Many organisations have introduced Strategic Sourcing techniques to reduce their costs. Normally this is based on a methodology where the ‘A Team’, comprising top procurement, technical and other skills, completes a cost-management project and then hands these new arrangements over to other staff to continue to manage on a day-to-day basis. After the initial successes […]
Service Level Agreements – what should they contain? Read More »
On the Procurementtips.com Forum Bob McLeay from RACV in Australia asked the follwing interesting question: “A lot of my work is in establishing agreements for provision of indirect services. When comparing the total cost of alternative bids I usually apply a notional cost to non incumbents to allow for the cost of transition to a
TCO of Changing to a new supplier Read More »
“It is a well researched fact that the majority of outsourcing deals become unsatisfactory to one of the partners involved, within the first two years of the agreement, Cecil Harris, MD of ODMS tells SmartProcurement. This dissatisfaction could range from poorly delivered services to unhappiness with the pricing. “Invariably all outsourcing deals require a degree
Finding a cure for “BAD” contracts and outsourcing deals? Read More »
Most organisations finance their office automation equipment due to the associated high capital commitments. The problem here is that if there are issues with the equipment the corporate company cannot hold back payments or force the issue of replacement because the financial instrument still has to be paid to someone else, regardless of performance… By
Printer, Fax and Photocopier Rentals: What clauses to look out for! Read More »
This online calculator helps determine the value that Procurement adds to the organisation. What is the effect of your procurement savings on the company’s operating profit? On earnings per share? What is the return on investment (ROI) on your proposed procurement transformation strategy? This simple online tool will assist you in calculating key ratios that
How to calculate the value that Procurement adds to the organisation Read More »
By Bernie van Niekerk Its that time of the year…. Your SOLE supplier is about to present you “their valued customer” with their “negotiated” increase. They know, and you know that there is not much that you can do about it…. Now for whatever reason (part 1 of this article dealt with making sure you
PART 2: How to negotiate with a SOLE Supplier Read More »
By Bernie van Niekerk You know the feeling …Their price increases are double that of everybody else’s… As far as their service is concerned well you’ve got 2 choices. 1. Take it or 2.Leave it! Their ”service” personnel are insolent to say the least. But there is one thing that you both know. namely, this
How to negotiate with a SOLE Supplier (Part 1) Read More »
