Many companies today are listing procurement management as their top purchasing priority since it makes up a large proportion of their overall spend. At the same time, many of these same companies have fallen behind in regards to their procurement systems and need a complete revamp of their functions to keep up with business demands. Below we outline 6 Best Practices to make sure your company's procurement management is up to date:
Insource v. Outsource… Domestic v. Global… Direct Source v. Work Through an Integrator… High Minimums or Commit to a Stocking Plan? These are the questions that continually challenge a one-person do-it-all to the most sophisticated purchasing & sourcing teams. What’s the right solution for my company?
If you’ve waded through the murky pools of the above questions and have come to the conclusion that global sourcing is right for your company, the next question is how to identify the right partner to ensure you accomplish your goals. Whether those goals are tied to cost decreases, reduction of supply chain lead-time, reduction of on hand inventory or supplier rationalization, choosing the correct manufacturing company is critical. Below we’ll walk you through the steps to ensure your success:
Would your business benefit from global contract manufacturing? Outsourcing production to low labor cost countries such as China, India, or Taiwan could save your business plenty of money, but it can also pose many, many challenges. We've outlined below the pros and cons of outsourcing so you can decide if it makes sense for your business.
So you have a business with a great product, but you're looking for cheaper methods of manufacturing. Commodity managers, materials managers, and sourcing engineers have big decisions to make in regard to finding the right suppliers for their production parts at the best total cost.
Should you look for your own manufacturers in Asia or a low-cost country (LCC) outside of Asia? Or should you use a sourcing integrator that already has an established global manufacturing base? Below are four reasons why it makes sense to outsource your components through an integrator:
