Procurement Process: Global Logistics

What Is Strategic Procurement?

Blends with and Support corporate strategy. Generates cost savings through leverage and scale. Proactively manages all relatives risk. Contributes to profitability, growth and sustainability. Conforms with regulatory and green agendas.

Seven Megatrends Impacting Procurement:

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• Managing Competition and pressure for cost reduction • Addressing the pace of Globalization. • Relationship with Customers, Suppliers and outsource Partners. • Coping up with advanced technology. • Assisting with revenue growth and innovation. • Managing Constantly changing customer demand. • Dealing with complex environmental and ethical requirements.

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Managing Competition and pressure for cost reduction

Breakthrough in business and organisation models. Changing roles and responsibility. Outsourcing or offshoring or relying on suppliers. The Mantra is “ NEW BUSINESS MODELS, NEW ORGANISATIONAL MODELS, and NEW CAPABILITIES.

Addressing the pace of Globalization

Globalisation means different things to different companies. Opportunity: Expand its market. Threat: Need to improve capabilities. Relationship is less about cost but on establishing long term relationship. Need to consider business landscape, legal framework and cultural awareness.

Relationship with Customers, Suppliers and outsource Partners

Buyer/supplier relationship resembles much more of an end to end business relationship than it does a buy/sell transaction. Looking for more intimate and long term relationship that create a win-win for both parties.

Coping up with advanced technology

Need of continuous evaluation of universe of potential supplier. E-procurement solutions Real time information help in spot decision making. Need of continuously validate, update, or fine tune strategy.

Assisting with revenue growth and innovation

The role of procurement is to partner with business at large to find relevant sources of supply to enable...