1999 Purchasing Today Article Index
Term selected: Purchasing Strategies
A valuable reference tool, the Article Index is a comprehensive list of articles that have appeared in Inside Supply Management® (formerly Purchasing Today® and NAPM Insights®) magazine. Articles are organized by subject for easy locating and study.
So how easy was it for you to catch your CEO's attention? Several purchasing and supply professionals share how they "sold" their value and improved profitability for the organization.
Negotiation is a meeting of different mindsets — different groups with their own needs, requirements, expectations, and beliefs.
It might be time to renegotiate your major contracts. Take the following steps.
Understanding the difference between agreements, contracts, and trading partner agreements will help prevent legal ambiguities.
Building a relationship when negotiating involves understanding and discussing what the other party wants to achieve.
Those in business predict that outsourcing will continue its strong position as a strategic opportunity well into the next century. They also suggest that once a function is outsourced it's sometimes harder to bring it back in-house.
Discover the importance of knowing your organization's final customer. No one is arguing the fact that it's the job of marketing and/or sales to understand, research, and have ongoing contact with the end customer — whether commercial or consumer. However, marketing and purchasing and supply increasingly are working more closely in an effort to meet the varied needs of the final customer.
From the medicines you take, the packages you ship, and the carpet you walk on, the impacts of purchasing and supply efforts in new product development abound.
Transaction costs rise when purchasers compete for the same goods in an inaccessible market, or when suppliers heighten perceived "differences" for their goods charging a premium for such differences.
Cost saving strategies function effectively when they are well-substantiated to suppliers.
Aftermarket purchasing further challenges purchasing and supply professionals to meet the demands of their customers.
A handful of providers are offering a wide range of services from which organizations can pick and choose.
Purchasing and supply professionals need to assess overall needs of the organization before hiring a janitorial services supplier.
Work closely with your key suppliers to discover hidden inventory costs.
For cost, time, and resource savings, sharing or shifting responsibilities to your supplier may be the answer.
The packaging industry offers a world of opportunity for the purchasing and supply professional. This enormous industry - in the consumer packaging industry alone, U.S. beverage containers are expected to top 217 billion units by 2003, according to the industrial market research firm The Freedonia Group, Inc. - is very customer focused and driven by technology to improve value to its customers. Purchasing and supply professionals are eager to explore new avenues in terms of purchasing packaging, as it can affect an organization's overall image, safety record, product quality, environmental consciousness, and cost competitiveness. To maximize success, purchasing and supply professionals need to investigate new technologies, new buying strategies, and new types of relationships within the packaging industry.
In today's business world an increasingly large percentage of a product's value comes from suppliers, prompting business executives to realize the value in building and sustaining strategic relationships with critical suppliers. The traditional price-based relationship with key suppliers is changing, giving way to long-term relationships based on total cost, trust, flexibility, innovation, and quality. And these effective relationships with critical suppliers are helping organizations positively impact customer satisfaction, financial performance, innovation, and organizational growth.
A supplier buyout may not be in the cards, but preparing for one is the best way to avoid a crisis before it comes your way.
How many of us have read contracts that were mind-bogglingly complex, and may have even seemed to be written in a foreign language? While it's important to recognize that a contract represents the legal obligations of the contracting parties, it's equally important to balance this with the necessity to make it comprehensible - maybe even simple.
Who's there but your sales organization counterpart displaying the latest initiatives.
Asking the right questions, of the right people, can help you get the most out of supplier reference checks.
If you're willing to pay the costs, an overseas sourcing representative can be your eyes and ears in a foreign land.
Look to your internal customers for cost-cutting ideas.
Communication, education, and training are key elements to ensure the final contract is followed by your internal users.
New twists on traditional supply models are bringing high rewards to purchasing and supply professionals. A few practitioners tell their story.
Develop a "come-to-know" checklist to enhance the success of your international purchasing process.
Need to review your suppliers' agreements? Here are a few tips to help you measure and rework them.
Has the Asian economic slump turned up the heat on your global purchasing plans? Find out how organizations cope when a crisis erupts in their suppliers' corner of the world.
