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logisticandchainsupplymanagemant.doc

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FinalPre-sessionalproject2011 AnintroductiontoprocurementinLogisticsandSupplyChainManagement GROUP:FAL NAME:ZHAOHUIYANG ENGLISHNAME:Charles STUDENTNUMBER:21044677 AnintroductiontoprocurementinLogisticsandSupplyChainManagement Inthemodernsocietyweuseconsumabletosatisfyourbasicdailyneeds.Theconsumablehavetodelivertotheconsumers.Andlogisticswhichdescribethewaythatmaterialsmoveintoanorganizationfromsuppliersisplayanincreasinglyimportantroleinthesociety.(whatislogistics?)Therearemanystepsinlogisticsincludeprocurementinventory,distribution,transportation.Procurementisthefunctionforbuyingallthethingsneededbyanorganizationwhichisregardedasthefirstandthemostimportantstep.Thisprojectwilldescribeprocurementfromwhyprocurementisessentialinlogisticandsupplychainmanagement,findtherightsupplierande-procurementthisthreeaspects. Firstly,procurementisplayinganessentialroleinthelogisticandsupplychainmanagement.Procurementisthefirststepforanorganization.Procurementisanactivityofaccesstomaterialsandequipmentstooperateandmanageanenterprise.Itisanessentialwaytogetexternalresource.Procurementisnotonlypurchasebutalsopassmessagesbackwardstotellwhatcustomerswant,anditalsopassesinformationforwardtodescribewhatsuppliershaveavailable.ForexampleCoca-Cola(Deogun1999)foundcontaminationinaBelgianbottlingplant.Thisisbecausethequalitylapsesattheplantthatletpollutioncarbondioxidetoenterfinalproducts.AnditcostmuchmoneyforCoca-Colatopayforthosewhogotnotwellafterdrinkingit.IfProcurementdoestheirbesttogetabetterbottlingplantCoca-Colawouldsavelotofmoney.Whatismoreacompanywantstogetmorebenefitstheyshouldcontroltheircostanddecreasethefeeofprocurementundertheycangetequalqualitymaterials.SurveysintheUSA(Blanchard2006)suggestthathalfofthecostofgoodsinatypicalmanufacturerisspentonmaterial.Supposethatacompanybuysrawmaterialsfor$80spends$60onoperationsandthensellstheproductfor$160.Itmakestrulyprofitof160-(80+60)=$20.Andifprocurementcanget5%decreaseoftheprevious,thecompanywillgetmore$7earningofeac