What is Procurement? (Supply Chain Basics)
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- เผยแพร่เมื่อ 28 มิ.ย. 2024
- In today’s episode, we are going to discuss “WHAT IS PROCUREMENT?” This is all part of our Learning Logistics series where we discuss the basic Supply Chain and Logistics concepts.
I covered the definition of DEMAND PLANNING in an earlier episode, so feel free to go back to that one if you need a refresher, and I also covered the definition of LOGISTICS in the beginning of the series. Both videos are liked below:
• What is Demand Plannin...
• What is Supply Plannin...
Procurement is defined as the act of obtaining goods or services, typically for business purposes. Procurement is most commonly associated with businesses because companies need to secure services or purchase goods, in order to sell a product or provide a service themselves. Procurement generally refers to the final act of purchasing but it can also include the overall procurement process which can be critically important for companies leading up to their final purchasing decision.
If you are interested in learning more about logistics and supply chain, and want to become even more knowledgeable and learn from the experts, CHECK OUT OUR COURSES: www.mvclogisticsacademy.com
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KEYWORDS: What is procurement, procurement, supply chain design, logistics videos, youtube videos about logistics, videos about supply chain, Learning Logistics show, logistics education and training, MVC Logistics Academy TH-cam channel, MarvikCo Logistics LLC.
The reason why i prefer human content over Ai content (especially the educational one) is the way of explaining things in a natural tone, likely derives from the personal understanding of the topic.yes, it feels more interactive rather than generative. I encourage you to post content like this. Great job,mam. Hats off.
Thank you so much for your thoughtful comment! 🌟 I completely understand where you're coming from. There's something special about the personal touch and natural tone of human content, isn't there? It really does make learning more interactive and relatable. I'll keep that in mind and continue to bring you content that's both informative and engaging. Thanks for the encouragement and support! 🙌
for a very short video you do pack a lot of information with clarity, well done, subscribed!
Thank you for your comment 😀
Love how you simplified it. Many thanks
Thank you, glad you enjoyed it 🙂
Great video with great examples for better understanding 👍
Thank you very much! Glad you liked it 😀
Unfortunately, in my experience, most companies seem to rest on the financial and cost saving, rather than the quality as a balance. They underpin the cost, without looking at the quality, or should I say the bean counters don’t quantify quality within it, therefore losing money further down the road, But as this is not visible in the short term, this is often overlooked
Hello there, thank you for commenting.
I do agree with you that some companies prioritize financial and cost-saving aspects over quality considerations, but to be fair not ALL companies operate in this manner. Many companies understand the importance of balancing cost and quality to achieve long-term value. They recognize that compromising on quality may result in increased costs and negative impacts on customer satisfaction, brand reputation, and overall business performance. Companies who prioritize the delivery of high-quality products or services that meet or exceed customer expectations are the ones that lead by example, even if it is a harder process for them.
Hi,
This remind me of a company I was working for in the Procurement department and we have dispatched a container containing sensetive goods which should have been packed in the containers in professional way, so instead of filling the goods in 2 containers "as per the supplier's advice", the company decided to gather all the goods all in one to save money. Then, unfortunately the goods reached the destination destroyed and we lost most of the products.😅
Saved shipping money and lost goods with millions of dollars. 🥴
As hungarian, my goal is to pass the logistic technician formation and this video course is very useful for me, thank you Prof!
Thank you so much for your kind words! 😊 I'm thrilled to hear that our video course is helping you on your journey to becoming a logistic technician. Your dedication and enthusiasm are truly inspiring! If you ever have any questions or need further assistance along the way, please don't hesitate to reach out. We're here to support you every step of the way. Keep up the fantastic work, and best of luck with your logistic technician formation! 🚀📦🌟
Thank you your party analogy clarified it for me
You're very welcome! I'm thrilled to hear that the party analogy helped clarify things for you. 🎉 Understanding concepts is a lot like orchestrating a great party - it's all about finding the right elements and bringing them together seamlessly. If you have any more questions or if there's anything else you'd like to know, feel free to ask! We're here to make learning as enjoyable and clear as possible. Happy learning! 😊🌟
Thank you for this explanation.I really found it very useful
Keep it up
You're very welcome! 😊 I'm thrilled to hear that you found the explanation useful! Your feedback means the world to us, and it's comments like yours that keep us motivated to keep creating valuable content. 🌟 We'll definitely keep it up and continue to bring you insightful explanations and helpful tips. Stay tuned for more awesome content, and if you ever have any more questions or topics you'd like us to cover, just let us know! Thank you for watching! 🚀📚
Thank you for your service that was lovely
I am so glad you liked it!
