Friday 27 June 2014

Gain Competitive Advantage via Implementing eSourcing Technology

Authored by Usama Shahid

During the past two decades, companies have adopted different strategies to rationalize and consolidate their supplier base. In many cases, the supplier rationalization programs have  created a single sourcing strategy for many commodities. This strategy has enabled companies to build stronger and more collaborative relationships that deliver a range of benefits, including:

Wednesday 25 June 2014

Negotiating Tactics Can Be Learned Through Vendors

Authored by Usman Ghani

Most of the companies often do not understand the logic behind the pricing of commodities with suppliers or we call it negotiation,Specially the departments deal in Procurement/Logistics. Supplier may have many logical reasons to reduce his price,most of the suppliers will often realize you that the first price offered to you is the best price reduction according to him and the buyer should accept it without any doubt. Companies used all there reasons to reduce the prices of the items/Services but the vendors has the more defending power for his prices so at the end you run out of reasons for getting lower prices.

Monday 23 June 2014

Characteristics of Supplier Survey

Authored by  Junaid Khan

Supplier Evaluation often follows a rigorous, structured approach using formal surveys. An effective supplier survey have certain characteristics. First, the survey should be comprehensive and include the performance categories considered important to the evaluation and selection process. Second, the survey process should be based on KPI’s defined by buyer organization. A third characteristic is that the item and the measurement scales should be reliable. This refers to degree to which different individuals or groups reviewing the same items and measurement scales will arrive at the same conclusion. Reliable evaluations require well-defined measures and well-understood items.

Thursday 19 June 2014

Craftsmanship of Price Negotiation

Authored by Fahad Amjad

Negotiation is a basic, generic human fuss that everyone engages in. Good negotiating skills are essential to the smooth running of your business. You need to be able to negotiate with many different types of people in many different business situations - whether you are negotiating a loan from your bank or the next pay rise with a union or staff representative. The skills, once learned, will stand you in good stead. The most familiar approach to negotiation is positional in which each side adopts conflicting positions on pertinent issues and strive to convince the other side to accept the persuader's preferred position. Some people are quite skilled in positional negotiation and are able to achieve their goals most of the time using positional techniques. Moreover, successful use of positional techniques is difficult to sustain. Positional bargainers develop reputations that reflect their negotiation approach. Individuals facing negotiators with such reputations are very vigilant, distrustful, and reluctant to share information that can lead to agreement. Individuals typically view negotiations with positional negotiators as competitive challenges and strongly resist positional efforts to change their positions. Often the result of such encounters is a breakdown of negotiation and no agreement. When this happens, there are no winners.

Monday 16 June 2014

Maintaining Strong Relationship with Supplier, Striking the Best Price for Company !!

Authored by Usama Shahid

Supplier is a central point of procurement activities and processes. But, it is surprising how few organizations really think like that. Yet the performance of a supplier has a huge impact on an organization’s success and will ultimately determine how the procurement function and its leadership will be regarded by the business. Suppliers are more important than ever in today’s economically uncertain times – particularly when that business relies on its suppliers to bolster its own image, reputation and bottom line. A supplier’s price, quality, reliability, technology, and industry knowledge can offer a business an advantage over its competitors.

Monday 9 June 2014

Key to Success of eProcurement

Authored by  Junaid Khan

In today’s accelerating world economy, manufacturing companies are facing with the market realities of ever more demanding customers, shrinking product life cycles and steep price erosion. Companies drive to continually cut costs and focus on core competencies has driven many to outsource some or all of their production. Many eProcurement tools are there in market which bring transparency through different module in competitive bidding environment. Standard request for information (RFI) , request for quotation (RFQ), reverse and forward auctions enable buyer to save money by aggregating suppliers together in one online platform to compete for business. eProcurement always reduce written procedures offers costing options that auto generate order plans. Below are some important tips for success of eProcurement process.

Thursday 5 June 2014

Key Performance Indicator ( KPI ) Strengthen Procurement Process

Authored by Usman Ghani

As we all know that evaluating performance indicators in procurement is a compiled but complicated process. It is important for that data to be actionable and measureable. After working on several KPI’s we have found some multiple indicators divided into Quality related KPI and Cost related KPI’s.

Monday 2 June 2014

Is Procurement A Good Choice For Females As A Profession?

Authored by Azra Sultan

I just wanted to share an interesting article about a survey last year on female representation in procurement. The survey reveals that the women in purchasing earn 70% of their male equivalents in year 2012 whereas they earn 77% of their male counterparts – a seven percentage point improvement on 2013. Although it’s a slow improvement yet a positive sign but females still comprise of a small ratio as compared to male CPOs worldwide.