Supplier consolidation – also known as vendor rationalization – is a supply chain management strategy that aligns with the common goal of procurement, cost reduction. It involves reducing the number of suppliers a company does business with, in the belief that supplier consolidation is cost effective and improves operational efficiency. Supplier consolidation gives companies the economies of scale to lower procurement, administration and delivery costs, improve supplier quality, mitigate risks and strengthen supply agreements. It’s a continuous process and one that produces significant cost reductions.
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Consortium buying – or simply group purchasing – is essentially the practice of two or more separate organizations coming together to purchase something cooperatively, and in the process enjoying benefits such as bulk purchase pricing, volume-based collective bargaining power, and other advantages that would not be available to them had they made the purchases individually. Although consortium buying has yet to gain widespread popularity among businesses, there exists many buying groups and purchasing cooperatives in businesses such as franchised restaurants, hospitals and even local governments.
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It’s not uncommon for businesses everywhere to strive towards increasing efficiency and cost reduction, and this applies especially to the area of procurement and supply chain management, where cost reduction is a key KPI. Although these goals have resulted in the creation of more efficient supply chains during typical business periods, it has also created supply chains that are vulnerable to disruptions. Supply chains today are longer and more complex, involving many stakeholders, countries, modes and logistics handoffs. And due to growth of procurement initiatives such as global outsourcing, supply chains are becoming more exposed to vulnerabilities and disruptions. Periodically, natural disasters and catastrophes also disrupt supply chain operations.
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Procurement professionals have a lot on their hands daily, what with the amount of research, documentation, administrative tasks and stakeholder management efforts needed to secure a good deal when it comes to business purchases. As such, they could really do with some help on increasing team efficiency and productivity, and this is where productivity tools and procurement software come in. Here are a list of several productivity tools and procurement software that look to assist procurement professionals to perform well in their everyday tasks.
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Procurement is a common function in most organisations, and the process of purchasing is usually routine and carried out with a standard operating procedure. However, as the procurement cycle involves many steps, it is definitely susceptible to a host of problems, not least in the area of the supply chain. A supply chain disruption is any occurrence that has negative consequences for regular business operations, causing some degree of confusion or disorder. A disruption in your supply chain can be due to many factors, among them natural disasters, power outages, ineffective or late deliveries, and other unexpected complications. These disruptions, if not managed effectively, can have costly consequences for the business. Here we discuss ways to strengthen your supply chain to reduce the possibility of bottlenecks and interruptions occurring, thus ensuring a smooth procurement cycle.
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The procurement process is often complex, with the procurement cycle involving several steps. There are many stakeholders involved in the decision-making process, especially when it comes to feasibility issues and cost approvals. With so many steps in the procurement cycle, creating a procurement policy checklist is one of the most important things your company can do. A procurement policy checklist helps you keep track of the necessary steps in a procurement cycle and outlines the procurement process, keeping it free from fraud and maverick spending. A well-designed procurement policy checklist espouses procurement best practices and puts in place a set of guidelines to ensure that your company’s procurement policy is followed to a T. A practical procurement policy checklist is succinct and user-friendly. Below are the 10 steps that a basic procurement policy checklist should cover to ensure a fuss-free and successful procurement process.
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According to recent research by procurement strategy and operations consulting firm The Hackett Group, Chief Procurement Officers (CPOs) report that the best procurement strategy tends to prioritise cost and risk reduction, strategic alignment and transformation. Procurement strategy priorities most often cited include:
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Running an F&B business is hard work, and very rarely a one-man show. It’s one thing to secure the F&B business premises, and another to actually get the F&B business up and running. The cost of operating an F&B business outlet can be substantial, but prudent expenditure can help you cut monthly expenses down to a manageable amount. One way to save on your monthly F&B business expenses is to find cost-effective and reliable suppliers for your F&B business needs. Although not an exhaustive list, here are a few basic suppliers that you would need for your F&B business.
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Advertising agencies, also known as creative agencies, are businesses that create, plan, and manage advertisements, as well as other forms of promotion and marketing, for clients. Advertising agencies usually pitch for projects from established companies and startups by preparing storyboards and showcasing their past projects. The digital age has greatly changed the way advertising is done today. Although TV, radio, and print advertising are still widely used, they are no longer the preferred form of advertising for most businesses. Instead, many companies are moving towards more efficient and effective platforms such as social and digital media for their advertising needs. If you own a budding advertising agency, you will require several vendors that specialise in different areas of advertising and marketing to get the show on the road. Here are the select few who should be on the list.
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Opening your own law firm means taking the step towards becoming a business owner, in addition to being a lawyer. Being self-employed is very different from being an employee, as you would have many more considerations compared to when you were just earning a monthly pay check. The prospect of helming your own company while doing what you love is enticing, but it can also be very challenging if you are not well-prepared. To help you along, here is a basic list of vendors that you would need to get your law firm off the ground.
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