Anda di halaman 1dari 2

Manjunath YM – 17152 – Sec “C”

Activity Situation: Royal Enfield Procurement/ Purchase

Acquisition Reception Possession Utilisation Elimination


Discounts
Cash

Follow up cost Service cost


Supplier
level supplier change
Non cost
Cash
Support
Supplier follow up

Replacement
Booking cost Travel cost cost
Cash
wear and tear
cost
Order Processing Order
level order cost cost receiving cost
Non
Receiving cost
Cash
safety cost
Insurance

Maintains
Cash Accessories Cost Cost Failure cost
Unit Upgrade cost
level
Non
Cash Maintance cost

As shown in the above table - cash discounts are available, sometimes follow up
calls are to be made to the supplier to receive the product. The noncash expense
in this stage is order cost, and time. In reception stage the product or material is
with the seller, we need to receive from him by paying cash or credit. This
involves safety cost, travel cost, processing cost, insurance cost and receiving
cost. In possession stage the product is in our hand or destination, here cost
involved are order receiving cost, maintains cost and upgrade cost. In utilisation
stage, the cost involved while using the products are, maintains cost, replacement,
wear and tear, failure cost and Service cost. In elimination stage, the waste
procured with the product like plastic rapping’s to be eliminated, so disposal cost
is incurred. Here some costs are visible and some costs are hidden.
Manjunath YM – 17152 – Sec “C”

Anda mungkin juga menyukai