Category Management Archives - Supply Chain Game Changer™

Indirect Procurement – It’s Time to Rise and Shine!

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What’s the Difference between Procurement and Purchasing? (Infographic)

Indirect procurement of goods and services can be one of the largest areas of expenditure in any company. And the operational impact that the provision of Indirect goods and services can have on a company can be significant, either positively or negatively.

Yet the lack of attention and focus that Indirect Procurement is often given is inconsistent with the true importance of this area. Indirect Procurement takes a back seat to Direct Procurement unfortunately.

But it is time for Indirect Procurement to stand up and be counted!

Outsourcing Sourcing! 5 Lessons from Around the Globe!

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What is Virtual Procurement and Why Should You Care?

Doing business with suppliers located overseas or in another country can be an overwhelming and daunting task even for expert Sourcing professionals. But what if you considered Outsourcing Sourcing?

Recently a friend of mine asked me to have lunch with him and one of his associates. The other gentleman had invented a new product. He had a marketing plan. He knew what his cost point had to be on the product which meant that he had to have the product manufactured overseas.

But beyond that he had no idea on where to start to source his product.

What Exactly Is Procurement? And What is Purchasing?

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Featuring Our 12 Best Procurement Articles!

For his entire career my Father worked in the field of Procurement. But the job titles that he had during his career alternatively included either the word Procurement or the word Purchasing. I seem to recall that one of his business cards included both words.

When I was young I thought I had a somewhat clearer understanding of what my Dad’s Purchasing job was. His job involved buying, negotiating, contracts, overseas travel, sourcing, suppliers, parts, services, managing, supplier qualification, product qualification, terms and conditions, quality issues and delivery problems.

But was that Procurement or was it Purchasing? Procurement sounded like a somewhat loftier and more sophisticated word than Purchasing but by the same token it also seemed like they were synonymous and interchangeable terms.

What exactly is Procurement? And what is Purchasing?

What’s the Difference Between Commodity Management and Category Management?

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Commodity (or Category) Management – What is your Buying Strategy?

For a considerable portion of my career I have worked in the Manufacturing and Logistics/Distribution Industries. In these industries a segment of the Procurement organization is called Commodity Management, not Category Management.

However when I entered the Retail industry the group largely responsible for Procurement, amongst other things, was called Category Management.

At its core each group was procuring goods. But while there were shared responsibilities there were also key differences.

So what is the difference between Commodity Management and Category Management?

Procurement Don’t go to the Dark Side!

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Procurement Outsourcing – Keep your Integrity!

Early in my career I worked in a department that was responsible for the design,testing, sourcing and procurement of packaging materials. It was a great experience and introduction to so many aspects of the Supply Chain.

But one day one of my peers was fired. He was responsible for negotiating with the packaging suppliers. As it turns out he was taking kickbacks. When that was discovered and verified he was summarily dismissed. He went over to the dark side.

I never got the precise details but I don’t believe he could have got more than a few thousand dollars for his illicit efforts. More importantly he got a black mark on his resume, and in his life, that he could never erase.

That was my first lesson on the do’s and don’t of Supplier Relationships.

Strategies for Improving Supplier Relationship Management (SRM)!

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Strategic Supplier Relationship Management – Do’s and Don’ts

Strategies for improving Supplier Relationship Management (SRM) are the hallmark of the Modern Procurement Function.

In this article we are providing our list of 10 strategies for effective Supplier Relationship Management and overcoming Supplier management challenges.

Report Card: Most Executives Think Procurement Isn’t Strategic Enough!

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Could the CPO Be Replaced by the Chief Value Officer?

As we’ve chronicled on the Argentus Blog, it’s no secret that the world of Procurement is changing and fast. With automation, big data and burgeoning AI systems removing more and more of the profession’s “tactical” or “clerical” tasks, the Procurement report card is that companies are calling on their Procurement teams to be more strategic, more nimble, and more innovative.

They’re expecting their Procurement functions to deliver not just bottom-line cost-savings, but other sorts of value, adding to organizations’ overall competitiveness.

Procurement, you’ve come a long way, baby!

But a new survey of 200 C-Suite executives from a variety of industries and functions presents a rather dispiriting picture of the Procurement function today – or at least how it’s perceived.

The 3 Pillars of Digital Procurement!

