Thischapter discusses sourcing strategies. It starts with an introductory case study considering the logistics coordination concept of a global car manufacturer. First, the roles of purchasing, procurement, and sourcing in supply chain and operations management are elaborated. The basic elements of a sourcing process are defined. Next, the issues of make-or-buy versus outsourcing, as well as organizational issues in sourcing are discussed. Subsequently, sourcing strategies are classified according to the number of suppliers, geographical supplier distribution, and sourcing principles. The methods of spend analysis and supplier selection are presented. Basic elements of the supplier relationship management (SRM) are classified. All proposed concepts are further illuminated by examples such as the sourcing strategy of a global electronics company and the just-in-time strategy in the automotive industry. Additional case studies, Excel templates, tasks and video streams as part of an E-supplement enrich this chapter.
We hold ourselves and our suppliers to the highest standard when it comes to human rights, labour rights, environmental protections, and responsible business practices in our procurement of goods and services.
When the OPCW wants to obtain goods or services it must follow certain procurement procedures and requests bidders to follow specific instructions. The General Instructions to Bidders can be reviewed here.
The Specifications clearly state which requirements are mandatory and which are desirable. The evaluation criteria that the OPCW will use to choose the winner (such as past experience, product performance, proposed implementation plan, etc.) and the relative weighting are set out in the solicitation package.
The OPCW has a strict policy against fraud, corruption or related forms of misconduct with respect to its officials. In carrying out its activities, OPCW officials shall adhere to the highest standards of efficiency, competence, integrity, fairness and transparency required from international civil servants. The solicitation or acceptance of any gratuity, gift, favour, entertainment, loan, remuneration, economic benefit or anything of value from anyone who conducts business with the OPCW is strictly prohibited. OPCW officials are expected to separate strictly the performance of official duties from private affairs in order to avoid any real, potential or apparent conflict of interest. Additionally, any official who deals in his or her official capacity with any matter involving a business concern in which he or she holds a financial interest shall at once disclose the nature and extent of that interest to the Director-General. The OPCW acts in compliance with general principles of sound financial and risk management.
Vendors that desire to do business or are already doing business with the OPCW are required to accept and comply with the most current version of the UN Supplier Code of Conduct and any other ethical requirements as may be set forth in the OPCW solicitation and/or contractual documents. Failure to comply with the UN Supplier Code of Conduct may result in a vendor being classified as ineligible for the supply of goods and/or services to the OPCW.
Every solicitation is unique, so read the entire document very carefully. Ensure that you understand the scope, deliverables, eligibility requirements and the evaluation criteria as well as how the responses will be scored to determine the successful bidder.
If you have a question or require clarification, you may only contact the designated person noted in the procurement document. Questions must be asked within a specified number of days before the closing date, so be sure to ask them with plenty of time.
Mandatory eligibility requirements are evaluated objectively on a simple pass/fail basis. You need to have met all mandatory eligibility requirements for a bid to be considered compliant, and only compliant bids are evaluated further. Address every mandatory requirement directly by providing the evidence to show that you meet the requirement. Non-compliant responses are typically the result of failure to meet the mandatory eligibility requirements.
Provide a detailed response to the specific evaluation requirements. It is your chance to show that you understand the scope and how your solution differentiates from the competition. It is also where you would describe what and how you would do the work if you were awarded the contract.
Read the procurement document and respond in the exact terms requested. The OPCW might know what you intended to say, and may know that you have the capability in question, but it will be forced to reject your response if you have not provided the details that were asked for in the procurement document. The OPCW cannot make assumptions about your proposal. It can only evaluate the information you provide.
Offers are evaluated by two segregated teams. The technical team evaluates the mandatory technical requirements and scores each offer against the evaluation criteria set out in the solicitation package. The procurement team evaluates the offer commercially and determines the commercial score by comparison to the lowest price offer. These two scores are combined to establish the highest score and the winning bidder
The OPCW is seeking to identify a qualified institution for the provision of Analytical Skills Development Courses over the period of three (3) years. Centres of research excellence, with up-to-date laboratory facilities and vast experience in analytical techniques of CWC related chemicals, which are interested to submit their proposal should contact Procurement to receive bidding documents and instructions. When contacting Procurement Office, the reference ITB-ICB-310873-Analytical Skills Development Courses shall be used.
The OPCW is seeking to identify a qualified company able to supply an External Facility Assistant to the OPCW, to support the office of Facility Management Services on an ongoing basis. An initial contract for the period of three (3) years will be offered to a winning bidder, with a possibility of further extension for the additional period of two (2) years, subject to satisfactory performance and availability of funds.
Companies interested to submit their proposal should contact Procurement to receive related documents and instructions on how to submit a proposal. When contacting Procurement Office, the reference RFP-310923- Provision of an External Facility Assistant shall be used.
Therefore, based on the above definition, procurement is a complex process and purchasing is just one of the steps in the procurement process, which includes planning, determining the product, value analysis, and price negotiation. The ultimate goal of procurement is to acquire a product that is not only successful but also meaningful and profitable.
This is one of the more fascinating and complex processes within a supply chain that has many branches of specialisms within its own right, all of which must ultimately lead to the procuring of a product, that reflects what the company stands for, and how it determines the consequential stages of your supply chain.
Whether you are a student, a practitioner of procurement, or simply interested in the topic, these books will help you develop a solid foundation and better understand the concepts to be your own boss.
Why we recommend: This book is divided into three parts that cover the objectives of procurement, issues that can arise, and different types of applications, making it easy to navigate and zero in on the chapters you need. It is very easy to read and understand and since it has been updated and re-published over a period of over 50 years, to say the authors understand how procurement and supply chain has evolved and changed and use that knowledge to better explain methods and practices is an understatement. This strategic procurement book offers a wealth of knowledge as well and an understanding that all will benefit from.
Why we recommend: The first chapter alone is worth the read, as it covers key terms such as finance, understanding procurement, and time of performance, all from a procurement perspective.
This chapter sets you up for success by providing a solid foundation of knowledge that you can apply almost immediately in the real world. The easy-to-read approach makes this book accessible for newcomers to the field, while the in-depth knowledge provides valuable insights for professional practitioners.
The book starts with a comprehensive history of the subject before diving into the mechanics and principles of how to conduct spend analysis. The inclusion of case studies really helps to put the concepts into perspective and provides valuable insight into real-world applications.
This comprehensive guide is titled exactly as intended, covering all you need to know about supplier evaluation. It provides a solid foundation for building a supplier performance management program by offering an exhaustive set of metrics and guidelines. The step-by-step approach and easy-to-read content make it highly recommended. Consider adding this procurement book to your collection of procurement-related titles to help you manage and measure supplier performance for the success of your organization.
This procurement book will help you develop your negotiation skills with ease and efficiency, building your confidence in the process. It is a must-read for anyone looking to improve their negotiation skills and achieve better results in their procurement activities.
This procurement book will help you develop your negotiation skills with ease and efficiency, building your confidence in the process. Just like the book before, it is a must-read for anyone looking to improve their negotiation skills and achieve better results in their procurement activities.
It offers practical advice on how to avoid making embarrassing mistakes, minimize needless waste, and make sound and strategic procurement decisions for your next initiative. Whether you are a seasoned professional or just starting out, the insights and examples provided in this book will help you to become a more effective and successful procurement manager.
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