Jessica Presco’s Post

It is a broader term that includes strategic activities such as supplier relationship management, market research, and contract management. Purchasing is a subset of procurement that focuses specifically on the transaction phase—ordering and receiving goods or services. #tranterinternational #construction #projectmanagement #procurement

The practice of acquiring products, services, or labor from outside sources—usually by contracting or purchasing—is known as procurement. To guarantee the successful and economical purchase of resources for a company, it entails several tasks like needs analysis, supplier sourcing, contract management, and negotiation. Here is the process of Procurement to understand it easily. #Procurement #SupplyChain #BusinessOperations #Sourcing #Negotiation #ContractManagement #Efficiency #CostEffective #BusinessStrategy

How to save 💰 with better procurement strategies Step 1: Identify your needs - Understand what you need - Understand how much you're willing to pay - Define business outcomes Step 2: Research potential suppliers - Expert in your industry - Balanced portfolio of clients - Cost-effective - Provide ongoing support Step 3: Evaluate suppliers - Rate potential suppliers based on criteria - Use a transparent and collaborative approach - Shortlist candidates - Take feedback from relevant stakeholders Step 4: Negotiate the cost and contract - Understand the supplier's cost and profit drivers - Use a win-win approach to create value - Establish clear performance metrics - Explain your decision-making process Step 5: Manage the relationship - Monitor the supplier's delivery - Provide feedback to improve service - Establish clear escalation procedures - Share data and information By following these steps, you can develop a procurement strategy that delivers long-term cost savings, supplier excellence and optimal outcomes.

I always strive to create awareness about how critical procurement is to my client's business, as it directly impacts cost efficiency, supplier relationships and overall operational success. Once they understand its value, the acceptance and integration of procurement best practices become seamless.

Two basic rules which most companies still struggle to comply... 1. Engage sourcing and procurement team early in planning stage 2. Do what the sourcing and procurement agent tells you to do... this 👇 sticker may be used to deliver that message If you ask why… it is because Procurement can work like magic. Like We can 👉 Get you what business need... sometimes even better like with value adds 👉 We can get it for less cost - Like saving money 👉 Can mitigate risk - Like contracts Terms and Conditions 👉 Can get the assurance of delivery and quality - Like avoiding a problem The only thing is that Procurement needs is corporation and to be engaged when we have the time to do these things. Some might have experienced the last block 'Urgent Request' more than others - PS - The Urgent Request should be less than 10% of the Total Requests processed 😁 Your thoughts please 🙏 🙏 🙏 Good Day to All

🚀 Unraveling the 10 Stages of the Procurement Cycle! In the dynamic world of procurement, understanding the cycle is crucial for efficiency and strategic sourcing. Here’s a breakdown of the 10 stages every procurement professional should master: 1. Identify Needs: The journey begins with identifying the goods or services your organization needs to fulfill its objectives. 2. Specify Requirements: Detailing out the specific needs, technical requirements, and standards the products or services must meet. 3. Market Research: Dive into the market to find potential suppliers that can meet your requirements both in terms of quality and cost. 4. Supplier Outreach: Communicate with potential suppliers to gauge their capabilities and willingness to fulfill your needs. 5. Solicit Proposals: Issue Requests for Proposals (RFPs) or Requests for Quotations (RFQs) to shortlisted suppliers to submit their bids. 6. Evaluate Proposals: Assess the proposals based on criteria like cost, quality, service, and delivery times to select the best fit. 7. Negotiate Terms: Negotiate terms and conditions, prices, and contracts with the selected supplier(s) for the best possible deal. 8. Award Contract: Officially award the contract to the chosen supplier, marking the beginning of a partnership. 9. Order Management: Place and manage orders with the supplier, ensuring that the procurement process aligns with your project's timelines. 10. Performance Review: After delivery, assess the supplier’s performance against the contract to ensure quality and compliance. Mastering these stages can significantly enhance your procurement strategy, ensuring cost-efficiency and supplier partnerships that drive organizational success. Let’s champion procurement excellence together! 💼🌟 #ProcurementCycle #SupplyChainManagement #StrategicSourcing #ProcurementProfessionals

Procurement fails are costly and time-consuming. And as a procurement professional, you want to avoid them at all costs. Here’s how to do it: 1. Invest in proper planning from the get-go. 2. Build a strong supplier relationship. 3. Always have a contingency plan. 4. Audit your procurement process regularly. 5. Use the right tools and technology. 6. Communication is key. 7. Stay up to date with procurement trends. By following these tips, you can avoid common procurement pitfalls and reduce risk. Your procurement process will become more efficient, and you'll be able to deliver on your objectives. Happy procuring!

The first step in assessing the procurement function is to analyse the most common barriers to effective procurement. Optimal procurement requires efforts to remove these barriers. And it is not always about what you do, it is mostly about what you do not do. In my new article, I have listed the barriers to optimal procurement in mid-sized companies. Some of them may also be relevant to enterprise customers. I have also included a checklist for evaluating your procurement function, which you can download for free. The link to the article is in comments.

Procurement is more than just cost-saving. It's a business strategy that creates value. But where do you start? Here are 3 procurement strategies to focus on: 1. Create a spend management plan: - Analyze your spend - Identify opportunities for cost reduction - Implement a plan 2. Develop a supplier relationship strategy: - Identify key suppliers - Build strong relationships - Negotiate favorable terms 3. Implement a contract management system: - Standardize contract language - Monitor supplier performance - Renew or renegotiate contracts as needed Procurement is complex but worth the effort. With a solid procurement strategy in place, your business will operate more efficiently, effectively, and economically.