Changing role of Procurement The world is experiencing changing times and a return to ‘normal’ is unlikely. Nations, communities and companies will need to review and even change their economic or business model. For commercial companies that add value to purchased goods and services, the responsibility for the revised relationships with suppliers will fall on Procurement The focus of Procurement … Read More
Sustainability of Supply Chains is based on ESG report
Unsustainable future The world is consuming the planet’s resources 1.7 times faster than it can regenerate. In anyone’s language, this is both a continuing challenge and unsustainable. Change is therefore required to economies, businesses and the lifestyle of people in developed countries. But how difficult will this be? Between 1970 and 2020, the population of the USA increased by about … Read More
Value Added reflects the success of your Supply Chains
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