1_Procurement Insights

How to select your Contract type?

How to select the correct contract type that is most suitable for our requirement? Selecting correct contact form for a specific purchase agreement depends on various factors like availability and accuracy of pricing data, relative strength of buyer and seller and perceived risk and market competition. Most of the contracts may be categorized either Fixed Contract, Cost Reimbursable contracts, Time…

Continue Reading

1_Procurement Insights

Supply Market Intelligence

Supply Market Intelligence include information related to Changes in Supply and Demand and Trends, Supply Market size, utilization, expected expansions/contractions, level of competition, Technological changes, Innovations, geo-political changes in supply market etc.
How supply market intelligence influence Procurement success?

1_Procurement Insights

Cost Management Program in Procurement

Cost Saving is reduction in cost that has tangible results. Direct Cost Saving such as lower prices paid and indirect cost savings like improved efficiency and productivity. Cost avoidance is preventing or reduce suppliers price increase.When suppliers actual cost increase, price increase are likely. One way to prevent or minimize such price increase is to invest in Supplier Development. For…

Continue Reading

1_Procurement Insights

Low Cost Country in Global Sourcing – Benefit & Challenges

Low Cost Country Sourcing is a one of the most discussed topic in Global Sourcing among procurement professional. The Audiopedia Describes Low Cost Country Sourcing very vividly in this YouTube video. Low Cost Country Sourcing is a procurement strategy of Global Sourcing in which a company sources materials from countries with lower labor rate and production costs in order to cut operating expenses. Low Cost Country…

Continue Reading

1_Procurement Insights

Inventory Reduction: Methods and Implementation

Benefit of Inventory Reduction Inventory Reduction will release working capital for re-investment in other key business areas and maintain smooth cash flow for any business that operates with tight margins. Companies that purchase items from suppliers to make the customer order fulfilment often believe that lowering inventory levels equals to lowering service levels, which will negatively affect customer order fulfilment.…

Continue Reading

1_Procurement Insights

Transforming Procurement through Technology

The Internet of Things, Predictive analytics, Robotic process automation (RPA) and Social sourcing are Transforming Procurement through Technology. Technology is the major catalyst for change in every business process. Every step of business is being reshaped by the technology and procurement is no exception. Boosting market coordination, introducing new suppliers, Enabling better compliance, increase capacity and speed, minimizing risk and…

Continue Reading

1_Procurement Insights

Maximize Suppliers Interactions at Zero Cost

How to maximize the value of Supplier Interactions and uncover the hidden value and reduce risk of failure in procurement? Can we achieve this without spending extra money? Yes we can. There are many ways to achieve this and one of them is to create productive supplier relationship (1). How to develop productive Supplier Relationship? To develop productive supplier relationships…

Continue Reading