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 …
In business operations it is of great importance to acquire resources of the right quality, delivered at the right quantity, to the right place, at the right time and even more important at the right price. This is often what is referred to as the five rights of procurement which aims at giving a general …
The five rights of procurement, which in some literature is referred to as key purchasing variables or purchasing factors, express the basic objective of procurement, and the general criteria by which procurement performance is measured. What are the five rights of procurement and why are they important? The five Rs of procurement, as they are …
The whole point of forming a competitive strategy is such that a company is in a position to relate to its environment, be it external or internal. This will enable the company to have competitive advantage, that is, whatever gives them an edge against their competitors. In his book competitive strategy Michael porter argues that …
HOW CAN PROCUREMENT ADD VALUE TO AN ORGANIZATION? Read More »
What are the primary operational objectives of procurement? One of the general objectives of procurement is to obtain ‘inputs’ required by an organization or business for its operations. The principle is more or less the same whether it is a manufacturing organization that requires raw materials and components to make their products or a retail …
