Procurement and Inventory Analysis Series - Procurement Strategies

Procurement  Strategies

Take a look at stuffs around you. Have you ever wondered how to make that stuff? Or at least, how to get the material to create that stuff? In Business & Management perspective it's called Procurement. And just like sports, if we want to get a good result. We need a strategy. A Procurement Strategies.*

What is Procurement Strategy anyway? According to British Government (Since this blog post is written in English, so it must be true) Procurement Strategy describes the contribution that effective procurement will make to fulfil the Council’s aims and objectives.  The definition of procurement in this context is not only limited to purchasing – it can have a wider meaning and can address the ways in which the Council can deliver its services – from providing the service in-house to joint commissioning and outsourcing.

Different company, different business process. Each company has made their own business process that suitable for them. A business process could works really well with a fine amount of good planning. Another thing that is important in a company is the implementation. How the company implement those business process into real work.

We can't separate implementation in a business process with another important role which is producer, supplier, and consumer. If those three role do a good job in cooperating witch each other, the company main goal to get maximum amount of profit will be much easier.

Investigation Begins

In the first part, we are questioning our ability to improve Bakso Solo Bu Umi business. Now let's see what can we do about their procurement method. 

We conduct an investigation to Bakso Solo Bu Umi about how they procure their raw material especially meat. We make an interview with the manager and what we have found is they had some problem in meat procurement. That problem will affect the company's inventory. So, with our knowledge in Supply Chain Management we want to propose some solution to solve the company's problem.

1. What threat and factor that are Bakso Solo Bu Umi that will affect their procurement strategies?

2. How are we going to solve that problem, generally?

3. We are an IT student, how can we implement our knowledge to solve that problem?

If we didn't makes a limitation, we probably ended up creating a full scale Enterprise solution with multi billion budget. But fear not, we are going to limit our solutions towards every problems.  We are trying to get our best solution toward procurement problems. 

What is it for us?

Deep inside, we are all stingy people. Most of the time we are doing something that will benefit us. So, what kind of benefit that we will get from this research?

1. Academic Perspective. Since we're learning Supply Chain Management course. This is a chance to prove ourself that we have a good understanding of what Procurement & Inventory startegy is. 

2. Practical Benefit. We hope that our solution will be an insightful knowledge for Bu Umi.

3. Free Meal. A bowl of Meatballs would nice.  

Resources.

Our primary research data is taken mostly from observation and an interview with the Manajer. While our secondary data is taken from academic resources such as books, lecture material, and internet.