This article discusses how purchasing managers can adopt a more strategic approach to managing suppliers and supplies. It outlines a four phase process for classifying suppliers based on profit impact and supply risk. This allows purchasing managers to differentiate between supplier types and tailor strategies. The four phases include classifying supplies, analyzing supply markets, strategically positioning supplies based on the classification, and developing action plans to strengthen organizational structures, systems, and staff to support the strategic supply management approach. Adopting this strategic perspective helps companies better guard against supply disruptions.
Here, I have given brief idea of Procurement and Purchasing and Kraljic Purchase Matrix is explained in detail with case study of Construction Company.
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If you have any suggestion or query, do reach me at
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• Make Versus Buy
• Benefit of Outsourcing
• Source of Supplier Information
• Strategis Selection
• Supplier Relationship Management (SRM)
• Industry Example
Here, I have given brief idea of Procurement and Purchasing and Kraljic Purchase Matrix is explained in detail with case study of Construction Company.
Like, Share and Comment
If you have any suggestion or query, do reach me at
deshai805@gmail.com
• Make Versus Buy
• Benefit of Outsourcing
• Source of Supplier Information
• Strategis Selection
• Supplier Relationship Management (SRM)
• Industry Example
The presentation is about procurement and sourcing strategies. The process, types, importance and goals of procurement and sourcing have been discussed briefly.
Supply Chain Management, Sourcing Pricing and Procurement Process ,
Presentations By Rajendran Ananda Krishnan, https://www.facebook.com/ialwaysthinkprettythings
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www.derekhendrikz.com
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Purchasing Policy and Procedures | Policies provide guidance and direction | ...FaHaD .H. NooR
Purchasing Policy and Procedures | Policies provide guidance and direction | Role of purchasing
Conduct of purchasing personnel
Social and minority business objectives
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| Purchasing procedures |
The development of COVID-19 and its impact on global business has highlighted the vulnerability of supply chains to rapid disruptions. Many companies are struggling with both changed demand patterns and disrupted supply situations, as the effects of the virus outbreak extend further than anticipated.
We don’t know the full impact of COVID-19 on our businesses, and we can’t predict what is in store for the future. But we can reflect on previous supply chain disruptions and apply past learnings to the current situation.
Strategic Role of Purchasing
Purchasing Portfolio
Supplier Selection
Customer Centric Supply Chain
Supply Chain Management
Supply Chain Management in the 21st Century
Research Topics in Supply Chain Management
The presentation is about procurement and sourcing strategies. The process, types, importance and goals of procurement and sourcing have been discussed briefly.
Supply Chain Management, Sourcing Pricing and Procurement Process ,
Presentations By Rajendran Ananda Krishnan, https://www.facebook.com/ialwaysthinkprettythings
Development of a procurement strategy and making the aquisition and purchasing choice by Derek Hendrikz. passive, independent, supportive and integrative strategies. Outsourcing vs. insourcing and bottle neck, critical, routine and leverage sourcing discussed.
www.derekhendrikz.com
PURCHASING PROCEDURES, E-PROCUREMENT, AND SYSTEM CONTRACTING pter 007 instru...Zamri Yahya
• Purchasing Procedure
• System Contracting
• E-Procurement
• Reverse Auctions
• Electric Data Interchange (EDI) and Purchasing
Radio Frequency Identifications (RFID)
Purchasing Policy and Procedures | Policies provide guidance and direction | ...FaHaD .H. NooR
Purchasing Policy and Procedures | Policies provide guidance and direction | Role of purchasing
Conduct of purchasing personnel
Social and minority business objectives
Buyer-supplier relationships
Operational issues
| Purchasing procedures |
The development of COVID-19 and its impact on global business has highlighted the vulnerability of supply chains to rapid disruptions. Many companies are struggling with both changed demand patterns and disrupted supply situations, as the effects of the virus outbreak extend further than anticipated.
