NLPA Blog

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…

Read more

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…

Read more

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…

Read more

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…

Read more

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…

Read more

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…

Read more

Ways Procurement Can Better Manage Risks

Managing risks is a critical component of Procurement Management and the Procurement Function. Procurement Professionals are also responsible for ensuring a steady supply of Mission Critical Inputs that meet quality, price, and delivery criteria. The modern supply chain poses a growing number of risk factors that affect the modern business landscape. Protecting their organizations from risks is a critical part…

Read more

The three pillars of Procurement Risk Management Strategy

Modern procurement risks are evolving daily, requiring effective risk mitigation strategies. The following are 3 pillars of Procurement Risk Management Strategy: Environmental Context:-All organizations are impacted by various factors to varying degrees. Understanding one’s business landscape and the environmental factors that underpin its existence is a critical exercise. Procurement Risks arise from socio-demographic, ecological, economic, competitive, political, technological, customer, product,…

Read more

Three things that destroy trust B/W Procurement and Suppliers’ relationships

The hallmark of a strong supply chain is effective collaboration which can only be obtained for a healthy relationship with all key stakeholders. Suppliers provide critical input and raw materials for the survival of our supply chains lack of trust poses a grave risk. The following are ways that lack of trust puts procurement & supplier relationships at risk: Late Payment…

Read more

The impact of Cloud on Procurement

The impact of the cloud on procurement:- Procurement is projected to be a continued critical component of the supply chain function, by assuring the availability of vital inputs to processes in organizations. Any disruption to the supply of these critical inputs can be disastrous for many industries. Imagine a healthcare supply chain facing disruption of medical supplies. Procurement functions often…

Read more

->