Business dealings are often summed up in a contract, that way the parties have an idea of how to handle future issues should they arise. At least in theory that is what it looks like. In practice however, you need to understand the need for dispute resolution and am not just talking about litigation. Taking …
Here is a simple look at Dispute Resolution in business Read More »
What is force majeure? Different legal systems have developed various theories to deal with the need of contracting parties to excuse themselves from contractual obligations should events beyond the parties control inhibit the said parties from fulfilling the said obligations Force majeure is an example of such a clause in a contract Let’s say you …
The concept of supply chain is often given attention in the context of one company dealing with another company. And most books will define supply chain as such which is ok. The problem is if one is keen on adding value to what they make then they have to look at internal supply chain as …
WHAT IS SUPPLY CHAIN? A supply chain from the perspective of Harrison and Van Hoek is a group of partners who collectively convert a basic commodity (upstream) into a finished product (downstream) that is valued by end-customers, and who manage returns at each stage. In a supply chain it is important to understand that while …
In business it pays to know each of the various key players or stakeholders. By stakeholders I mean people who can affect or be affected by the business. Johnson and Whittington, in their book Exploring strategy, defined stakeholders as “people and groups that depend on the organization and upon which the organization itself depend” Going …
Getting goods of the right quantity is one of the FIVE Rs of procurement. There are a number of factors that determine the ‘right quantity’, things like demand for the final products, market conditions, the inventory policy of the organization etc. The inventory policy of the organization will determine the type of system the organization …
For most people when negotiating or planning for items to procure, price becomes a major factor. There is nothing wrong with considering price in whatever you buy after all it’s an expense and expenses in business means less profit if not properly factored in. The two main approaches that parties to a procurement set up …
The chief function of your business is to make profit. This is largely affected by the inputs (direct and indirect materials) that your business requires which means that your purchasing portfolio has to be on point, less the results be reflected in your income statement. The questions that procurement managers need to concern themselves with …
KRALJIC MODEL the amazing way to understand purchasing portfolio Read More »
A large manufacturing company has begun a project to increase the size of their premises. The procurement team has estimated that if the main supplier fails to complete the project on schedule it will incur cost and losses of $20,000 per day for every day there is a delay Which is the best way to …
At times a party to a contract will not hold their end of the said contract. Usually when a contract is breached the injured party has a number of options to choose from to remedy their position and such include; Refusing further performance of the contract To bring an action for damages To sue on …
