Relationships that companies have with the parties the deal with, say suppliers in this case, are often summarized by contracts Success in managing contracts will therefore mean: Increase in revenue Decrease in cost Contract management in procurement is an ongoing process that ensures suppliers and buyers stick to their agreed contractual obligations as well as …
Sustainability means ensuring that actions currently taken do not limit or jeopardize plans or quality of life in future. But what has this got to do with procurement? The reality is the question of sustainability in procurement presents itself in various ways such as: Responsible procurement Ethical procurement Or even “Green” procurement Sustainable procurement, …
In the course of negotiation a lot of statements are made, these statements are known as representation and if false they are known as misrepresentations. Those that turn out to be part of that contract become its terms. Terms are the rights and obligations of each party in the contract. The terms may be EXPRESS, …
TYPES OF SPECIFICATIONS WHEN CONTRACTING When you get into a Commercial agreement (contract), you are simply intending that the law enforce whatever it is that you as a party in that contract desire. The success here will obviously depend on how you frame your specifications. But what are specifications? Or even types of specifications when …
STRATEGIC & TACTICAL NEGOTIATION Negotiation is a basic means of getting what you want from others. It’s a back and forth communication designed to reach an agreement when you and the other side have some interests that are shared and others that are opposed. (Fisher & Ury, Getting to yes) As a result of various …
KEY PERFORMANCE INDICATORS (KPIs) What gets measured gets managed; this gives us an idea of how important it is to measure supplier performance. When we talk about supplier performance measurement, we mean assessing their current performance against; Defined performance criteria Previous performance Performance of other comparable organisations BENEFITS OF USING KEY PERFORMANCE INDICATORS (KPIS) The …
Commercial agreements often are in the shape of a contract but, what is a contract? Simply put a contract is a legally binding agreement. The law of contract is concerned with four basic questions, which is what you should be asking yourself whenever you are in doubt whether you have a contract or not. These …
Knowing when to walk away from negotiation is important. The only reason to negotiate is to get results we would have otherwise not got, had we not negotiated. Success in this case is therefore measure by our ability to meet our objectives in the negotiation. This may mean using tactics such as, compromising, coercion, manipulations …
Procurement and supply cycle Procurement is all activities required in order to get the product from the supplier to its final destination. It encompasses the purchasing function, incoming inspection, and quality control and assurance, allowing companies to make supplier selection decisions based on total cost of ownership, rather than price. Van Weele (2009) The process …
What has PROCUREMENT got to do with PROFITS? When asked about profits management will often act as though sales are the only solution. Don’t get me wrong sales are important but they aren’t the only solution especially not if we try to increase our revenue without understanding the cost of producing such revenue. In the …