We don’t know the full impact of COVID-19 on our businesses, and we can’t predict what is in store for the future. But we can reflect on previous supply chain disruptions and apply past learnings to the current situation.
Strategic Role of Purchasing
Purchasing Portfolio
Supplier Selection
Customer Centric Supply Chain
Supply Chain Management
Supply Chain Management in the 21st Century
Research Topics in Supply Chain Management
Time to Tell Your CPOs to Collaborate with SuppliersMelih ÖZCANLI
Time to Tell Your CPOs to Collaborate with Suppliers
Companies want value, and they want their chief procurement officers (CPOs) to deliver it. How can CPOs get the job done? By identifying and then collaborating with their key suppliers.
2012, A.T. Kearney, Inc. All rights reserved.
Mike Hales, partner, Chicago mike.hales@atkearney.com
Hendrik Disteldorf, principal, New York hendrik.disteldorf@atkearney.com
Oliver Zeranski, principal, New York oliver.zeranski@atkearney.com

The 12 Fundamental Best Practices of Supply Chain ManagementIntalere
This article highlights the fundamental best practices of healthcare supply chain management. Intalere assists our customers in managing their entire non-labor spend, providing innovative technologies, products and services, and leveraging the best practices of a provider-led model.
The knowledge of Coordination for Supply Chain IntegrationMohammad Rahman
Hi, This is Habib, student of Msc in Textile Engg. BUTex and tried to gather some info about the topic and published for the help of any guys if needed.Thanks-Habib
Strategic supply chain management and logisticsBhavi Bhatia
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Designing a hybrid global sourcing strategy for triton labs case study reportSachin Mathews
Objective of the case is to analyse Triton’s current purchasing mechanisms and provide alternatives to Mrs. Donna Rock, who heads the Global Sourcing Task force in formulating a suitable hybrid sourcing policy. This includes providing suggestions both on the sourcing procedures as well as structuring the performance evaluation framework of such a policy.
Companies fiddle constantly with their incentive plans and sales executives are always looking for ingenious ways to motivate their teams. If sales targets are missed, they blame the sales compensation plan and start over. Meanwhile, The finance organization views the comp plan as an expense to manage. That’s not
surprising: Sales force compensation represents the single largest marketing
investment for most B2B companies. So naturally finance tries to ensure that comp
plans have cost-control measures designed into them. Additionally, many companies
respond to cost-cutting pressure from the finance department with incentives that
backfire. More often than not, controls encourage salespeople to spend time with
customers according to the company’s internal needs, rather than when the customer
is ready to buy.
This is the world of the sales machine, built to outsell less focused, less disciplined competitors through brute efficiency and world-class tools and training. Recently
sales has been caught off guard by dramatic changes in customers’ buying behavior and sales performance has grown increasingly erratic. The very approaches that made the sales machine so effective now make selling harder. The sales machine is stalling. Leaders must abandon their fixation on process compliance and embrace a flexible approach to selling driven by sales reps’ reliance on insight and judgment.
Companies have become savvy customers; they have often determined the solution and the supplier they need, and the price they are willing to pay, before the salesperson enters the scene. In this competitive environment, the premium on finding, training, motivating and retaining star performers has never been higher.
Because firms only measure past sales performance, they have limited insight into how a salesperson will do going forward and what types of training and incentives
will be most effective. Failing to forecast a salesperson’s future value can lead to costly misallocation of training and incentive dollars. Many firms overvalue their poor performers and undervalue their stars, which might lead to undervalued top salespeople to slip trough their fingers and into competitors’ arms. This article illustrates a novel method for measuring a salesperson’s future profitability to the firm. Future performance is linked to specific types of training and incentives and show how those investments can dramatically boost revenue.
Social networks are critical in sales. Companies and salespeople can improve
performance significantly by understanding the interplay among the different webs
of customers, leads and colleagues they develop.
