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Procurement is undergoing a transformation, moving away from process and price towards undertaking initiatives that demonstrate value for the business. Therefore, when the opportunity arises for us within procurement to demonstrate its value, you should seize it in both hands.
MO IT MUST BE AS BEST VALUE
best payment terms
best delivery terms
best quality
Dear Kazi,
I fully agree and endorse your statements.
However in recent months both I and many of my friends have witnessed a steady decline in true Procurement professionalism in areas such Supplier relationship management, cost optimization, and added value programmes within our industries.
We need to promote the win-win scenario, as stated during a companies advanced negotiations sessions.
Thank you again.
David
Those who believe that Procurement is only a price only process will be unable to bring in changes that will make procurement both cost and a profit center. Getting goods at the cheapest price alone does not add any value if:
1) Leadtime is unfavourable
2) Erratic Supply
3) MOQ is high
4) Documentation is delayed or documentation has discrepancies.
5) Discrepancies in receipt (weigh and count) and many more...
All this will add to order processing costs and whatever gains you get from a price only process will be negated.
