Purchasing, Expediting, and Receiving PDF

CONSTRUCTION MANAGEMENT PURCHASING, EXPEDITING, AND RECEIVING OFALLA, RHEA MAY ORADA, NICOLE PURCHASING PURCHASING Purchasing is the function of buying Goods & Services from External Source to an Organization. The process of acquiring the materials, services, and labor needed to complete a...

CONSTRUCTION MANAGEMENT PURCHASING, EXPEDITING, AND RECEIVING OFALLA, RHEA MAY ORADA, NICOLE PURCHASING PURCHASING Purchasing is the function of buying Goods & Services from External Source to an Organization. The process of acquiring the materials, services, and labor needed to complete a construction project Purchase Department buys Raw Materials, Spare parts, services etc. as Required by the company or Organization. PURCHASING CYCLE Design department should advise the purchasing group in advance of approximate quantities of materials and types of equipment. The purchasing group is checking whether the vendor has the requisite capability and is likely to submit a competitive price and an acceptable delivery. Purchasing of materials is done by batch, the most needed materials during the construction phase is bought first.  PURCHASING PROCEDURE CANVASSING PURCHASE ORDER PAYMENT a list of The process of payment can be Usually 3 supplier, for materials/specifications, done through an agreement material quality, and price indicated with the amount which within 30 – 50 days the comparison of unit/s of materials will be materials purchased should be given to the supplier. fully paid or it can also be done through cash on deliver. 1 2 3 EXAMPLE EXPEDITING EXPEDITING Expediting is a concept in purchasing and project management for securing the quality and timely delivery of goods and components. Make happen sooner or be accomplished more quickly. Typically a form of project management with the most intensive form of expediting effectively ensuring that the supplier carries out all tasks and activities and that the supply of goods meets the required timescales PEOPLE WHO PERFORM EXPEDITING An Expeditor within the procurement department controls 01 the progress of manufacturing at the supplier concerning quality, packing, conformity with standards and set timelines. Thus the expeditor makes sure that the required goods arrive at the appointed date in the agreed quality at the agreed location. The Third Party Expediter, these are experts from 02 companies specializing in this field who keep track of the deadlines, supervise progress on site and check whether the components are properly packed. After inspection they notify the involved parties and banks about their findings; if everything is as agreed the bank will initiate the transfer of the price of the goods to the supplier. In this way, the supplier secures his liquidity as he is paid immediately when the components leave his factory and the customer/bank knows that the goods will be delivered correctly PEOPLE WHO PERFORM EXPEDITING Desk Expeditors are responsible for establishing and 04 maintaining regular contact with all suppliers wither by telephone, fax, email or letter to obtain reliable information on the status of suppliers’ drawings and documentation, sub-supplier materials, production and delivery of material and equipment. Field Expeditors complement the Desk Expeditors by 02 making personal visits to the suppliers’ works and physically checking the status of the suppliers’ progress. Also responsible for providing detailed reports to the central office on the complete status of an order.  PROCESS OF EXPEDITING Procurement Planning Risk Mitigation Coordination with This step involves Material Stakeholders Contingency planning involves Collaborate with suppliers through Requirements Planning (MRP) identifying supply chain risks, such regular communication to confirm identifies necessary materials based as shortages or delays, and creating schedules, share project updates, on the project scope, aligning backup plans, including alternative and forecast orders, ensuring supply specifications with design suppliers and stockpiling critical chain continuity. Align engineers, requirements. Vendors are selected materials. Incorporate buffer periods architects, and site managers with this step they are prequalified for into the construction schedule to procurement schedules, involving reliability and quality, with contracts account for lead times and mitigate site managers to monitor and ensuring timely delivery and potential disruptions. validate deliveries. penalties for delays. 1 2 3  PROCESS OF EXPEDITING Quality Assurance Monitoring and Continuous Tracking Improvement Inspect delivered materials to ensure they meet specifications and quality Track orders, shipping details, and Continuous improvement involves standards, addressing discrepancies delivery times using construction analyzing procurement efficiency, promptly to prevent disruptions. management software, and manage supplier performance, and Keep accurate records of purchase on-site inventory with barcoding or improvement areas during post- orders, delivery receipts, and quality RFID. Assign an expeditor to follow project reviews, using insights to certificates for proper up on orders, resolve issues, and enhance future material expediting documentation. coordinate logistics efficiently. processes. 4 5 6 RECEIVING RECEIVING Large volume of expensive materials will be control in the field. Procedures which cover the receipt, storage, and issuance of these materials will be necessary in order to assure proper stewardship of this function Receiving involves verifying and documenting the arrival of materials, checking for accuracy and damages, and ensuring the inventory matches the purchase order.  PROCESS OF RECEIVING Delivery Scheduling Receiving Inspection Documentation Only authorized personnel should Record the details of each delivery, Coordinate with suppliers to confirm approve the acceptance of materials including delivery receipts, packing the timing and location of material before they are moved to storage or slips, and quality certificates. deliveries, ensuring they align with the construction site. the construction schedule. Inspect incoming materials upon delivery to verify they match the purchase order specifications, quality standards, and quantity. 1 2 3  PROCESS OF RECEIVING Discrepancy Storage and Handling Inventory Update Management Store materials according to their Address any discrepancies in requirements to prevent damage Update inventory records to reflect materials immediately by notifying or deterioration, using proper the receipt of materials and ensure expeditors and documenting the storage methods and securing stock levels are accurate. issue for resolution. vulnerable items. 4 5 6  IMPORTANCE OF KNOWING THE PROCESS OF PURCHASING, EXPEDITING, AND RECEIVING PURCHASING EXPIDITING RECEIVING Cost Control - Ensures competitive Schedule Adherence - Prevents Quality Check - Confirms that pricing through bidding and delays in the project timeline by delivered items match purchase negotiation, helping to stay within tracking supplier commitments. orders and meet specifications. budget. Problem Resolution - Identifies and Inventory Management - Ensures Quality Assurance- Guarantees resolves bottlenecks in the supply accurate documentation of received materials meet project specifications chain early. items to maintain stock levels and and standards. Coordination - Aligns deliveries with prevent theft or loss. Vendor Relationships - Builds the construction schedule to avoid Cost Control - Helps avoid partnerships with reliable suppliers, site overcrowding or idle resources. unnecessary expenses by rejecting reducing risks of delays or Efficiency - Enhances resource defective or incorrect materials. substandard materials. allocation by ensuring materials arrive Compliance -Ensures proper record- Legal Compliance - Addresses "just in time" to reduce storage costs keeping for audits, progress contractual terms, warranties, and and wastage. reporting, and contractual certifications to prevent future obligations. disputes. CONTRUCTION MANAGEMENT THANK YOU FOR LISTENING OFALLA, RHEA MAY ORADA, NICOLE