Author: Rajat Narula


10 Important Skills for Future-Ready Procurement Professionals !!!


While no one can know what the future will bring, individuals who actively invest in building their skills in these key areas will be well-prepared come what may. Following are the key skills a procurement professional should possess for delivering KRAs in pressure situations :

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Procurement Management !!!


 

Almost all companies are involved in buying and selling. Buying raw materials for manufacturing or finished products for distribution, companies seem to be more focused on the selling process than on the buying process. But consider this basic math: A company that spends one million dollars a year on purchasing can add $100,000 to its bottom-line by saving 10% on how it makes its purchases.

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Best Practices for Procurement Savings


The Modern Procurement Department is required to realize procurement savings objectives by utilizing various means. Traditional methods focused on quality, delivery, terms, warranty, negotiations, contracts with a hyper-focus on price. Price has traditionally been the most critical Key Performance Indicator, not the Total Cost of Ownership (TCO). Indeed, TCO has been seen as “theory”, and not to be examined in a practical sense. Today’s Procurement Leaders are required to leverage their departments and supply chains to Gain Competitive Advantage.

Read More »

Best Practices for Procurement Savings !!!


The Modern Procurement Department is required to realize procurement savings objectives by utilizing various means. Traditional methods focused on quality, delivery, terms, warranty, negotiations, contracts with a hyper-focus on price. Price has traditionally been the most critical Key Performance Indicator, not the Total Cost of Ownership (TCO). Indeed, TCO has been seen as “theory”, and not to be examined in a practical sense. Today’s Procurement Leaders are required to leverage their departments and supply chains to Gain Competitive Advantage.

Read More »

Eliminating the pain out of Contract Management !!!


The effective management of contract management is a major responsibility of the Procurement Function. Procurement Professionals are expected to protect their organizations from risks related to spend management and the support of operations. The identification of Critical Points of Failure (CPFs), mitigation strategies, and tactics deployed to protect our supply chains from the negative impacts of risks is a must.

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101  Negotiation weapons….


 

PRICING

 

  1. Price

 

  1. Price type (e.g., fixed, time and materials, etc.)

 

  1. Not‐to‐exceed amount of time and materials pricing

 

  1. Duration of price validity

 

  1. Whether or not price will be adjustable throughout the term of the agreement

 

  1. If the price is adjustable, which index or indices will be used in a price adjustment formula

 

  1. A price adjustment formula

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A HISTORY OF PROCUREMENT: SUPPLY CHAIN THROUGH THE AGES !!!


 

The practice of sourcing materials, labor and expertise for the large-scale production of value-added goods stretches back through recorded history, leaving no doubt as to the importance of procurement and supply chain to the development of complex societies. Beginning with the ancient Greek, Roman, Chinese and Mesopotamian civilizations, leading up to the Middle Ages, the Industrial Revolution and finally to the global supply chain of the late twentieth century, the principles and practices of procurement as we know them have long been intertwined with, and essential to, the expansion of human societies.

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How to Evaluate a Procurement Solution !!!


 

The role of Procurement is to ensure the cost-effective, timely, risk-free, acquisition of Mission Critical Raw Material Inputs in support of Organizational Goals and Objectives. Procurement Functions are sub-sets of broader Supply Chain Mechanisms and must work in close synergy with Suppliers, Manufacturing, Logistics, Research and Development, Finance, Sales and Operations Planning, Marketing, and Customers.

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Artificial Intelligence (AI) – Expand value on Procurement & Supply Chain !!!


There is a great number of reports, articles, and studies done on Intelligent Procurement. This is indeed a rapidly evolving science. For context, it is prudent to define the Concept of Value, Value Chains, and Value Streams.

Value has 3 components:

  1. At set of activities are engaged in transforming inputs and raw materials from on stage to the next
  2. All activities are done right the first time
  3. Customers are willing to pay for the resulting outputs (good and services)

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Eliminating the pain out of Contract Management !!!


 

The effective management of contract management is a major responsibility of the Procurement Function. Procurement Professionals are expected to protect their organizations from risks related to spend management and the support of operations. The identification of Critical Points of Failure (CPFs), mitigation strategies, and tactics deployed to protect our supply chains from the negative impacts of risks is a must.

Read More »