God bless you Madam
Thank you so much Professor
You are very welcome!
great video! You make procurement fun!
Thank you so much for your kind words! 🌟 I'm thrilled to hear that you enjoyed the video and found procurement fun. 😄 Making complex topics like procurement engaging and enjoyable is always my goal! If there are any other topics you'd like to see covered or if you have any questions, feel free to let me know. Your feedback means the world to us! 🚀💼
Thanks for this!!!
You bet!
Excellent video! Congrats!
Thank you so much for your kind words! 🌟 I'm thrilled to hear that you enjoyed the video. Your support means the world to us and motivates us to keep creating content that you love. Stay tuned for more exciting videos coming your way! 🎉✨
very clear explanation.
Thank you! 🙂
Thanks..very informative content !!
You're most welcome! 🌟 We're absolutely thrilled to hear that you found our content informative. Sharing knowledge is what we're all about, and knowing that it's valuable to you makes our day! 🚀💡 If you ever have more questions or specific topics you'd like us to explore, feel free to reach out. Stay tuned for more engaging and insightful content coming your way! 📚🎉
Thanks madam ur d best
Well said thank you
Thank you so much for your kind words! I'm thrilled that the explanation resonated with you. If you ever have more questions or need further clarification, don't hesitate to reach out. We're always here to help and share more insights! 😊🌟
I am a global logistics specialist for a pharmaceutical company with a couple years of domestic logistics and ocean and air import/exporting experience. I want to pursue a Master's degree in Supply Chain Management. What are some tips/advice I should use when looking for a Master's in SCM as well as making the career jump from logistics (one piece of the supply chain puzzle) to supply chain (managing the entire puzzle)?
Wow, that's fantastic to hear about your career journey and your aspiration to pursue a Master's degree in Supply Chain Management! 🌟 As someone who has experience in logistics and import/exporting, you already have a strong foundation in the supply chain world. Making the jump from managing one piece of the puzzle to overseeing the entire supply chain is an exciting step forward. Here are a few tips and advice to consider when looking for a Master's in SCM and transitioning your career:
Research the Programs: Take the time to explore various Master's programs in Supply Chain Management. Look for reputable institutions that offer comprehensive coursework, industry connections, and relevant specialization options that align with your interests and career goals.
Curriculum and Specializations: Look for programs that offer a robust curriculum covering key areas of supply chain management, such as procurement, logistics, inventory management, operations, and strategic planning. Additionally, consider if the program offers specific specializations that align with your desired focus within the supply chain field.
Industry Connections: Seek out programs that have strong industry connections and partnerships. These connections can provide valuable networking opportunities, internships, and exposure to real-world supply chain challenges. Look for programs that offer guest lectures, industry projects, or internship placements.
Alumni Network: Research the alumni network of the programs you are considering. A strong and active alumni community can provide valuable resources, mentorship, and career opportunities. Reach out to alumni and ask about their experiences and how the program helped them in their careers.
Faculty Expertise: Look into the faculty members teaching in the program. Check their industry experience, research, and publications. Professors with real-world experience can bring practical insights to the classroom and help you connect theory with industry practices.
Internship and Job Placement Support: Investigate the program's track record in terms of internship and job placements. Programs that have established relationships with companies in the supply chain field can help facilitate internships and job opportunities upon completion of the program.
Professional Certifications: Consider programs that offer the opportunity to earn relevant professional certifications alongside the Master's degree. Certifications like APICS, CSCMP, or Six Sigma can enhance your skill set and make you more marketable in the industry.
Networking and Industry Events: Engage in industry events, seminars, conferences, and webinars related to supply chain management. Networking with professionals already in the field can provide valuable insights, career advice, and potential job opportunities.
Remember, this transition is an exciting opportunity for personal and professional growth. Your experience in logistics already gives you valuable insights into the supply chain puzzle, and a Master's degree will further enhance your skills and open doors to new possibilities. Best of luck in your pursuit of a Master's in Supply Chain Management, and I'm confident you'll excel in managing the entire supply chain! If you have any more questions or need further guidance, feel free to reach out! 🎓🌍
Thanks
🙂😊 you got it!
The information was very helpful 😊
Grt video! Please do a video on SCOR model
Absolutely, thank you so much for your comment and suggestion! 🌟🎥 The SCOR model is indeed a fascinating framework for analyzing and optimizing supply chain performance. 🔄📈 It stands for Supply Chain Operations Reference and provides a structured approach to understand and improve supply chain processes.
