Tweet The key question is formulated as follows when it comes to the strategic: if a supply service and the supply chain can effectively contribute to achieving the organization's objectives and its strategies? In addition, there is another important question: how the goals and strategy of the organization can accurately reflect the contributions and capabilities of the supply chain?
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 Cross-functional teams consist of the employees of different functions and are engaged in tasks associated with supplies. It is widely believed that cross-functional teams with good professionals are to achieve better results in problems solving and provide higher profit organization as a whole at a lower cost, shorter terms, and so that the persons concerned are eager to perceive their results. Effective cross-functional teams save time through using not the serial, but parallel approach. For instance, if the development of a new process, its design, build and implementation of the workers involved major stakeholder groups, this process will face less difficulty from the outset, it will be eagerly accepted … Читать далее →
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 Today one of the questions at the exam concerning change management was dedicated to some Reck and Long model (1988). It says about turning purchasing into strategic function. Unfortunately, the majority of students and, most bitterly, your humble narrator, preferred to tell about the peculiar features of price formation policy rather than about this fine four-stage model. After having passed the exam I have been reproaching myself for giving my preference to the alternative to the only one (!) question relevant to purchasing to some extent. Still feeling my guilt, I am filling in this gap. So, Reck and Long model...
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.