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Procurement Bots – Transformer or Destroyer?

Procurement professionals have the same question looming over their head on a daily basis about Digital Procurement:

“How do you plan on dealing with digitalization?”

Our 2019 Top 10 List! (Part 2)

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Our 2019 Top 10 List!

As we come to the end of our 3rd year here at Supply Chain Game Changer it is time to publish our semi-annual 2019 Top 10 List.

First we want to thank our readers. Our audience and reach continues to expand with Supply Changer now being ranked as one of the Top 20 Supply Chain blogs in the world and one of the Top 15 Procurement blogs in the world. Both are record achievements for us.

Second we want to thank our guest contributors. With dozens of writers and articles we continue to fulfill our vision of sharing expertise and experience from all over the world.

We thank you for your ongoing support and ask you to continue to spread the word about Supply Chain Game Changer. There is truly something of value for everyone no matter what challenge you are facing each and every day.

Here we present our Top 10 list for the second half of 2019. Enjoy!

Procurement Experiences and Trends!

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What is Virtual Procurement and Why Should You Care?

Where is procurement, outsourcing, sourcing, supply chain, and purchasing going? What is happening in the marketplace? What are companies thinking at the executive level and what type of actions are they taking?

First off, we will outline a few of our observations about what we are seeing first hand. Secondarily, we will include information from other procurement professionals and procurement firms about their experiences, what they forecast, and what they are seeing.

IKEA’s IWAY Lessons For Procurement!

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Differentiate With Supplier Relationship Management (SRM)!

My girlfriend and I have a dog, named Charlie.

He’s only one and a half years old and is already, now, rather well trained. Sure, he has an occasional hiccup and puts his paws on a friend from over excitement, or pulls on the leash a bit too much as we approach the lake. But, all in all, my girlfriend and I (mainly her) have done a pretty solid job raising him.

Then again, we didn’t approach this whole dog ownership business with a ‘wilyl-nilly’ mindset.

10 Steps for Procurement Strategy Development! (Infographic)

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Manage Procurement Spend Like It’s Your Own Business!

All over the business landscape, more companies in more diverse industries are transforming their Procurement functions and Procurement strategy.

They’re leaving behind more transactional models and becoming more strategic, implementing total cost of ownership Strategic Sourcing models, either centre-led or decentralized.

Commodity (or Category) Management – What is your Buying Strategy?

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What’s the Difference Between Commodity Management and Category Management?

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In any company or industry that sells products the cost of the raw materials and components is often the single largest expense. Despite the magnitude of this cost however there is a wide range of focus put on managing this expenditure from proactive and strategic to reactive and tactical. This is all managed by either Commodity Management or Category Management.

In some cases there is a great level of planning applied before a single purchase order is placed. In other cases buying decisions are made subjectively and with very little focus. Further the experience in those buying these goods can vary significantly as well.

Supply Chain is about much more than just negotiating lower materials costs. A well constructed Procurement Strategy will raise the value of the Supply Chain to your company.

How do you manage your materials spend? Are you executing a Buying Strategy or are you just blindly placing purchase orders ?

The Negotiation Before the Negotiation!

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What Exactly Is Procurement? And What is Purchasing?

When preparing for a negotiation, it is common to identify the issues to be negotiated, decide on negotiating tactics to use on your supplier, think through what your supplier may say and practice saying the words you’ll use during the negotiation.

Those are all necessary components of negotiation preparation.

But, they are not enough. To truly reach your potential in a negotiation you need to understand some key things about your supplier. This article will focus on three major things you need to know about your supplier before beginning a negotiation.

How do you get to know them? You can research your supplier and/or you could – get this – ask your supplier contact!

Procurement: With Great Power Comes Great Responsibility!

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Hey Procurement! It’s Time to SELL!

There is a great line in one of the Spider-man movies, “With great power comes great responsibility!”

Procurement organizations can have the power to spend and control as much as 75-80% of a company’s revenue. Now that is power! And with that power comes a huge responsibility.

Less enlightened organizations still think of Procurement as a back office function processing transactional purchase orders and standard contracts. But better informed and leading organizations see and recognize Procurement for its strategic value.

What actually is the power that is within Procurement’s mandate? And what responsibility does Procurement have commensurate with that power?