Value Added does not receive attention In a recent blogpost, the term Value Added (VA) was used. It defines the difference between the net income from the sale of products and services and the total purchase cost to the seller of materials and service inputs used to make the item. It is a measure for your organisation’s supply chains. Unfortunately, … Read More
Supply Chains cannot be ‘managed’ but better understood
Supply Chains in your business Supply Chains are not new; they have existed since people commenced trading items for barter or money; but Supply Chains cannot be managed. Instead, consider them as a description of the environment in which the activities of Procurement, Operations Planning and Logistics (your Supply Chain group) are required to operate. A supply chain is identified … Read More
Value Chain has an increased focus in Supply Chains
Future viability for a business Value is the price that a buyer is willing to pay for an item. Added Value (AV) or Value Added (VA) is the difference between the price obtained by a business for a finished product made from purchased items and the price that the business has paid for the purchased items. VA is used to … Read More
A model for Supply Chains in the climate change future
Measuring non-financial improvements The disruptions through your supply chains since early 2020 have been a learning experience for what is due to occur by 2030 and beyond. In 2018, the ‘Intergovernmental Panel on Climate Change’ (IPCC) published its report on the impacts of climate change. It stated that to limit average temperature rises to 1.5C above preindustrial times, by 2030, … Read More
Procurement Risks now include more external risks
Additional Procurement Risks The experiences of the past 18 months with product shortages, supplier disruptions and shipping delays has highlighted the potential risks associated with your organisation’s supply chains. Risks are often evaluated from the perspective of dealing with a supplier; but this has been shown to be too narrow a view. The blogpost of June 1, 2020 identified the … Read More