Procurement process in small or Micro Enterprises.

3033 Words Sep 29th, 2013 13 Pages
Project Management & Global Sourcing

[Assignment 1]
Procurement Process in Small or Micro Enterprise

TABLE OF CONTENTS PAGE

1. INTRODUCTION…………………………………………………………………… 3
2. BRIEF DESCRIPTION OF ORGANISATIONS ………………………………… 4
3. POSITION OF ORGANISATIONS AND TWO MAJOR PRODUCTS………… 5
4. PROCURE TO PAY PROCESS………………………………………………….. 6 - 7
5. SUPPLIER IDENTIFICATION AND SELECTION………………………………. 8 - 10
6. STRESS TESTING AND RISKS MITIGATION APPROACHES……………… 11 -16
7. CONCLUSION……………………………………………………………………… 17
8. REFERENCES……………………………………………………………………… 18
9. APPENDIX………………………………………………………………………….. 19
10. PROCEEDINGS OF GROUP MEETINGS …………………………...………… 20 - 22
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As mentioned earlier, they are imported overseas.

4. PROCURE TO PAY PROCESS COMPARISON

Appendix A

The three organisations that we have chose have all followed this Procure to Pay process, however they have their differences in determining these processes. For forecasting, the online shop and the pet shop has less frequent level of forecasting their requirements due to its irregularity sales of goods which depends on seasonal demand. However, the mini-mart actually requires daily forecasting and is more volatile in their forecast. The shopkeeper take into considerations like public and school holidays before he actually consider how much to procure for the day worth of food and newspapers to sell. For example, during weekends in the morning, crowds tend to be lesser and thus, lower in demand.
For the clarification/requisition and supplier selection process, the online shop had done their clarifications virtually through online e-mails and phone calls as most of their suppliers are all overseas. The mini-mart and the pet shop actually do face-to-face meet up with suppliers to look at the real products, whether they can match their requirements before confirming the order and delivery.
The approval and contract process is quite similar for both the mini-mart and the pet shop as it is done locally. After identifying a supplier, they will send purchase order according to demand. The online shop process is slightly different
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