Category: Business
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4 Steps to Make Supplier Performance Management Work for you
Why is Supplier Performance Management important? Supplier performance management is important for a number of reasons: Here are 4 steps to make supplier management services performance work better for your business. 1) Determine the right KPIs While you establish the practice of monitoring supplier performance, the first step is to understand what you will measure. Determine the…
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Why Suppliers Should Not Fear Reverse Auctions
Reverse auctions are a great tool for buyers to save money, but many suppliers tend to be apprehensive about participating in them. Suppliers do not like participating in reverse auctions because they are typically viewed as a race to the bottom in terms of pricing. There are more apprehensions which we will articulate in this…
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How to Achieve Success with Strategic Sourcing: Top Best Practices
How do you achieve success with strategic sourcing? What do you need to do to be successful with strategic cost reduction? This article outlines some of the best practices on how to effectively perform strategic sourcing, so you can achieve your goal of lowering your costs without sacrificing the quality or reliability of your supply…
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How To Build Credibility With Suppliers For Your Eprocurement Initiative
It is up to the buyers to enforce practices in their sourcing process that build trust with suppliers. These practices assume greater importance when companies resort to eProcurement. Companies that have been successful in building a credible eSourcing initiative tend to adopt the following practices. These practices have been shown to encourage suppliers to participate…
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What Is An RFP And Why Is It Important To Digitalize It?
What is an RFP? A Request for Proposal (RFP) represents a document or a sourcing stage where proposals are solicited from suppliers or solution providers. The Buyer uses the RFP to state the requirements of the goods or service being procured, the terms and conditions of the engagement, the vendor evaluation criteria, and most importantly…
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6 Reasons Why Reverse Auctions Fail to Deliver the Desired Results
Reason 1: Inviting unqualified suppliers to the auction event Auctions should immaculately be the final step in the negotiation process. Negotiating with suppliers post the auction is a big no-no. Also, qualifying suppliers post the auction has its drawbacks too. Assume the smallest-ranked supplier is disqualified post the transaction. The coming ranked supplier will misdoubt…
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What Is eSourcing And How Can The Companies Benefit From It?
What is eSourcing? The process of Sourcing involves looking for new suppliers, assessing their capability, comparing their products and their offerings with the demand or with the incumbent supplier’s offering, uniting with all suppliers to receive marketable bids, researching the bids, and negotiating for the optimum price & capability mix. Depending on the strategic nature of the…
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What Is eSourcing And How Do Companies Benefit From It?
What is eSourcing? The process of Sourcing involves finding new suppliers, evaluating their capability, comparing their products and offerings with the requirement or with the incumbent supplier’s offering, collaborating with all suppliers to receive commercial bids, analyzing the bids, and negotiating for the optimum price & capability mix. Depending on the strategic nature of the…
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Transformed Pricing Is Critical While Comparing Prices From Dis-similar Suppliers
Procurement teams often face a scenario where they have to compare bids from suppliers that aren’t exactly similar. What do we mean by that? Here are some scenarios where bids received from suppliers aren’t comparable. Shipping costs are incurred by the buyer and are different for each supplier i.e. supplier provides goods ex-works and the…
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6 Reasons Why Reverse Auctions Do Not Deliver The Desired Results
Reason 1: Inviting unqualified suppliers to the auction event Auctions should ideally be the final step in the negotiation process. Negotiating with suppliers post the auction is a big no-no. Similarly, qualifying suppliers post the auction has its demerits too. Assume the lowest-ranked supplier is disqualified post the auction. The next ranked supplier will doubt…