Practices – Source
Competitive Bidding
We leverage competitive bidding to drive cost savings by inviting multiple suppliers to submit proposals for contracts. This process fosters a competitive environment, leading to better pricing and terms. By evaluating and selecting the most cost-effective bids, we ensure that clients benefit from reduced procurement costs and enhanced value, contributing to overall cost reduction.
Supplier Stocking Agreements
We utilize supplier stocking agreements to manage inventory more efficiently and reduce costs. By negotiating agreements where suppliers maintain inventory levels based on our forecasts, we minimize the need for excess stock and reduce carrying costs. This practice enhances cost efficiency by aligning inventory with demand and ensuring timely availability of goods.
RFx: Which Document to Use and When
In this article, I wanted to quickly clarify confusion about when to use the standard competitive bid documents: the request for information (RFI), the request for proposal (RFP), and the request for quotation (RFQ).
How are they Different?
Request for Information (RFI)
The request for information is rather general and requests information on the basic characteristics of a supplier, such as size, capabilities, product or service, spectrum, major customers, etc. It is not binding, and it is used in the very early stages when supply management scopes out the environment of what is possible.
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RFx Which Document to Use and When
One Strategy to transform inventory turns and supply risk within weeks!
Introduction
Is your organization equipped with readily available data and simple practices, yet not fully capitalizing on the opportunity to enhance its supply chain performance? Each edition of this newsletter presents a new strategy that you can implement immediately, allowing you to see tangible results within weeks.
Strategy
Leverage blanket purchase orders and stocking agreements with your suppliers to yield substantial benefits for your organization, including improved financial performance and supply risk reduction.
Read More…
One Strategy to transform inventory turns and supply risk within weeks!
Leveraging Volume
Leveraging volume involves consolidating purchases to negotiate better pricing and terms with suppliers. By aggregating orders and negotiating bulk discounts, we reduce unit costs and achieve more favorable terms. This approach helps clients lower overall procurement expenses and maximize savings through economies of scale.
Blanket Purchase Orders
Blanket purchase orders allow us to establish long-term agreements with suppliers for recurring purchases at predetermined prices. By securing bulk orders and fixed pricing, we reduce procurement costs and streamline the purchasing process. This approach provides cost stability and savings, contributing to overall cost reduction and operational efficiency.
The Simple Sourcing Strategy to Leverage First, and Why.
The launch of a strategic sourcing program can be a daunting proposition. A.T. Kearney tells us that there are 64 strategies to choose from. Wow! It is also true, however, that one simple strategy should almost always come before the others. My suggestion would be to start with the “Volume Leveraging” strategy.
What is the “Volume Leveraging” strategy?
It is aimed at maximizing cost savings and efficiencies by consolidating purchase volumes. Increased volumes can be achieved by combining spend from multiple sites, multiple product categories and a reduction in the number of suppliers. Volume can also be increased by negotiating longer-term contracts. From the supplier’s standpoint, volume is a function of estimated annual usage multiplied by length of the commitment.
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The Simple Sourcing Strategy to Leverage First, and Why.
One Strategy to transform inventory turns and supply risk within weeks!
Introduction
Is your organization equipped with readily available data and simple practices, yet not fully capitalizing on the opportunity to enhance its supply chain performance? Each edition of this newsletter presents a new strategy that you can implement immediately, allowing you to see tangible results within weeks.
Strategy
Leverage blanket purchase orders and stocking agreements with your suppliers to yield substantial benefits for your organization, including improved financial performance and supply risk reduction.
Read More…
