Strategic Procurement

Sustainability is no longer just a buzzword, but a necessity- for modern businesses. One of the disciplines that have a leading role in this is procurement. But how does one integrate sustainability into tactical procurement strategies, especially with a focus on technical innovations and strategic decision making? Tactical procurement: a brief introduction First, it is […]

When it comes to the procurement process, its design and implementation is critical to an organization’s success. An effective procurement process enables companies to find reliable suppliers, reduce costs and improve operational efficiency. In this article, we will discuss the key steps involved in designing and implementing an effective procurement process. We will also look

Weele’s procurement process demystified The world of strategic procurement is dynamic, innovative and constantly evolving. If you’ve ever wondered exactly what it means or how to control it, you’ve come to the right place. In this article, we demystify Weele’s famous procurement process and show why it is so essential for companies in every industry.

What is the Kraljic model? The Kraljic Model, developed by Peter Kraljic, is a well-known 1983 procurement model. It provides a structured approach to optimize purchasing strategies by categorizing items based on business impact and supplier dependency. Categories include strategic products, bottleneck products, leveraged products and routine products. The Kraljic model has become a standard

Strategic purchasing is a term that is defined in many different ways. We define the term as: optimizing an organization’s procurement activities to create value and reduce risk in the medium to long term. To accomplish this, the company’s “spending habits” must be analyzed. Consider activities such as seeking cost savings, process optimization and maintaining

Supply Chain Management (SCM) is essential for companies looking to gain a competitive advantage and become more efficient. It includes the entire process of managing goods and services, from the purchase of raw materials to the external supply of the final product. By optimizing integrated supply chain management, companies can save time, money and resources.

TCO stands for Total Cost of Ownership. These are the all costs that come with the purchase/ownership of a product or service. For example, when it comes to purchasing a machine, in addition to the purchase price, this includes maintenance and all materials and services (think software updates, for example) required to keep the machine

The ‘van Weele’ procurement process in a nutshell. The above representation of the procurement process flow is the most familiar form as depicted by Arjan van Weele. We will discuss it in more detail below. The ‘van Weele’ procurement process in more detail. Why describe procurement processes? To organize procurement activities so that they are