Construction Supply Chain Process Purdue Pile Restoration
INF 336-Project Procurement Management
Introduction
Purchasing and supply management is a major component to any organization. A business cannot run efficiently or even run at all without purchasing the supplies needed in order to operate. There are many different ways that purchasing and supply management are ran in any organization and it is up to the that particular one on how this will be done. The procurement of supplies is more than just selecting a supplier for everything needed. Larger purchases can vary from the purchase of capital goods to the rental of needed equipment. In my current position I have had the opportunity to act as an estimator/project manager on many projects and have seen the purchasing and supply decisions in real time. This paper will discuss the importance of purchasing and supply management and how it relates to selecting suppliers, how to select strategies for price negotiating, show the steps in the creation of a project supply, service, and material budget, illustrate the benefits and costs of outsourcing, and will also evaluate benchmarks in various organizations in their purchasing and supply management process.
Importance of purchasing and supply management and how this relates to selecting a qualified supplier.
Purchasing and supply management is one of the most important factors attributed to company growth. It includes may things such as: cost control, price stability, and customer satisfaction. Effectively choosing the correct method of supply and correct quantity can have a negative or positive impact on the revenue of the company, and ultimately help it to succeed or fail. FRP is a small construction company that has grown rapidly over the past few years due to the effective implementation of a purchasing and supply plan. About two months ago they won a 5-Million-dollar job restoring underwater piles...