Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Supplier Management – an important facet of Procurement Strategy

By Rahul Awtaney Subscribe to RSS | November 25th 2011 | Views:

Procurement over the years has evolved from merely being transactional (being cost focused) to being strategic in its approach. This transformation can be majorly attributed to the changing macroeconomic conditions around the globe.

Procurement professionals have leveraged technology in numerous areas of procurement to ensure it delivers value to the bottom line and at the same time add value to organizational processes. This act of procurement has now placed procurement in the strategy room of business houses across the globe.

• Some of the key areas of strategic imperatives for procurement professionals are,

• Visibility into existing spend portfolio

• Strategic decision making on future sourcing projects

• Creating, Managing & Awarding contracts

• Maintaining healthy supplier relationships and,

• Contribution towards the bottom line

This article looks into the importance of supplier management as part of procurement strategy to ensure a long term sustainable relationship with the suppliers and prevent costly supply disruptions.

Supplier management is increasingly gaining importance among organizations. One of the prime reasons for the growing importance can be attributed to the volatile business environment.

Volatility has affected not only the businesses, (the recent Japan earthquake & tsunami, floods in Vietnam being the prime examples) but they are also having an impact on the suppliers. (Rise in interest rates and fear of recession are impeding suppliers from raising capital from the market)

These volatilities have been the causative agent for a large number of supply disruptions faced by organizations across the globe. This scenario has resulted in organizations to rethink & redraw their procurement strategy to prevent costly supply disruptions.

An important step towards this goal is to understand and manage suppliers. Good supplier performance is one of the keys that can enable firms to achieve business performance excellence. Monitoring supplier performance not only encompasses risk mitigation but also helps in prevention of problems. It also benefits the organization with,

• Improved collaboration between suppliers and the organization leading to better coordination

• Enabling decision making based on quantitative data which in turn ensures quick and rational decision making

• Preventing supply disruptions and managing volatility in the business environment, requires procurement to think strategically about its supplies & suppliers.

Rahul Awtaney - About Author:
At Zycus we are 100% dedicated to positioning procurement at the heart of business performance. For more than a decade we have been the world's most trusted leader in Spend Analysis. With our spirit of innovation and a passion to help procurement create even greater business advantages, we have evolved our portfolio to a full suite of Procurement Performance Solutions - Spend Analysis, eSourcing, Contract Management, Supplier management, and Financial Savings Management.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:

Related Business Articles Subscribe to RSS

Contractor Expenses – effective cost management
Published by Crowin Smith on April 3rd 2012 | Business
Managing a business is a hard task when the world economy is not creating the right condition that f...
How to Go Green with Your Packaging material supplier?
Published by Holman on February 24th 2012 | Business
Eco friendly needs that businesses are looking to use should be met by packaging material supplier. ...
Outsourcing Payroll management services for small business in Delhi NCR
Published by Webin Lee on March 6th 2012 | Business
It is cheap to outsource the Accounting and Payroll services from the payroll management company rat...
Efficient ship management - the biggest need of shipping business
Published by Saurabh Pandey on December 3rd 2011 | Business
If you are the owner of a ship then you might be looking for someone who can manage it so that you g...
Some advantages of the fulfilment houses and the stock management companies
Published by Diego Hall on January 9th 2012 | Business
A business can only be successful enough when it is dealt professionally in terms of stock managemen...
A win-win situation for both an organisation as well as debt management companies by hiring a debt collector agency.
Published by Gabi William on March 27th 2012 | Business
We do all the hard work for you and approach each case very seriously - no matter what the size....
The Katale Partnership are without question leading management consultants
Published by Julia Roger on March 23rd 2012 | Business
Are you looking to improve your business practices so that your business can function better as a wh...
Long Term Benefits of Selecting a Genuine Electronic component supplier
Published by Albert John on July 16th 2012 | Business
Electronic items manufactured at wholesale cost can be purchased through a supplier. These Electroni...
Financial management of a festival production
Published by Adam Walker on April 11th 2012 | Business
Summer is coming up in Europe and the festival season is opening. This summer hundred thousands of p...
Global Plastics is the foremost supplier of cable ties for the entire UK market
Published by on July 17th 2012 | Business
Here at Global Plastics we stock a comprehensive range of cables ties of all different sizes. The ca...
Strategic management of physicians’ day-to-day operational issues
Published by Jacob Thomas on November 29th 2011 | Business
Unlike physician practices of yesteryears, physician practices today have found themselves surrounde...
Basmati rice supplier – b2b rice suppliers at online market
Published by David Hudson on July 18th 2012 | Business
Rice; a staple food of Bangladesh, heavily consumed in India and the Asian continent as its top prod...
Mechanical seal supplier and exporter India !
Published by Nisha Ray on March 23rd 2012 | Business
A mechanical seal is a device which helps join systems or mechanisms together by preventing leakage....
Steel Beams- Choosing a reliable supplier
Published by SteelBeams on August 8th 2012 | Business
Looking forward to construct a building? Well, steel beams are one the most important thing that you...
Building management services- Setting up new relations
Published by Julia Roger on May 9th 2012 | Business
The owners corporation management services are taxed on profits and are permitted deductions for sal...
The Importance of Letting agents and Residential property management Dublin
Published by Leslie Hoffman on January 14th 2012 | Business
Hiring experienced letting agents and residential property management Dublin is extremely important ...
Versatile restaurant management systems available online
Published by Vem Call on May 24th 2012 | Business
In today's competitive hospitality market, meeting a customer's expectations is imperative in order ...
Electronic parts supplier for Industrial Purposes
Published by Albert John on February 27th 2012 | Business
Electronic parts supplier can be selected when you need high end parts. There are various sources av...
UK supplier of Siat packaging machines including case sealers and pallet wrappers
Published by Holman on June 1st 2012 | Business
SIAT Stretch Wrapper, SIAT Case Sealers related work you can always get in touch with Holmes Man who...
Why is management training so important
Published by Julia Roger on March 22nd 2012 | Business
Dancing Lion are leading providers of Management Training, Call and Contact Centre Training and Cust...