Category Management and Value Chains. The objective of Category Management is to identify and leverage the capabilities of supply markets, to obtain a lower total cost of ownership (TCO). Category Management should therefore play an important role in the success of Procurement and ultimately, each of your Supply Chains. The previous blog Category Management underpins your Supply Network generated a comment on LinkedIn from … Read More
Category Management underpins your Supply Network
Category Management within Procurement. Despite an increasing use of the term ‘strategic sourcing’, the actual situation is that most sourcing exercises are not strategic, but a lot of items and services are bought. Of the total income from sales, between 60 and 75 percent will be spent on items and services in manufacturing businesses and in services businesses between 25 … Read More
Improving supply chains without technology investment
The business case for investment. The question “what is the need?”, has been front of mind while recently reading articles and reports concerning new technologies and their possible effects on business in general and supply chains in particular. All the articles seemed to assume that justifying the expenditure on new technologies is not a problem. However, buying technologies (new or … Read More
Steps to being a strategic Procurement organisation
Procurement in supply chains. Procurement is still evolving from basic buying – getting the lowest price for items, to being an integral part of an organisation’s supply chains structure. This structure includes the core operational functions of: Procurement, Operations Planning and Logistics; however, they can have many titles, depending on the organisation and location. Within your supply network, the objective … Read More
Minimise supply chain risk for business viability
Supply Chain risks are real. Sustainability is too often used as a generic, catchall term (like innovation) that has little impact within an organisation. To put meaning around the term, identify and review the risks that may affect the future viability of your enterprise. For operational type businesses, the majority of risks are related to the supply chains and they … Read More