The importance of managing and developing the supply chain (purchasing and the associated logistic processes) have only recently started to receive the high level of management attention and professionalism they deserve.

An organisation typically spends a large proportion of its total budget on goods and services. Any cost reduction impact from purchasing savings flows immediately to the bottom line. For many organisations, initiatives like outsourcing and competitive tendering mean that the proportion of procurement expenditure is also increasing.

There is also increased reliance on the procurement function to deliver cost benefits and improved profitability. This isn’t saying buy cheaper products, rather buy the right product cheaper !

A sound structured procurement strategy which supports managing the business input process and efficient delivery of total logistical services will contribute to the attainment of corporate goals and objectives

The typical benefits of structured procurement strategies include:
> improved risk identification and risk management strategy
> better value for the harder to earn revenue stream
> improved relationships/mutual benefits with suppliers
> better procurement decisions focused on business needs

For a commodity, the right Structured Procurement Strategy depends on the nature of the market that supplies it. Correspondingly, supply market research contributes to an understanding of an organisation's vulnerabilities and alternatives (both short and long term). Market research is vital for the markets in which your organisation is most exposed.

Commodity grouping for the leveraged procurement function should be meaningful in a procurement sense (i.e. represent groups of related goods and/or services that might logically be purchased together in the same purchasing action and from the same identifiable market sector).

Further Logistical & Procurement article links :-

Structured Procurement Strategy

Professional Negotiation Practices

Supply Market Research Practices

Automated Systems Usage - Inventory Management

Automated Systems Usage - Purchasing Functions

Transport Management & Freight Consolidation

Cataloguing Principals & Standards

Inventory Ownership & Reporting

e-commerce - Business to Business (B2B)

e-commerce - Business to Consumer (B2C)

Purchasing Policy/Procedures

Warehousing Policy/Procedures

Stocktaking Policy/Procedures

ASL Management Services is able to assist in providing a comprehensive policy in all areas of procurement, a corresponding policy assessment process, or facilitate supply leadership team workshops. If you would like more information or assistance in this area please contact
ASL Management Services Consulting.