Part 3 - Check points in procurement

First, let me thank you everyone for reading me, and to help me to publish it

Here, up til now I will make a small resume of what I have tried to explain before, so, when you read on, you will not be lost about what is going on.

In the first two chapters I state what is logistics and procurement. This I am demonstrating in an example, that all logistics is already thousands of year’s old, starts even from home. And so I show this on milk which we need at home.

So, then let’s go on with our little example of milk – Part 3

And we have to return to the question of which seller or producer is more close or easier to get to and surely has the product?

We have established that we go to the grocery store, as a flyer has informed us, that he has an offer for a the milk we are normally using, or better said, Mom does use. In addition, we get there with our bike which as a basket in the back, so we can transport things.

As we get there we, park our bike and then enter the store, which is like a small supermarket with many products. In the fourth aisle, we will find our milk. We have the product, good… but we have to do some things first. We check the ingredients list, so we don’t get by accident soya milk, if we don’t want to, and we check the expiration date.

Here some information about expiration dates:

1. The most expiration dates are for fresh products, as they really may expire quite quickly, as they are on meat, dairy products, vegetables and fruit. These are called perishable good and come inside a cold chain, which I will also explain more detailed further on.
2. On products, which are sealed, in cans or glass, expiration dates are becoming more flexible. This means, that they should or it is recommend, to consume before expiration date as they may perish, but it is known that apricots in cans have been eaten even years after expiration dates have expired without problems.
3. In dry products, expiration dates can be passed due often without problems, as long as their package is not damaged. As an example, I like to mention pasta, rice, beans besides others. These are products for safety of the producer and by law, have an expiration date, but have a very long shelf life.

The products in Point 3 can be store for a long time and can help you to pass through emergency or catastrophes, without starving.

Our milk has still 7 days to expiration date, and as we know, it will be used today, so no problem. We pick up four, as we know that four packs of milk of 1 lt (1/4 gallon) will fit perfectly into the basket of the bike. We recheck the price, if it is according to the flyer and we check, if we are taking the same or less quantity, if mentioned in the flyer. As we know, very often there may be a quantity limit attached to the offer.

We did here a few things, which we do also as professionals:

•  we did a quality check (no broken or damaged package, expiration date, broken seal)
• we did a quantity check (how much we can carry)
• we checked the price
• we check all the conditions under we can buy the product

Later I will come back to these items, at least some, then when I try to explain a definition which are called INCOTERMs. They are very important in logistics, as they are an international agreement, or even rules, and in some way laws which are connected to the part at logistics of delivery, pick up and transport.

Now we pass the cashier, pay, stuff the milk into the basket and off we go home.

#logistics

#supplychain

#procurement

#learning

#knowledge