it takes to Parliament as an Oversight Institution to the
Procurement Function ?
 A.22.
 Debates and passes the Procurement Bill
 This sets the legal and institutional framework, market practices
and the integrity of the procurement function; due diligence and
thorough scrutiny is therefore required at this stage before
enacting the bill into law;
 Debates and passes the Fiscal Budgets
 Inspection of the budget against Annual Work plan Activities; Is the
planning stage supported by rational procurement plans? Are the
plans linked to the available budget?; Are all the lines of
expenditure in the plan necessary? How is the cash flow, is it
sufficient?
 Debates and passes the Financial Audit Reports
 Does the Financial Audit Reports comprehensively capture
procurement management issues? What are the audit
qualifications? Based on previous audit reports, is there need for
integrating procurement reviews with financial audits?
 Procurement Audit/Review Reports conducted by the Public
Procurement Oversight Authority are submitted to the Minister
responsible for Finance; is there need to have these reports
submitted to and discussed by Parliament for independent review?
 Are the oversight institutions adequately staffed and funded to be
able to discharge their responsibilities?
The End
Presented by: ustaad abdalla M. Hussein
Contact: 618855532