The sales process can be represented as four distinct stages, which all require a
different set of abilities and network configuration. If salespeople and managers
understand how networks function, they can pinpoint the most effective network
configuration for each stage of a sale and take the actions necessary to create it and
outshine competitors. In each stage of the sales process, the salesperson’s efforts
come down to two essential and complementary types of network-management
actions: managing the information flow and coordinating the efforts of contacts. This
article offers a framework for systematically managing different social networks, by
matching the network to the task. The article also presents three levers managers
can use to encourage salespeople to integrate the network-based view and make the
best possible use of social networks.
This document summarizes three connected pieces of work by Steve W. Martin, that should resonate with salespeople and sales managers alike. A lot of research has been conducted concerning the right capabilities a salesperson should have to become a high-performing top salesperson. This project involved the interviewing of top salespeople and sales leaders to gather more information
about the attributes necessary to exceed your quota.
This interesting articles suggest that successful salespeople need not always
exhibit extrovert tendencies, nor will salespeople be at a complete disadvantage
if they introverts. The author works on a concept proposed by bestselling author
Daniel Pink and proposes the ambivert (referring to an individual who falls
between an extrovert and an introvert) as the ones who are more likely to be
successful in the long run. Basing himself on a sample of salespeople, Adam
Grant, proves his point and offers some pointers for sales managers.
In this article, the authors suggest that sales managers need to realize that not all sales visits to the customers will necessarily create value for the customer. Sales managers need to realize that different sales processes exist when dealing with customers and the key factor determining the sales process is got to be based on how much value a salesperson can bring to the customer. The
authors go on to identify three different types of sales processes and give reasons as to why value based segmentation is the best way to help your salespeople deliver value not just for their customers but also for themselves.
Based on extensive research, this study by the Corporate executive Board
(CEB) builds on their idea of the challenger sale by providing strategies by
which salespeople can better understand the diversity that exists in the decision
making unit of the customer and work on making sure that the diversity does
not drive apart the customers from a key decision. On the contrary successful
salespeople work on developing a consensus in the decision making unit of the
customer and using this to drive home the sale. The various strategies to help
consensus are then elaborated in the article.
1. Vlerick Sales Center Article Summary Series
Purchasing must become supply selling: how managers can guard
against materials disruptions by formulating a strategy for supply (by
Peter Kraljic, Harvard Business Review, September 1983)
Summarised By Ellen Croux and Deva Rangarajan, Vlerick Sales Center
Article At a Glance:
This is an evergreen article mainly used by professionals in procurement and supply chain to
classify their suppliers and then use this classification to manage the relationship with their
suppliers. Interestingly the author argues for procurement professionals to not treat all of their
suppliers the same way, but to go for a more nuanced way of differentiating between the
different types of suppliers. Doing this would necessitate the procurement professionals to move
from an operational, cost-driven mindset to a more strategic, risk reduction mindset with
specific set of suppliers. The author goes on to identify four steps that procurement
professionals need to consider to take on a more strategic role within their organization.
Introduction
In many companies purchasing is a routine activity, it was formed over 20 years ago in an era
of relative stability and hasn’t changed much over time. Companies ignore the fact that the
stable business environment, in which many organizations are used to operate, no longer
exists, patterns of supply and demand can literally change overnight. A company has to
acknowledge and adjust to worldwide economic and environmental changes in purchasing to
remain competitive. Factors like threats of resource depletion, raw materials scarcity, political
turbulence, government intervention in supply markets and accelerating technological changes,
make companies wonder how to guard themselves against disastrous supply interruptions and
what capabilities they will need to sustain a competitive advantage. This article helps top
management to identify weaknesses in their supply and offers a comprehensive strategy to
manage supply.
There is a necessity for a total change of perspective: from an operation function (purchasing)
to a strategic one (supply management) to use recent developments for own advantage.
Companies will have to adapt to global sourcing to ensure long-term availability of critical input
at competitive cost, which entails risks and complexities on an unprecedented scale. Whenever
a manufacturer must procure a volume of critical items competitively under complex conditions,
supply management is relevant.
