Sin Han T.’s Post

I've been thinking those terms are same, now finally i know the difference between procurement, purchasing & sourcing from this summary post

Procurement, Purchasing, and Sourcing The confusion between these terms arises for several reasons: ✔ Overlap of Functions: The functions of procurement, purchasing, and sourcing overlap, and in smaller organizations, the same individuals or departments may handle all of these functions. This can lead to the blurring of distinctions. ✔ Evolution of Roles: The roles and responsibilities within organizations have evolved, and what was traditionally considered part of one function may now be part of another. This can further confuse the terminology. ✔ Varied Interpretations: Different organizations may interpret these terms differently, leading to inconsistencies in usage. ✔ Lack of Clear Definitions: While there are clear distinctions between these terms in theory, in practice, there may be a lack of standardized definitions, leading to ambiguity. ✔ Inconsistent Job Titles: Job titles in the supply chain field can be inconsistent. For instance, a "procurement manager" in one company might perform roles more closely related to sourcing in another, confusing when comparing positions between organizations. ✔ What else ? ? ? ? ✔ What else ? ? ? ? 📌 To minimize confusion, it's crucial for organizations to provide clear definitions, communicate effectively, and ensure that employees have access to training and resources that clarify the roles and responsibilities associated with these functions P.S. - What led you to confusion in your early career or for someone even now, and what are your thoughts on this? #procurement #purchasing #sourcingandprocurement

Purchasing or Procurement role changed dramatically from being tactical function that procure needed goods and services with the least cost to a strategic function that supports the overall firm's competitiveness with securing supply chain from disruptions and providing massive support in quality and cost. Let's explore those functions: • Strategic functions:    • Identifying and researching strategic partners    • Assembling and managing the sourcing risk portfolio    • Developing certification standards and supplier improvement programs    • Conducting make-versus-buy analyses    • Negotiating long-term contracts    • Adding value to products by managing supplier and strategic sourcing relationships    • Serving on cross-functional teams to integrate workflows and share data    • Enforcing compliance with sourcing contracts and related supplier policies    • Analyzing purchasing data to report impact on corporate goals and to identify areas for improvement. • Tactical tasks:    • Managing supply (planning and procuring supplies based on the master production schedule, auditing present needs on the manufacturing floor, releasing work orders, creating purchasing planning schedules)    • Issuing purchase orders    • Tracking orders    • Resolving discrepancies or exceptions in orders or accounts    • Monitoring the performance of suppliers and issuing reports on timeliness, completion, policy compliance, and quality of work. Think Supply Chain #stopbombinggaza #freepalestine #israeliterrorism #stopbombinghospitals #stopbombingcivilians

Deeper details into procurement functions

Procurement vs Purchasing!! what's the big deal? I recall my early days as a buyer when some of my senior colleagues would tease and taunt us on the difference between these 2 terms. We didn't get it then. But as i grew in the industry it dawned on me that you can't be in procurement without the skills of purchasing. In marketing terms, purchasing could be likened to closing a sale, which is great especially if it was achieved at a "good cost". But procurement has to deal with strategic sustainability of setting a deal in motion such that it can withstand most adverse economic changes and continue to deliver on its value for the organization in part and the broader ecosystem of the transaction which includes other stakeholders, direct and indirect. Procurement considers not just the relative cost but the TCO related to the product (goods or services) especially if it can be optimized to deliver the service based on certain benchmarks and indicators. Procurement as a science requires analytic study and understanding of immediate or potential needs such that strategies in line with ethical policies and processes are developed and implemented with a view to achieving a win-win sustainable collaboration along the supply chain. I am innately proud of my career especially considering that i come from a long line of "traders" whose ability to analytically source, negotiate, supply goods/services and manage vendors is alarming. My father taught me well, like his father before him. Now i have taken my craft to the world stage and look to keep evolving and sharing my knowledge.

😊 Wishing everyone a very happy week! ✨ As the saying goes, "Idle hands are the devil's workshop," so I've been busy creating this guide to simplify the entire procurement journey. New guide: "Procurement Processes from A to Z!" 📚✨ 📚 In this guide, I've outlined the steps I personally followed in my latest work experience, covering: 🔍 Supplier Identification & Selection 💼 RFQ Process 💲 Cost Analysis & Quality Assessment 🤝 Supplier Relationship Management 📦 Inventory & Logistics Management 🔄 Continuous Improvement Strategies I know it’s not perfect, and there are areas for improvement. I hope to refine these further in my next experience and share those insights with you. 🌱 I hope this resource helps you streamline your procurement operations and build strong supplier relationships. 💪🤗 Warm regards, Aslan :)

🌟 Are you a procurement professional in a make-to-order industry? 🌟 In the dynamic realm of make-to-order manufacturing, successful procurement hinges on a unique set of skills and knowledge. Here are some key essentials for excelling in this space: - Adaptability: The ability to adapt to changing market conditions, fluctuating demand, and evolving BOM is paramount. Procurement professionals must stay agile and responsive to keep pace with industry shifts. - Strategic Thinking: Understanding the intricate balance between demand forecasts, lead times, and supplier capabilities is crucial. Procurement professionals must think strategically to ensure timely access to materials without overstocking or understocking. - Supplier Relationship Management: Building strong partnerships with suppliers is vital in make-to-order industries. Effective communication, negotiation skills, and a collaborative mindset are essential for fostering mutually beneficial relationships. - Supply Chain Optimization: A deep understanding of supply chain dynamics is imperative. Procurement professionals need to optimize logistics, minimize costs, and mitigate risks to ensure seamless production flows. - Attention to Detail: Precision is key when procuring materials for make-to-order manufacturing. Even the smallest oversight can disrupt production schedules or compromise product quality, emphasizing the importance of meticulous attention to detail. Embracing these qualities and honing these skills can empower procurement professionals to navigate the complexities of make-to-order manufacturing successfully. If you are working in similar industries, comment below what other skills/ attributes are needed. #Procurement #SupplyChain #MakeToOrder #Manufacturing #Skills #ProfessionalDevelopment

Are you a purchasing manager of a large company looking to weigh the pros and cons of your role? Let's break it down for you: Advantages: 1. Strategic influence: As a purchasing manager, you play a crucial role in shaping the direction of the company's procurement activities and influencing business decisions. 2. Cost savings: Your ability to negotiate favorable terms and prices with suppliers can lead to significant cost savings for the company. 3. Supplier relationships: Building and maintaining strong relationships with suppliers can ensure a reliable and efficient supply chain. 4. Process efficiency: By streamlining procurement processes, you can improve overall efficiency and productivity within the organization. 5. Professional growth: Managing the procurement function of a large company can provide valuable experience and opportunities for growth in your career. Ultimately, being a purchasing manager in a large company comes with its own set of advantages and disadvantages. By understanding and navigating these factors effectively, you can excel in your role and drive value for your organization. #PurchasingManager #Procurement #SupplyChainManagement

When you enter the professional world, you always want to find a domain where you can make an impact as an expert, when I entered the corporate sector as a Customer Care Executive, I never imagined that I would be part of an industry that impacts every single household on this planet, i.e. the Supply Chain Industry. I didn't know much about procurement and sourcing, but after spending about 8 years in the industry, I see myself growing to a different level. I would like to contribute with my knowledge and experience! Here is a quick difference between Sourcing and Procurement. #supplychainmanagement #sourcing #procurement #contracting #supplierrelationshipmanagement #consultant