Continuing from last week, here are some more best practices in procurement that you can implement at your workplace. A governing policy: Every organization has its own rules and regulations governing procurement. Some organizations frown at purchasing from anyone who has an adverse impact on the environment while some organizations do not like to procure […]
Best Practices in Procurement – Part Two Read More »
Today, procurement is an important strategic function that supports nearly all of the organization’s business operations and has an impact on organizational expenditure. Every organization wants to make its procurement as optimal and efficient as possible. By nature a complex process, it takes time for procurement to reach that stage immediately. Here’s the good news
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Supplier relationship management is one of the most important mandates of the procurement function of any organization, part of which is implementing best practices in supplier management. In this post, we’ll see some of these. Suppler performance management: This is an important activity that is unfortunately not followed by too many firms around the world
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In the previous post, we looked at the importance of visibility and how software allows organizations to have complete visibility into and across the business. Taking it from there, in this post, we’ll look at another kind of visibility that comes with software – real-time. Real-time visibility allows organizations to keep themselves up-to-date with everything
How Software Improves Visibility and Why it is Important – Part Two Read More »
In the second part of this post, we’ll continue where we left off and see some more benefits of reverse auctions for buyers and sellers. Not constrained by location: Even though they would like to bid for a contract, many suppliers are often constrained by their locations. With reverse auctions conducted using online procurement software,
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Reverse auction, the process by which an organization purchases its raw materials or supplies, is being adopted by more and more organizations today. A system where the traditional roles of the buyer and seller are reversed, in a reverse auction, the supplier’s bid for a chance to fulfill a buyer’s requirements instead of a buyer
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In a previous post titled ‘What Hercules’ second labor teaches us about procurement fraud,’ we equated procurement fraud to Hydra, the many-headed monster that Hercules had to slay and concluded that to eliminate it, instead of tackling each individual case of fraud as it occurs, organizations have to take steps to cut off the scope
Rooting Out Procurement Fraud – Part Two Read More »
Before we get into procurement fraud and what we can learn about it from the second labor of Hercules, let’s take a look at the second labor itself. To atone for killing his wife and children, Hercules is sent to serve King Eurystheus for a period of twelve years by an oracle. The King sets
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In the previous post titled ‘Bargaining Power of Suppliers – What Does It Mean for Your Business,’ we saw what bargaining power of suppliers meant and what causes it. In this post, we’ll look at some ways in which organizations can safeguard against and reduce this power. Backward integration: This is one of the techniques
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Even though it impacts them the most, many procurement professionals are not formally aware of the concept of the bargaining power of suppliers and how it impacts their businesses. Part of the competitive analysis framework (Porter’s five forces analysis) put forth by Harvard professor Michael Porter, an analysis of the bargaining power of suppliers can
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