Business

December 1, 2020
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 they ...
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November 24, 2020
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 inventory ...
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October 22, 2020
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 suppliers ...
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October 21, 2020
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 one ...
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October 20, 2020
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 technology ...
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October 19, 2020
Evolution of Procurement as a Key Strategic Function
Procurement as we know it today can be broadly defined as the process of acquisition of raw materials and components needed to produce goods. The earliest instance of Procurement is found in the Egyptian Era when scribes recorded the amount of materials and number of workers needed for the construction of the Pyramids on papyrus ...
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September 3, 2020
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 actually ...
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