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Procurement vs. Purchasing: What’s the Difference?

Logistics Bureau

The best way to understand the difference between procurement and purchasing in a business is to consider the process involved in buying a car, says Logistics Bureau’s procurement specialist, Trent Morris. Procurement First, Purchasing Follows. Procurement Analyst.

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Why Procurement Management Tool is a Must for Efficient Purchasing

Precoro

Procurement is a complex and dynamic process involving strategic planning and several stages of execution, from sourcing to paying and reporting. Managers utilize numerous dedicated tools to ensure the efficiency and simplicity of the procurement cycle and get real-time insights.

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Procurement Analysis: a Game Changer for Purchasing Strategically

Precoro

With the global market expansion and deepening supply chain complexity, the roles of procurement leaders have evolved from tactical to strategic. Nowadays, procurement departments not only focus on the day-to-day buying operations but also search for the most efficient ways to go about them.

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Know Your Supply Chain KPIs – Procurement

Logistics Bureau

On this blog and the one published by our sister company Logistics Bureau, we often receive questions relating to metrics suitable for monitoring procurement performance. 7 Procurement KPIs You Should be Using. Emergency Purchase Rate. Purchase Order Cycle Time.

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Prove ROI and Make the Business Case for Industrial Content Marketing

Speaker: Achinta Mitra, Founder and President, Tiecas Inc.

It's the plight of an industrial marketer: over the course of a 12-18 month long buying cycle, you make contact with a whole host of influencers who read your content, who may or may not actually work in purchasing. By the time the RFQ comes in, the original project might be completely different. and your initial point of contact may be long gone! Meanwhile, the purchase somehow takes place, and Sales claims all the glory. How is a marketer supposed to make the business case for better content marketing? Join Achinta Mitra, Founder and President of Tiecas, Inc, as he explains how, despite the long, grueling buying cycle, you can prove the ROI of your content marketing. and win (or keep!) buy-in from your higher-ups.

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Procurement vs. Purchasing: Similar but Different

Precoro

Purchasing? Or procurement? Although quite similar, procurement and purchasing are two distinctive processes , and understanding the difference between them can help facilitate your organization’s success. Purchasing and Procurement at a Glance. Procurement.

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Student projects focus on supply management segmentation, risk analytics, and predictive cost models.

Supply Chain View from the Field

One of the issues they came up with was the relative weighting of different categories, which included the highest rated being quality, cost, risk, on-time delivery, and information sharing. Companies are clearly using many more criteria other than cost and delivery to evaluate suppliers, indicating they are willing to pay a bit more if they are able to get better overall value from suppliers. A John Deere team discussed how they attempted to build a predictive cost model.

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A Quick Guide to Roles in Procurement

Logistics Bureau

For small companies, it is usually enough to have one person dealing with procurement but in large enterprises teams of people are needed, all with specific roles to play. The Finance Manager , on the other hand, controls the financial input and output of the procurement division.

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Procurement in a high inflation environment?

Procurement Academy

During the 1970’s oil crisis and the rampant inflation that followed, skilled procurement professionals were in demand more than ever before. Typically, procurement is expected to deliver year-on-year savings. But when inflation pushes costs up, life gets tough for procurement teams.

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Procurement in a high inflation environment?

Procurement Academy

During the 1970’s oil crisis and the rampant inflation that followed, skilled procurement professionals were in demand more than ever before. Typically, procurement is expected to deliver year-on-year savings. But when inflation pushes costs up, life gets tough for procurement teams.

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10 Greatest Purchasing Books Ever Written

Supply Chain Opz

What are the essential purchasing books you should read? In this article, we will uncover the best purchasing books to help you get the edge over competition. Background Historically, purchasing people are considered a kind of clerical workers who are expected to perform basic tasks such as document issuance and price negotiation. Now companies of all sizes realize how purchasing can help creating competitive advantage.

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Top 16 Procurement KPIs – The Ultimate Guide

SCMDOJO

Nowadays, no one could deny that, businesses today expect procurement teams to drive value beyond cost savings. As a consequence, procurement leaders are constantly looking for ways in order to enhance their procurement process and make it more sustainable. Procurement.

