Strategic Procurement in Supply Chain Management
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|Strategic Procurement in SCM |
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Q1. How to improve the purchasing process?
Answer: ) Following are some of the best practices that are being followed by some supply chain managers, regarding their purchasing process;
Improve your vendor relationships: o Avoid cozy or adversarial relationships with suppliers. Ball tickets and free lunches are great as long as your supplier is bringing great cost improvement ideas along with them. o Is your door open to suppliers or are do you continue to shut them out. Sitting down with vendors once or twice a year to collaborate eliminates surprises from both you and them. o Order in a manner that keeps the vendor’s cost low. o Work with the best vendors, taking into account local, regional, national and global players for the goods and services you are purchasing. o Competitive pricing is key, focus on the overall best total cost. o Companies are working with too many vendors, find a great vendor or two and utilize your leverage by giving them all of your business. o Develop an annual cost reduction plan; the best vendors will understand this concept. o Vendors should enjoy working with you (payment policies, return policies, returning phone calls).
Develop a scorecard for keeping track of vendors’ service, quality, delivery and pricing ♦ Track the quality, service
| |
|Strategic Procurement in SCM |
| |
Q1. How to improve the purchasing process?
Answer: ) Following are some of the best practices that are being followed by some supply chain managers, regarding their purchasing process;
Improve your vendor relationships: o Avoid cozy or adversarial relationships with suppliers. Ball tickets and free lunches are great as long as your supplier is bringing great cost improvement ideas along with them. o Is your door open to suppliers or are do you continue to shut them out. Sitting down with vendors once or twice a year to collaborate eliminates surprises from both you and them. o Order in a manner that keeps the vendor’s cost low. o Work with the best vendors, taking into account local, regional, national and global players for the goods and services you are purchasing. o Competitive pricing is key, focus on the overall best total cost. o Companies are working with too many vendors, find a great vendor or two and utilize your leverage by giving them all of your business. o Develop an annual cost reduction plan; the best vendors will understand this concept. o Vendors should enjoy working with you (payment policies, return policies, returning phone calls).
Develop a scorecard for keeping track of vendors’ service, quality, delivery and pricing ♦ Track the quality, service