Success in procurement management generally comes down to whether or not you have answers to the 5 rights of procurement. By procurement management am simply talking about a strategic approach to managing and optimizing organizational spend, remember you always need return on your investment. This process will involve among other things the acquisition of quality …
Ways to Increase your Profits through Value Chain or through any other way is one of those questions that you must have an answer to as a business person. Otherwise what you have is not business. In this post we are concerned with value chain specifically, what value chain consist of and how value chain …
Amazingly Easy Ways to Increase Your Profits through Value Chain Read More »
Purchasing and supply management is not an entirely new concept to most people. Take a look at the first part, purchasing. We all undertake purchasing, be it data for your phone, food, clothes etc. purchasing and supply management is one of those things you know hence you do not give it much thought. In business …
Purchasing and supply management important difference you must know Read More »
Procurement activities have led to the evolution of procurement from traditional purchasing and supply to what is currently the procurement profession. It has been mentioned that purchasing is reactive rather than proactive, transactional rather than relational, tactical instead of strategic, all of which are based on the traditional way purchasing and supply was looked, and …
Key procurement activities you must know for business growth Read More »
In buying and selling we could as buyers or sellers, depending on the role you are playing, get caught up in the financial numbers. This is why you need to understand the difference between price and cost because confusing one with the other will have a big impact down the line. What is the difference …
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 …
