Tag Archives: Procurement & Supply

Some cautionary advice on the use of Supply Positioning

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A recent discussion with procurement consultant, Bill Young, caused us to reflect on the use of ‘supply positioning’ as a model for developing strategies to add value through procurement. We considered the possibility of positioning procurement projects rather than purchase items or supply categories. I concluded that this application had potential but also had practical difficulties. The use of supply positioning by Procurement, without the engagement of other stakeholders, is dangerous. As supply positioning is often misapplied, I thought I might share my thoughts here. Continue reading →

Supplier Classification – How to show suppliers where they stand

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Recently I commented on a LinkedIn discussion,  “Presently I am looking to devise a simple classification structure for my supply base – something that will allow my suppliers/providers to know where they presently stand from an engagement/expectation perspective and that shows them what they can work towards…. Does anyone have examples of such structures that they can share?”

My reply (edited): Continue reading →

Procurement and cost reduction in UK central government

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PAC report has relevance to public and private sector procurement.

The Public Accounts Committee (“PAC”) published its report last week, ” Cost reduction in central government: summary of progress“. The report may be of interest to procurement stakeholders in both public and private sectors :

  • Procurement is critical to achievement of deficit reduction and provision of (maintained) frontline services.
  • The report contains messages that apply to any organisation seeking to make savings through procurement initiatives.
  • The PAC  makes observations and recommendations regarding the approach to achievement and measurement of savings. Continue reading →

Procurement for Projects: Supply Planning (Part 2) – 3 Key Elements; 6 Tools & Techniques

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This article is the second in a series written specifically as guidance for project managers. 

Many projects suffer from the late involvement, or absence, of the procurement professional. It is the Project Manager’s responsibility to determine the requirement (or not) for specialist procurement skills. The series sets out to educate project managers in the essential considerations, and to inform the PM’s decision as to the need for specialist procurement resource.

The first article (Part 1) answered the question, “When and why do project managers need supply planning?” This article covers three key elements of supply planning – requirements analysis, supply market analysis, and risk management – and six tools and techniques used in the supply planning process.  Continue reading →

Procurement for Projects: Supply Planning (Part 1)

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This article is the first in a series written specifically as guidance for project managers.  Superficially the requirements of projects and ‘business as usual’ may seem different. For the experienced practitioner, procurement for projects has much in common with other procurement practice, ideally drawing on a range of techniques from a comprehensive tool set.

Many projects suffer from the late involvement, or absence, of the procurement professional. It is the Project Manager’s responsibility to determine the requirement (or not) for specialist procurement skills. Irrespective of the makeup of the project team, it is most important that the procurement cycle is considered and planned from the project outset. This series sets out to explain why, to educate project managers in the essential considerations, and to inform the PM’s decision as to the need for specialist resource. Continue reading →

How to Determine Purchasing Organisation: Purchasing Activity Analysis

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Judging by the limited references in the literature on purchasing practice and purchasing organisation, it would seem that purchasing activity analysis is a much underrated tool.

Why is activity analysis an important tool in determining purchasing organisation and establishing good practice? Continue reading →

How to Determine Procurement Organisation – Part 1: 10 Objectives for Procurement

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A discussion has been running in the Procurement Professionals Group on LinkedIn to explore why do centralised procurement initiatives often promise substantial savings, then fail to deliver to the bottom line? Apart from historically falling short of expectations, we are facing new issues such as increasing emphasis on corporate social responsibility and sustainability. The discussion prompted me to write a short article setting out 5 models for procurement organisation and start another discussion, Continue reading →

5 Models for procurement organisation

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A discussion has been running in the Procurement Professionals Group on LinkedIn to explore the reasons why centralised procurement initiatives often promise substantial savings, then fail to deliver to the bottom line. Various contributors have expressed different interpretations of “centralised procurement” which has prompted me to write a short article setting out the five models for procurement organisation. Continue reading →