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Sustainable Purchasing & Supply Summit 2015

Supply Chain Movement

Sustainable Purchasing & Supply Summit 2015. The first UK conference to present an holistic view of sustainable procurement and the role of the supply chain in more responsible business and government. This unique one-day forum is organised with Chartered Institute of Procurement & Supply (CIPS), providing senior executives with a strategic view of the impact of their procurement and supply chain operations on the environment and society as a whole.

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How to Run a Purchasing Department

Unleashed

Having grown sufficiently, you may find your SME business now has the need for a dedicated purchasing manager – and perhaps even a purchasing department. So if you’re a business owner who is wondering how to run a purchasing department, then check out our practical guide below.

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The 10 Procurement Metrics that Matter in 2021

Unleashed

What is procurement? In simple terms business procurement is the process of locating and acquiring goods and services from external sources for the business to use. Procurement activities include planning, sourcing, and negotiation, along with risk management, legal and value analysis.

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Procurement KPIs & Metrics: What To Focus on and How To Measure

Precoro

In today's competitive market, where it's not all about cost savings, tracking procurement performance and aligning it with business goals and objectives is a must-have. So how do you measure the effectiveness of procurement operations within your organization? Cost Reduction.

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Establishing Procurement as a Competitive Advantage

ivalua

In my previous posts, I looked at how to successfully launch a digital transformation and progress to best-in-class Procurement. Procurement was tasked with supporting a board level initiative to accelerate innovation and increase margins. The same applies to Procurement.

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Consumers Are in Charge of the Digital Path to Purchase

Enterra Insights

Although retailers still talk about the digital path to purchase as an alternative to the traditional shopping journey, the lines between paths to purchase have blurred. A report published by Edge by Ascential predicts, “$2.4

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51st Symposium Purchasing and Logistics

Supply Chain Movement

51st Symposium Purchasing and Logistics. en/all-events/51st-symposium-purchasing-and-logistics/. This is why the 51 st Symposium will cover issues on the following topics: Purchasing 2030: thinking out of the box. The value contribution of purchasing: enhancing success. Lowering costs and increasing quality: mastering the balancing act. e-Solutions and business analytics: leveraging digitalisation. Benchmarking with purchasing and SCM peers.

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KPIs That Purchasing Executives Need

Silvon Software

Companies that focus on strategic sourcing can generate substantial economic value not just by eliminating waste, reducing costs and improving administrative efficiency, but also by building stronger supplier relationships that can make them more competitive, profitable and nimble. There are many valuable metrics that can help you better assess your company’s performance at the sourcing / procurement level. These metrics are noted in the following sections below.

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What is Procurement v Purchasing

Logistics Bureau

In this 8-minutes video, Trent Morris will answer these following questions that are certainly very helpful for those confused between the difference of Procurement and Purchasing. What’s the difference between Procurement and Purchasing? Is Procurement a good career?

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28 Procurement KPIs That Optimize Supplier & Buyer Performance

Silvon Software

The past few years have created a lasting impact on the way business is conducted, driving many companies to analytics to gain the visibility they need to control and optimize key processes. The Basics of Procurement KPIs. Buyer / Procurement Department KPI s.

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It’s Time for Procurement to own Scope 3 Emissions

ivalua

Why should Procurement own Scope 3 Emissions? For most procurement (and supply chain) professionals, the topic of Scope 1, 2, and 3 emissions should be coming at you from every direction. Why Should Procurement Prioritize Scope 3? The answer is simple- suppliers and spend.

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It’s Time for Procurement to own Scope 3 Emissions

ivalua

Why should Procurement own Scope 3 Emissions? For most procurement (and supply chain) professionals, the topic of Scope 1, 2, and 3 emissions should be coming at you from every direction. Why Should Procurement Prioritize Scope 3? The answer is simple- suppliers and spend.

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Procurement in a high inflation environment

Skill Dynamics

During the 1970’s oil crisis and the rampant inflation that followed, skilled procurement professionals were in demand more than ever before. Typically, procurement is expected to deliver year-on-year savings. But when inflation pushes costs up, life gets tough for procurement teams.

