Articles

Context:

These articles are not meant to address state-of-the-art procurement practices or aids - an overdose of those are available from multiple sources, some more credible than others.  Rather, they relate to the core principles, or basics if you wish, required for making procurement a success, contributing to the organisation's profitability and/or efficiency.  It has been said often enough that procurement is not "rocket-science", whatever that may mean to you, and these topics would fit well under the heading of procurement "common sense".

So, if you're looking for the latest in procurement buzzwordary you'll be disappointed.  On the other hand, if you are concerned with (or about) your organisation's procurement, these articles may give you food for thought and, perhaps, investigation.

The opinions expressed relate more to procurement for organisations in mining, manufacturing, construction, power generation, and the like, rather than to procurement in retail, financial services, and similar.  AB


Why do internal clients think poorly of procurement?

July 02 2019 By Andre Basson buying department, buying improvement, buying reporting, CFO, competitive pricing, COO, co-operation, cost breakdown, cost control, cost management, CPO, fit-for-purpose, functional borders , market knowledge , maximising profit, minimising total cost, negotiations, price control, procurement, procurement advice

The most common reaction I get when introducing myself (and explaining my background) to someone senior involved in an organisation's operations, is that they find it a problem that procurement is only concerned with prices.  Thirty years ago I would have expected this reaction to have been common.  But that it is still so today is alarming. Why ...

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Where should procurement report?

June 16 2019 By Andre Basson buying improvement, buying reporting, CFO, COO, co-operation, cost control, cost management, CPO, delegation, fit-for-purpose, functional borders , inventory management , maximising profit, minimising total cost, procurement, procurement advice

Should this question be put to senior procurement practitioners the three most common answers may very well be: CFO, COO and CEO.  The general perception is that procurement probably reports to the CFO more than to any other position, even though that is probably not so for larger organisations1.  But is this the optimal place to be? One should s...

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Consortium Buying

May 22 2019 By Andre Basson aggregated procurement, aggregating, bulking, competitive pricing, consortium buying, co-operation, delegation, devolution, discount, negotiations, procurement budget, procurement on-cost, procurement skills, purchasing power

A consortium is an association of two or more individuals, companies, organizations or governments (or any combination of these entities) with the objective of participating in a common activity or pooling their resources for achieving a common goal.  Wiki Small, and even medium sized businesses, are doubly handicapped when it comes to procurement...

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Caveat Emptor - Long-term Contracts

May 22 2019 By Procurement Professionals caveat emptor, CFO, contract, COO, cost breakdown, delegation, inflation, Karrass, long-term, market knowledge , price control, procurement, procurement skills, purchasing, RFx, structuring, terms and conditions , Ts&Cs

Beware the buyer.  This Roman call for caution has echoed over the millennia, and is as relevant today as it was on the day it was first uttered.  It is still an integral part of our law and commerce, carrying a warning to all those entrusted with committing an organisation's money. Somewhat more recently, but in the same vein, Karrass1 famously ...

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