Procurement Tactics

AUGUST 22, 2022

Tail spend is known in procurement as the amount an organization spends on purchases that make up approximately 80% of transactions but only cover 20% of the total spend. . These purchases are usually small and do not go through procurement and are not frequent enough to be included in the system. . What is Tail Spending?

Purchasing 130

Purchasing Suppliers Negotiation Spend management 130

Spend Matters

AUGUST 15, 2024

If a supplier portal wasn’t functioning, if a P2P system wasn’t correctly matching invoices with the proper Purchase Order or if data was inaccessible or missing, IT was often identified as the bottleneck. ’ To put it mildly, procurement and supply chain isn’t always IT’s top priority.

supply chain software solutions 115

supply chain software solutions Agile and Lean Supply Chain Supply Chain Efficiency Supply chain 115

Supply Chain Game Changer

SEPTEMBER 29, 2020

As inventory levels resulted in real costs not otherwise considered in pricing negotiations this allowed for more informed business level decisions on sourcing and ordering. Buyers historically purchased materials in a very indistinguishable manner. Raw Material Management. We established an “A” Class Buying team.

Inventory 90

Inventory Raw materials Supply Chain Optimization Demand 90

Una

NOVEMBER 13, 2023

Offer value beyond price Yes, price negotiations are essential, but they’re not the only card in the deck. Unlock the GPO advantage Join a group purchasing organization (GPO) like Una. By pooling your purchasing power with other businesses, you instantly become a part of a larger force.

Negotiation 52

Negotiation Purchasing Price Suppliers 52

Procurement Software

MARCH 11, 2022

Unlike for those who purchase direct materials, it’s much trickier to measure hard savings – i.e. those which are easily visible on the P&L statement – in the indirect space. Many companies only acknowledge savings based on Purchase Price Variance , or PPV. Great for repeatable purchases.

Procurement 52

Procurement supply chain budgeting Price Negotiation 52

Procurement Software

MARCH 11, 2022

Unlike for those who purchase direct materials, it’s much trickier to measure hard savings – i.e. those which are easily visible on the P&L statement – in the indirect space. Many companies only acknowledge savings based on Purchase Price Variance , or PPV. Great for repeatable purchases.

Procurement 52

Procurement supply chain budgeting Price Negotiation 52

World of Procurement blog

MAY 8, 2024

Procurement differs from purchasing in a few key ways: Strategic focus : Procurement has a strategic, long-term focus on analyzing spend, reducing costs, managing supplier relationships, and mitigating risk. Purchasing is more transactional and tactical. Purchasing focuses specifically on the buying transaction.

Strategic sourcing 52

Strategic sourcing Strategic sourcing Sourcing Supply Chain Efficiency 52

Procurement Software

MARCH 11, 2022

Instead of looking at direct materials and purchased parts, the hidden opportunity is often found in effective tail spend management. What many companies don’t realise though is that direct materials have been negotiated to death. Old school, pure-play price negotiations don’t work, especially in an inflationary market.

Spend management 52

Spend management Management Real-time Visibility Competitive bidding 52

Procurement Software

MARCH 11, 2022

Instead of looking at direct materials and purchased parts, the hidden opportunity is often found in effective tail spend management. What many companies don’t realise though is that direct materials have been negotiated to death. Old school, pure-play price negotiations don’t work, especially in an inflationary market.

Spend management 52

Spend management Management Real-time Visibility Competitive bidding 52

Supply Chain Game Changer

AUGUST 6, 2019

Purchasing. And What is Purchasing? procurement #purchasing #commoditymanagement #categorymanagement. Subscribe Here! Email Address. Subscribe to Supply Chain Game Changer. Hey Procurement! It’s Time to SELL! Procurement. Commodity Management. Category Management. In What Exactly is Procurement? All Rights Reserved.

Management 48

Management Procurement Category management Chief Procurement Officer 48

Jaggaer

OCTOBER 24, 2024

It’s vital to ensure that you have the tools and technology needed to optimize your consolidated purchasing power across various centers. By narrowing the number of suppliers, organizations can improve purchasing power, simplify procurement processes, and foster deeper relationships with key suppliers.

Collaboration 52

Collaboration Suppliers Supply Chain Efficiency supply chain budgeting 52

Planergy

JANUARY 19, 2023

This is an example of how the Pareto Principle can be applied to spend analysis; by focusing your efforts on reducing costs associated with stationery purchases, you could potentially save more money than if you were trying to reduce all office supply costs equally. How Pareto Analysis Works? Download PDF What’s your goal today?

supply chain budgeting 52

supply chain budgeting Procurement Supply Chain Efficiency Supply Chain Optimization 52

Skill Dynamics

OCTOBER 19, 2023

Next, consider the total cost of ownership instead of solely the purchase price – such as transportation, maintenance, and inventory carrying costs. An example of win-win negotiations is a buyer committing to a long-term partnership if they receive a steady supply from the supplier at a reduced cost.

Supply Chain Optimization 52

Supply Chain Optimization Strategy Procurement Vendor management 52

Una

SEPTEMBER 26, 2023

Price Disputes: The characters often argue over money, particularly when experiencing job losses and periods of unemployment. Similarly, procurement professionals often face pressure to cut costs, and price negotiations can become heated, potentially souring the supplier relationship.

