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 »
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 …
PROCUREMENT PROCESS AND ICT From a broader point of view development in information communication technology (ICT) has radically changed the manner in which people do business. Things like speed of communication and information exchange mean that you can offer real-time answers to customer inquiries, process transactions, convert potentials into paying clients etc. The procurement process …
10 Cs’ of supplier appraisal As a procurement manager or a person holding just about any significant decision making position in procurement, you have to be on top of your game when it comes to handling all matters relating to the procurement process. The issue of supplier appraisal is very important in procurement procedure and …
CONTRACT MANAGEMENT | ADVANTAGES AND DISADVANTAGES Contract management is an on-going process throughout the contract life. Things don’t just take off positively in contracts after the parties have signed the dotted lines. Think about it, what if circumstances change in the contract? What if supplier performance falls short? How do you know that contract terms …
Understanding Purchase to pay cycle (P2P CYCLE) Procurement meaning evolves depending on the context one looks at, meaning, eprocurement takes a different shape from the typical procurement procedure involved in calling your suppliers or even using call-off and blanket ordering systems. Global procurement on the other hand will entail other aspects that may not be …
KEY TYPES OF DIRECT PROCUREMENTS Resources or inputs that will be directly used in an organization’s primary activities as opposed to its support activities are referred to as direct procurements. Remember primary activities are the activities associated with the making or production of the goods or services the customers are paying for. The key types …
