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Class 12, 2nd Notes

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315 views

Class 12, 2nd Notes

Uploaded by

pallaviraw811
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Unit-2 (Basics of Procurement Policy and BPO’s)

What is Procurement?

 Procurement is the process of acquiring goods and services through purchasing, renting, or
leasing.
 It involves preparing specifications, solicitations, evaluating bids/proposals, awarding
contracts, and contract administration.

What is Procurement Policies?

 Procurement policies govern the acquisition of goods, works, non-consulting services, and
consulting services, often financed by institutions like banks.

How Your Procurement Process Can Give You a Competitive Advantage?

1. Reduced Total Cost Across the Value Chain


o A primary goal is to deliver value by reducing costs throughout the procurement
process.
2. Greater Efficiency
o Streamlining the procurement process leads to faster transactions and improved
operational efficiency.
3. Embrace Innovation
o Procurement policies encourage adopting new technologies and innovative practices.
4. Mitigate Supplier Risk
o Helps in assessing and managing risks associated with suppliers, reducing the
likelihood of disruptions.
5. Support Supply Chain Resiliency
o Ensures the supply chain remains flexible and adaptable, even in times of disruption.

Limitations and Challenges of E-Procurement

 The total cost (TCO) may be too high.


 It may be subject to hacker attacks.
 It may be difficult to get suppliers to cooperate electronically.
 The system may be too complex (e.g., when it uses a traditional EDI)

Introduction to BPO Industry


Defination of BPO:
Business process outsourcing (BPO) is a business practice in which an organization contracts with an
external service provider to perform an essential business function or task.

Business process outsourcing (BPO) is the delegation of one or more IT-intensive business processes to
an external provider that, in turn, owns, administrates and manages the selected processes based on
defined and measurable performance metrics.

Explain Benefits and Limitations of BPO.


Organizations contract with BPO vendors for back office and front office operations. BPO offers several
benefits, such as lower costs, global expansion, and higher efficiency, while some of the drawbacks
include security issues, hidden costs, and overdependence.
BPO Categories:
1. Back office Outsourcing: which include internal business functions such as billing
and purchasing .
2. Front office Outsourcing : which include customer related services such as
marketing or tech support.
Advantages of BPO

1. Concentrate on Core Areas


o Delegating responsibilities allows organizations to focus on core business activities
and make better decisions.
2. Cost-Effective
o Helps in cost-cutting, saving money for future investments. BPO services hire skilled
personnel at lower wages, beneficial for MNCs.
3. Reduces Employee Burden
o Offloading tasks improves employee efficiency, prevents overburdening, and enhances
productivity.
4. Increases Productivity
o Outsourcing to skilled professionals increases work efficiency and productivity.
5. Speed
o Provides faster responses and solutions to time-sensitive business activities, allowing
companies to focus on core tasks.
6. 24/7 Smooth Functioning
o BPO operates around the clock, ensuring continuous business operations with trained,
experienced personnel.

Disadvantages of BPO

1. Communication Errors
o Miscommunication due to time differences, language barriers, and delayed responses,
especially in offshore BPOs.
2. Security Issues
o Risk of data theft or piracy when sharing sensitive technological or business
information.
3. Loss of Control
o Companies may lose direct control over outsourced tasks, leading to difficulties in
monitoring and managing processes.
4. Hidden Costs
o Outsourcing companies may charge unexpected fees, especially for small businesses
unfamiliar with contractual obligations.
5. Requires Planning
o Thorough planning, research, and continuous follow-up are required when selecting an
outsourcing agency.
6. Work-Life Balance
o Long working hours in BPOs can disturb personal life and lead to health issues like
eye and ear strain, especially with night shifts.

Definition of Payroll

 Payroll refers to the process of calculating workers' pay and taxes, as well as the total amount
of money paid to employees by an employer.

Quality Assurance

 Quality Assurance is a systematic effort in manufacturing and service industries to ensure


that products or services meet performance, design, reliability, and maintainability
expectations as agreed with the customer.

Types of Quality Control

1. Process Control
2. Acceptance Sampling
3. Control Charts
4. Product Quality Control

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