The Advantages of using Procurement Technology

A range of industries are talking about using technology to improve their supply chain processes This is because technology can significantly impact an organization’s bottom-line by improving visibility and cost-efficiency. Technology also helps increase the productivity of an organization. Applying technology to the critical area of Sourcing & Procurement will have exponentially increased the benefits.continue reading

Source To Pay Platforms help in achieving better product costs

Sourcing requires a special focus on every part.  In Direct Materials Sourcing, when 1000’s of parts are sourced, keeping track of every part becomes a challenge. Take the case of Supplier Negotiations – In most organizations, negotiations take place on emails and over phone.  The negotiations conducted over the phone are not documented till theycontinue reading

Why an ERP system is not a sourcing platform

Almost all established companies have a well-functioning ERP system. ERPs were designed to help accounting teams monitor transactions across the enterprises and to help in financial reporting. Transactions include sales invoicing, payment receipts & Accounts Receivables, Purchase Orders, Material Receipts, Purchase invoices & Accounts Payable.  Since there was significant working capital involved in maintaining inventorycontinue reading

5 Ways to improve Supplier Relationships

A Successful Product Manufacturing Company requires a strong supply base, given about 70% of the value of the product is derived from the Direct Materials sourced from their suppliers. The relationship that a buyer has with the supplier has a direct impact on their success.  At the heart of a good relationship with the supplierscontinue reading

Why is Strategic Procurement Important

The indispensability of procurement  Ask any leading business to name a recurring challenge they face and the reply will be cost-efficiency. Procurement as a mere associate function has long changed (Refer our earlier blog item here). Somewhere between directing their entire focus on the selling side of the business, organizations have come to realize onecontinue reading

How Technology has transformed Procurement

Procurement has transitioned from a purely transactional process to a strategic function crucial to business success in the last 30 years. This transformation has also been accompanied by technology for the most part. From the creation of IBM’s BOM Processor to the latest Procure-to-Pay Suites, procurement practices have been immensely transformed by technology. As technologycontinue reading

Direct Sourcing is much more than purchasing; it is an extension of the product life cycle.

You design, manufacture and sell a product… be it an Automobile, Aircraft, Refrigerator (or any of the high-tech gadgets that go in them), a Candy bar or your off-the-shelf Pain-Killer medication.  Unless you are one of those rare companies with a very strong vertical integration, I guess around 70% of your product value is actuallycontinue reading