All posts in Strategic Procurement

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…

Read more

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…

Read more

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…

Read more

How Sales Pricing Drives Procurement Pressure

In yesterday’s edition of PurchTips, I gave you 19 questions you should know the answer to if you are truly thinking strategically. But they weren’t the only questions. There’s one I’ll address all on its own in this post:  What is your organization’s pricing strategy for the products and services it sells? You see, pricing on the sales side isn’t…

Read more

What Can Chicken Wing Procurement Teach You?

I recently came across a Pittsburgh Post-Gazette article entitled “Soaring chicken wing pricing making Pittsburgh bars, restaurants sweat.” The article detailed how the prices of chicken wings have gone up – in one example, more than quadrupling over a 10-year period.  It went on to discuss how the price of this purchased product influenced strategic decisions of the restaurants, such…

Read more

The Experience Economy and Procurement

For many years, cost savings was considered to be the primary – and, in some cases, only – objective of the procurement function. Don’t get me wrong, cost savings still represents a relevant procurement contribution.  But it should not be considered the one trick of the procurement pony. A myopic, profession-wide focus on cost savings makes an incorrect assumption.  That…

Read more