I'll definitely consider your suggestion for a video on the SCOR model! It's a valuable topic that can benefit many looking to delve deeper into supply chain management strategies. Stay tuned for an upcoming video where we'll explore the SCOR model and its practical applications in optimizing supply chain operations. Your support means a lot, and I'm excited to bring this insightful content to our community! 🌐🚚✨
Procurement is the predecessor of SCM.
To procure=to list the materials and services needed. Ex. Quantity of materials, labor, transport, and technical services fee.
Purchasing=to buy the goods and services.
Logistics=to transport the goods.
At present, procurement is now called SCM
Hey there! 🌟 Thank you for sharing your insights on procurement and supply chain management (SCM)! You've highlighted some key aspects of the process beautifully. 💡
Indeed, procurement plays a crucial role as the precursor to SCM. It involves listing and identifying the materials and services needed, including quantities, labor, transportation, and technical services fees. Then comes purchasing, which is the actual act of buying the goods and services required. And logistics steps in to transport those goods efficiently to their destination.
As you rightly pointed out, in today's dynamic business landscape, procurement has evolved into a broader concept known as supply chain management (SCM). SCM encompasses not only procurement but also the entire journey of the product, from sourcing raw materials to delivering the final product to customers. It's about optimizing every step of the process for efficiency and effectiveness.
Your explanation beautifully captures the essence of how procurement fits into the larger picture of SCM. Thanks for sharing your knowledge with us! If you have any more insights or questions, feel free to let us know. We love engaging with our community and learning together! 🚀💼
thanks
You're welcome! 😊 We're thrilled to have you as part of our community! If you have any questions or need assistance, feel free to reach out anytime. We're here to help and support you on your journey. Have a fantastic day! 🌟
Excellent
Thank you so much 😀
I have a BA in business and do I need a Masters to work in Procurement
What is the difference between merchandising and manufacturer
Hey there! 🌟 Great question! Let's dive into the exciting worlds of merchandising and manufacturing:
Manufacturing is all about bringing products to life. It involves the actual creation or production of goods. Manufacturers take raw materials and transform them into the final products you see on the shelves. Think of it as the magic that happens behind the scenes to turn ideas into tangible items.
Merchandising, on the other hand, is more about the presentation and sale of those products. Merchandisers focus on how to effectively market and sell the manufactured goods. This includes everything from product displays, pricing strategies, and promotion to ensure those awesome products find their way into the hands of happy customers.
Let me give you an example: Imagine a company that makes super comfy T-shirts. The manufacturer is the one with the giant machines and skilled workers turning cotton into those cozy tees. Now, the merchandiser steps in to decide how to showcase those shirts in stores, online, or maybe even in a cool pop-up shop. They'll think about the pricing, maybe run some promotions, and make sure those T-shirts fly off the shelves.
So, in a nutshell, manufacturing is the creation, and merchandising is the strategy behind selling those creations. It's like a tag team working together to bring you awesome products in the most stylish and effective way possible! 🚀👕
Hope this helps! If you've got more questions or want to explore other topics, feel free to shout out. Happy learning! 😊
Why is this particular job usually something you need experience in when looking for a job? I am looking to get into procurement but I don't have specific background in it. I do have supply chain/logistics background. Every time i look for work in procurement, every company wants you to have a a few years experience. It's annoying haha!
hello there! I hear you, that sucks! It is a struggle a lot of professionals face because hiring managers are not willing to open the doors to someone with no procurement experience.
I can't tell you the magic formula for getting people to believe in your cross-functional skills, but I can give you some general advice if you're looking to gain experience in procurement before applying for jobs.
There are a few things you can try to acquire valuable procurement experience:
1) Volunteer or Intern: I know this might not be ideal for everyone, but look for opportunities to volunteer or intern in organizations that have procurement departments. Non-profit organizations, small businesses, or even local government agencies may offer such opportunities. While these positions may be unpaid or have minimal compensation, they can provide hands-on experience and allow you to learn the basics of procurement processes, so it could be worth considering.
2) Cross-Functional Collaboration: If you're currently working in a different department within your organization, seek opportunities to collaborate with the procurement team on relevant projects. Offer your assistance, express your interest in procurement, and propose ways you can contribute to procurement-related tasks. This collaboration can help you gain exposure to procurement activities and demonstrate your commitment to learning.
3) Networking and Informational Interviews: Connect with professionals already working in procurement through networking events, industry conferences, or online platforms like LinkedIn. Request informational interviews with procurement professionals to learn more about their experiences and gather advice on breaking into the field. Building relationships and seeking guidance from experienced individuals can provide valuable insights and potentially lead to job opportunities.
