Supplier risk management (SRM) is an integral part of an organization’s risk management strategy. Direct procurement involves coordinating with different suppliers to get the products and materials you need to keep operating. As organization’s grow, more suppliers are needed to While having multiple suppliers can help mitigate risk if one supplier has an issue, it…
The ever-changing landscape of business has forced organizations to find ways to optimize their operations continuously. One area that is ripe for optimization is procurement, and this is where procurement analytics has the potential to play a very important role. In the past, many organizations have relied on manual and time-consuming processes to manage their…
What Is Category Management? Category management is a systematic way purchase goods and services by grouping segments of procurement spend while increasing revenue, reducing risks, maintaining partnerships with suppliers. A successful category management process boosts the overall the effectiveness of procurement efforts. With so many suppliers, products, services, and market dynamics to keep track of,…
Open invoices are an unavoidable aspect of working with contractors and suppliers. Knowing how to handle them properly is important for both the vendor, who needs to keep track of which clients have already paid, and the buyer, who needs to take control of cash flow and avoid missing payments. Most of us are already…
Many businesses need raw materials to produce its products or help provide its services. Sourcing these materials from suppliers helps maintain steady production. However, there are many factors to consider when working in material procurement. The supply chain evolves and changes as a business grows and more materials are required. There are various ways of…
The purchase order request, also known as purchase requisition, is the starting point of the purchasing process. After identifying a need for a specific purchase, the request is what allows things to be set in motion. Any business that works in procurement should know how to make and submit purchase order requests since this will…
As organizations grow and evolve, their purchasing processes need to undergo certain upgrades in order to keep up. More purchase requests, more complexity, and more spending create a disorganized environment that needs updating. The best place to start is with your approval workflow, and making it operational starts with designing an official approval matrix. Beyond…
When it comes to business, the saying “time is money” couldn’t be more accurate. That’s why it’s so important to have a smooth and efficient vendor approval process from start to finish. Most vendor approval processes are far from perfect, but there are ways to improve them. If you’re not sure where to start, don’t…
In an ideal world, you can always rely on your suppliers to deliver the goods and services you need. However, this isn’t always the case, making supplier risk management a genuine concern for companies. Suppliers can pose a risk to businesses since they are companies themselves. This means that they are susceptible to the same…
Supplier enablement is key to cultivating business relationships with your suppliers and raising your return on investment. For the suppliers you work closely with, it’s not sufficient simply to send out invoices and make payments. More complicated vendor relationships require cohesive communication and the right planning to get done right. If you believe you aren’t…
Most finance leaders understand how crucial it is to be financially aware in a growing organization. Research shows that only 55 percent of businesses survive until the 5-year mark – and often, this is due to a lack of financial planning and management. A big part of good financial planning is understanding where your money…
Supplier performance management, or SPM, plays a crucial role in various aspects of procurement, from supplier onboarding and supply chain management to overall risk management. Yet only about a fifth of companies have a “proactive” approach to analyzing and managing supplier performance. And even though vendor disruptions can cause significant financial, logistical, and reputational losses,…
