What are the 5Rs Principles of Procurement What are the 5 Principles of Procurement?

1. Moderate price. Always the focus of attention in procurement activities. One of the most concerned about the procurement of enterprise managers is how much procurement money the purchasing department can save, so the purchasing manager should put a lot of time and energy on the "bargaining" with the best businessmen.

Certainly not lower is better. As a purchaser, you must not only look at the order on the **, because the ** is only the explicit part of the transaction, and there are many hidden costs that must be paid attention to, such as quality, service, maintenance, shelf life, delivery date and long-term supply. In particular, the quality and punctuality of delivery are the biggest factors affecting procurement.

Therefore, the purchaser must purchase the required goods and services with the "most reasonable" under the condition of "meeting the quality requirements". Meeting the quality requirements is a very important premise, if this premise cannot be met, no matter how low the business proposal, it should not be considered. It is also possible to maintain a long-term cooperative relationship only if it is reasonable.

2. Appropriate quality. An enterprise that does not pay attention to quality cannot gain a foothold in today's fierce market competition, and an excellent purchasing manager must not only be a shrewd businessman, but also play the role of a quality manager to a certain extent.

As a purchaser, you need to consider whether the company really needs that good quality? Blindly pursuing the highest standards of quality does not necessarily increase the value of a product. Therefore, the purchaser should meet the required quality level and reduce unnecessary quality requirements to achieve a good balance between quality and quality.

In addition, in addition to meeting the requirements, the quality must also maintain the consistency of quality, that is to say, the quality of each delivery can not be significantly different, in order to ensure that the quality on the internal production line is easy to control after excluding external factors.

3. Appropriate amount. The purchaser should take into account effective inventory management internally to achieve a high inventory turnover rate and reduce unnecessary storage costs; Externally, it is necessary to coordinate the economic production batch of the first merchant and improve the procurement operation to achieve the "break-even point" of the number of ordered or manufactured products, so that the first merchant has a reasonable profit margin.

If you can fully control the arrival time of the first merchant, the inventory turnover rate of the inventory can also be effectively controlled.

4. Timely. The most important mission of the purchasing department is not to stop production, but it is the responsibility of the purchasing manager to maintain continuous supply and not stop production. If the factory cannot be maintained normally, no matter how hard the purchasing department is, it will be in vain.

Therefore, the purchasing department should pay attention to the importance of lead time (procurement lead time) to procurement costs and meet production.

5. Suitable place. The right place is the question of how to choose a suitable businessman. For the selection of the first business, in addition to the strength of the technology, the purchaser must also think about two aspects: one is the region, the other is the scale.

Fit**.

The right quality.

The right location.

The right time.

Suitable quantity.

One is the right price: ** is always the sensitive focus of procurement activities, one of the most concerned points of enterprises in procurement is how much procurement money can be saved, so procurement personnel have to put a lot of time and energy on the "bargaining" with the first business.

The second is suitable: a company that does not pay attention to quality in today's fierce market competition environment can not stand on a foothold, an excellent procurement staff should not only be a shrewd businessman, but also play the role of managers to a certain extent, in the daily procurement work to arrange part of the time to promote the improvement of the business, stabilize the quality of goods.

The third is timely: the enterprise has arranged the production plan, if the raw materials fail to arrive as scheduled, it will often cause chaos within the enterprise, that is, the shutdown will be generated, and when the product can not be shipped as planned, it will cause strong dissatisfaction with customers. If the raw materials are bought back in advance and put in the warehouse waiting for production, it will cause too much inventory and a large backlog of procurement funds, which is a very taboo thing for enterprises, so the procurement personnel should play the role of coordinator and supervisor to prompt the first business to deliver the goods according to the scheduled time.

For some companies, delivery timing is significant.

Significant. Fourth, the appropriate amount: although it is possible to obtain a quantity discount for bulk procurement, but there will be a backlog of procurement funds, too little and can not meet the needs of production, so it is quite critical to reasonably determine the number of purchases, generally according to the economic order quantity procurement, procurement personnel should not only supervise the delivery on time, but also emphasize the delivery according to the number of orders.

Fifth, the right place: the time is not as good as the location, enterprises are often easy to take the initiative in the cooperation with the nearest businessmen, and it is best for enterprises to choose the nearest business to implement when choosing a pilot business. Proximity not only makes it easier for buyers and sellers to communicate with each other, but also reduces procurement logistics costs.

Appropriate price, timely, suitable place, appropriate amount, suitable quality.

The main process of comparing and selecting procurement methods:

1. The purchaser issues procurement information (procurement announcement or procurement invitation) and procurement documents.

2. Prepare and submit response documents according to the requirements of the procurement documents.

3. The purchaser reviews the response documents of the first merchant and preliminarily determines the winning candidate.

4. The purchaser reserves the right to negotiate further with the selected candidates.

5. The purchaser determines the final winner and sends a notice of the procurement result to all the merchants who submit the response documents.

