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Category Management is the management of a grouping of similar items which an organization desires to procure under a single deal. This powerful methodology executes and is underpinned by the following: Table 1 demonstrates the correlation of Category Management Best Practices. Table 2, Distribution of Spend Management Table 3, Spend by Category Table 4, Percentage […]

Visibility Step 1 is to get good spend visibility and understand what you are buying and how much you are spending across all your spend categories. Without visibility of spend you cannot progress. Many companies have limited or no visibility of spend that is equivalent to 20% of their revenues in value. These frequently ordered

The importance of Buyer Portals

As the world approaches what will likely be an unprecedented recession, businesses are talking about “innovating out of the crisis” by working more closely with their suppliers. But what does innovation mean in this crisis and what should it achieve? During a roundtable with a cross-industry group of procurement teams, participants insisted that while innovation

Currently, China is the world’s largest exporter of goods. Official estimates say Chinese exports amount more than $2 trillion, making the country the largest trading nation on Earth. But with China’s economy running at just 40% capacity amid Coronavirus lockdown, the effects on the global supply chain industry are devastating. Not only for the country’s

It is fair to say that Covid-19 has disrupted businesses and economies in a way, unlike any other global event. Although it is humbling to see communities changing their behaviors in the face of the pandemic to help save lives, it is equally sobering to witness the speed at which certain industries have been crumbling

While no one can know what the future will bring, individuals who actively invest in building their skills in these key areas will be well-prepared come what may. Following are the key skills a procurement professional should possess for delivering KRAs in pressure situations : Business ethics involves the application of ethical principles in the

Almost all companies are involved in buying and selling. Buying raw materials for manufacturing or finished products for distribution, companies seem to be more focused on the selling process than on the buying process. But consider this basic math: A company that spends one million dollars a year on purchasing can add $100,000 to its

The Modern Procurement Department is required to realize procurement savings objectives by utilizing various means. Traditional methods focused on quality, delivery, terms, warranty, negotiations, contracts with a hyper-focus on price. Price has traditionally been the most critical Key Performance Indicator, not the Total Cost of Ownership (TCO). Indeed, TCO has been seen as “theory”, and not

The Modern Procurement Department is required to realize procurement savings objectives by utilizing various means. Traditional methods focused on quality, delivery, terms, warranty, negotiations, contracts with a hyper-focus on price. Price has traditionally been the most critical Key Performance Indicator, not the Total Cost of Ownership (TCO). Indeed, TCO has been seen as “theory”, and not