PROCUREMENT

PROCUREMENT 

Summary Of Procurement in Logistics 

Nama : Hanna Tansia Sugiharto
NIM  : 224416142
Class : S1 MLM- D'16 

  I.      INTRODUCTION

Logistics procurement is the first operational function in logistics management. This function essentially consists of activities to provide logistics in accordance with needs, both by calculating the type and specification, amount, time or place, with prices and sources that can be justified

II.      Ways to Procurement Logistics

Some alternative ways to procure logistics are as follows :

1. Buy

Buying is a way to fulfill logistic requirements by way of paying a certain amount of money to the seller or supplier to get a number of logistics in accordance with the agreement of both parties.

2. Borrowing

Borrowing is a way of fulfilling logistical needs obtained from other parties without providing any counterpart (compensation) and form.

3. Rent

It is a way to fulfill logistical needs obtained from other parties by providing contravention according to the agreement of both parties.

4. Make Your Own

Is a way to fulfill logistical needs by making yourself done by employees or a particular work unit.

5. Exchange It is a way of fulfilling logistic needs by exchanging logics that are owned by logistics that are needed by the organization from other parties.

6. Substitution Is a way to fulfill logistical needs by replacing other materials that have the same function to meet a particular need.

7. Giving / Prizes Giving (gifts) is a way to fulfill logistical needs by using logistics which is a gift / gift from another party.

8. Repair / Recondition of Repair is a way to fulfill logistics needs by improving logistics that have been damaged.

III.      Logistics procurement system

The logistics procurement system includes:

1. Centralization system:

Some advantages of using a centralized system:

a. Can reduce union prices because usually by implementing this centralized system procurement / purchasing

 is carried out in large parties so that the organization / company (as a buyer) 

is given a discount by the seller (supplier)

b. Can reduce (reduce) additional costs (overhead costs), so that it will support efficiency.

c. Can support standardization programs and logistical exchange systems between parts

The disadvantages of using a centralized system are:

a. Urgent needs of a particular unit may not be served quickly and fulfilled.

b. Meeting the demand for logistical needs of work units as users

2. Decentralized system Excess of decentralization: 

a. The need for logistics from each work unit will quickly be fulfilled according to needs 

b. Ensuring the accuracy of purchasing logistics because each work unit knows exactly 

the specifications of its logistics needs. 

Disadvantages of a decentralized system: 

a. There is a tendency for each work unit to have new logistics. 

b. There are a variety of logistics that vary in shape, size and type so that this clearly 

does not support standardization and normalization programs, while not supporting 

the possibility of logistical exchanges between work units / units within an organization

c. Cost per unit of goods is relatively larger, because purchases with this system 

are certainly in smaller parties d. Additional costs (overhead costs) are relatively 

greater when compared to using a centralized system

3. Mixed System 

Mixed System is a system or method of procurement of logistics by combining 

centralized and decentralized systems. The consideration of the use of this 

mixed system is to ensure the accuracy of the fulfillment of logistical culture of 

each work unit, especially logistical needs that are specific in accordance with 

the operational duties of the work unit, as well as to support the standardization 

and normalization program of the organization.

IV.      Procurement Planning and Determination of Needs

In logistics planning must always be developed and note the following questions:

1. What items will be held?

2. Why is the item held?

3. When will the item be needed?

4. When will the item be held?

5. Where will the item be obtained?

6. Who will use the item?

7. Who will hold the item?

8. How many items will be held?

9. What is the price of the items to be held?

10. How to procure goods?

11. What are the procedures for procuring these items?

12. What are the rules for the procurement of goods?

In an effort to determine and determine logistical needs,

 there are several factors that must always be considered and considered, namely: 

1. Functional factors 

2. Cost and benefit factors 

3. Budget factors 

4. Factors of safety and dignity

5. Factors of standardization and normalization

 Relationship between Procurement management and Supply Chain Management
 

The scope of supply chain management

SCM conducts goods flow activities including procurement,
production, storage, transportation of goods, and distribution. Starting from
the initial raw material to the point of use. SCM's activities include procurement
and logistics and materials

The success of SCM activities is supported and cooperation is
integrated with elements of demand forecasting, providers / producers of raw
materials, production processes, information techniques, quality and customers 

SCM carries out actions and push systems that are oriented
towards producers, while DCM (deman chain management) carries out pull-action
systems that are customer-oriented








PROCUREMENT WORKFLOW PROCESS 









REFERENCE :

•   http://understandingknowledge.blogspot.com/2011/01/pengadaan-logistik.html

•   http://www.businessdictionary.com/article/572/the-10-steps-of-the-procurement-cycle/

• https://www.academia.edu/6429091/BAB_VII_Perencanaan_dan_Pengadaan_Logistik