Archive for 2019

Strategic Cost Reduction for Supply Chain Success

Strategic Cost Reduction for Supply Chain Success – Reduce Spend, Risks & Cost The are many avenues to realizing cost reduction, including the traditional areas of price, delivery, quality, warranty, and payment terms. In this blog, we will explore many other avenues for cost reduction realization. We will examine the methodology and benefits of a big picture, strategic systems thinking…

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Cross Cultural Communication & Negotiation

Owner / Clients are always looking for cost optimization to build Capital Plants (It may be a Power Plant or Refinery or Petrochemical Complex etc.) within the available Budget and schedule. So, Owners allow Engineering, Procurement & Construction (EPC) Contractor’s to source project material from the Global market (it includes local as well as Suppliers situated in different counties across…

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Is Partial eProcurement Adoption Right for Your Company?

Pros and Cons of a Piecemeal eProcurement System More and more companies are implementing eProcurement software solutions in order to make their procurement processes more efficient and less costly. But because those systems can require significant up-front investments of money and time, some companies choose to use only the pieces they need at that particular moment. This partial eProcurement option…

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What Does Invoice Processing Cost?

How to Save Your Company Time and Money on Invoices You know about all the major costs of purchasing, but it’s the little costs that can add up to really eat away at your bottom line. Incremental, high-volume costs (such as invoice processing) may seem unchangeable; however, new technologies are changing the way this basic process is handled. Not only…

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Next Generation Procurement Model

The Procurement Function currently exists in an environment of ever-increasing technological advancements. Procurement Leaders are tasked with the responsibility of paving the way for transforming their operations to meet the demands of the modern business landscape. Currently, Procurement Function Models are fragmented, tactical focused, cumbersome, siloed, and labor intensive. The future requires the Traditional Core Competencies of: Category Management Supplier…

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Making a case for Procurement Automation

The Procurement Function is a vital part of the Supply Chain Mechanism, which is responsible for the acquisition of mission-critical inputs for the realization of business objectives. Even though procurement plays a pivotal role in supporting critical operations, managing spends, and mitigating supply risks, it often receives less regard than due. A close examination of Procurement Operations would reveal that…

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How to Manage Spend before it Starts

Managing Spend is a critical part of the Procurement Function. Spending in an ad-hoc manner often results in rush orders, overspend, and excessive inventories. Ensuring a robust, planned, budgeted and technologically equipped process will indeed yield the opposite effect. The following are ways to Manage Spend before it Starts: Leveraging RFQs. Ensuring that all major spend goes through a robust…

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10 Strategies for Improving Supplier Relationship Management SRM

Supplier Relationship Management is the hallmark of the Modern Procurement Function.  The following are strategies for effective Supplier Relationship Management: Understand and Accommodate Supplier Interest: Understanding what makes a supplier tick, why they do what they what they do, builds trust and synergy, the two critical ingredients for success in business. The interest of your suppliers should match your supplier selection…

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Procurement Transformation

The Procurement Function has traditionally been perceived as cumbersome, slow, and a necessary evil for doing business. The demands of the modern customer for products delivered cheaper, better, and faster puts unprecedented stress on procurement functions to ensure consistent supply of mission critical inputs to be converted into useful products and services.to be consumed by customers. The Procurement Function can…

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Technologies for Procurement 2019

Modern technologies are poised to upend the Procurement Function as we know it. All aspects of procurement’s three domains, managing spend, protecting organizations from risk, and supporting operations will see significant breakthroughs in the years to come. In 2019 we will notice the following Technology Breakthroughs in Procurement: Unprecedented focus on Advanced Risk Management Capability: Risk Management is a critical component…

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