We’re going back to basics with this post. I meet non-procurement specialists with procurement responsibilities that just need a ‘nudge’. SM readers should find this list helpful when advising their non-procurement’ colleagues. To set up and manage supplier (vendor or contractor) engagements is tough for some people who are outside procurement (which is why they need us) – especially because some suppliers are much better at bidding than they are at delivering the contract.
How do they get the core information they need to ensure a successful supplier engagement? Here’s a simple but incredibly effective checklist I recommend to our clients. These 10 simple questions will improve your colleagues’ approach to supplier engagements. Misaligned expectations are the number one cause of commercial disputes. (more…)
Reducing exposure to suppler risk in a global sourcing environment requires a keen eye on five key factors. Here is how to cut complexity, effort and cost from the risk mitigation process. (more…)
Some of the most difficult negotiations with suppliers involve open book accounting.
The concept is now widely known, but ensuring suppliers will be receptive to making open book accounting a contractual reality is another matter. Historically, a supplier’s pricing decisions may have been steeped in mystery and the detail of a price confidential. It is logical for a buyer to want to probe the cost drivers, including labour, materials, overheads, profit and the contingency provision. (more…)
Are you are going to monitor suppliers’ financial positions more diligently in 2013?
Knowing the position at the time of annual reports is no longer enough, given the incidence of financial failures. Should it not be a strategic role for procurement to undertake detailed monitoring of a supplier’s finances – demanding commercial acumen, not just reading a profit and loss statement and balance sheet? (more…)
In these days of ever-increasing pressure to reduce operational costs, companies are placing greater reliance on external providers of systems and software, outsourcing services and facilities management.
But while offering a variety of benefits, this approach generates new and sometimes unexpected challenges, which can have an impact across the organisation. (more…)
After ringing in 2012 last weekend, you’ve probably set personal new year’s resolutions – and may have already veered from the course. Just like many resolutions, procurement too is charged with ‘trimming the fat’ but thankfully cutting costs is a little bit more attainable than cutting the waistline. (more…)
As we approach year-end for many organisations, procurement leaders can be forgiven for their anxiety as the deadline looms for the cashing-in of all those cost-reduction initiatives planned and launched earlier in the year. The early year optimism has given way to trepidation as the savings delivery moves ‘to the right’ and a 2011 shortfall looms. (more…)
We’re going back to basics with this post. I meet non-procurement specialists with procurement responsibilities that just need a ‘nudge’. SM readers should find this list helpful when advising their non-procurement’ colleagues. To set up and manage supplier (vendor or contractor) engagements is tough for some people who are outside procurement (which is why they need us) – especially because some suppliers are much better at bidding than they are at delivering the contract.![[Bloglines]](http://blog.supplymanagement.com/wp-content/plugins/bookmarkify/bloglines.png)
![[del.icio.us]](http://blog.supplymanagement.com/wp-content/plugins/bookmarkify/delicious.png)
![[Digg]](http://blog.supplymanagement.com/wp-content/plugins/bookmarkify/digg.png)
![[Facebook]](http://blog.supplymanagement.com/wp-content/plugins/bookmarkify/facebook.png)
![[Google]](http://blog.supplymanagement.com/wp-content/plugins/bookmarkify/google.png)
![[LinkedIn]](http://blog.supplymanagement.com/wp-content/plugins/bookmarkify/linkedin.png)
![[Twitter]](http://blog.supplymanagement.com/wp-content/plugins/bookmarkify/twitter.png)
