PROCUREMENT

Procurement

A. Description

In Bahasa Procurement means Pengadaan

Procurement (Procurement) is an activity to obtain goods or services in transparent, effective and efficient in accordance with the needs and desires of its users. (Christopher & Schooner (2007)

It can be concluded that the procurement is an activity to obtain goods and services needed by the company seen from its use as well as the needs and the quality, quantity, delivery time and affordable price. 

Why do we need one?

For visibility of management information which is key to controlling and reducing costs.

B. The Purpose and Function

• Purpose: to ensure that the procurement process is going smoothly so that the products and services which is needed to be had in the right time, in the right amount, the right quality and with the right price.
• Function: in practice, is to be in line with company strategy and business plan of the company, to ensure that each activity supports to the company's goal.

c. The Category of Procurement

Based on the involvement :

a. Direct Procurement

Direct procurement is purchasing of raw materials or finished goods which result in direct operation and sustainability of the production process. Costs for the purchase of this type is large and routinely do. 

Ex: Samsung buying a procecor for making their smartphone, for making cake we need flour, eggs, sugar, milk,etc.

b. Indirect Procurement

Indirect procurement is purchasing that indirectly affect the company's operations. Costs incurred for the purchase of this type are relatively smaller and not done routinely, the procurement can be done programmatically or when certain conditionals as needed. 

Ex: rearview mirror on car (without them car still can move.

Based on the method :

a. Traditional Procurement Methods

is which the procurements departments and the suppliers in two different organizations.

b. Alternative Procurement Methods

is the development of the traditional procurements system that felt not longer able to keep up with technology.

D. Procurement Principle

• Efficients

The principle of efficiency in the procurement of goods and services is to use the available resources acquired goods and services in quantity, quality expected and obtained the optimum time.

• Effective

Effective principles in the procurement of goods and services is the available resources acquired goods and services that have the highest value of the benefit.

• Fair Competitions

Principles of healthy competition in the procurement of goods and services is competition among potential providers of goods and services based on ethics and procurement norms in force, not fraud.

• Transparrants 

The principle of transparency in the procurement of goods and services is the provision of comprehensive information on the rules of the procurement of goods and services to all potential suppliers of goods and services and the public interest.

• Accountability 

The principle of accountability in the procurement of goods and services is the accountability of the procurement of goods and services to the parties concerned and society based on ethics, norms and provisions of the legislation in force.

E. Quality of Goods

Quality of Goods that Procurement must have are:

• Performance, related to the functional aspects of an item and is the main characterisitics of the envisaged customers in buying such items.
• Featured, secondary or complementary characteristics are useful for adding basic functions relating to product choices and development.
• Reliability, related to the probability or likelihood of an item successfully run its function each time it is used in a particular period of time and under certain conditions.
• Conformance, related to the level of compliance with the specifications set out earlier based on the wishes of the customer.
• Durability, related to how long a product can be used.
• Service Ability; characteristics associated with speed, ease and accuracy of competence in providing services for the repair of the goods.
• Aesthetic, the subjective nature of the characteristics about aesthetic values related to personal considerations and reflections of individual preferences.
• Fit and Finish, characteristics that are associated with subjective feelings of customers about the existence of the product as a quality product.

F. Process of Procurement

Planning : is the process set organizational goals and how to achieve it.

Organization : is the process of setting and allocation of tasks, authority and resources to achieve goals.

Actuating : is the process of moving people to be motivated to do the taks.

Controling : is the process to ensure that the activity remains on target.

G. The Task of Procurement Departmen (Generally)

1. Plan the right relation with the supplier.

 A relationship with a supplier can be a long-term partnership as well as transactional relation in short term. Either the model of relation, the relation, or how many suppliers.

2. Choose a supplier.

Activity in choosing a supplier can take time and resources are not small. A potentially key supplier to establish a long term relationship, this selection process may involve an initial evaluation, invite them to presentations, site visit and so on.

3. Choose and implement suitable technology.

Procurement activities always require the help of technology. Nowadays many companies are using electronic procurement (e-procurement) internet applications for procurement activities.

4. Maintaining the required data items and data supplier.

Procurement section should have the complete data about the items that are needed as well as suppliers data. Some important data by suppliers the name and address of each supplier, what items they supply, the price per unit, the shipping lead time, past performance, the qualifications of the supplier as well as qualifications like ISO.

