Insights and Ideas for Purchasing and Procurement professionals
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Here’s a quick dictionary of different RFx related procurement acronyms. Firstly, come the three most common terms, RFI, RFQ and RFP.
Running an RFx poorly is first and foremost a reputational risk. If an RFP or RFQ doesn’t result in awarding a contract, you could lose your marketplace credibility.
Procurement kanban board is a visual work management method designed to help streamline work processes specifically in procurement teams. For example, ProcurementFlow’s kanban board follows the Source to Pay (S2P) flow of Requisition, Sourcing, Ordering, Receiving, and Invoicing.
It’s common for the IT department to have support/help desk processes well in place with IT-specific helpdesk software like JIRA Service Desk. Meanwhile, purchasing and procurement functions are usually left without any modern tools, even though their role is as business-critical as IT. How come?
Suppliers, like customers, are strategic business partners. Yet relationship management practices are often very different for sales and procurement. Supplier relationship management (i.e. SRM) tends to get the short end of the stick. Poorly managing supplier relationships can mean actual loss and cost for the company.
Sourcing is more strategic, as procurement is more tactical. In the sourcing phase, you ensure that you get the best terms for price and value. This is also the phase where you can analyze your company’s spend and reduce it. Procurement deals with the flow of goods and services based on that contract.
The more complex manufacturing gets, the more collaborative its procurement process needs to be. For the most advanced manufacturing method, Engineer-to-Order (ETO) production, procurement means a balancing act of an array of needs in constantly changing conditions.
In times of turmoil and crisis, discretionary costs are the first place where you can quickly pull back to stay afloat
The RFQ process can be divided into four steps: preparation, processing, awarding, and closing. It is one of the most powerful processes a buyer can use to get price information from the supplier market.
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