Purchasing

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P & G
To: Purchasing strategy of P & G From: Junior Consultant, Liu Zuo Jun Subject: Purchasing
2 of 2
Date: 21 Jun 2012

Content
1. Introduction----------------------------------------------------------3 2. Negotiation-----------------------------------------------------------3 3. Suitable channels---------------------------------------------------4 4. EOQ--------------------------------------------------------------------5 5. TQM--------------------------------------------------------------------6 6. Negotiation with foreigner------------------------------------------7 7. Purchasing activities influence-------------------------------------9 8. Relationship with foreigner suppliers----------------------------10 9. Role and service of international purchasing specialists-----11 10. Global sourcing strategies-----------------------------------------12 11. Corporate social responsibility-----------------------------------13 12. Conclusion------------------------------------------------------------14 References-----------------------------------------------------------------15

Executive summary

The purpose of this assignment is focusing on explain how P & G ensure that the regular quantities and quality of goods (inventory) and services are purchased and explain the role of the major national and transnational organizations and agencies which influence international purchasing. In order to explain correctly and accurately, we have to do a research on P&G and gain our understanding and realization, especially their purchasing function.

The essay will be divided into two main parts. The first part includes explain how P & G ensures that the regular quantities and quality of goods (inventory) and services are purchased, which combined by describe how negotiations with suppliers are conducted to obtain goods or services at acceptable costs, propose channels of distribution for the transport of two different types of goods, assess the procedures used by an organization to ensure the security of goods and safety of organizational personnel, describe how negotiations are carried out with external parties to ensure that goods(services) are purchased to budget. The second part stay focus on assessing the influences on purchasing activities of the major national and transnational organizations, investigating methods used by two different organizations to develop relationships with foreign supplies, explaining the role and services provided by specialists in international purchasing, assessing the advantages of global sourcing strategies.

1. Introduction
Procter & Gamble (P&G) is a Fortune 500 American multinational Corporation and has business over 100 countries all over the world. It invests more than $400 million in consumer understanding and research to innovate brands and products. As a management trainee in the purchasing department, this report will review the purchasing strategies of P&G.

2. Negotiation
Negotiation is a dialogue between two or more people or parties, intended to reach an understanding, resolve point of difference, or gain advantage in outcome of dialogue, to produce an agreement upon courses of action, to bargain for individual or collective advantage, to craft outcomes to satisfy various interests of two person/ parties involved in negotiation process. Negotiation is a process where each party involved in negotiating tries to gain an advantage for themselves by the end of the process. Negotiation is intended to aim at compromise.

Negotiation occurs in business, non-profit organizations, government branches, legal proceedings, among nations and in personal situations such as marriage, divorce, parenting, and everyday life. The study of the subject...
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