Tag Archives: procurement

Five Procurement Predictions for 2015

With 2015 planning right around the corner, procurement leaders need to take a look at their processes and goals to determine how they can best showcase their value to their organisation.

Expectations for procurement are changing rapidly and now is the time to stand up and take charge. In order to help with your planning, here is a list of what I predict will be the top five challenges for procurement to tackle this year.

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  1. An emphasis on organisational alignment

2. Changing inventory strategies

With the rise of multi-channel retailing, supply chain simplification, shrinking product life cycles and new technology, procurement leaders realise the importance of tackling inventory management in a holistic manner.

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3. Real-time performance management

Web based supply chain software will continue to be integral in purchasing. These solutions allow procurement leaders to improve relationships with sourcing partners and gain visibility into their supplier base — ultimately helping procurement save money and time.

 4. Emerging markets will be a source of growth

Emerging markets, such as Asia Pacific and Latin America, have been deemed as primary business growth areas for manufacturing and logistics. In 2015, supply chain executives will capitalise on these emerging markets, which will influence many aspects of the supply chain, including product design, pricing, and logistics.

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5.  Suppliers will be trusted partners

Rather than just going through the motions of an RFP, procurement will start to evaluate suppliers as potential partners, asking them how they’d solve a specific problem. Doing so will provide procurement with more information than just product specs, they’ll be able to see their suppliers creativity and problem-solving aptitude – key characteristics of a strategic partner.

 

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Mickey North Rizza, BravoSolution – Procurement

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Social Media in the Acquisition Process

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By now, we all know that organizations are taking full advantage of social media to closely connect with customers and to promote their products and services. But several articles and studies show that social networks are now a top purchase-evaluation tool for decision makers. Professionals connect to vendors on social media sites, and a many say that social media plays a role in every stage of the acquisition process. Just IT spending is expected to reach more than $3.5 billion this year. Influential buyers seek as much useful–and current–information as possible. They chat with peers and vendors who can help them make the right choice.

Read more about Social Media in the Acquisition Process

Supply Chain Control Towers

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A new term is appearing in the supply chain arena: “Supply Chain Control Tower”. Just as an airport control tower coordinates airplanes landing and taking off, a Supply Chain Control Tower coordinates inbound and outbound distribution flows. Sure sounds more professional than a “dashboard”.
It is all about “knowledge”. Air controllers get information on weather, speed, direction, and altitude of aircraft and use that knowledge to keep their air space safe. Companies must know what is happening with their supply chains so they can prevent disasters too. They need to be able to do “what-if” analysis and work their way around events that will cause disruption and risks to the supply chain.

Supply Chain Management Role in Alternate Parts Sourcing

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The role of Supply Chain Management is important: it is all about “ business continuity management”. SCM is the key to protecting the business operation from unplanned risks that can do things like shut down a whole assembly line. Key SCM players are Procurement and In-Bound Logistics.