5. Do the buying process.

The purchase process can be done in several ways, for example purchase routine and purchases through a tender or auction (auction). Regular purchases and purchases with tenders pass through different processes.

6. Evaluating the performance of suppliers.

The results of this assessment are used as feedback for the supplier to improve their performance.

H. Procurement Life Cycle

1. Requirement Determination

Determining the need of goods or services that will be purchased based on the company’s need in accordance with the standard of each department.

2. Source Determination

Looking for individual / providers of goods or services appropriately.

3. Vendor Selection

Looking for the right supplier / vendor. And do the negotiating to reach an agreement.

4. Order Processing

Goods/services request process, in this phase of procurement party will publish documents of PO (Purchase Order) that have been authorized and legally to be given to the supplier/vendor, as the basis for the creation of production and delivery.

5. Purchase Order Monitoring

The procurement should continue monitoring the progress of its order/order tracking.

6. Goods Receipt

Receipt of goods / services by the vendor / supplier in accordance with the PO documents previously delivered

7. Invoice Verification

Make the process acceptance and billing data input from vendors, to be forwarded to the finance.

8. Payment

Finance and payment is made in accordance with the agreement.

I. The Key on Procurement Process

Procurements have the keys to make the procurements runs better, there are:

• Procurement Strategy, the strategy should be right and well-ordered.
• Supplier Qualification Process, to get a standart supplier.
• Supplier Development & Maintenance, in order to maintain long-term business preferences that cause effective cost relationship.
• Negotiation & Contract Development, good negotiation will allow for the development of the contract.

J. Conclusion

In the procurement process, various activities have to be passed from the point where raw materials are produced, transported to the place of processing to make the finished goods are then distributed to customers that are spread throughout the place should be done efficiently, the right benefit, in a short time so that the product price can be affordable for consumers.

Logistics is essentially aimed to optimize the factors of production, are to optimize the cost, time and quality.

Thankyou~:)

Procurement

A. Description

In Bahasa Procurement means Pengadaan

Procurement (Procurement) is an activity to obtain goods or services in transparent, effective and efficient in accordance with the needs and desires of its users. (Christopher & Schooner (2007)

It can be concluded that the procurement is an activity to obtain goods and services needed by the company seen from its use as well as the needs and the quality, quantity, delivery time and affordable price. 

Why do we need one?

For visibility of management information which is key to controlling and reducing costs.

B. The Purpose and Function

• Purpose: to ensure that the procurement process is going smoothly so that the products and services which is needed to be had in the right time, in the right amount, the right quality and with the right price.
• Function: in practice, is to be in line with company strategy and business plan of the company, to ensure that each activity supports to the company's goal.

c. The Category of Procurement

Based on the involvement :

a. Direct Procurement

Direct procurement is purchasing of raw materials or finished goods which result in direct operation and sustainability of the production process. Costs for the purchase of this type is large and routinely do. 

Ex: Samsung buying a procecor for making their smartphone, for making cake we need flour, eggs, sugar, milk,etc.

b. Indirect Procurement

Indirect procurement is purchasing that indirectly affect the company's operations. Costs incurred for the purchase of this type are relatively smaller and not done routinely, the procurement can be done programmatically or when certain conditionals as needed. 

Ex: rearview mirror on car (without them car still can move.

Based on the method :

a. Traditional Procurement Methods

is which the procurements departments and the suppliers in two different organizations.

b. Alternative Procurement Methods

is the development of the traditional procurements system that felt not longer able to keep up with technology.

D. Procurement Principle

• Efficients

The principle of efficiency in the procurement of goods and services is to use the available resources acquired goods and services in quantity, quality expected and obtained the optimum time.

• Effective

Effective principles in the procurement of goods and services is the available resources acquired goods and services that have the highest value of the benefit.

• Fair Competitions

Principles of healthy competition in the procurement of goods and services is competition among potential providers of goods and services based on ethics and procurement norms in force, not fraud.

• Transparrants 

The principle of transparency in the procurement of goods and services is the provision of comprehensive information on the rules of the procurement of goods and services to all potential suppliers of goods and services and the public interest.

• Accountability 

The principle of accountability in the procurement of goods and services is the accountability of the procurement of goods and services to the parties concerned and society based on ethics, norms and provisions of the legislation in force.

