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. But it’s not only the price.

Negotiating Essential Clauses for Purchase Contracts

SIPMM Professional Publications

Contract negotiation does not necessarily equate to getting the cheapest price.It The post Negotiating Essential Clauses for Purchase Contracts appeared first on SIPMM | Singapore Institute of Purchasing and Materials Management.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Purchasing Tips with Trent Morris – What People Get Wrong

Logistics Bureau

They always focus on price. Once you got only comparing “apples to apples”, then you start looking at the price. . Procurement - Purchasing - SRM Purchasing Videos Collaboration compliance cost efficiency price purchasing quality supply chain

Communication still key in truck lease-purchase agreements: TEL exec

The Supply Chain Journal

Sheri Aaberg didn’t waste any time delivering one of her key points in a presentation about lease purchases in a workshop Sunday at the annual meeting of the Truckload Carriers Association in Las Vegas. The title of the session was “Lease Purchasing: An Innovative Playbook.”

Point-of-Danger ICE Raids and Audits

Speaker: Max Muller, Attorney and Author

Supply chain managers should constantly be on guard against forces that could cause a significant point-of-failure in or to their supply chains. The sudden loss of a workforce is an evolving danger to those who provide raw materials, subassemblies, finished goods, and/or necessary services to supply chains; and to entities requiring those items or services. Join Max Muller for this timely, fast-paced and guidance rich webinar that will educate you on the specific steps involved in undertaking your own internal audit, as well as providing you with guidance on what your major and/or sole source suppliers should do as well.

Negotiating Techniques for Construction Procurement

SIPMM Professional Publications

As a professional purchaser, negotiation skills will place one at an upper hand. Negotiation is a communication skill whereby the process involves two parties to […].

Key Provisions to be Negotiated in a Construction Purchase Contract

SIPMM Professional Publications

The post Key Provisions to be Negotiated in a Construction Purchase Contract appeared first on SIPMM INSTITUTE. Construction contracts are complicated documents that try to balance the needs of many different parties involved in a project. Contractors face much uncertainty when delivering on their contract responsibilities, so it is important to design contracts that are fair in allocating risk.

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. This caused a shortage of goods in Lidl stores, as well as other retailers who source their goods from Asia.

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.

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? Numerous details are manually recorded, such as the products needed, quantity of items, descriptions, pricing, payment details, delivery methods and dates. Purchase order date.

Sourcing Criteria for the Confectionery Industry

SIPMM Professional Publications

Strategic sourcing skills play an important role before any purchase are made in every industry. It includes analyzing high-volume purchases and developing long-term partnerships with a picked group of suppliers, which can provide quality products and services at low costs.

Truckload Pricing Dynamics with Jon Payne

The Logistics of Logistics

Jon Payne and Joe Lynch discuss truckload pricing dynamics. Jon is the Director of Pricing Strategy & Analytics at Loadsmart , a freight technology company that is removing the barriers between shippers and carriers so freight can move in the most efficient, transparent and automated way.

You need to get the purchasing function right

Fleet Owner

A good benchmark about the health of your procurement process is what your procurement negotiations are based on. If you are solely negotiating on price, you’ve got a problem

Know Your Supply Chain KPIs – Procurement

Logistics Bureau

Competitiveness of Pricing. The price you pay your vendors for their products is a significant factor in your company’s ability to compete in its market. Emergency Purchase Rate. For that reason, the emergency purchase rate KPI is one you should certainly be keeping an eye on.

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.

E-commerce Purchases are Rocketing

Logistics Business Magazine

“Most challenging though is having to qualify internal limitations or present an unattractive price in order to cover the transactional cost to the 3PL. ” The post E-commerce Purchases are Rocketing appeared first on Logistics Business® Magazine.

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

Are You Considering Purchasing Electric Trucks? There is a Lot to Think About

Logistics Viewpoints

Companies with sustainability initiatives related to reducing greenhouse trucks often consider purchasing electric trucks. But companies need to pay attention to more than the purchase price. The post Are You Considering Purchasing Electric Trucks?

Merchandise Inventory Tracking and Accounting

Ship Monk

Any company that sells a product carries merchandise inventory with costs that need to be tracked. A manufacturer purchases steel and brass from a supplier, and turns them into tiny gears to make watches. In every example above, inventory was purchased and inventory was sold.

California County Purchases Beam Global’s Off-Grid EV Charging System

NGT News

The system was purchased through the California Contract #1-18-61-16, which simplifies the procurement process and ensures best pricing. The post California County Purchases Beam Global’s Off-Grid EV Charging System appeared first on NGT News.

