All posts in Articles

What is a Purchase Order, and How Does it Work?

A purchase order (PO) is a commercial document and first official offer issued by a buyer to a seller indicating types, quantities, and agreed prices for products or services. It is used to control the purchasing of products and services from external suppliers. The purchasing process starts with a need. That need should be verified. The item requirements are checked and noted the PO.…

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Achieving Supply Sustainability through Effective Metrics

  Every Procurement Department should have a strategy to ensure a stable and sustainable supply of raw materials and mission-critical inputs. Procurement Functions are mandated to ensure cost-effective, continuous support of operational | strategic objectives. Procurement is also responsible for implementing robust risk management mechanisms to realize supply sustainability. A supply sustainability strategy is the game plan or action of…

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3 Pillars and benefits of Sustainability

Sustainability is the capability to continuously conduct certain activities indefinitely. The study of sustainability is evolving and is often viewed in three dimensions known as the Three Pillars of Sustainability. Environmental Sustainability is: The capability of the globe to sustain levels of pollution, nonrenewable resource depletion, and renewable harvesting proceeding on an indefinite continuum. These environmental sustainability parameters are: Nonrenewable…

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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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Fact-Based Negotiation: Final Thoughts

I hope that you have enjoyed the articles “Why To Hate Fact-Based Negotiation, Part I” and “Why To Hate Fact-Based Negotiation, Part II.” Don’t miss updates on Procurement & Supply Chain, Subscribe here! Now, I know from some email I received, that some readers got the false impression that I recommend using only emotion-based negotiation and not fact-based negotiation.  Not…

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Emotion Is Too Absent From Today’s Procurement Negotiations

I hope that you enjoyed the article “Why To Hate Fact-Based Negotiation, Part I.” Don’t miss updates on Procurement & Supply Chain, Subscribe here! When people talk about old-school procurement negotiation, they often paint a picture of a crusty old guy pounding on the table and yelling at a supplier to lower its price or else.  While I’m glad that…

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Sourcing Negotiations: Where Is The Line Between “Too Hard” & “Not Hard Enough”

I hope that you have enjoyed the article “Negotiating Too Hard: Why Suppliers Bail.” Don’t miss updates on Procurement & Supply Chain, Subscribe here! In the article, I wrote that “in certain situations, it’s possible to negotiate too hard. Negotiating too hard may drive the optimal supplier away, inhibiting your organization’s long-term success, even if you did get a slightly…

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Digging Yourself A Negotiation Hole Right From The Get-Go?

If you’re a sports fan like me, you hate when your favorite team gets scored against in the opening minutes of a game. Don’t miss updates on Procurement & Supply Chain, Subscribe here! It makes it feel like “game over” right away.  It’s hard to play catch up.  And sometimes, it feels like the team just “mails it in” because…

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Women, Equal Pay and Negotiation Skills

The 2015 Next Level Purchasing Association Salary Report indicates that 81% of all procurement professionals outside of North America were men, who in turn made approximately 15.7% more money than their female counterparts.  In North America, the numbers indicated that the gender gap was much narrower at 53% men to 47% women in the field.  However, the salary gap indicated women…

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Oil Prices are Declining, Time to Call your Suppliers to Negotiate

The declining price of oil (just under $60 a barrel as of today) has been a hot topic recently and a wide range of analysts are coming out of the woodwork with prognostications on where the price is headed and for how long. Don’t miss updates on Procurement & Supply Chain, Subscribe here! While all these so-called “experts” offer their…

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