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 …
Do you understand how FIXTURES IN REAL ESTATE work? Let’s say you own a building in a commercial area of town. Tom rents space in your building in which he operates a bookstore. In this bookstore, there are large tables fastened to the walls, where customers are encouraged to sit and read. So the shelves …
FIVE STEPS TO MASTERING NEGOTIATIONS WITH YOUR BOSS Some people are lucky to have approachable bosses while some work for real life embodiment of the word tyrant. Either way there comes a time when one has to negotiate with their boss, be the said boss good or otherwise, and this calls for mastering negotiations skills. …
Land, real estate and real property: what do they mean? Jack inherited green gardens from his uncle. The first action Jack took on his vacant land was to remove all of the topsoil, which he sold to a land scaping company. Jack then removed a thick layer of limestone, and sold it to a construction …
Understanding WHAT IS A GUARANTEE Where a subsidiary company is bidding for a contract but it has a poor credit rating, the procurement organization could obtain a guarantee from the parent company to reduce risks. But what is a guarantee? Before we answer the what is a guarantee question, look at this example; Alex and …
ACCEPTANCE RULES to help in Managing Contractual Risk As a buyer you haven’t been paying attention to contract delivery since the contract was created a year ago. Your supplier has not been delivering what is required as per the standards you agreed on, and yet your procurement department has been paying its monthly invoices for …
SUPPLY AND DEMAND IN REAL ESTATE Most people fantasize with the idea of owning property in the real estate market. The idea of getting passive income from rental property or just forgetting the whole pay rent each month seem to be quite appealing. Of course what most of these people tend to ignore are effects …
