Grey imports. A business today is most likely to make its profits from how well it purchases goods and services, rather than its selling margins. This is especially true in retailing because competition keeps retail prices in check. It is retail buyers who purchase goods for resale through their employer’s physical and on-line outlets. All to often their measurement of … Read More
Is Africa on your logistics horizon?
Know your business opportunities. Being a logistician is different from working in logistics. To be a logistician requires more than knowing how to do the planning and operational roles; you must know why they are done in your organisation – that is, the role they play in the strategy of your business. The business strategy must not only manage … Read More
Playing the budget game
Year end spend. Who would think that in 2013, the budget game would still be played; but it is and in large multi-national companies, such as one that I was referred to this week. One part of the game is that a division has funds allocated to it for capital expenditure (capex). If it does not spend all the money … Read More
Procurement can cost money
Obtain value. Its difficult to be pure when under pressure. In the best of situations the role of procurement is obtaining value for your organisation when acquiring externally supplied goods and services. This sounds reasonable, except when procurement professionals are under pressure to meet time deadlines or price objectives, then objectives can become hazy. I read about this type of … Read More
Suppliers are part of your business
It costs to get paid. Outsourcing the work of accounts payable is not uncommon, but I recently read of twist in the story. The service provider to whom a government owned commercial operation has outsourced its AP is charging suppliers 15.5c per $100 of invoice value as a processing fee! Here is another example of what has always been the … Read More