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Procurement & Sourcing Articles

How To Spot Supplier Risk During On-Site Evaluations

Visiting your carriers in person provides a great opportunity to identify potentially risky behavior. In this article, we explore what you should look for to ensure you’re working with safe, knowledgeable, and reliable carriers.

6 Things You Need to Know When Purchasing – Service Lifecycle Management Software

We’ve spoken to hundreds of companies to find out about their experiences when purchasing enterprise software for service (also known as Service Lifecycle Management (SLM) software). We’ve distilled the knowledge we gained into 6 tips to help you when you are in the market for enterprise service software.

Delayed Payments Can Be a Win-Win for Buyers and Suppliers

Extending payment terms to 120 days or more frees up working capital for big companies, but it can also increase the financial stress on suppliers and ultimately lead to increased product costs. The tactic has attracted much criticism, but research underway at the Zaragoza Logistics Center (ZLC), Zaragoza, Spain, shows that delaying payments to creditors can actually be beneficial for both buyers and suppliers.

Measuring the non-financial benefits of strategic sourcing

It is becoming increasingly important for a modern strategic procurement function to demonstrate its effectiveness robustly in terms of providing financial and non-financial benefits. This is because the way we measure the effectiveness of procurement drives behavior as well as demonstrates contribution and it is also a business-wide concern. Achieving this can seem daunting, but it is in fact quite straightforward. It is about changing the way the organization thinks, quantifying benefits as much as possible and showing how intervention contributes to wider, more measurable organizational goals. Ultimately it requires the procurement function to organize itself so it can ‘tell the story’ of the benefit, share success stories, and make sure the good work of procurement stays on everyone’s radar. Doing this is possibly one of the most effective ways a procurement function can ensure the rest of the organization is recognizing its contribution.

5 tips for improving procurement performance

Procurement plays a pivotal role in most organizations due to the major influence it has on the overall costs of the business. According to the Deloitte Global CPO Survey 2016, the majority of chief procurement officers agree that cost reduction is their number one priority this year. However, 62 percent expressed dissatisfaction with the execution of their respective procurement strategies. So, needless to say, there's room for improvement.

Return on Supplier Performance

According to an an EY research report, effective supplier / client management can reduce waste and save 5% to 15% of contract spend over time. Put another way, if a single category manager oversees a $1,000,000 portfolio and uses better, smarter performance management, it can drop $100,000 to the bottom line. That is significant value-add. The supplier benefits as well because a healthy relationship results in renewals and new opportunities within their clients.

The problem with RFPs – are they an essential tool or are we limiting the potential that the supply base can offer?

RFPs (Request for Proposal) and, indeed, RFQs (Request for Quotation) are key tools in a buyer’s tool- kit. These are almost certainly managed through an online platform and have become increasingly routine where there is an opportunity to run a competitive process. But do they really help bring advantage? And are these tools being used effectively throughout the procurement community?

5 Best Practices for Effective Supplier Information Management

Supplier data management is costing organizations millions of dollars each year. According to AMR Research/Gartner, supplier management organizations have increased their employee headcount and system resources by 35%, and are spending up to $1,000 per supplier annually, to manage their supplier information across the enterprise.

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Transform Your Supply Chain For Omnichannel

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The 4 Supply Chain Metrics

Metrics are a way to measure performance; and, in turn, communicate that information to key executives in the company.  Their value is how supply chain management is supporting the direction and strategy of the business.  It is important that they present a strategic and tactical understanding of what is happening and how well it is happening. KPIs (key performance indicators) must be measurable.  As a result, numerous metrics are about the logistics components.  Some of these are good.  However, they do not present a view of the total supply chain.  Plus, many have little or no usefulness for the C-suite.   Assessing logistics parts is a node-link approach and does not recognize the supply chain process.