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Lesson 4 - Purchasing management - Supply types, type of materials and services companies buy - YouTube
Channel: Americo e-Learning
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We as individuals use different approaches
to buying things.
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In the same way, companies can apply distinct
strategies
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depending on the nature of the material or
purchasing situation.
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My name is Americo Cunha, in this lesson,
we will be evaluating different materials
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and purchasing situations.
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Welcome, and let's start learning.
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We can divide the purchasing types into materials,
services, investment, and situations.
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Let鈥檚 check some examples.
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Raw materials are commodities usually applied
as input of the production process.
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Semi finished products and components include
all items that went through manufacturing
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process before being applied in the production
process.
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The finished products are items that usually
don鈥檛 require major processing before resale
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to the end customers.
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The Maintenance Repair and Operating MRO items
include anything that does not go directly
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into the final product.
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The are applied to support production and
operations such as machine spare parts, computer,
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office, and cleaning supplies.
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The production support items are materials
the go together with the final product but
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are not part of them such as pallets, boxes,
containers, and others.
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Some companies include this category in the
MRO group.
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This category has a broad range of service
types
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and has gained importance in the last 20 years
because of the outsourcing trend.
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It can include high specialized services such
as IT and engineering.
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And also, regular services as cleaning and
security.
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Capital equipment is assets in which the use
exceeds one year.
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Computers, furniture, machines, tools are
examples of this type.
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Usually, the purchasing needs a close support
of the technical team
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to acquire these items.
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Transportation and logistics are specialized
and essential services.
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The interesting thing here is that
the supply chain is the purchasing team client.
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Besides the materials and services,
the purchasing team should pay attention in
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the situations in which the purchase is conducted
It can go from a simple straight rebuy
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to a complex completely new buy.
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When you face a purchase of a new product
or service
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that the company is buying for the first time,
there are several uncertainties
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about the product itself and the supplier.
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In the modified buy case,
the company buys an existing product from
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a new supplier,
or a new product from an existing supplier.
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It is considered an operation with less risky
than a new buy.
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Because the company has the knowledge about the product or the supplier performance.
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The less risky situation is when the companies are
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purchasing a known product from a known supplier. This is called straight re-buy.
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The awareness of purchasing types and situations
will help in decision making during the purchasing
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process,
the next topic
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Thanks for watching, see you in the next lesson
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