Архив рубрики: The general information about Procurement

Tweet Cost analysis of suppliers is not the sole basis for the price determining. What else can be used for this? Much depends on the type purchased product.

Tweet If the specializing in procurement and supply chain division should contribute to the achievement of organizational goals, it is necessary to equip professionals and clearly define the areas of responsibility for them. Specialization of procurement professionals helps them to develop expertise in specific areas and may require in the overall structure of specialized groups. Most of the large supply and procurement divisions consist of four general areas: management and sourcing of goods, material flow management, administrative tasks, and research related to supply.

Tweet "Or equivalent". There is nothing seditious in requesting quotations or proposals, based on the manufacturer's brand or model, frequently followed by the words "or equivalent".In such circumstances, the buyer is trying to move the responsibility for compliance with the required performance on the potential supplier, and maybe, getting better results without spending money and effort to develop appropriate specifications.

Tweet Procurement management starts with defining the needs of internal customers and ends up monitoring suppliers’ performance and relationship with them. In this process, there is a number of separate steps, including the description of needs, identification of potential sources, the choice of the source of supply and the determination of essential conditions, follow-up to ensure the supply conditions, receipt of goods, payment to the supplier, and monitoring. In this article we will have a look at two stages in the management of procurement - awareness and description of needs.  

Tweet Imagine for a moment that you are General Manager of transnational corporation, say acting in more than 20 countries. Field of functioning is characterized by high domestic and foreign competition, certain legislative barriers and extremely demanding consumers. Try to agree that in these circumstances it is getting more and more difficult to cheer the shareholders up with income from dividends. Nevertheless, you are full of aspirations and you are determined to maximally grow the profit of your enterprise. How you would do that? Saying straight, you are facing three alternatives: - lead an aggressive marketing company aimed at the sales growth; -  increase the price of the production of … Читать далее →

Tweet The process of choosing a vendor is getting essentially more difficult purchasing feedstock on the global market. Nevertheless, in spite of this, the majority of big transnational corporations make the purchase of feedstock, materials, components and equipment from foreign vendors which is conditional on lower price or the availability of necessary goods nomenclature.