Procurement principles come from stock management and are proceedings, as/when one orders its goods.

Supply procurement

Relatively large quantities are taken in stock.

Advantages

• At each time supply readiness
• No production interruption
• Use from price advantages (high purchased quantity = improves conditions)

Disadvantages

• High capital freeze
• High interest and storage costs
• Danger of becoming outdated and/or reduction in quality of the products

Single procurement

One orders only if a concrete order were received. (A need developed)

Advantages

• Short duration of storage
• Small capital freeze

Disadvantages

• No immediate supply and production readiness
• Not insufficient flexibly its, since bind capital

Paragraph and/or manufacturing-synchronous procurement (Just in time)

(Camp lots Sofortverwendung)

The goods are delivered as scarcely as possible before the use. The camp is limited to small safety stock amounts, which presupposes correct and quantities consumed and stock adjusted in real time. There are usually contracts over the delivery, which high conventional penalties bring during disregard of the periods with itself.

Disadvantage: If the material is missing, also the punishments use only times nothing.

See also: Stock management, procurement logistics

Articles in category "Procurement principle"

We found here 8 articles.

Related Websites

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• TEPCO : Procurement | To Valued Suppliers
  Review of our Basic Policy on Procurement. Tokyo Electric Power Company (TEPCO) Group Management Principle is "To Contribute to the building of an affluent ...