Nickel and dimed to death with transaction costs? A third-party provider for non-value tasks could relieve some of the burden.
The tangible and the intangible, the subjective and the objective, you can measure all kinds of agreements.
Year after year, your organization sets another 10 percent cost reduction goal. Year after year, you meet that goal. Was there really that much money on the table the first time around?
Is your organization preparing to operate outside the United States? Don't be surprised if such an action takes place. With the same flurry of activity as today's business mergers, organizations are becoming multinational and purchasing and supply needs to be proactive and prepared.
After concluding a solid supplier selection process, the biggest challenge might come in meeting with internal users to inform them that their sentimental favorite didn't make the cut.
You're preparing to enter into negotiations. Your supplier has provided some costing details and the numbers look legitimate at first glance. But your end cost is still too high. As you reflect on the supplier's detailed quotation, do you understand the section dealing with overheads or fixed expenses? Traditional cost accounting methods advocate assigning these costs as a percentage of direct materials or direct labor. So, depending on the allocation method your supplier uses, you may wind up subsidizing an operation or process that has no direct tie-in to your particular purchase. You can, however, make your supplier rethink this allocation.
Today's intensely competitive business environment demands that organizations become experts at developing low-cost, high-quality products and services that have the functionality customers expect. Cost management can help.
Through business process analysis, organizations may not only be capable of reducing logistics costs, but also redefining the global direction of their organization.
Supply advantage, intelligent innovation, ideation: These catch phrases embody purchasing and supply's latest, greatest task and potentiality — harnessing innovation at all levels of the supply chain to wow customers and stockholders.
Trimming the supplier base requires a hard look at numbers and your strategic sourcing needs.
Frequently as purchasing and supply professionals, we face the challenge of shifting from known to unknown activities which have a similar look and feel, but which at the heart of the transaction contain some fundamental differences. For example, consider the differences between a standard statement of work (SOW) for a particular part or material versus a SOW defining professional services. They both contain a statement of work defining supplier performance, yet their differences need to be understood before you can successfully proceed in this area of negotiation.
It's complex. It's difficult to define. It's even overwhelming. The concept of a world-class purchasing and supply organization requires alignment, strategy, and a great deal of self-examination.
An in-depth study of your organization's and supplier's cost systems can lead to effective implementation of activity based costing.
Europe's new currency takes a beating in the markets, but its long-term outlook reveals a more lucrative European supply base for U.S. purchasers.
Need a specialized financial service, or just need more resources for your core competencies? Outsourcing some aspect of the finance function might be for you.
Knowledge and time are the means to a successful end when sourcing for office products suppliers. For the purchasing organization, this can mean a 10 to 15 percent cost reduction.
Chief among the efforts to increase card use is a concerted effort requiring employees to use purchasing cards rather than standard purchasing tools.
Recent developments in the smart card industry indicate some growth. The only question remaining is "When?"
Adapting to trends and accommodating new technologies and philosophies, today's leading-edge purchasing and supply professionals are blazing trails in new directions.
To say that change has overtaken the distribution industry - OEM, MRO, and retail - is an understatement. Several forces have converged to provoke these changes; particularly advances in supply chain management, electronic commerce, and technology. Still other catalysts for change include a trend toward outsourcing, increased globalization, imperatives to lower total costs, the need to reduce risk, and the consolidation of fragmented markets. To answer the challenge of change, distributors will have to concentrate on providing more value-added services to their customers including quality systems, supplier-managed inventories, just-in-time inventories, consignment inventory programs, consolidated monthly invoicing, global shipping and delivery capabilities, and electronic commerce opportunities.
No need to rely on gut instinct when tools abound for supplier price analysis.
You have an ally in supplier evaluation. It's your internal customer.
Several strategies exist for successful supplier selection. Use the "Five Cs" to help you keep the steps in mind.
By the member, by the volume, or by the variable component, consortiums are funded in a variety of ways.
In the fast-changing world of telecommunications, how do you get the best deal for your organization?