Category: Procurement
1. Identify the inefficient processes/bottleneck in your organizations procurement cycle and work to remove them 2. Rationalize your supply base. Some place you have to increase vendor; some places you have consolidate vendors to get best from your suppliers 3. Improve supplier relationship, establish fair practices with supplier 4. Standardize your procurement processes. Implement centralized […]
Safety stock describe a level of extra stock that is maintained to mitigate risk of stock-outs. It acts as a buffer stock in case sales are greater than planned and/or the supplier take more time to deliver ordered units than its average lead time. where, α is the service level, Zα =1.65 for 95% service level. E(L) […]
Procurement refers to the process of identifying, shortlisting, selecting, and acquiring, (ISSA) suitable goods or services from an outside source. Activities like contract management, receiving & storing, payment & evaluation comes under ambit of procurement. Purchasing is a small subset of the broader procurement function, associated with acquiring the goods and services, and the process […]
China accounting for more than 30% of all global manufacturing share. Before starting to work with Chinese supplier it is most important to ensure that they are legitimate and will be able to produce and supply what we order? Following three basic steps will help us greatly to verify a Chinese supplier. Step 1 – […]
1 Recognition of Need Needs Vs Wants 2 Understanding / Development of Specification – Technical & Performance requirement / Quantity / Quality / Delivery / Packaging / Service / Budget 3 Find Potential Source 4 Analyse Supplier – Proposals / Capabilities 5 Select Supplier – Negotiation Supplier Evaluation 6 Contract / Ordering / Delivery / […]