Summary of "OCM - Clases por Video: 02. Economics of SCM - Procurement"

Main Ideas and Concepts

Economic Reasons in Procurement: The video discusses the economic aspects of Procurement in Supply Chain Management (SCM), emphasizing how various decisions impact costs.
Pillars Affecting Procurement Decisions:
- Purchase Price: Influenced by the scale of orders and supplier negotiations.
- Quality Control: Higher quality often leads to increased supplier costs, but ensures fewer defective items.
- Speed of Delivery: Faster delivery can incur higher costs but may reduce risks of supply interruptions.
- Sustainability: The Sustainability practices of suppliers affect overall costs and pricing.
Supplier Base Decisions: Concentrating purchases with a single supplier can yield scale discounts but may reduce negotiation power and increase risk.
Logistics and Transportation Costs: The choice of supplier and transportation mode directly impacts Logistics costs, speed of delivery, and Sustainability.
Inventory Management: Increased order quantities can lead to higher holding costs and affect safety stock levels.
Quality Control Costs: Higher quality from suppliers can reduce internal Quality Control costs, while defects can lead to additional production costs.
Production Planning Risks: Delays in supply can disrupt production plans, leading to lost sales and increased costs.
Sustainability and Image Costs: Companies may face reputational risks and costs linked to Sustainability practices, including compliance with regulations.
Operating Costs: Costs associated with selecting, onboarding, and managing suppliers are essential considerations in Procurement decisions.

Methodology / List of Instructions

Evaluate Supplier Options: Assess the trade-offs between concentrating purchases with fewer suppliers versus diversifying the supplier base.
Negotiate Effectively: Use scale and Quality Control as leverage in negotiations to secure better pricing and terms.
Consider Logistics: Analyze how supplier location and transportation modes affect overall Logistics costs and Sustainability.
Monitor Quality: Implement rigorous Quality Control measures to minimize defects and associated costs.
Plan for Risks: Develop contingency plans for potential supply disruptions to safeguard production schedules.
Factor in Sustainability: Assess the Sustainability practices of suppliers and their impact on costs and company reputation.
Manage Operating Costs: Streamline processes related to supplier selection, onboarding, and contract management to reduce overhead.

Speakers / Sources Featured

The subtitles do not explicitly mention any specific speakers or sources; the content appears to be presented by an instructor or educator discussing SCM economics.