Procurement is becoming a more important capability for organizations as it continues to evolve.
The focus is shifting from transactional and hostile negotiations with suppliers to a more comprehensive approach that encompasses the following goals:
Objective 1
It is important to maintain a consistent flow of materials and services to ensure uninterrupted operations.
Objective 2
The goal is to keep supply consistent while minimizing inventory investment. This involves weighing the cost of carrying inventory against the cost of running out of stock, which could lead to production interruptions or unfulfilled demand.
Objective 3
It is important to maintain continuous Quality Improvement initiatives.
Objective 4
Our company focuses on supplier development, which involves identifying potential suppliers, evaluating their capabilities, and establishing a collaborative relationship to exchange information and improve overall performance.
Objective 5
Collaborate with suppliers to enhance current products and develop new ones by leveraging technology and innovation.
Objective 6
When comparing costs, it’s important to consider more than just the purchase price. The total cost of ownership should be taken into account, which includes factors such as supplier discounts for larger quantities, payment terms, increased holding costs with larger quantities, added value services such as delivery, and life cycle costs that include operation and disposal expenses.