Архив рубрики: English articles

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?

Dear procurement professionals,  I have found one interesting video, which can possibly help you to improve you skills in contract negotiations. The speaker focuses on the next 4 world class contract negotiation strategies: 1. Taking cost out of supply chain. 2. Writing contracts to prevent and remedy TCO excursions 3. Cost modelling and benchmarking for success 4. Using concessions to achieve Win-Win.

Before choosing a supplier, the purchaser should analyze the total cost of ownership (TCO). In the broadest definition, the total cost of ownership of an intermediate or consumer goods includes all costs  to manage and control the timing and conditions of performance , accelerating the passage of stocks, transportation, inspection and testing, rework , storage , waste, warranty , maintenance, downtime , return to customers and lost profits. In other words, the total cost of ownership is comprised of the purchase price and all other expenses related to this product. 

The cost of raw materials and products is usually set on the basis of market prices that are experiencing the daily fluctuations. As a rule, the price of this product at any given moment is less important than the overall trend of price changes.

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.

Corporate purchasing cards (or supply cards, P- card) are credit cards issued to domestic consumers or users of the procuring entity. Such maps can be combined with the technologies used for e-commerce and data processing, which allows procuring entities to receive important information.

Earlier, in the article about the sources of information about suppliers, we briefly mentioned the electronic (online) catalogs. In this article we shall discuss them in more detail. Electronic catalog is the digital version of the conventional directory provider, which allows the buyer to examine in detail the purchase and further information about products or services offered by the provider on their computers.

In an article upon online auctions we briefly mentioned the reverse auction. Now we have a look at this concept in more details. So, the reverse auction is an online auction in real time, based on falling prices, which on one hand is involved procuring entity, and on the other hand it’s a group of pre-selected suppliers. The bidding process is dynamic, suppliers compete for the contract, offering their own versions and competing with each other on-line, using specialized software. Suppliers to provide information on the status of their bids in real time, and, as a rule, the contract with the supplier receives the lowest bid price (or with the … Читать далее →

The auctions have been held for several years to provide transactions. There are several types of auctions. In general, spare can be classified based on the competition between vendors and between the buyers and on the basis of increase or decrease costs. For example, the Dutch flower auctions - this is an example of an auction with a decrease in prices resulting from competition between buyers, while the traditional English-style auctions, which are often carried out on sales of equipment or furniture are the ones in where multiple buyers increase the price. This is a different model of auctions are now integrated with Internet technology, so buyers have new methods … Читать далее →

"Standardization" and "simplification" terms are often used to refer to one and the same. Although, if we approach more closely, they belong to two different concepts. Standardization means compliance with certain size, design, quality, and similar parameters.