E. Quality of Goods

Quality of Goods that Procurement must have are:

• Performance, related to the functional aspects of an item and is the main characterisitics of the envisaged customers in buying such items.
• Featured, secondary or complementary characteristics are useful for adding basic functions relating to product choices and development.
• Reliability, related to the probability or likelihood of an item successfully run its function each time it is used in a particular period of time and under certain conditions.
• Conformance, related to the level of compliance with the specifications set out earlier based on the wishes of the customer.
• Durability, related to how long a product can be used.
• Service Ability; characteristics associated with speed, ease and accuracy of competence in providing services for the repair of the goods.
• Aesthetic, the subjective nature of the characteristics about aesthetic values related to personal considerations and reflections of individual preferences.
• Fit and Finish, characteristics that are associated with subjective feelings of customers about the existence of the product as a quality product.

F. Process of Procurement

Planning : is the process set organizational goals and how to achieve it.

Organization : is the process of setting and allocation of tasks, authority and resources to achieve goals.

Actuating : is the process of moving people to be motivated to do the taks.

Controling : is the process to ensure that the activity remains on target.

G. The Task of Procurement Departmen (Generally)

1. Plan the right relation with the supplier.

 A relationship with a supplier can be a long-term partnership as well as transactional relation in short term. Either the model of relation, the relation, or how many suppliers.

2. Choose a supplier.

Activity in choosing a supplier can take time and resources are not small. A potentially key supplier to establish a long term relationship, this selection process may involve an initial evaluation, invite them to presentations, site visit and so on.

3. Choose and implement suitable technology.

Procurement activities always require the help of technology. Nowadays many companies are using electronic procurement (e-procurement) internet applications for procurement activities.

4. Maintaining the required data items and data supplier.

Procurement section should have the complete data about the items that are needed as well as suppliers data. Some important data by suppliers the name and address of each supplier, what items they supply, the price per unit, the shipping lead time, past performance, the qualifications of the supplier as well as qualifications like ISO.

5. Do the buying process.

The purchase process can be done in several ways, for example purchase routine and purchases through a tender or auction (auction). Regular purchases and purchases with tenders pass through different processes.

6. Evaluating the performance of suppliers.

The results of this assessment are used as feedback for the supplier to improve their performance.

H. Procurement Life Cycle

1. Requirement Determination

Determining the need of goods or services that will be purchased based on the company’s need in accordance with the standard of each department.

2. Source Determination

Looking for individual / providers of goods or services appropriately.

3. Vendor Selection

Looking for the right supplier / vendor. And do the negotiating to reach an agreement.

4. Order Processing

Goods/services request process, in this phase of procurement party will publish documents of PO (Purchase Order) that have been authorized and legally to be given to the supplier/vendor, as the basis for the creation of production and delivery.

5. Purchase Order Monitoring

The procurement should continue monitoring the progress of its order/order tracking.

6. Goods Receipt

Receipt of goods / services by the vendor / supplier in accordance with the PO documents previously delivered

7. Invoice Verification

Make the process acceptance and billing data input from vendors, to be forwarded to the finance.

8. Payment

Finance and payment is made in accordance with the agreement.

I. The Key on Procurement Process

Procurements have the keys to make the procurements runs better, there are:

• Procurement Strategy, the strategy should be right and well-ordered.
• Supplier Qualification Process, to get a standart supplier.
• Supplier Development & Maintenance, in order to maintain long-term business preferences that cause effective cost relationship.
• Negotiation & Contract Development, good negotiation will allow for the development of the contract.

J. Conclusion

In the procurement process, various activities have to be passed from the point where raw materials are produced, transported to the place of processing to make the finished goods are then distributed to customers that are spread throughout the place should be done efficiently, the right benefit, in a short time so that the product price can be affordable for consumers.

Logistics is essentially aimed to optimize the factors of production, are to optimize the cost, time and quality.

Thankyou~:)

The Summary of Rail Transportation

Rail Transportation

A.     The meaning of transportation

·         Transportation word comes from the Latin word "transportare".

·         Trans means across or next to another and portare means transporting or carrying.

·    Transportation is the transfering people or goods from the origin to the destination for specific purposes and by using certain tools.

