1. Procurement Processes
Axar consulting
Procurement Processes

2. Procurement’s Vision
Trusted business advisor and partner for our stakeholders
Involved early in key business discussions
Co-develop market strategies to drive maximum value
Review historical spend & upcoming spend commitments
Proven expertise in delivering total value by:
developing valuable supplier relationships,
driving cost reductions and
leading process improvement

3. Procure to pay processes
Business Unit identifies need for Goods/Services
Business Unit engages Procurement >$50k
We collaborate to create Sourcing Strategy or Contracting Approach
Business Unit creates Purchase Requisition in Oracle
Procurement reviews & approves Purchase Requisitions
Purchase Order is issued (systemically)
Invoice are paid against Purchase Order based on Contractual Payment Terms

4. Purchasing levers Direct Negotiations Competitive Bidding
Demand Management
Right-Sizing

5. What is Indirect Spend? Revenues - COS (Direct) Gross Margin
- SG&A (Indirect)
Net Income
Purchases of Goods and/or Services that are:
“Controllable” Expenses / Budget within the departments/BUs
Not directly incorporated to Products, outside of “Bill of Material”
Could be recurring or non-recurring and/or “P-Card” spend
In-scope spend: Travel: Air, Car, Hotel, Legal Services, Business Services, HR, Marketing, MRO, IT/Telecom, Auto, MRO, Facilities, Temp. Labor, Lab Supplies, IT Hardware, IT Software, Consumables, Reagents, Controls, Tradeshows, Energy, Bio-specimens, etc.
Out of scope spend: intercompany transfers, intercompany charges, intercompany pricing, payroll, gov’t, taxes, etc.