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.

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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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.

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.

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.

3 Practical Metrics for Supplier Performance Evaluation

Logistics Bureau

Regardless of advances in business analytics therefore, I still advocate a measured approach to measurement (pun intended), by way of a carefully chosen handful of KPIs which are meaningful and actionable. Supplier Performance Metrics for Every Organisation. Returns rate metrics.

Sustainable Procurement and Technology for Circular Supply Chain

SIPMM Professional Publications

The Organization for Economic Cooperation and Development predicted that global demand for materials would increase by more than 35 percent over the next 15 years, reaching 100 billion metric tons per year. Publication Procurement

How Cloud ERP can assist manufacturers with their procurement function

SYSPRO Smarter ERP

As supply chain disruptions continue the procurement function should adapt to improve transparency, build collaborative relationships, and ensure sustainable sourcing practices, resulting in a stronger, more resilient supply chain with Cloud ERP for manufacturing.

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Ethics in Procurement – Simple, but Not Always Easy

Logistics Bureau

If you have not yet tackled the question of ethics in procurement, now is a great time to start. It does not matter whether you are a procurement professional, internal customer, external customer, senior executive, or supplier. Procurement is what sets entire supply chains and their organisations in motion. How procurement handles itself and its activities set the tone for all the events that follow, right up to the final delivery of goods and services to the end-customer.

How manufacturers can use ERP to improve the procurement process

SYSPRO Smarter ERP

Disruptions like the pandemic, supply shortages, global trade barriers, high customer expectations and inflation all add tremendous pressure on the procurement process. Despite this, only 33% of businesses invested in procurement and sourcing technologies.

ERP 67

7 Tips: A Guide to Mastering Procurement

Material Handling and Logistics

With the digitization of the source-to-pay process being a key initiative for many chief procurement officers, to the inherent automation which promises to accelerate innovations such as artificial intelligence (AI), digitization is growing. However, it is fundamental to empowering procurement success in the modern age. Procurement helps companies adapt, meet new regulatory requirements and shift supply to optimize an evolving tariff landscape.

How manufacturers can use ERP to improve the procurement process

SYSPRO Smarter ERP

Disruptions like the pandemic, supply shortages, global trade barriers, high customer expectations and inflation all add tremendous pressure on the procurement process. Despite this, only 33% of businesses invested in procurement and sourcing technologies.

ERP 61

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.

How Digitalization of the Purchase Order (PO) Can Save Time and Money

MTS Logistics

To all procurement and logistics specialists, how many of your daily emails pertain to purchase orders? Many companies have not automated this fundamental Purchase Order operation. Automation of purchase orders is an important first step to a digital transformation.

SONAR Indices & Insights: Improve Freight Shipping Procurement with SONAR SCI’s Lane Acuity Plus

FreightWaves SONAR

Supply chain professionals responsible for transportation procurement at Fortune 500 companies focus on three things – budget forecast accuracy, service scores and primary tender acceptance. What does Lane Acuity Plus tell market participants about freight shipping procurement practices?

Grocery Giant Lidl Purchasing Container Ships Amid Supply Chain Issues

MTS Logistics

In the midst of supply chain issues, grocery giant Lidl has indicated that it will be purchasing container ships. The problem was exacerbated by the Covid pandemic, which led to a decrease in the number of container ships operating as we have extensively reported.

Green Purchasing Power: Sustainability is Major Factor

Material Handling and Logistics

Suppliers reported emissions reductions of 633 million metric tons of carbon dioxide leading to collective cost savings of $19.3 billion

The Power of the Network: ERP vs. Spend Management

Logistics Viewpoints

GEP and the North Carolina State University (NCSU) Supply Chain Resource Cooperative surveyed supply chain, procurement and IT professionals across a range of industries to gain insight into their priorities and strategies regarding supply chain resilience and optimization.

ERP 124

How To Save Money With Fuel Purchase Routing

United World Transporation

According to industry experts, fuel purchases can account for approximately 25% of a trucking company’s operating expenses. What is fuel purchase routing? How do you calculate the best fuel purchase route? The cost is $50-100 per month, depending on your business type.

Procurement and Suppliers on the Same Page: How to Craft an Effective Terms & Conditions Sales Document

GlobalTranz

Editor's Note: Today's blog is the second part of Chuck Intrieri's series on how procurement and suppliers can avoid issues with their contracts. Procurement and suppliers often assume that small print is highly complicated legal jargon that is both boring and largely irrelevant. It Would Benefit Both Procurement and Suppliers To Write in a Clear, Friendly, and Organized Manner. Google Analytics); Serving behavioral ads (e.g. Procurement

Descartes continues customer-driven acquisition strategy with GreenMile purchase

The Supply Chain Journal

On Tuesday, Descartes ( NASDAQ:DSGX ) announced it has added another strategic acquisition to the list with its purchase of GreenMile, a cloud-based mobile routing solution with a deep customer base in food and beverage including Coca-Cola ( NYSE:KO ), Pepsico Inc.

How to Procure Full Truckloads in Tight Capacity

GlobalTranz

The use of full truckload shipping is rising in popularity, resulting from its lower cost as compared to less-than-truckload (LTL) shipping. Unfortunately, the use of full truckload shipments and expenditures have hit an all-time high, reports Kate Patrick of Supply Chain Dive. Decreasing capacity and increasing full truckload rates are expected to increase throughout 2018, reports Freight Waves. Conducting annual procurement exercises.

Procurement Logistics: What Is It & Where Do Logistics Providers Fit In?

GlobalTranz

Many different terms, such as less-than-truckload (LTL), procurement and transportation management, describe supply chain management processes. Although procurement logistics might sound like it involves the purchasing of manufactured products , it is much more involved. The Definition of Procurement Logistics. The simplest way to think of procurement logistics is the procurement of materials needed to manufacture products. What Is Procurement Management?