B.      The meaning of Rail Transportation

The train is a means of mass transportation that generally consists of a locomotive (vehicles that powered its own motion) and a series of trains or carriages (are assembled with other vehicles) to transport cargo or passengers. The track usually consists of steel rails, installed on ties (sleepers) and ballast, on which the rolling stock, usually fitted with metal wheels.

·        The word 'train' comes from the Old French trahiner, from the Latin trahere 'pull and draw'. A train is a form of rail transport consisting of a series of vehicles that usually runs along a rail track to transport cargo or passengers.

C.      History of Rail Transportation

Railway history same as the history of transportation in general beginning with the invention of the wheel. Originally known chariot which only consists of one train (series). After James Watt invented the steam engine, Nicolas Cugnot making three-wheeled vehicle fuel steam. People mention it as an iron horse vehicles. The invention of electricity by Michael Faraday made several inventions that followed the invention of the electric equipment electric motor. The electric motor is then used to create an electric tram that is the forerunner of an electric train. Then Rudolf Diesel show diesel train with more powerful and more efficient than steam locomotives. Along with the development of electrical and magnetic technology that more advanced, they invented magnetic trains which has a speed above the speed of a regular train. Japan in the 1960s operate KA Super Ekspress Shinkanzen with Tokyo-Osaka route that eventually be developed more so reached almost all of Japan. And then France operate trains that similar to the TGV name.

D.     The Infrastucture of Rail Transportation

a.      Trackage 

-         This track consists of two parallel steel rails (pair), which is tied with a fastening, which is placed on a bearing rail in the form of wood, concrete, steel, or plastic to keep the width of the railway line in order to remain a consistent.

-      The standard size railway track is 1,435 mm (4 ft 8 1/2 in), is used about 60% of the world's railways. adapted to the type of commodity being transported, the maximum width for the train and the load to ensure safety when traveling through bridges, tunnels and other structures.

-          Rails and bearings are usually placed on a stone ballasts that will reduce the the thump and noise when vehicles pass on it. Stone ballast also functions as a tool to drainage.

b.      Train Signal

-          Mechanical signal is a signal device actuated mechanically, for example board / arm instruction that is raised and lowered to give orders to the train engineer. Cross is moved using the lever by humans.

-          Almost the same as the mechanical signal, but the arm gesture is raised and lowered with an electro mechanical devices.

-          Electrical signals are light signals such as traffic lights to regulate the course a train.

c.        Station

-          A railway station as an area where passengers can board and alight from trains.

-          A goods station is an area which is exclusively used for loading and unloading cargo.

E.      The Type Of Trains

a.      In Terms Of Propulsion (Locomotion)

-        Steam Train is a train driven by steam generated / generated from a boiler heated by firewood, coal or fuel oil, therefore, the vehicle is said to be a train and brought up to now.

James Watt, was born January 19, 1736 in Greenock Scotland found the improvement of the steam engine in 1769. The beginning of steam trains started with the invention of the steam engine's refinement.

Since the first railway built in Indonesia in 1867 in Semarang has been put on the steam locomotive, generally with locomotives from Germany, Britain, the United States and the Netherlands

-          Diesel Locomotive is the type of locomotive diesel engine and generally use diesel fuel from the engine. There are two main types of diesel trains, namely:

. Electric-diesel train (KRDE), is a diesel engine connected to an electric generator, so as to produce the electricity used as a power source of electric motors.

. Hydraulic diesel train (KRDH), is a type of propulsion on a train that uses a diesel engine as the prime mover by utilizing hydraulic transmission as a the successor of power from the diesel engine to the train wheels

-          The electric train (KRL) is a train that is moving with electric motor propulsion system. Its get electricity from the source of electrical substation by overhead cable (the electrical flow above) or a third rail (electric underflow).

Electric train which is now used in Indonesia was made in 1976, 1978, 1983, 1984, 1986, 1987, 1994, 1996, 1997, 1998, 1999, 2000 and 2001. At this time is also used a number of electric train which is a grant (gifts) from the Tokyo Metropolitan Government, and a number of trains were purchased secondhand from Japan.

-   Maglev train (magnetically levitated trains) is a type of train that float magnetically. Often also called magnetic rail.
         As its name, the principle of this train is utilizing magnetic force to lift the train so it float. Maglev trains also use the magnet as a driving force. The train is capable of driving with speeds up to 600 km / hour, much faster than regular trains. Some countries have developed this type of train are China, Japan, France, America, and Germany. Because the high cost of manufacture the magnetic rail, in the world in 2015 there were only two lanes Maglev that are opened to public transportation, the Shanghai Transrapid in Tiongkok and linimo in Japan.

