How to Master Procurement and Supplier Management? | KnowledgeCity скачать в хорошем качестве

How to Master Procurement and Supplier Management? | KnowledgeCity

This video is from the Procurement and Supplier Management Overview online training course. Click here to view full course: https://www.knowledgecity.com/en/libr... Johan needs wood for his clockmaking business. When his company only had 25 people, it was easy to purchase or find these supplies through his friends and family. Now that the company has grown, he needs to have more consistent access to materials to satisfy his customers. How can he do this? The answer is procurement. It's a critical component of the supply chain, and it ensures that raw materials, supplies, and outsourced services are available when we need them. This involves building and managing supplier relationships, negotiating raw material and other supply contracts strategically leading buying activities, maintaining supplier quality standards, understanding market trends and economic impacts, and purchasing transportation. Procurement is also responsible for mitigating risks to the supply chain. This includes sourcing goods and services used in daily operations, negotiating contractual agreements, inspecting inbound materials for quality, and maintaining records of lots used in production. Procurement professionals also support continuous improvement efforts in the company by incorporating innovative tools or advocating change. To function effectively, the procurement team practices supplier management. This is the process of building long-term strategic partnerships with reliable suppliers. The goal of this relationship is to align procurement's needs with the supplier's strategy so that the supplier becomes an extension of procurement's network. Supplier management requires procurement to source, select, and manage partnerships that are vital to running the business. This includes high level activities such as establishing quality standards for inbound materials or conducting contract negotiations. It also covers tasks like issuing purchase orders and conducting daily business transactions. Finding the right suppliers and creating strong business relationships lets companies work together to innovate, drive cost savings, and automate processes. Strong supplier relationships enable supply resiliency when you have supply resiliency, you can avoid disruptions in receiving your required materials. If you have guaranteed supply agreements, you'll minimize the impact of supply deficits caused by market shortages. This is why it's important to have business partnerships with favorable contracts that support the working relationship between your company and its suppliers. This means your protected from the kinds of issues that transactional customers would be subjected to. When you negotiate contract terms with suppliers, you can think about and ask for discounts for higher quantities, longer-term commitments, and exclusivity agreements. Its also important that you submit requisitions for materials to compare prices. You want to know that the goods you purchase are high quality and competitive. Procurement can help you save costs by integrating systems with suppliers. You can also implement electronic data interchange or EDI. This system automates the exchange of information, orders and transactions. EDI replaces paper documents like invoices and purchase orders. Using EDI means that you need fewer people to process the transactions, and it reduces the possibility of human error. Procurement can help you be more strategic with your spending. When you negotiate rates for future time periods, you can forecast your spending based on this pre planned pricing. This helps you manage budgets with more certainty because you're limiting the risk of unforeseen costs. Procurement helps you reduce costs and purchase high value goods, which can drive profitability upward. https://www.knowledgecity.com | Online Employee Training Platform. KnowledgeCity offers 35,000+ online video tutorials in Business, Technology, Safety, Compliance, and Finance. Subscribe to our YouTube Channel: http://bit.ly/2gcNXRH Check our Blog https://goo.gl/q47XKK Connect with KnowledgeCity! Twitter https://goo.gl/wToC6s Facebook https://goo.gl/3eMEq9 LinkedIn https://goo.gl/vg1aXt