2. Diagnosing the case
A company’s decision which supply strategy to pursue depends on 2 factors: the strategic
importance of purchasing in terms of the value added and the complexity of the supply market
gauged by supply scarcity, pace of technology or raw materials substitution, entry barriers,
logistic cost or complexity and monopoly or oligopoly conditions.
Shaping the supply strategy: 4 phases
Phase 1: Classification of all purchased materials or components
Categorization, based on the profit impact of a given supply item and the supply risk as
category criteria, permits a more differentiated and better focused approach to the analysis of
supply market data. Changes in supply or demand patterns can influence the categorization and
regular updating of the portfolio classification is necessary. 4 different categories of items can
be distinguished.
3. Phase 2: Market analysis
The company analyses its own supply needs and the ability to get the supply terms it wants and
weights them against the bargaining power of its suppliers. The relative importance of criteria
may vary over time and in between different industries. Contrasting purchasing portfolio
evaluation criteria:
Phase 3: Strategic Positioning
The company positions the materials identified as strategic in phase 1 in the purchasing
portfolio matrix. This matrix plots company buying strength against the strength of the supply
market. Usually a company will find itself in different roles with respect to different items and
suppliers. The position in the matrix helps identify areas of opportunity or vulnerability and
supply risks and helps derive basic strategies. The aggressive strategy (exploit) in which the
company should use strengths to achieve favourable pricing and contract agreements. However
beware of jeopardizing long-term supplier relationships or provoke aggressive counter reactions
of competitors. The intermediate strategy (Balance) and the defensive strategy (diversify) in
which you should start looking for material substitutes or new suppliers, perform more market
research, invest in better supplier relations, consider backward integration.
Phase 4: Action Plans
Strengthening the organization
Few companies can allow purchasing to be managed in isolation from the other elements of
their overall business systems. Greater integration, stronger cross-functional relations and more
top-management involvement are all necessary. Concrete changes in the organization will be
required to establish effective organizational relations, provide adequate systems support and
meet new staff and skills requirements.
4. Effective relations: The purchasing function should reflect the overall corporate setup. A choice
should be made between centralization which entails higher bargaining power but less flexibility
or decentralization. Volume and concentration of purchased goods as well as the corporation’s
structure and complexity will determine the purchasing’s position in the corporate structure.
Different corporate philosophies lead to different solutions. The purchasing department’s
structure should reflect supply product market affinities and permit staff with specialized
competence to take the lead in working out strategies for specific items.
Systems support: The purchasing department often receives information on the company’s
business plans and objectives, but lack information on a 3-6 month time horizon, necessary for
strategic supply management. Companies will only realize benefits if they effectively use tailor-
made systems, which must foster consistent, cross-functional information flows and demands.
Staff and skills requirements: There is potential leverage to be obtained through improved
purchasing staff and skills. However hasty moves in this area can backfire, especially if they
disrupt close relationships with suppliers. Employee resistance to the implementation of new
systems should be minimized. Progress toward effective supply management can only be
gradual, and the company will have to surmount many obstacles along the way, but the
rewards are well worth the effort.
Vlerick Food for Thought for Sales Executives
1. Understanding the maturity of your customer’s procurement/supply chain department is
going to be critical for any salesperson to understand a) what is the value that needs to
be proposed to the customer, b) how lengthy the sales cycle is likely to be, c) how
complex the sale is going to be, and d) more importantly what is the viability of the
customer in terms of developing a long term relationship with the customer.
2. From a sales manager’s perspective, understanding how your organization is viewed by
your customer should help a) better formulate an accurate go-to-market process
including choosing between e-commerce, third party providers for non-strategic
customers and using your own field sales for more strategic customers, b) selecting and
coaching your sales force to have strategic conversations with the right customers, c)
understanding the impact of the sales cycle on setting the right KPI’s, etc.