Buying organization and purchasing process support

Purchasing and supply affects the strategic capabilities of the organization. Purchasings kee role is: price management, assurance of supply and optimal quality acquisition of products and services. But purchasing is turning into building strong components in the organization, it is changing from “simply buying” to “rights” (right price, right product, right quality, right supplier). Please find below few current themes each organization has currently to deal with and where our team could provide the necessary support.

A) Introduction of e Procurement

B) Defining the strategic cost management (emphasis on cost and not on price reduction)

• strategies such as multi-organizational process improvement by elimination of non-value-added costs and activities
• pricing approach for engineered and specified products
• cost models and cost-saving sharing in non-commodity markets

C) Strategic sourcing

• more detailed supplier assessment metrics
• more individualized metrics for measuring supplier performance

D) Supply chain partner

• stronger selection
• personal contribution suppliers

E) Tactical purchasing / process uncoupling

• automated purchasing
• outsourcing activities (when it is demonstrated that competing firms possess superior capabilities)

F) Relationship management /Performance measurement / Development of suppliers

• common type of performance metrics
• but also metrics needed for specific supplier-buyer situations

G) Global supplier development (procurement organizations will ask current suppliers to grow with them, and supply them in foreign countries)

H) Third-party purchasing (of non-tactical products and services)

I) Competitive bidding

J) Strategic supplier alliances of organizations in order to:

• maximize leverage and synergy of resources
• meet continuing needs for flexibility and asset management
• meet challenge of global competition and higher performance expectations

K) Negotiation strategy (Negotiations will become more complex as more information is made available)

L) Complexity management (challenges of procurement professionals)

• managing the new technical tools/applications
• managing the new processes (strategic alliances, supply chain management)