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8 Competing Priorities that jeopardize margin improvement initiatives from procurement
The story goes like this: the CFO is asking for a percentage point improvement in the Gross Margin from the Procurement Team in the next Fiscal. This is the most attractive to the CFO as this does not involve the engineering folks requiring redesigning and testing any parts and any additional Product Programs that invariably ...
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Advantages of Source-to-Pay over Procure-to-Pay
So, you are planning to Digitalize your procurement process. The first step to this is deciding whether to invest in a Source-to-Pay or a Procure-to-Pay platform. The first step in your decision process is to understand the functions and limitations of both. Source to Pay is an end-to-end process that aggregates everything from design to ...
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March 5, 2021
Supplier Data Management – The first step towards building Supply Chain Resilience
With the advent of the pandemic, a lot has been spoken about Supply Chain Visibility and the role of data in Supply Chain Visibility. Before the pandemic, there was consensus that organisations had to revamp the way data was managed. This is because a technology enabled supply chain would require high quality of data captured ...
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December 29, 2020
A modern, automated approach to Supplier Management
In traditional Supplier Management, the focus was only on cost reduction. The buyer-supplier relationship did not extend beyond that. Today, it is recognised that Suppliers play an important role in the long-term success of an organization. With this recognition, they have come to be seen as partners in business no less important than the end ...
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December 18, 2020
How Technology can ease the complexity in Direct Material Sourcing
It’s Friday evening before Christmas and you find that the parts arriving from the supplier can’t make it inside the gate because of some discrepancies in the purchase order. Let’s say you are getting the new equipment ready for a customer demo and the part doesn’t fit… the engineers discover just then that the part ...
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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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