To view recording: http://youtu.be/WAtDKK_uMgk or watch the video at end of the slide For other Informa Webinars: http://www.informa-mea.com/webinars In the business world, the practice of using similar terminology seems to work, although it can sometimes be a little confusing. Many people use the terms purchasing and procurement interchangeably, but despite their apparent similarities they do have different meanings. This webinar aims to clarify any confusion between these two related, yet different, business cousins and put them into the supply chain context. The webinar will also help you look at the supply chain as a strategic management function that exists to add to the competitive advantage of your business. The Speaker Ian Moody has over 30 years of business experience ranging from senior management positions, in such companies as Ericsson to founding and selling his own companies. Ian designs and delivers training programmes globally with particular attention to the GCC nations. He works in many fields including both accredited and non-accredited courses. Ian divides his time equally between the Middle East and the UK. In the UK Ian is a lead professor at London Met University and the University of West London specialising in working with students to gain their membership to the Chartered Institute of Procurement and Supply.

1. Purchasing And Procurement:
What’s The Difference?
Ian Moody
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2. Agenda
• Welcome
• Housekeeping notes
• Session starts
• Q&A
• End of webinar

3. Housekeeping
• Slides will be available on our SlideShare page; the link will
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• Recording of the webinar will be available to download; the
link will be emailed to you
• Take the time to complete a post-webinar survey that will
pop up at the end
• You can type your questions throughout the session
• Time will be allocated in the end for the speaker to address
your questions

4. About Your Speaker
Ian Moody
BSc, MBA
Ian has over 30 years of business experience ranging from senior management positions, in
such companies as Ericsson to founding and selling his own companies. Ian designs and
delivers training programmes globally with particular attention to the GCC nations. He works in
many fields including both accredited and non-accredited courses.
Ian divides his time equally between the Middle East and the UK. In the UK Ian is a lead
professor at London Met University and the University of West London specialising in working
with students to gain their membership to the Chartered Institute of Procurement and Supply.

5. The organisation as an open
system

6. Definition Of 'Supply Chain'
• The network created amongst different companies
producing, handling and/or distributing a specific
product. Specifically, the supply chain encompasses
the steps it takes to get a good or service from the
supplier to the customer. Supply chain management
is a crucial process for many companies, and many
companies strive to have the most optimized supply
chain because it usually translates to lower costs for
the company. Quite often, many people confuse the
term logistics with supply chain. In general, logistics
refers to the distribution process within the company
whereas the supply chain includes multiple
companies such as suppliers, manufacturers, and the
retailers.

7. Principal flows in a simple
supply chain

8. Integration of supply chain activities

9. Trends in service supply chains
1. Services are increasingly about the
management and supply of information
2. Information can replace inventory
3. Services are increasingly outsourced, as
organisations focus on core activities
4. The combination of automation and
outsourcing has enabled the development of
virtual service organisations and networks

10. Organisational buying
1. The use of resources which belong to the
owners of the organisation
2. The acquisition of items that will satisfy the
requirements of other people and be suitable
inputs for defined processes and systems
3. Working together with others in a complex
network of relationships, work flows and
accountabilities
4. Developing and maintaining constructive
working relations with suppliers

11. What is Procurement
The act of obtaining or buying goods and services. The process includes
preparation and processing of a demand as well as the end receipt and
approval of payment. It often involves:
(1) Purchase Planning,
(2) Standards Determination,
(3) Specifications Development,
(4) Supplier Research And Selection,
(5) Value Analysis,
(6) Financing,
(7) Price Negotiation,
(8) Making The Purchase,
(9) Supply Contract Administration,
(10) Inventory Control And Stores, And
(11) Disposals And Other Related Functions.
The process of procurement is often part of a company's strategy because
the ability to purchase certain materials will determine if operations will
continue. A business will not be able to survive if it's price of procurement is
more than the profit it makes on selling the actual product

12. What is Purchasing
The activity of acquiring goods or services to accom
plish the goals of an organization.
The major objectives of purchasing are to
(1) maintain the quality and value of
a company's products,
(2) minimize cash tied-up in inventory,
(3) maintain the flow of inputs to maintain the flow
of outputs, and
(4) strengthen the organization's competitive position.

13. What is Purchasing
Purchasing may also involve:
(a) development and review of the product
specifications,
(b) receipt and processing of requisitions,
(c) advertising for bids,
(d) bid evaluation,
(e) award of supply contracts,
(f) inspection of good received, and
(g) their appropriate storage and release.
.

14. Procurement & purchasing as a
discipline
1. Responsible
2. Professional
3. Effective
4. Efficient

15. Procurement Cycle
PPQ Pre Purchase Questionnaire
ITT Invitation to Tender
RFQ Request for Quotation
SR
M
Supplier Relationship
Management
SC Supply Chain
Gateway
review:
Stop, Think, CheckGR
© Copyright 2013 Chartered Institute of Purchasing & Supply.
Understand
needand
develophigh
level spec
Market/
commodityand
options(inc.
Makeorbuy)
assessment
Develop
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Pre
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Develop
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Bid/tender
evaluation
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Contract
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SRM andSC
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Warehouse
logisticsand
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Contract
awardand
implementation
1
2
3
4
5
6
7
8
9
10
11
12
GR
GR
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Asset
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endof lifeand
lessonslearnt
13
eCommerce/systems
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Sustainability/CSR/Ethics
Security
RiskAssessment/Mitigation
Continuousimprovement
Peopleandskills

16. • End of webinar
• We hope you have found this interesting