INTERNATIONAL SALES &
PROCUREMENT
(PROCUREMENT)
Pauline Vandenbroucke 202019007
2022-2023 Mikael Pensaert
,Summary International Sales & Procurement – Pauline Vandenbroucke – 2022/2023
PART 1: INTRODUCTION TO PROCUREMENT MGT
0. Course overview
1. What are companies buying?
A. Your company
- What are the goods, what are the services you need?
o Buildings, equipment, machinery, raw materials, software, vehicles, utilities (water, gas, ...),
lawyers/accountants/..., …
§ Diff between buying goods services: service hard to make a contract what service you are buying
exactly (difficult to describe the quality of services bcs no clear specifications) à SLA (service level
agreements) are made to overcome this problem
- What investments will you do (before start?)?
- Things to be outsourced?
- What is your direct and indirect spend?
- List all purchases/ingredients and your suppliers.
B. What kinds of products is procurement buying?
- Which products?
- Or services?
- How to cluster them?
C. Ways to classify items
- Goods vs Services
- Direct vs Indirect Purchases/Spent
o Direct: all the goods and services needed for the core activity, Indirect: electricity, furniture, … to make
the activity possible
- OEM vs IAM
- Capex vs Opex
- Investments
1
,Summary International Sales & Procurement – Pauline Vandenbroucke – 2022/2023
i. Goods vs. Services
ii. Direct vs Indirect purchase/spend
iii. OEM / IAM
- iPhone chargers: from apple or
an alternative (cheaper but quality is a
risk)
2
, Summary International Sales & Procurement – Pauline Vandenbroucke – 2022/2023
OEM Examples
- Car industry:
o A company that manufactures the steering wheel or the tires on a new car, truck, or SUV.
- Computer software:
o A company like Microsoft that sells the operating system used in computers or other digital devices.
- Electronics:
o A company that builds the car radio that is included in a new vehicle.
- Manufacturing:
o A company that builds the engine that goes into a new bulldozer or airplane.
iv. Capex vs Opex
- Capital expenditures (CAPEX) are major purchases a company makes that are designed to be used over the long
term. Operating expenses (OPEX) are the day-to-day expenses a company incurs to keep its business operational.
o Investments last for longer time (buildings, ...), you must predict if it will be a good investment or not
o Capex: less frequent, opex = frequent
o ROI: used to evaluate or calculate if it will be a good investment or not
- Why important??
o Different accounting
o Different budget
2. Procurement process
A. Procurement process
- = Sequence of activities to achieve something = a process
B. The procurement process: Meal box + Meal kit
- Needàspecify what you wantàcomparing companiesàmake agreements
its supplier/send purchase orderàhe delivers invoiceàdelivery
C. The procurement process: 6 phases
- Contracting is often very long bcs of the legal agreements, in some cases this causes that you can’t move on in
your process
3
PROCUREMENT
(PROCUREMENT)
Pauline Vandenbroucke 202019007
2022-2023 Mikael Pensaert
,Summary International Sales & Procurement – Pauline Vandenbroucke – 2022/2023
PART 1: INTRODUCTION TO PROCUREMENT MGT
0. Course overview
1. What are companies buying?
A. Your company
- What are the goods, what are the services you need?
o Buildings, equipment, machinery, raw materials, software, vehicles, utilities (water, gas, ...),
lawyers/accountants/..., …
§ Diff between buying goods services: service hard to make a contract what service you are buying
exactly (difficult to describe the quality of services bcs no clear specifications) à SLA (service level
agreements) are made to overcome this problem
- What investments will you do (before start?)?
- Things to be outsourced?
- What is your direct and indirect spend?
- List all purchases/ingredients and your suppliers.
B. What kinds of products is procurement buying?
- Which products?
- Or services?
- How to cluster them?
C. Ways to classify items
- Goods vs Services
- Direct vs Indirect Purchases/Spent
o Direct: all the goods and services needed for the core activity, Indirect: electricity, furniture, … to make
the activity possible
- OEM vs IAM
- Capex vs Opex
- Investments
1
,Summary International Sales & Procurement – Pauline Vandenbroucke – 2022/2023
i. Goods vs. Services
ii. Direct vs Indirect purchase/spend
iii. OEM / IAM
- iPhone chargers: from apple or
an alternative (cheaper but quality is a
risk)
2
, Summary International Sales & Procurement – Pauline Vandenbroucke – 2022/2023
OEM Examples
- Car industry:
o A company that manufactures the steering wheel or the tires on a new car, truck, or SUV.
- Computer software:
o A company like Microsoft that sells the operating system used in computers or other digital devices.
- Electronics:
o A company that builds the car radio that is included in a new vehicle.
- Manufacturing:
o A company that builds the engine that goes into a new bulldozer or airplane.
iv. Capex vs Opex
- Capital expenditures (CAPEX) are major purchases a company makes that are designed to be used over the long
term. Operating expenses (OPEX) are the day-to-day expenses a company incurs to keep its business operational.
o Investments last for longer time (buildings, ...), you must predict if it will be a good investment or not
o Capex: less frequent, opex = frequent
o ROI: used to evaluate or calculate if it will be a good investment or not
- Why important??
o Different accounting
o Different budget
2. Procurement process
A. Procurement process
- = Sequence of activities to achieve something = a process
B. The procurement process: Meal box + Meal kit
- Needàspecify what you wantàcomparing companiesàmake agreements
its supplier/send purchase orderàhe delivers invoiceàdelivery
C. The procurement process: 6 phases
- Contracting is often very long bcs of the legal agreements, in some cases this causes that you can’t move on in
your process
3
