Financial Aspects of Procurement
Are you Ready to Manage Your Carbon Footprint?
By L. E. Johannson, B.E.S. (Hons), M.Sc., FRSA
President, E2 Management Corporation (E2M)
If we compress the life of the planet into a twenty-four hour period, the existence of humans occupy less than 2 seconds. In a fraction of that time, less time then it takes to snap your fingers, decisions we have made and actions we have taken are causing changes to the ultra thin space around the planet in which we live, work and play. We have already experienced economic impacts from climate change, which have affected our social order and our economic wellbeing. So far we've only felt a tickle of what is to come.
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Supply Base and Vendor Management
Reciprocal Trading
Reciprocal trading occurs when one company sells goods to another company from which it is also buying goods. The two arrangements may or may not be formally linked although, in principal, reciprocal trade may strengthen and even create mutual dependencies which may strengthen the relationship between the two businesses. In practice, however, friction can be caused in the relationship with the termination of one side of a reciprocal trading relationship can provoke retaliation by the other party.
Our goal in managing reciprocal trading relationships is to maximize the contribution of the relationship to the profitability by taking a ¡§whole-of business¡¨ approach.
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Negotiation
Assume Nothing
By Paul T Steele
Both parties to a negotiation necessarily come to the table with a variety of assumptions already formed and this can be dangerous. Assumptions have to be tested. You, for example, have probably assumed that the person you are meeting has the power to conclude the deal: hopefully, you have already explored that particular one during the opening courtesies. We hope that haven¡¦t made too many limiting or constraining assumptions.
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Procurement Strategy
What Goes Around, Comes Around: A Case Study in Buyer/Seller Relationship Management
By Richard May
Recent events in commodity markets globally have seen a number of suppliers drive price increases at aggressive rates. This is understandable as for many years, these same suppliers have been on the receiving end of aggressive price reduction tactics by buyers. Now this is the chance that many suppliers have to return to return to their former profit levels and satisfy their investors. One multinational fired their CEO because of his inability to inspire the sales team to get price increases fast enough
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Procurement Skills Development
Sustaining Cost Reduction: 36 Quick Tips
By Daniel Fielding
You have been set a tough target. There are no quick wins left. Your stakeholders believe that there is not much more that can be done. Where do you begin? Unless something is changed with the way you manage procurement savings are not going to happen. So what do you do that is different?
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Contract Management
Trust
By Paul Rogers
Probably the best known contributor to the topic of trust in buyer/supplier relationships is Mari Sako who developed the distinction between three different types of trust including Contractual Trust which is based upon whether the other party will carry out their obligations. This form of trust rests on shared norms of behaviour in terms of honesty. If you count the number of individual plastic sacks in a delivery, you don¡¦t trust the other party to keep their promise to deliver the correct amount.
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ACROSS FIVE CONTINENTS, ONE STANDARD OF PURCHASING EXCELLENCE