Editor’s Choice: Aluminum Can Shortage Defines a New Normal for Food Packaging

Logistics Viewpoints

Many breweries were also reported to be paying premiums to purchase cans just to meet their immediate needs. Procurement aluminum can shortage

GEP 108

How Much Money Can You Save With Fuel Purchase Routing?

United World Transporation

According to industry experts, fuel purchases can account for approximately 25% of a trucking company’s operating expenses. So, any opportunities to increase fuel efficiency and save money are valued in the industry, and fuel purchase routing is a commonly used strategy by many long-haul truck drivers. What is fuel purchase routing? How do you calculate the best fuel purchase route? The cost is $50-100 per month, depending on your business type.

Using Predictive Analytics For Better Supply Chain Resilience

Blue Grace Logistics

Improving predictability in outcomes is valuable, but ensuring your supply chain is nimble enough to act on the data is even more so. We explore how predictive analytics and big data with human sentiments can add value and amplify their supply chain strategies.

The guide to distribution software

EazyStock

When the cost of raw materials and finished goods starts to soar, it’s critical for wholesalers and distributors to control their operational costs to remain competitive and achieve decent profit margins. Blog ERP and Integrations Inventory Optimization Purchasing & Replenishment

Procurement Transparency: The challenge of Aligning Supply Chain to Values

Logistics Business Magazine

Today, big businesses have a growing responsibility to improve their monitoring, reporting and adherence to ESG standards. The post Procurement Transparency: The challenge of Aligning Supply Chain to Values appeared first on Logistics Business® Magazine.

The State of Supply Chain Trends Part II: AI, Procurement, & the New Lean

GlobalTranz

From artificial intelligence to refocusing on procurement, the state of supply chain continued to explode throughout 2016, and you need to understand why. A 2016 Accenture survey, reports RF Gen , explained how more companies are taking advantage of AI benefits through linked supply chains. Another key player in the 2016 state of supply chain report was the move away from rigid, lean processes to agile methodologies. Procurement’s Role Did Become More Important.

Procurement Transparency: The challenge of Aligning Supply Chain to Values

Logistics Business Magazine

Today, big businesses have a growing responsibility to improve their monitoring, reporting and adherence to ESG standards. The post Procurement Transparency: The challenge of Aligning Supply Chain to Values appeared first on Logistics Business® Magazine.

Omnichannel Supply Chain Metrics: What Should Supply Chain Leaders Measure?

GlobalTranz

The answer lies using these omnichannel supply chain metrics to carefully track and improve operations continuously. This is a simple key performance indicator (KPI), another name for metrics, to track. The Fill Rate is a complex metric that considers the average window of delivery, percent of on-time delivery and accuracy of delivery for all products coming into your warehouse from vendors. Order Percent and Cost Per Order Filled per Channel.

Environmental Defense Fund report makes the case for zero-emissions vehicles purchases

Logistics Management

Effective Stock Replenishment: Why you need it & how to achieve it

EazyStock

Instead they balance the costs of holding stock e.g. warehouse costs, opportunity costs and cashflow problems, with the risk of not having enough e.g. missed sales targets or costly backorders. Cost-effective stock replenishment.

Purchasing Index Shows Manufacturing Slows to a Nine-Month Low

Material Handling and Logistics

Manufacturing Purchasing Managers’ Index slowed to 54.7 The report indicated that higher prices were linked to “new trucking regulations, higher raw material prices (in part driven by tariffs), and supply shortages (especially for electronics components).” Companies continue to pass higher input costs to clients at a fast pace “to maintain profit margins following the impact of tariffs and higher input costs.”. The seasonally adjusted IHS Markit U.S.

PayPal dives into post-purchase sector with acquisition of Happy Returns

The Supply Chain Journal

The news was first reported by CNBC. The post-purchase experience is something we’ve been looking into since it’s such a pain point — people want to shop online and return in store, and vice versa,” he said.

[INFOGRAPHIC] Procurement Trends: Carving a Bigger Role in Supply Chain & Manufacturing

GlobalTranz

As time passed, procurement gradually gained a larger role in the scope of manufacturing and order fulfillment. By the mid-1950s , procurement had become a commonplace aspect of minor business, and procurement was almost comparable to secretarial work. However, modern technologies are dramatically changing procurement trends and how procurement professionals operate and their role in the company. As a result, procurement seemed to have a technical speed limit.

A guide to optimizing your supply chain

EazyStock

Put simply, supply chain optimization means using technology to get inventory to the right place at the right time – at the lowest cost and highest profit for your business. This could result in lower transportation costs. What does supply chain optimization mean?

A guide to optimizing your supply chain

EazyStock

Put simply, supply chain optimization means using technology to get inventory to the right place at the right time – at the lowest cost and highest profit for your business. This could result in lower transportation costs. What does supply chain optimization mean?

The Most Important Distribution Center Metrics to Track and Understand

GlobalTranz

Throughout the supply chain, the use of metrics to track and understand processes provides an invaluable resource for ensuring increased production and customer satisfaction. Additionally, the use of metrics fosters positive relationships with coworkers and adherence to rulesets and best practices for the respective third-party logistics provider (3PL). What Distribution Center Metrics Need Tracking? What distribution center metrics are you tracking or are not listed here?

How to Avoid Stockouts with Better Inventory Management

EazyStock

Help Avoid Stockouts with a Simple Risk of Stockout Report. It’s important to stress that your risk of stockout report will only be useful if you have accurate data on your current stock levels, demand forecast and lead times. Using Software to Predict when Stockouts will Occur.