Supply Chain function performance is not enough A Supply Network is a complex, non-linear and adaptable system. The core supply chains within a network can potentially be managed – from Tier 1 suppliers to Tier 1 customers. Beyond that, the extended supply chains of a network can only be understood, based on the emerging responses to events. Therefore, for an … Read More
Water – supply chains using more but less available
Water in supply chains Water is not a resource in which Logisticians typically concern themselves; but should they? Changes in climate and weather activity are likely to affect supply chains – less water available for much of the time; then too much water, in the form of floods. Water has not received the publicity of climate change, yet is a … Read More
Procurement negotiations and a researched Sourcing Plan
A Sourcing Plan is part of the process To stay in business, suppliers must keep selling to current and prospective buyers. Concurrently, Procurement must decide which supplier of an item is the ‘best’ and whether the ‘best’ is the right supplier. Procurement therefore requires a process which removes as much subjectivity as possible from the buying decision. Supply Planning is … Read More
Category Analysis is the first step in Supply Planning
Elements of Supply Planning Understanding your supply markets, which is called Supply Planning, is one of two critical roles of Procurement. The other is the Purchasing process. The process of Supply Planning was developed in late 1980’s, but it has not become commonly established in organisations – why? One reason could be that the positioning and process steps of Supply … Read More
Procurement initiatives in distorted supply markets
Increasing industry concentration Increasing industry concentration results in less competition among suppliers, which can lead to more distorted supply markets. This change in industry structure may well require Procurement to review and modify accepted practices. A graphic provided in The Economist magazine compared the US market share of the largest four businesses for 893 industries, grouped into 15 sectors. The accompanying article … Read More