procure-to-pay

6 Procure-to-pay (P2P) Mistakes That Are Crippling Your Procurement Resources

When I started my career in supply chain and procurement as a buyer, one of the first tasks given to me was three-way matching – and it was tedious and painful. On the top of that, I used to chase people to process non-PO based invoices, get approvals from senior managers and deal with inquiries from suppliers regarding when they will get paid (and the threats which come with it). Despite my super enthusiasm towards procurement as profession, I didn’t like this part of the job, as I felt it was a waste of time. I am sure most of […]

cost reduction strategies

27 Uplifting Cost Reduction Strategies You Should Try

For supply chain, procurement, logistics and operations professionals one of the top goal is to reduce cost, while keeping other metrics such as on-time delivery, quality, productivity and safety at the highest possible level. Whilst the focus is there, it’s hard to find many cost reduction strategies. So, what should you do? While most business concentrate on increasing sales, reducing outlays, it is equally important to focus on cost reduction strategies when trying to attain profitability. As one of my colleagues put it “Volume is Vanity, Profit is Sanity and Cash is King” That is partially because profit margins come […]

customer supplier relationship

10 Must Have Customer Supplier Relationship Areas – How Many You Have?

There is an argument that suppliers achieved excellence when they work with excellent customers. This means that the customers should strive for excellence and assist the suppliers to do the same to achieve best customer supplier relationship? Customer must ensure that both parties are working toward continuous improvement of customer supplier relationship. Good supply chain management alone will not make a manufacturer a good JIT operator. The relationship should be stronger if both parties are to gain benefits from it. It should be mutual, with both sides seeking to achieve excellence in customer supplier relationship. 10 Must Have Customer Supplier […]

Procurement Book

The Top 7 Must Read Procurement Book for Supply Chain Professionals

Previously I have written blogs about Best Supply Chain Books and Best Logistics Management Books. Both blogs has done well and received lot of appreciation and feedback from Supply Chain community. Some of you have asked which procurement book is best available. Before I start, is procurement purchasing? Or, is Purchasing procurement??? That is the question! Well, in a broad sense, the answer is yes to both but there is a difference – a big difference….. Often used interchangeably with purchasing, procurement is an umbrella term for ‘a sequence of steps involved in the acquiring (procuring) of a product with […]

6 STEPS TO INTENSIFY BUYER SUPPLIER RELATIONSHIP

In the supply chain literature as well as in business environments Supplier Relationship Management and Buyer Supplier Relationship have multiple definitions, shapes and extensions. There are diverse interpretations, especially considering that the determinants and their perceptions changed throughout the time. Yet, due to the globalisation, economic and political turmoil, a stable and intense Supplier Relationship Management is more imperative than ever. Hence, we tried to find the benefits and key approaches and techniques for enhancing the Buyer Supplier Relationship. Firms put emphasis on having good supplier-relationships and profit by doing so in long-run. Previously, however, this technique is sometimes instinctive, […]

strategic sourcing and purchasing

STRATEGIC SOURCING VS. PURCHASING – 7 KEY DIFFERENCES

Procuring materials for the intention of production, sales and service fulfilment is indispensable for every single business. However, the approaches, strategies and implementations differ immensely. We use lot of terms like strategic sourcing, procurement and/or purchasing. In this blog we tried to explain the difference between Strategic Sourcing vs. Purchasing.   Strategic Sourcing refers to making Supply Chain Management decisions with the intent to create distinctive value and to achieve a competitive advantage. Sollish & Semanik, (2011) claim that it is an old function and has had its roots from the commencement of purchasing philosophy, whereby traditional buying dealt with […]

supplier relationship management

2 Strategic Ways to Improve Supplier Relationship Management

Buyer and supplier relationships can only occur if both sides obtain some gain from trade that occurs between the supply of goods or services and their exchange for money, is this a good enough reason for supplier relationship management? Probably yes because no one would trade with anyone else if both sides did not gain something that they value from the exchange relationship. Whether we like it or not, whether we want to say that out loud or not, for me the buyer and suppliers primarily indulge in exchange relationship in order to satisfy their desire for money and benefit […]

supply chain stakeholders

5 Reason why Your Finance Manager is Amongst Your Key Supply Chain Stakeholders

As most of us know, finance is an important function to any organisation as the company has to know how viable its balance sheet and profit and loss (P&L) statement is. The head of this function generally titled as Finance Manager is amongst the key supply chain stakeholders in my opinion. Generally finance managers are responsible for business activities like budgeting and sales forecasting, accounting, reporting, bookkeeping, audits, payables and receivables, pay employees wages and salaries, prepare and plan internal financial information and prepare for never ending audits!   However, nowadays they are require doing more to involve in innovation […]

APICS vs ISM

APICS vs ISM – What Should You Choose?

With the ever-growing talent and competition in today’s fast-paced environment, everybody is looking for ways and opportunities to outperform their peers. If you want to enhance your skillset to further your knowledge and stay updated with the current concepts and technologies in the supply chain industry, you can consider getting a professional certification in APICS or ISM or CIPS. To make things easy to understand and choose the certification that suits you best, here are the differences between APICS vs ISM. This will serve as a guide in helping you get an overview and the types of certifications offered by […]

Supplier Partnership in Purchasing

Supplier Partnership Vs Traditional View of Supplier Management

Supplier partnership is commonly accepted view for last couple of decades. However, for the history sake I think it is worth writing about how traditional or old view was characterized, the key points were: There are many suppliers on the market, who can produce according to a certain specification. Neither seller nor purchaser is unique. To put pressure on the costs in the primary goal and the purchasing process is a guarantee that the market mechanisms should work. In the purchasing process the price is always the decisive factor. A lower price is always preferable. Supplier Partnership Definition and Characteristics: […]