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Purchasing & Supply Management: What We Should Teach (Guest Post by Lydia Bals)

SCM Research

Today’s guest post comes from Lydia Bals, who presents project PERFECT’s recent insights on competences in purchasing & supply management. Professional purchasing & supply management (PSM) forms the link between a complex network of internal and external stakeholders with increasing international dependencies and performance requirements. Teaching Procurement Report Supply Chain Management

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Get the Procurement Analytics Advantage with SAP S/4HANA

Bristlecone

Did you know that advanced analytics, when used in lieu of traditional statistical models, can help procurement departments increase cost efficiency by 3-8%? [1]. Procurement leaders are increasingly turning to SAP S/4HANA as their solution of choice.

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What’s the Difference Between Direct vs Indirect Procurement?

ivalua

What does Procurement mean? However, this is somewhat of an oversimplification of what the modern, best in class procurement organizations do for the larger business or organization. Procurement can and should be a significant value generator for the larger organization.

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MANAGING RISK IN PROCUREMENT EFFECTIVELY

Eyvo

How to effectively manage risk in procurement? Risk management in procurement. However, in procurement, the last thing you want is a risk. That’s why managing risk in procurement is essential. Ineffective reporting and non-compliance. E-Procurement Software

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Procurement Software and Solutions

EC Sourcing Group

The process of procurement has significantly advanced in recent decades, mainly due to the internet and cloud-based applications that can help streamline the process. Why Are Procurement Software and Solutions Important? Procurement Software and Solutions: eSourcing vs. eProcurement.

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Procurement Software and Solutions

EC Sourcing Group

The process of procurement has significantly advanced in recent decades, mainly due to the internet and cloud-based applications that can help streamline the process. Why Are Procurement Software and Solutions Important? Procurement Software and Solutions: eSourcing vs. eProcurement.

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What Are Retail KPIs? The Most Important Retail Metrics in 2023

ShipBob

By monitoring particular metrics over time across your online sales, in-store sales, and operations, you’ll gain quantitative insights into your business performance. Why are retail metrics important? “ShipBob’s analytics dashboard is quite helpful and straightforward.It’s

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The Basics of the Procurement Management

Precoro

For some businesses – usually smaller or with a single-source purchasing flow – it may be sustainable to react to the immediate needs. However, growing organizations that face increasing complexity recognize the value of thoughtfully-planned and managed procurement. Cost control.

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Why Supply Chain Managers & Procurement Should Collaborate

GlobalTranz

The roles of logistics and procurement in an efficient supply chain cannot be overstated. According to Paul Myerson , reports Industry Week, up 70 percent of a company’s costs come from procurement and logistics operations. However, both logistics and procurement often become isolated in modern companies, resulting in inefficient practices and a sluggish production value. Supply Chain Managers and Procurement Professionals Avoid the Conversation.

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Procurement and Supply Chain are Smarter Together – Practical Use Cases

Logistics Viewpoints

In a previous post , I made a case for how the Chief Supply Chain Officer (CSCO) and Chief Procurement Officer (CPO) are smarter together. Accordingly Supply Chain and Procurement will need continuous collaboration. Procurement Supply Chain Planning

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Relieving Consumer Pain Points on the Digital Path to Purchase

Enterra Insights

As Tom Standage ( @tomstandage ), editor of The Economist ‘s ‘ The World in 2021 ‘, reminds us, the digital path to purchase is increasingly becoming the customer journey of choice. ”[2] Were that survey conducted today, I suspect an even larger number of consumers would report losing confidence in the supply chain. ”[3] They predict most of the growth in digital channels will be from “younger people joining the ranks of digital users.”

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Two Types of Procurement: Project Based and Operational!

Supply Chain Game Changer

Featuring Our 12 Best Procurement Articles! Procurement operations are the backbone of every company’s supply chain. Fundamental to procurement is the acquisition of goods and services from a party that’s further up the supply chain. Project-Based Procurement.