6. The purchaser signs a procurement contract with the selected supplier.

Hello, I am glad to answer for you, the 5R principle of procurement refers to "the right time, the right quantity, the right quality, the right place, the right **". Applying these principles to the procurement process can improve procurement efficiency, reduce procurement costs, and optimize the management of the first chain. Here's a list of the importance of the 5R principles for procurement:

1.Right quality: Right quality is the most important 5R principle of procurement. In the procurement process, choosing a high-quality product or service can reduce subsequent quality problems and avoid losses or duplicate investments.

In addition, if the product or service is of poor quality, it may affect the reputation and customer experience of the business, which can have a negative impact on the business in the long run. 2.The right thing is also a very important part of the 5R principle of procurement.

When purchasing, choosing a reasonable ** can reduce procurement costs and improve the profitability of enterprises. At the same time, if the ** is too high, it may cause the enterprise to lose competitiveness in the market. 3.

The right quantity, the right quantity, is also a very important part of the 5R principle of procurement. When sourcing Sanzen, choosing the right quantity ensures a steady demand for production and services, avoiding over- or understocking. 4.

The right time, the right time, refers to the time point of the purchase. Choosing the right time when purchasing can avoid mistakes in purchasing decisions, as the time factor can affect the availability and availability of products and services. 5.

The right placeThe right place refers to the place where the purchase is made. Choosing the right location when sourcing ensures a smooth and timely procurement process, avoiding wasted transportation costs and time. In general, the importance of the 5R principle of procurement depends on the needs and realities of the business.

Enterprises need to comprehensively consider the above five principles to ensure the efficiency of the procurement process and optimize the management of the first chain.

The 5R principle: right time, right quality, right quantity, right price, right place.

1.Timely. If the raw materials fail to arrive as scheduled, it will often cause chaos within the enterprise, that is, there will be a shutdown to wait for materials, and when the product cannot be shipped as planned, it will cause strong dissatisfaction among customers.

If the raw materials are bought back in advance and put in the warehouse waiting for production, it will cause too much inventory and a large backlog of procurement funds, which is a very taboo thing for enterprises to clear the shortage of oranges, so the procurement personnel should play the role of coordinators and supervisors to prompt the first business to deliver the goods according to the scheduled time. For some businesses, delivery timing is important.

2.Amount. Although it is possible to obtain quantity discounts for bulk procurement, there will be a backlog of procurement funds, too little and can not meet the needs of production, so it is quite critical to reasonably determine the number of purchases, generally according to the economic order quantity procurement, procurement personnel should not only supervise the delivery on time, but also emphasize the delivery according to the order quantity.

3.Fit for place. The time is not as good as the location, and the enterprise is often easy to take the initiative in the cooperation with the closer business, and it is best for the enterprise to choose the short-range business to implement when choosing the pilot business.

The close supply not only makes the communication between buyers and sellers more convenient, handles affairs more quickly, but also reduces the cost of purchasing logistics socks.

4.Affordable. ** is always the focus of the sensitive debate in the procurement activities, one of the most concerned points in the procurement of enterprises is how much procurement money can be saved, so the procurement staff have to put a lot of time and energy on the "bargaining" with the business.

The ** of the article is related to the type of the item, whether it is a long-term purchase, whether it is a large purchase and the market supply and demand, and at the same time is related to the procurement personnel who are familiar with the market conditions of the goods. A suitable ** can often be obtained through the efforts of the following links.

5.Fitness. An enterprise that does not pay attention to quality in today's fierce market competition environment can not stand on a foothold, an excellent procurement staff should not only be a shrewd businessman, but also play the role of management personnel to a certain extent, in the daily procurement work to arrange part of the time to promote the improvement and stability of the quality of goods.

r is an abbreviation for right, which means appropriate, correct.

The 5R principle refers to the five principles in the procurement process: the right (or appropriate) time, the right (or appropriate) place, the right (or appropriate) **, the right (or appropriate) quality, and the right (or appropriate) quantity.

Dulac. Dr. Deming.

5R theories, these theories are:

The first R is relevance, that is, what kind of products and services the customer needs, not what kind of products and services the company can produce or provide.

The second r is receptivity, which means when a customer wants to buy or when they know about the product from the manufacturer.

The third is responsiveness, which is how we respond to our customers' needs when they are needed.

The fourth r recognition is the position of the company in the market and their reputation.

The fifth R relationship is all the activities between the buyer and the seller that promote each other over a long period of time.

1. Appropriate quality: quality control of purchased items.

2. Timely: control the construction period of purchased items.

3. Moderate price: the best control of purchased items.

4. Appropriate amount: quantity control of purchased items.

5. Appropriate place: the best commercial regional control of purchased items.

The 5R principle: right time, right quality, right place, right quantity, right price.