Effective Procurement (Part 3) – Supplier Management

 


Given today’s competitive nature of business, it’s critical to ensure that an organization’s procurement practices are effective and efficient. Currently, there is a growing trend to engage suppliers more and more while the organization focuses on its core competencies. However, is it possible for the suppliers to provide oragnizations with competitive advantage? This question is examined in this workshop amongst other critical procurement questions.

 

How to segment my suppliers based on their unique offerings and needs?

-          Creating supplier matrix (identifying organization’s needs versus supplier offerings)

-          Determining relevant KPIs and performance tracking

-          Outlining organization’s strategic objectives and collaboratively identifying opportunities for both parties – the organization and the supplier

-          Creating incentive alignments to minimize inefficiencies

-          Stabilizing supplier base and ensuring financial security of key suppliers

 

How to balance my organization’s objectives?

-          Savings vs non-savings priorities

-          Prioritizing organization's processes and identifying opportunities for agile procurement

-          Ensuring sustainability at organization and at supplier level through effective procurement process (including social sustainability, environmental sustainability and financial sustainability)

 

Readings:

 

Managing Suppliers Up to Speed (https://hbr.org/1989/07/managing-suppliers-up-to-speed) by David Burt: It is futile for big businesses to try to reform their manufacturing operations without the strong support of suppliers. To create technology intensive products—and what product isn’t these days—U.S. manufacturers spend, on the average, 56 cents of each sales dollar purchasing production materials—and that amount is growing. …

 

Workshop outlines like this one are suggested by Alla Volodina. These outlines cover a variety of topics including management accounting, strategy,  finance, accounting, procurement and governance. You can also browse through other articles suggested by Alla Volodina Rate My Prof: allavolodina.com

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