Unit 1037: Procurement and Logistics Management

1. Overview of Procurement and Logistics

1.1 Definition and Concepts

• Procurement defined
• Logistics defined
• Importance in business operations

1.2 Key Objectives

• Cost reduction
• Quality assurance
• Timely delivery
• Risk management

1.3 Role in Supply Chain Management

• Supply chain components
• Procurement and logistics as core functions
• Impact on overall supply chain performance

2. Procurement Process

2.1 Identifying Needs

• Requirements analysis
• Demand forecasting

2.2 Supplier Selection

• Criteria for supplier evaluation
• Supplier qualification and approval

2.3 Contract Negotiation

• Negotiation strategies
• Legal and ethical considerations

2.4 Managing Supplier Relationships

• Supplier performance monitoring
• Communication and collaboration
• Conflict resolution

3. Logistics Management Fundamentals

3.1 Transportation

• Modes of transportation
• Transportation planning

3.2 Warehousing

• Functions of warehousing
• Warehouse types

3.3 Inventory Management

• Inventory types
• Inventory control methods

3.4 Distribution Strategies

• Distribution channels
• Order fulfillment process

4. Supply Chain Integration

4.1 Importance of Integration

• Coordination between procurement and logistics
• Information sharing

4.2 Techniques to Optimize Efficiency

• Collaborative planning
• Technology use (ERP, SCM software)

4.3 Cost Reduction and Customer Satisfaction

• Streamlining processes
• Enhancing responsiveness

5. Procurement Strategies

5.1 Strategic Sourcing

• Definition and benefits
• Process steps

5.2 Supplier Relationship Management (SRM)

• Building partnerships
• Performance evaluation

5.3 E-Procurement

• Electronic procurement systems
• Advantages and challenges

6. Inventory Control

6.1 Principles of Inventory Control

• Balancing supply and demand
• Stock classification (ABC analysis)

6.2 Inventory Optimization Techniques

• Just-in-Time (JIT)
• Economic Order Quantity (EOQ)

6.3 Inventory Turnover

• Calculation and significance

6.4 Safety Stock Management

• Determining safety stock levels
• Impact on supply chain

7. Transportation Management

7.1 Mode Selection

• Criteria for choosing transportation modes

7.2 Route Optimization

• Routing methods
• Technology applications

7.3 Carrier Selection

• Carrier evaluation criteria
• Contracting with carriers

7.4 Transportation Cost Management

• Cost components
• Cost reduction strategies

8. Warehousing and Distribution

8.1 Warehouse Layout Design

• Principles of design
• Space utilization

8.2 Order Fulfillment Processes

• Receiving and put-away
• Picking and packing
• Shipping

8.3 Strategies for Improving Efficiency

• Automation
• Cross-docking

9. Risk Management in Procurement and Logistics

9.1 Identifying Risks

• Supply risks
• Operational risks

9.2 Risk Mitigation Strategies

• Diversification
• Contingency planning

9.3 Compliance with Regulations

• Legal requirements
• Ethical procurement

10. Sustainable Procurement and Green Logistics

10.1 Environmental Considerations in Procurement

• Green procurement policies
• Supplier sustainability assessment

10.2 Green Transportation Initiatives

• Low-emission transport modes
• Route efficiency for reduced emissions

10.3 Corporate Social Responsibility (CSR) in Supply Chain

• Ethical sourcing
• Social and environmental impact