This refers to the process used to by procurement professionals to convey requirements and to request responses from suppliers who are interested. Thus, it denotes pursuing information and proposals from suppliers.
Spend analysis refers to the process of collecting, categorizing and evaluating spend data. This is performed with the intention of maximizing profitability and minimizing risks. Spend analysis provides insights regarding spend visibility, compliance and control.
Spend management is the process of managing flow of money-in terms of reducing costs and acquiring savings. It forms a framework of the organization’s spend structure and enables actions based on the acquired data. Thus, it provides necessary insights in terms of acquiring a high return on investment.
Strategic sourcing is a continuous process of analyzing what an organization purchases, from whom, at what price and at what volume. This places emphasis on the complete life-cycle of a product and not just its upfront price. Strategic sourcing demands homogenizing sourcing and providing users with technology in order to share information about products, market trends and business requirements. The main objective of strategic sourcing refers to the lessening of cost while preserving or improving the quality of the product.
Supplier evaluation refers to the process of assessing the supplier’s ability in relation with financial stability, quality, value, organizational structure, performance and various other processes. This process is carried forward taking into consideration both existing and potential suppliers and accepted or excluded accordingly. This also acts as an instrument to help and improve the performance of existing suppliers.
Supplier Network Management
Supply network management refers to the process of managing the movement of material and information. This is executed by connecting organizations together in order to serve the end-consumer effectively and efficiently. The purpose behind supply network management is to lead a smooth process and not face any kinds of obstacles.
Supplier Performance Management
Supplier performance management refers to the process of tracking supplier’s performance by measuring, analyzing and managing their key efforts in functioning of an organization. The main reason behind keeping a check on the supplier’s performance is not only to bring down costs, but also to eradicate risks and improve continuously. Thus, through the assessment and judgment of supplier performance, organizations are equipped enough to maintain the finest service and eradicate those suppliers who fail to comply with the company policies.
A supplier portal is an internet-based system used to manage and connect with third party suppliers of goods or/and services. It is a secured management system adopted by organizations that network with multiple suppliers. This portal permits initial registration of vendors as well as account management.
Supplier rationalization refers to orderly assembling supplier base with the intention to gauge the optimum number of suppliers in order to run the business in an effective and efficient manner. There could either be an increase or decrease in the number of suppliers depending on several factors such as the dynamic marketing conditions, existing relationship with suppliers, etc.
Supplier Relationship Management
Supplier relationship management refers to managing an organization’s interaction with third-party organizations with the purpose of maximizing profitability and streamlining business processes. The main idea behind SRM is to create more closer and cooperative relationships in order to reach the optimum value and eradicate risks. Thus, building and maintaining a good and positive relationship with the suppliers is not only important for smooth flow of work but also affects the performance of the organization.
Looking out for suppliers is a critical task faced by procurement professionals. The main goal is to meet the right supplier at the right time and place. There are several key factors that determine the selection of suppliers. Some of them are Price or affordability, location, reliability as reliable suppliers will deliver required material efficiently and most importantly stability. The right suppliers provide the most appropriate products or/and services in order to meet the business needs.
Supplier’s market refers to a situation when suppliers are less in number as compared to the demand. This gives them the opportunity to drive a hard price bargain.
Supply base management is the process of managing the complete supply base which comprises current suppliers, minor suppliers and potential suppliers. Some of the best practices of SBM include enhancing the supplier selection and relationship management, streamlining the number of suppliers, and conducting detailed audits and operational reviews to assess suppliers. Thus, SBM helps procurement organizations in managing supplier’s risk, performance and information.
Supply Chain Optimization
Supply chain optimization is the process of achieving best desired results for manufacturing and distribution of supply chain by putting forward minimum input and accomplishing maximum output.
Supply Chain Sustainability
Supply chain sustainability refers to the process of moving ahead of the sole purpose of delivery, inventory and traditional views of cost. Here, the focus shifts to social responsibility products keeping in mind not only the fact that it is environment friendly but also that it is important for long-term profitability. Thus, the idea is to incorporate environment with supply chain management and create supply chain sustainability.
Supply Chain Visibility (SCV)
As its name suggests, supply chain visibility is the process of tracking or having the ability to keep a check on the component or products in transit from the manufacturer to their ultimate destination. The main aim of supply chain visibility is to develop and strengthen the supply chain by making the adequate data accessible to all stakeholders, both internal and external. Thus, supply chain visibility helps in providing a precise representation of demand and supply levels.
Supply management is a minor version of supplier management. Supply management refers to the process of classifying, obtaining and handling the products or/and services required to run a business or an organization. These are the processes dealing with corporate buying such as buying goods or/and services and managing the same. Controlling costs, allocating resources in an effective manner, and collecting information in order to make the business grow are the main objectives of supply management.
Supply positioning model refers to segmenting the spend portfolio by risk and opportunity. With the help of this model, organizations rank their supplies based on the money spent with the supplier and the level of susceptibility a business has if that supplier fails. This model helps in prioritizing the efforts and developing supply strategy of company.
Sustainable procurement refers to acquiring products and services that do not lead to the deterioration of environment. This is the implementation of environment friendly practices in carrying out business activities and strikes the right balance between sustainable procurement and corporate social responsibility. This helps the organization by building a brand image, satisfying customers, reducing risks and increasing stakeholder value.
Source-to-pay is a software vital for smooth functioning of purchasing departments. This particular software enables multiple activities such as auctions, spend analysis, purchasing categories management, purchase requisitions, sourcing events, billing and vendor relations within the same solution.