Archive for April, 2007

Purchasing Salaries

I hope that you have enjoyed the article “Your Purchasing Salary: Is It Fair?“ Don’t miss updates on Procurement & Supply Chain, Subscribe here! 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…

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Best Value Definition

A subscriber to PurchTips asked me how the term “best value” is defined in procurement. Don’t miss updates on Procurement & Supply Chain, Subscribe here! 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…

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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… Don’t miss updates on Procurement & Supply Chain, Subscribe here! 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…

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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! Don’t miss updates on Procurement & Supply Chain, Subscribe here! I forgot that procurement card use (and credit card use, in general) is not as common in other countries as it is in…

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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. Don’t miss updates on Procurement & Supply Chain, Subscribe here! Actually, there are no standard rules for a change order vs. amended P.O. across companies. A lot of it depends…

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The Good Ol’ Procurement Card

I hope that you have enjoyed the article “Procurement Card Pros & Cons.” Don’t miss updates on Procurement & Supply Chain, Subscribe here! 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…

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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. Don’t miss updates on Procurement & Supply Chain, Subscribe here! 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…

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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. Don’t miss updates on Procurement & Supply Chain, Subscribe here! 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…

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The SPSM Hits The Caribbean!

March was another great month for awarding SPSM Certifications globally. Don’t miss updates on Procurement & Supply Chain, Subscribe here! 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…

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