If you have been following the monthly blogs you will now be aware of the different categories of procurement, the way KPIs can help manage performance as well as stakeholders and how we manage the four different categories. Across all these aspects of procurement we will find ourselves having to negotiate. Negotiation can take place at the beginning of the procurement cycle where the need for a purchase is established through to the last stage where the need is being reviewed. Negotiation is typically thought about being on price but in reality, negotiation takes place any time there is conf ..read more

As a procurement professional, your job should not be just reactive. A skilled buyer will conduct due diligence prior to making any business decision to ensure that it can add value and is the best option for the organisation. Part of the due diligence should be identifying, understanding the importance of stakeholder management related to the project or procurement. What are Stakeholders? Stakeholders are anyone or any organisation that has an interest or a level of power in relation to the work being undertaken. Stakeholders can be categorised as internal or external. Internal stakeholders ..read more

What makes KPIs so vital to Procurement? Just because the purchase order is placed with the supplier, our work as procurement professionals is not done. At this stage of the procurement cycle (stage 10), our work should be focusing on the management of the contract to ensure that the supplier is delivering as per our expectations. To understand in a fair and effective manner whether a supplier is performing to the required standard we can create and monitor KPIs. KPIs are key performance indicators and are a way in which procurement professionals can understand and evaluate a supplier’s abilit ..read more

Global sourcing, overseas buying, international trading? The terms are used interchangeably and all relate to buying products/services from a country other than the one in which you are based. Global sourcing usually attracts procurement professionals and other industry workers due to the perceived saving of money. The benefits of sourcing from overseas include factors such as: Access to a wider market Access to expertise and technology Lower prices If you read last month’s blog you will have discovered or been reminded of understanding the importance between price and cost. Global sourcing ..read more

As a procurement professional one of your main objectives will be achieving value for money on purchases. One way to reach this objective is to focus on the cost of acquisition rather than the price of acquisition. Price and cost are often terms that are used interchangeably but in reality, the terms are quite different. Cost vs Price Consider two people going to a supermarket at the same time to buy the same list of groceries. The price that the two people pay will be identical, but the costs may be very different. Presume Person A lives in close proximity to the supermarket and can walk ther ..read more

Over the last few years, procurement has been undergoing a digital transformation. A key feature of this digital transformation is the use of artificial intelligence (AI). AI can bring many benefits to procurement teams and their companies. In this post, we take a look at the benefits of using AI in procurement departments. Information AI allows procurement teams to mine huge amounts of complex data. With the vast amounts of external data that AI has access to, it can provide more information in real-time, which procurement teams can use to facilitate and improve their decision-making. When pr ..read more

Watch our latest Procurement on Demand webinar that discusses whether globalisation is coming to an end for procurement. With the current economic crisis that we are facing, is low-cost sourcing and global purchasing now coming to the end of their value-adding opportunity? Many businesses have become reliant on overseas suppliers due to their more competitive costs against sourcing at home.  This webinar explores what challenges we face with global purchasing, if we can overcome them and whether globalisation has had its day.  About The Trainer Katie Jarvis-Grove has worked in procur ..read more

Watch our latest Procurement on Demand webinar that provides an interactive review on how to assess risks and ways we might respond within an open and interactive forum.  The Relevance of Risk Risk is ever present, but now more than ever risk profiles are changing, we hear about inflation, supply chain issues, war and natural disasters in seemingly every news bulletin, we need to consider how to assess risks and ways we might respond to secure the best possible outcome. This exclusive webinar delves into the impact of Risk within an interactive forum where individuals could come and discu ..read more

Ethical procurement is becoming increasingly important in our ever more complex, interconnected, and global economy. In the past, the main focus for most companies was profit, but more and more companies now understand and value ethical procurement. In this post, we explore what ethical  procurement means and why it is so important. What is Ethical Procurement? Ethical procurement refers to the consideration of a wide range of issues relating to the ethical and sustainability goals of an organisation. Ethical procurement is a company’s code of conduct and commitment to environmental, soci ..read more

Watch our latest Procurement on Demand ‘Changes in UK Public Procurement’ webinar which provides an insight into some of the changes afoot in public procurement and the impact it will have on many businesses and organisations in the UK. What is Public Procurement? Public procurement in the UK has always been in the news, but especially in the last 2 years, associated with PPE contracts, vaccine procurement, rail operators, HS2 and such. It makes the news because it is using taxpayers’ money – your money. For many years the UK has been tied to the EU with regard to its public procurement rules ..read more