Archive for April, 2007

Purchasing Salaries

I hope that you have enjoyed the article “Your Purchasing Salary: Is It Fair?“ What I’m hoping even more is that you noticed the free offer to get a copy of “The Guide To Benchmarking Your Purchasing Salary.” If you didn’t, go here. What I’m hoping most of all is that you have gotten “The Guide,” used it to compare…

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Best Value Definition

A subscriber to PurchTips asked me how the term “best value” is defined in procurement. Best value is one of those terms that is defined differently by different people. I’ll give you my take… Best value relates to systematically identifying a measurable monetary difference between a winning supplier’s proposal and all other suppliers’ proposals. The term implies that more than…

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Smackdown: Blanket P.O.’s vs The P-Card

Blanket P.O.’s and Procurement Cards (P-cards) are two tools that non-eProcurement environments can adopt to reduce tactical activities in a purchasing department. Professional purchasing staff should rarely “cut P.O.’s” for orders under $100 when a vendor and pricing have already been determined by the purchasing team. When trying to decide which of these two tools to use, here are a…

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Requisitioning Practices

There are four common practices as related to how requisitioners put their requests through. Here they are from best to worst… 1. The company has an eProcurement system implemented featuring pre-approved items from contracted suppliers. When requisitioners want one of these items and their total order is under a certain value, they use the eProcurement system to place the order…

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Procurement Card Questions…

After sending out Tuesday’s PurchTips article “Procurement Card Pros & Cons ,” I received a suprising number of emails asking what the heck a procurement card is! I forgot that procurement card use (and credit card use, in general) is not as common in other countries as it is in the USA. Some folks even asked me to send a…

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Change Orders: Different Than A Changed Order?

One of our students asked if there is a standard practice for when to issue an official change order rather than simply making the change to an existing purchase order. Actually, there are no standard rules for a change order vs. amended P.O. across companies. A lot of it depends on your company’s own systems and procedures as well on…

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The Good Ol’ Procurement Card

I hope that you have enjoyed the article “Procurement Card Pros & Cons.” While on the topic, I thought that I’d use this blog post to describe some of the many decisions that must be made when implementing a procurement card program. These include: Should there be one standard spending limit for all procurement card holders, should each card holder…

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Kick A Supplier When It Is Down?

Sometimes suppliers run into rough times, even when they are performing adequately for you. So what do you do? Stick with the supplier you like? Or read the tea leaves and find a new supplier before things get bad? These types of questions were running through my mind when I read the article “Ruling Bans Vonage From Signing Up New…

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Got An Escalation Plan?

Supplier performance evaluation programs help keep suppliers “in line” because suppliers know that they are “being watched” and measured. But most companies usually only formally evaluate a small percentage of their suppliers. Most use the 80-20 rule to determine which suppliers will be evaluated – the 20% of suppliers to whom 80% of the spend is directed. But, of course,…

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The SPSM Hits The Caribbean!

March was another great month for awarding SPSM Certifications globally. In March, we had the first candidates from The Bahamas (northern Caribbean) and Barbados (southern Caribbean) earn their SPSM Certifications. With the unseasonably cold weather in Pittsburgh this weekend, I wish I would have chosen to personally deliver their certificates rather than sending them by mail! To Your Career,Charles Dominick,…

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