Productivity as a part of your business. Achieving substantial improvements to the supply chains and logistics of your business is not a five minute exercise. Productivity improvement always involves managers actually managing; that is, allocating resources to achieve the desired outcomes. And that can mean people changing their role in the business or being retrenched – always a difficult exercise. … Read More
The total cost of your low cost items may be high
Know the Total Cost of Ownership for items. Are you thinking about outsourcing the manufacture and delivery of a product, or renewing a current outsourcing contract? For manufacturing items, you may think of China or other countries in north or south east Asia. Why? because production costs are considered to be lower. Labour costs are still a dominant feature when … Read More
Buying from low cost countries has supply chain risks
Another case of problems with international suppliers. Companies that buy items internationally, which become products sold through retail stores have many risks. A big risk is that the media, including social media, will uncover any misdeeds and ‘cutting corners’ by your business and your international suppliers. And you will get all the publicity you do not need! Examples of problems … Read More
In your supply chains do you have partners as suppliers?
Partnerships rarely exist in business. A major supermarket retailer in Australia has been accused by the regulator of ‘unconscionable conduct’ against suppliers, due to the power it can exercise. The retailer’s buying power meant that it could aim for a ‘no risk’ approach to selling. It set a profit target for each category; if the retailer did not achieve the … Read More
Working in procurement – be able to sell
A view of Procurement. Is procurement (you can call it supply, purchasing or acquisition) just about sourcing and buying materials, goods and services? Well no – to be an effective procurement organisation and meet the targeted business outcomes requires more capabilities than sourcing and buying. What about selling? Procurement should do this both internally and externally. Inside your business there … Read More