4) Professional Certifications: Consider obtaining professional certifications related to procurement, such as the Certified Professional in Supply Management (CPSM) or the Certified Professional in Supplier Diversity (CPSD). These certifications demonstrate your commitment to the field and can enhance your credibility when applying for procurement roles, and can make you a stronger candidate.
5) Personal Projects: Undertake personal projects that involve procurement-related tasks. For example, you could practice researching suppliers, negotiating prices, or developing procurement strategies for hypothetical scenarios. Document these projects on your resume and discuss them during job interviews to showcase your proactive approach and initiative in gaining practical experience. You will be investing your free time into these projects, but you can gain a lot in the long-run.
6) Stay Informed and Engaged: Stay updated on industry trends, best practices, and emerging technologies in procurement. Follow relevant blogs, read industry publications, and participate in online forums or discussion groups to deepen your understanding of procurement practices. This knowledge will demonstrate your enthusiasm and dedication to the field during job interviews.
I hope these help you, and remember, gaining experience in procurement may require persistence and patience. Stay determined, continue building your knowledge and skills, and be open to entry-level positions or roles that provide exposure to procurement activities. Each opportunity, no matter how small, can contribute to your overall experience and increase your chances of securing a procurement job in the future. Good luck with everything, and feel free to schedule a one-on-one call with me, at:
pensight.com/x/mvclogisticsacademy/new-meeting/cbd1d4d8-6087-4856-bd04-5c3e0325174c
@@MVCLogisticsAcademy Wow!! Thank you very much for your thoughtful reply!! Some of these, I have never thought about.
Gréât vidéo, i want tobe certified to logistics supply.
Thankfully
Thank you! We have a great course in supply chain management where you can learn all the principles of SCM and helps you find an area of further study. Www.mvclogisticsacademy.com
Thanks , cip where i can take online???
Hey there! 😄 Thank you for your comment, and I'm thrilled that you found the information helpful! When it comes to taking online courses, I've got some great news for you! Our MVC Logistics Academy offers a variety of online courses in supply chain and logistics, providing you with the knowledge and skills you need to excel in this field. You can check out our website at www.mvclogisticsacademy.com, where you'll find all the details about our courses and how to enroll. Whether you're a beginner looking to start your journey in supply chain and logistics or a professional aiming to enhance your skills, we've got you covered. If you have any further questions or need assistance, feel free to reach out. We're here to support you every step of the way. Happy learning! 🌟📚
I'm pursuing my bachelor's degree in SCTLM. I was looking to pursue my masters degree in supply chain analyst or Supply chain engineering, I would love your input. Great video and information. Thanks in advance.👍
Hello Kourtney, it’s great to hear that you are pursuing a degree in SCM! I think your best bet would depend on what experience you currently have and where you hope to see yourself in the long term. Both are good specializations, with a high job market demand at moment due to changes in supply chains stemming from COVID-related disruptions. As an analyst, you would look at all those disruptions and find ways to solve them, so if critical thinking and problem-solving is your thing, then this would be a good fit. On the flip side, engineering creates the processes and plans that are combined with the latest technology to solve those supply chain issues, and you could be at the forefront of innovation in SCM. My biggest recommendation, whatever path you choose, you are in an industry that is so extensive and diverse that you will have room to grow into your skill set and even learn and pick up new ones along the way, so never stop learning or developing your skills. Good luck with everything, and keep me posted on your journey, I love hearing about everyone’s path in supply chain and logistics. Thanks for watching!
Thank you for your feedback. I love your channel and your breakdown of these disciplines will help me make a sound decision. I'm leaning towards Supply chain analyst but I promise I will keep you posted on my journey. Thanks again for all your hard work.👍
Thank you professor. This is truly enlightening. Please how can I get in touch with you? I just got a job as a procurement officer in an organization but as a young man who's just starting to build a career, I would need a mentor like you and possibly undergo series of trainings.
Please how can I get in touch with you
Hello there! I’m glad you found it useful. Best contact is at info@mvclogisticsacademy.com
@@MVCLogisticsAcademy okay thank you. I'll check it out now
@@joboy528 great, please feel free to email me at info@mvclogisticsacademy.com
✅
thank you for the enthusiastic thumbs-up! 🎉✅ Your support means the world to us, and we're excited to keep delivering valuable content that you enjoy. If you ever have questions, suggestions, or topics you'd like us to cover, feel free to reach out. Keep shining bright and stay tuned for more amazing videos on our TH-cam channel! 🌟🚀
Hello
Hello there 👋
Thanks for this!
My pleasure!