7 Rights of Procurement
The item or service meets the required specification and satisfies the need.
Right Product
During this time period, governments began to focus on the value of strategic sourcing to save time, money and lives
The World Wars
Hannah's home state in the U.S.A.
California
The process of identifying, sourcing, buying and managing the external resources an organization needs to fulfill its strategic objectives.
Procurement
Step 1 defines these...
Needs and specifications
Materials delivered to the correct location in the appropriate packaging/transport.
Right Place
The "quality revolution" came out of this country.
Japan
Hannah's 2 favorite hobbies
Soccer and music
An estimate of the total direct and indirect costs associated with a resource over its entire lifecycle.
Total Cost of Ownership (TCO)
A legally binding agreement with rights and obligations to be met by both sides is called this...
A contract
The source/supplier is reliable, ethical, and capable.
Right Source
The first standardized purchasing departments were formed during this time period to help companies deal with a massive increase in demand for raw materials.
The Industrial Revolution
Hannah's undergraduate degree
Marine, Freshwater and Environmental Biology
The systematic, reasonable, and thorough investigation a person or company undertakes before entering into an agreement or business transaction.
Due Diligence
Coordinating with stakeholders to define cost constraints, supplier evaluation criteria, etc. is an important part of this step.
Step 3. Develop procurement strategy
Minimizing carrying costs and risk of stockout.
Right Time
COVID highlighted the need for companies to prioritize this buzzword.
(Hint: Risk management and ____________)
Resiliency
Hannah was an outbound logistics manager for this major U.S. company.
Amazon
Bidding opportunity is advertised publicly and any qualified supplier can submit a bid (public)
Open Tendering Process
The document that serves as an instruction manual for suppliers looking to compete is called this...
Formal tender document
Maximizing value for money.
Right Price
Hyper-globalization in the 1980s and 90s highlighted the need for employees to develop this important communication skill.
Cross-cultural
Hannah's first procurement role was in this country.
Samoa
A strategic evaluation of whether to produce a component, product, or service in-house or purchase it from an external supplier.
Make or Buy
Ensuring the quality and accuracy of orders received is a part of this step...
Step 10. Warehousing, logistics and receipt