From the earliest days of commerce, identifying and mitigating risk has been an integral part of supply chain management. Such risk can originate outside your business or within its walls; it can strike upstream or down. Companies who invest in supply chain risk management understand the new role procurement occupies in their organizations, and take action to ensure this powerful source of strategic value generates maximum returns with minimal exposure. Mitigating the financial risk in your supply chain requires careful consideration and a proactive approach, but doesn’t have to be difficult ..read more

Every business needs goods and services to operate. And while these goods and services carry their own price tags, procurement—i.e., the act of obtaining them for your business—carries its own additional costs as well. Today’s “bargain” quickly becomes anything but if it’s shipped haphazardly, arrives late, damaged, or both, or doesn’t include what you originally ordered. Finding ways to reduce procurement costs is an important part of maximizing your return on investment (ROI) in order to generate both cost savings and value for your business. By understanding how procurement costs are creat ..read more

Do you find yourself struggling to stay on top of vendor compliance? Are you frustrated by your inability to effectively measure and improve supplier performance? If so, your supply chain may be costing you much more than what’s written on the invoice. But don’t throw in the towel just yet. Understanding how to improve supplier performance doesn’t have to be an exercise in frustration. By taking a proactive and collaborative approach, you can Why Knowing How to Improve Supplier Performance Matters Since the turn of the twenty-first century, the worldwide economic environment has undergone (an ..read more

Collaborative Procurement: Advantages and Disadvantages Collaborative procurement is the practice of multiple organizations coming together to order the common goods and services they share. It centralizes procurement for these public bodies – and is commonly seen across government agencies. National procurement organizations are growing in popularity, as are regional and local bodies. By banding together, these organizations strengthen their position. Collaborative procurement is most often seen in certain industries, such as construction, health, and local government. While pooling resource ..read more

How To Respond To Supplier Price Increases In today’s world, getting work done means juggling tons of things at once. It also means relying on a lot of things we don’t control. Did you know the average small business uses around 22 apps to get things done? That means if we’re not paying attention to these fixed costs, alongside the pricing we offer to clients, we could seriously be putting a dent in our profitability, while also leaving money on the table. That aside, it’s important to think about what happens to your business when one of your mission-critical vendors decides to increase pric ..read more

From the initial purchase requisition to the payment of the final invoice, every purchase order your company creates represents an investment in your success—and an opportunity to earn an optimal return on that investment. However, without an effective purchase order policy in place, you might find yourself losing value and facing increased costs. Fortunately, developing an efficient and effective purchasing process and implementing a complementary purchasing policy is easier than you might think. With a thorough understanding of the key elements, making investment in the right technology, an ..read more

How Do Purchase Orders Work? A purchase order is a document that goes from a purchaser to a supplier to confirm the purchase of goods or services. This one little document plays a major role in how things operate within a growing business. Relying on purchase orders helps to clear up a lot of potential logistical confusion. A purchase order is not an invoice. It is issued by the buyer who uses it to make sure they get exactly what they ordered. Invoices are issued by a vendor who wants to make sure they get paid for said purchase. Purchase orders outline exactly what the order should contain ..read more

Purchasing Excel: Why Spreadsheets Should Not Be Used To Manage Procurement Understanding procurement Procurement refers to sourcing or obtaining goods or services for a business. The term may be used to refer to the actual buying or may refer to the entire process leading up to a purchase. Normally procurement involves two companies; the buyer (procurer) and the seller. But procurement refers only to the act of buying and not the seller’s activities. Procurement may seem like a simple process, but it is often highly competitive and involves steps to ensure a company obtains the best quality ..read more

How to Manage Discretionary Costs Cost management is critical during a financial crisis and may be the only way to keep a business sustainable. High expenses mean that a company needs to generate a substantial amount of capital to reach the break-even point. However, all costs aren’t equal.  Non-discretionary expenses or mandatory costs, can’t be cut without running the risk of causing serious damage to the company. These are essential expenses which are integral to running the business. Mandatory or non-discretionary expenses like salaries, rent, and insurance expenses must be paid to a ..read more

Today’s procurement managers face unprecedented challenges in building a strong, resilient supply chain, sourcing strategically, and ensuring their procurement teams and processes are operating with maximum efficiency and efficacy. Major business disruptors such as climate change, sociopolitical unrest, and major health crises such as the COVID-19 novel coronavirus pandemic have made effective procurement more important than ever. And while the challenges might be unprecedented, so too are the opportunities to align procurement as a primary value driver for your business—provided you’re ready ..read more