Purchasing Articles

How to Implement Vendor / Supplier Managed Inventory

This article will address the following approaches and practices that will permit you to successfully put into practice this powerful tool.Reminder of BenefitsNeeds/assessmentImplementation practicesCreating an agreementBefore we ge [...]

An Overlooked Procurement Tool: Vendor / Supplier Managed Inventory

QUESTIONS:We need to ask ourselves some questions before proceeding:What are our intentions?Reduce workload to concentrate on high-cost items?Reduce inventory and cost of business?What are the critical materials/processes?Need c [...]

AN OVERLOOKED PROCUREMENT TOOL: VENDOR/SUPPLIER MANAGED INVENTORY (V/SMI)

WHAT IS THIS TOOL?This tool has been around for many years. It has evolved since the early 20th century. It was a stock replenishment methodology for retail enterprises. It then evolved into “System Contracting” methodology for standa [...]

Risk Management Process

What we will discuss in this article are the tools and respective functionality we need to consider employing. Each of the following steps make up the RISK MANAGEMENT PROCESS:Risk IdentificationRisk AnalysisRisk EvaluationImplement an Actio [...]

Process View of Supplier Risk

What we will discuss in this article are the tools we need to use in the application of the RISK MANAGEMENT PROCESS (which is the fifth and last article in this series). The graphic/slide denotes the elements of ACTION – We need trained PEO [...]

Risk Management in Procurement

In case we’ve forgotten, let’s define what RISK IS:Webster’s Dictionary: Exposure to the chance of injury or loss.APICS/ASCM: Decisions and activities that have outcomes that could negatively affect information or goods/services within [...]

Barriers to Risk Management

The barriers to risk are several:Incentive and Human NatureDependence on Supplier CollaborationPerceived cost of VisibilityConflicting ObjectivesOutmoded Thinking and Assumptions Difficulty in Valuing Risk Mgt.Let’s describe eac [...]

Risk Management in the Supply Chain

INTRODUCTION:This will be the initial article of five. The titles are:RISK MANAGEMENT IN THE SUPPLY CHAINBARRIERS TO RISK MANAGEMENTRISK IN PROCUREMENTPROCESS VIEW OF SUPPLIER RISKRISK MANAGEMENT PROCESSRISK MANAGEMENT IN [...]

How to Evaluate Supplier Performance and Use the Information

This is the third and the last in the articles addressing “SUPPLIER PERFORMANCE MANAGEMENT”.Let’s make sure we know why we want to do this:There is a need to align the performances of us, our suppliers, and customers To identify what th [...]

What is Supplier Selection? - Formal Process of Determining the Best

This is the 2nd article of 3 dealing with “SUPPLIER PERFORMANCE MEASUREMENT”. The 3rd article will address “HOW TO EVALUATE THE SUPPLIER & USE THE INFORMATION”.This is a significant point of activity. Please note that it is Procurem [...]