Suppliers 52

Suppliers Supply Chain Efficiency Negotiation Supply chain 52

Pipefy

JANUARY 5, 2023

This happens when different teams, departments, locations, or employees use their own unique variations of a process such as purchasing or sourcing. Errors can cost companies directly if prices are entered incorrectly or discount deadlines are missed, or indirectly when mistakes have to be corrected.

Procurement 52

Procurement Procurement team supply chain software solutions e2e 52

Procurement Software

JUNE 25, 2024

We’ll then take a look at how we can move beyond just purchase cost reduction. Get ready to explore how we can break free of the “lowest price” reputation we’ve been stuck with for so long. Cost Reduction Cost reduction in procurement transcends mere price negotiations.

Procurement 52

Procurement Supply Chain Efficiency Chief Procurement Officer Price 52

Empowering CPO

DECEMBER 4, 2020

With the increase in adoption of online purchase, courier & small parcel industry has witnessed sudden increase in business. Based on the volumes of packages sent by an organization, the threshold value can be negotiated in shipper agreements up to 4 cu. Negotiating divisor value. feet (7000 cu.

Negotiation 52

Negotiation Price Contract Price negotiations 52

Jaggaer

JANUARY 14, 2020

Whether your organization is purchasing raw steel, injection molded plastics, or fully finished office supplies and IT equipment, a st reamlined P2P system can be a game changer. By optimizing the areas where you spend the most, your compan y and organization can drive significant savings in your supply chain.

Supply Chain Efficiency 40

Supply Chain Efficiency Raw materials supply chain budgeting Supply Chain Optimization 40

IBM Supply Chain Blog

APRIL 4, 2024

A purchasing agreement between a client and vendor, for example, needs to evolve and go through different rounds of approval and be organized, accessible and compliant with regulations. By automating tasks such as supplier qualification, RFx management, and purchase order processing, BPM reduces cycle times and improves efficiency.

Real-time Visibility 54

Real-time Visibility Management e2e Supply Chain Efficiency 54

Pipefy

MAY 9, 2023

Build a more efficient and connected procure-to-pay process with The Definitive Guide to P2P Optimization Importance of procurement KPIs Procurement has evolved over the years from transactional functions (now associated with purchasing) to encompass strategic activities focused on maximizing and creating value for a business.

Procurement 52

Procurement Real-time Visibility supply chain budgeting Procurement team 52

Empowering CPO

JUNE 26, 2023

Spend analysis refers to the process of examining and categorizing an organization’s spending patterns, supplier relationships, and purchasing behavior to identify opportunities for cost reduction, process improvement, and strategic decision-making. Addressing tail spend can lead to significant cost savings and process efficiencies.

supply chain budgeting 52

supply chain budgeting Supply Chain Optimization Supply Chain Efficiency Supplier consolidation 52

World of Procurement blog

OCTOBER 13, 2020

Most of the time, if we look at the type and cost of such investments, they are mainly considered as a one-shot purchasing action, for example: buying manufacturing tools or upgrading IT infrastructure. We can consider CAPEX management is like project management as they have two similar main characteristics.

Management 52

Management Procurement Buyers Negotiation 52

Finale Inventory

JULY 1, 2024

With the rise of online shopping, consumers now have the convenience of purchasing their favorite food and beverages online. Factors such as price negotiations, contract terms, and ethical sourcing practices all play a crucial role in maintaining a sustainable and reliable supply chain.

Supply Chain Efficiency 40

Supply Chain Efficiency Supply Chain Optimization Inventory supply chain software solutions 40

Empowering CPO

JULY 2, 2023

These include strategic sourcing to find cost-effective suppliers, negotiation of favorable contract terms, implementation of efficient procurement processes, and management of supplier relationships to ensure quality and avoid potential disruptions.

Management 40

Management Supplier relationship management Procurement Strategic sourcing 40

Pipefy

AUGUST 1, 2023

Subsequent cost savings that emerge from eliminating process waste (a more efficient procurement process yielding better price negotiations, for example) can be passed along to customers; this is the first and often best way to succeed in a competitive market. Pipfefy makes digital transformation smooth and accessible.

Strategy 52

Strategy supply chain budgeting Real-time Visibility Supply Chain Efficiency 52

Empowering CPO

JUNE 27, 2023

By analyzing historical spending data, organizations can uncover insights such as: Seasonality: Understanding seasonal fluctuations in spending allows organizations to optimize procurement strategies and negotiate better deals during off-peak periods.

Procurement 40

Procurement Supply Chain Optimization Supplier consolidation Suppliers 40

Procurement Tactics

JULY 11, 2022

Example 1 — CASE-STUDY: PRICE NEGOTIATION BETWEEN AMAZON AND WHOLE FOODS. Actual case: The case study is based on a real-life price negotiation between Amazon.com and Whole Foods Market. . Many nations that cannot afford to purchase the vaccines directly have made creative deals with other countries.

Negotiation 130

Negotiation Procurement Bidding Ethics 130