What is Procurement

BAHASA INGGRIS

 Name :BILLY IQBAL BELLAZHAR

 NIM     :223114059

 Class :DIII MTU B

                                                        WHAT IS PROCUREMENT

Definition of Procurement  is the activity of buying and receiving goods or services.Proses starts from the preparation of goods or services to be purchased up to an agreement to make payments to third parties.

some of the activities included in the task of procurement, among others:
(A) Planning of purchase,
(B) create a standard procedure of procurement of goods / services,
(C) make the specification of goods / services required in detail with information obtained from the department / other  parts of the request,
(D) search supplier / vendor the right to see the offer as well as its track record in detail
(E) make a comparison the cost of purchase of supplier / vendor
(F) negotiating the price, terms (terms of payment), shipping (shipping), etc.
(G) decided to purchase from the supplier / vendor
(H) making contracts
(I) control the amount of inventories in warehouses
(J) receive a bill payment from vendor / supplier


The main objective procurement own part of a company is how they get the required goods or services the company at a price, after-sales service, quality, quantity, best fit the needs of companies / organisisasi.

procurement is divided into two different categories

A. Direct Procurement (Direct production related procurement)
   Direct procurement is the purchase of raw materials (raw material) or finished goods directly impact the operation and sustainability of the production process. Costs incurred for the purchase of this type is quite large and routine.
   Example: Purchase of snapdragon processor by Samsung for the production needs of its smartphone,

B. Indirect Procurement (Non-production-related procurement)
   Is the procurement / purchasing are indirectly affecting the operations perusahaan.Biaya issued for the purchase of this type is relatively smaller and is not routinely done, procurement can be done in a planned or when certain conditional as needed. such as procurement services for periodic servicing of production machines, purchase of spare parts, to purchase ATK (Stationery Office).



The procurement cycle (Procurement life cycle):
- Requirement Determination
  Determining the need for goods or services to be purchased based on the needs of the company / organization in accordance with the guidelines demand for goods / sop each department

- Source Determination
  Looking for individual / providers of goods or services appropriately. Parties can send inquiry procurement document or documents to the price of goods / services provider

- Vendor Selection
  Looking for supplier / vendor right. Parties negotiating procurement to suppliers and reach an agreement with the supplier / vendor

- Order Processing
  The process of demand for goods / services, in this stage of the procurement will be menrbitkan document PO (Purchase Order) was passed and legal to be given to the supplier / vendor, as the basis for manufacturing production and delivery.

- Purchase Order Monitoring
  Party procurement should continue to monitor the progress of his order / tracking orders

- Goods Receipt
  Receipt of goods / services by the vendor / supplier in accordance with the PO documents previously delivered

- Payment
  Conducting the process of acceptance and billing data input from vendors, to be forwarded to the finance / Finance and payment is made in accordance with the agreement