-          In 1902, the first magnetic train was invented by Alfred Zehden of Germany.

-          In 1959, the design for the first magnetic train was created.

-          In 1979, first magnetic train was built in Hamburg, Germany but was closed months later.

-          In 1984, the first train the people could ride was built in Birmingham, England.

-          In 2004, the fastest Maglev that people can ride on was created in Shanghai, China.

b.      In terms of Rail

-          Conventional rail Train is a train that we usually see. Using rail that consist of two steel rod placed in the teak wood tough pads. In certain areas who possess the level of steep height, used a serrated rails placed in the middle of the rail and using a special locomotive that has gears.

-          Train monorail (single rail train) is a train that  is a train that consists of only one iron rod. The Location of Train is designed to hang on the rail or on the rails itself.

c.        In Terms Of Above / Below Ground

-          Surface Train, This train is moving on the land. Usually in Indonesia we see this train. The cost of the contuction for this train is the the cheapest compared to that underground or elevated train.

-          Elevated/viaduct Train, the elevated train that moving over the land with the help of the pillars, this is to avoid the cross plot, so does not need the Train crossing gates.
    The costs incurred about three (3) times more than the surface train with the same distance. In Jakarta there is a path from Manggarai to the City through Gambir station.

-          Underground Train (subway) is a train that moving underground (subway). This train are built by building the tunnels under the ground as the railway line. Generally used in big cities (metropolitan) like New York, Tokyo, Paris, Seoul and Moscow. In addition, it is also used on a smaller scale in the mining area. The costs incurred is very expensive, because the construction frequently cut through 20 m below the surface, which is seven (7) times more expensive than the surface train. In Japan the construction of subway traffic has started since 1905.

d.      In Terms Of Use

      -          The Train Passenger is a series of passenger trains and locomotives are used to transport humans. Especially for Indonesia, passenger rail can be divided into three classes, and has now been fitted with air-conditioning entirely. The following third-class are the Executive, Business AC and Economics AC.
-          The Train Cargo is a train that used to transport goods (cargo).  Commodities that can be transported are:

·         Container (Palletization, Insulated and refrigerated containers, standard containers, Hard-top containers, Open-top containers, Flatracks, Platforms (plats), Ventilated containers, bulk containers, tank containers)

·         Output Liquid Goods/ Liquid (BBM, CPO, all chemicals that are not corrosive liquid, cooking oil, mineral water, etc.)

·         output goods (coal, sand, cement, sugar, fertilizer, rice, kricak, asphalt, clinker and others)

·         retail goods (electronic goods, the production plant that has been packed, the shipment delivery, goods potogan)

·         packaging goods (Cement, fertilizer, sugar, rice, Palletization)

·         Besides that a special carriage used to transport the cattle and there were also special trailer train used to carrying tanks and other military equipment (guns, missiles, etc.).

F.      Rail Transportation In Logistics

-          Railway considered quite efficient for transporting goods with large volume and can help reduce highway traffic congestion.

-          Train (KA) is a cheap mode of land transport, especially for long-distance movement of goods.

-          This mode is suitable for transporting raw commodities with a large loading volume or the value of the final product per unit is low and is not time sensitive.

-          The travel time is more definitely (at this time volume of road transport is very congested and condition of road infrastructure is also poor so the travel time mode road becomes unpredictable)

-          Safer, without collection of others

-          Reducing pollution (estimated emissions of exhaust gases reaches 1 / 8 to 1/10 of transport by truck) - fuel savings (estimated to reach 1 million liters, equivalent to 3,000 tons of CO2 per year)

-          Reduced congestion and road congestion.

-          Safety level was so high that the guarantee of the goods arrived at the destination in good condition.

G.     PT Kereta Api Indonesia (Persero) (KAI or PT KAI)

PT Kereta Api Indonesia is an Indonesian State-Owned Enterprises which organizes trains freight services. PT Kereta Api Indonesia services include passenger and goods.

On Friday, June 17, 1864, a train (KA) in Indonesia was born.

Years of operation are 28 September 1945.