Eskom Procurement Book 2015

CONTENTS Foreword..............................................................................................................vii Preface..................................................................................................................ix Chapter 1 Richard Chinomona and Mercy Makhitha PRINCIPLES OF SUPPLY CHAIN AND PROCUREMENT MANAGEMENT 1.1 Introduction. ..................................................................................................2 1.2 The Relationship Between Supply Chain Management and Procurement...3 1.3 Supply Chain Principles................................................................................5 1.4 Procurement Principles.................................................................................8 1.5 The Importance of Procurement Within an Organisation............................10 1.6 Levels of Procurement Management Within an Organisation.....................12 1.7 The Impact of Procurement on Other Functions.........................................14 1.8 Centralised vs Decentralised Purchasing. ..................................................14 1.9 Types of Buying Organisations. ..................................................................16 1.10 Types of Products. ......................................................................................17 1.11 The Procurement Process. .........................................................................20 1.12 Procurement Documents. ...........................................................................21 1.13 Trends and Developments in Procurement.................................................22 1.14 Concluding Remarks...................................................................................23 1.15 References..................................................................................................23 2.1 Introduction. ................................................................................................28 2.2 Procurement Objectives..............................................................................29 2.3 Key Steps in the Procurement Process. .....................................................32 2.4 Types of Purchases.....................................................................................36 2.5 Importance of Item and Service Purchased................................................38 2.6 Managing the Procurement Process...........................................................38 2.7 Improving the Procurement Process and Best Practices............................41 2.8 Concluding Remarks...................................................................................42 2.9 References..................................................................................................43 Chapter 3 Richard Chinomona and Kenneth Mathu THE PLANNING, ORGANISING, LEADING AND CONTROL OF PROCUREMENT 3.1 Introduction. ................................................................................................46 3.2 Planning for Procurement. ..........................................................................46 3.3 Organising for Procurement........................................................................48 3.4 Organisational Structure. ............................................................................50 3.5 Leading. ......................................................................................................53 3.6 Controlling...................................................................................................55 3.7 Concluding Remarks...................................................................................58 3.8 References..................................................................................................58 Chapter 2 Llewellyn R. Roberts THE PROCUREMENT PROCESS

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