1. Case Studies demonstrating Principles of Procurement KiranRadhakrishnan Roll No. 8 ISEM – X

2. Differences between Procurement vs Purchasing Both are activities performed in relation to their goods and services, but done with a different method and approach

3. Differences between Procurement vs Purchasing “Form of buying that consists of getting goods or services by paying a certain amount of price or money. The amount of money or price paid in this case will be in accordance with the quality and quantity of the goods or services. We ensure that the right thing comes at the right place at the right time” Purchasing “Acquisition of goods and services at the best possible total cost of ownership. This is done to meet the demands of the purchaser taking into account the factors of quantity and quality, and time and location as well.” “Management of suppliers to achieve strategic business value” Procurement

4. <Examples; Overview of types>

5. Differences between Procurement vs Purchasing Purchasing - both individuals and groups such as companies and organizations. Procurement - mainly by companies and organizations or such other groups.

6. Steps in Procurement Information gathering Supplier contact Background review Negotiation Fulfilment Consumption Maintenance and disposal Renewal

7. Principles Principles of Procurement Get away from an adversarial relation with suppliers – the relation should be strategic and benefit both in the long run Move from price consideration to total cost of ownership – you can’t just buy cheap things and then pay huge amounts on maintenance, paper work, etc. Have minimum number of suppliers Move from short-term to long-term – thus avoiding total cost of ownership ...

8. Principles Principles of Procurement ... 5. Procurement strategy – vision of where the business should take their suppliers 6. Supplier has access to expertise company needs and often can supply multiple products, and often design and make more appropriate products 7. Reduced inventory costs. Inventory can be reduced when there is a trust based relation with suppliers. We can move from just-in-case inventory storage to just-in-time delivery of supplies 8. Streamline processes within your organisation and streamline/standardise them with your supplier

9. Principles in Public Procurement 1. Transparency 2. Competition 3. Economy 4. Efficiency 5. Fairness 6. Accountability.

11. The tunnel portion extends 6 km under the city centre

12. Inaugurated in December ‘10

13. Wasunder construction since March 2005

14. Involves building of two parallel railway tunnels under the city of Malmö, as well as three new railway stations and railway tracks

16. Green procurement is being encouraged by authorities in many countries

17. Ensures environmental goals are transferred to suppliers

18. Commitments made to environmental impacts are ensured by linking EMS to EIA – by using green procurement

19. Even if the international EMS standard ISO 14001 has become widely implemented, companies may also choose to work according to another EMS.

21. Successful EMS  collaboration between the government, professional bodies and training institutions is crucial

22. EIA also required under Swedish law

24. In this way, green initiatives in the private sector can be promoted

26. Limiting of firms to those meeting envt. Qualifications

27. Also encouraged to provide environmental preferences along with the bid document

29. CASE STUDY 1 City Tunnel Project, Malmo

32. In addition to the mandatory requirements, environmental evaluation criteria were also applied in the procurements - were regarded as a way to find a contractor who was likely to comply with the mandatory environmental requirements.

35. Environment impact study done, and environmental restrictions were framed by the court

36. Included in EMS

39. Built by Emaar Properties

40. Construction began in 2004 and completed in 2009

41. Overcame recession