Now or Never: Why Supply Chain Sustainability is Non-Negotiable in 2022

Locus

Source: Statista.com. Transportation was redirected to be used in providing first aid, leading to supply chain bottlenecks, shortages and price hikes. Planning : Processes are designed to reduce emissions and meet demand with ethical sourcing. Ethical sourcing of goods.

Buy vs. Build: Should You Purchase Software or Create Your Own?

Parade

With software, that overrun can be costly, , according to McKinsey. That’s not to say that it doesn’t take time to get to the point where you can use a purchased software in operations; it takes time to implement, integrate, test, and train staff to work with new programs.

Cold Chain Summit: Refrigerated carriers adapt to new food purchasing habits

The Supply Chain Journal

The need for long-haul replenishment moves and distribution hasn’t changed from where the food sources are, over time. Descartes continues customer-driven acquisition strategy with GreenMile purchase. This fireside chat recap is from the FreightWaves Cold Chain Summit on Wednesday.

CMA CGM Expands Airline Plans with Purchase of Jumbo Jets in a Chaotic Year

MTS Logistics

In a press release published today on its website, the shipping carrier announced that it would purchase two Boeing 777 freight airliners in its bid to expand its presence in the air freight sector.

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.

Skyrocketing diesel prices affecting US-Mexico import rates

ShipLilly

News from “Borderlands” indicates a significant upsurge in diesel prices, which has impacted current import rates between the US and Mexico. Borderlands is a weekly source of news and analysis of events that affect the cross-border trade between the two neighbors. This week it was revealed that the price of fuel has gone to an all-time high in the US at $5.55 Indeed, the current prices are 51 cents higher than those recorded in April.

Learn how Fuel Purchase Routing can save $250 monthly/vehicle

FueLoyal

On average, transportation companies spend 25% or more on fuel purchases. A 1% reduction in fuel costs can result in thousands of dollars in profit annually. Fuel management is set of activities and procedures companies implement in order to optimize fuel usage and reduce costs related to fuel purchasing. But fuel purchase routing works great with existing fuel cards and provides an extra layer of savings. What is Fuel Purchase Routing.

SONAR Indices & Insights: Measure whether shippers or carriers have control of freight pricing with SONAR’s Pricing Power Index

FreightWaves SONAR

This week, learn how freight market participants are able to measure if freight pricing control lays in the hands of freight shippers or freight carriers. What is the DHL Supply Chain Pricing Power Index? The DHL Supply Chain Power Pricing Index (DHLPPI) measures on a score from 0-100.

Purchasing Index Shows Manufacturing Slows to a Nine-Month Low

Material Handling and Logistics

Manufacturing Purchasing Managers’ Index slowed to 54.7 Exports remain the key source of weakness for producers, with foreign orders barely rising in August after two months of modest declines," said Chris Williamson, economist at IHS Markit. Inflation weakened to a six-month low, but prices remained elevated -- above their three-year average. Almost one-in-three went on to cite tariffs as the cause of having to hike prices to customers.”.

Skillfully Managing Manufacturing Reshoring Projects

GlobalTranz

than simple cost comparisons. A reshoring project is not a simple task of comparing costs in the U.S. These “Bring Manufacturing Back” initiatives have many moving parts and require careful planning and execution and very skillful project management. The charter should include considerations of the various stakeholder groups including finance, engineering, manufacturing, purchasing, marketing, facilities, IT, human resources, and government affairs.

Freight Broker Leads: 6 Tips for sourcing leads

FreightWaves SONAR

Most freight brokers have to source their own freight broker leads. Here are six tips for sourcing freight broker leads that will minimize the time and resources required to source and research shipper leads. . 6 Tips to source freight broker leads. #1:

A Quick Guide to Roles in Procurement

Logistics Bureau

For instance, the Chief Procurement Officer will lead the sourcing process, develop the procurement strategy, identify potential suppliers, and manage short and long terms goals. 5) Sourcing Team Member. ARTICLE SUMMARY.

High costs will limit capacity growth in trucking

The Supply Chain Journal

Chart of the Week: 3, 4, and 5 Year Old Used Truck Prices, New Class 8 Orders – USA SONAR : UT3.USA, UT4.USA, UT5.USA, ORDERS.CL8. Used truck prices have increased by over 50% for 3-year-old models over the past 12 months.

Transactional vs. Relational Purchasing for your Apparel Brand

Apparel Logistics

Billions of purchases are made around the world every day. These purchases fall into two major categories: transactional and relational. Read on to understand the differences between these purchases and what they mean for your organization. Understanding Transactional Purchases. Transactional purchases are the most straightforward. Transactional shoppers typically shop around and negotiate prices to ensure they get the best deals.

5 lessons on how to improve local purchases in Bolivia

World Food Programme Logistics

Break the fear: get small producers and municipal authorities to know each other Over the past few years, Bolivia has advanced a great deal in terms of laws, norms and regulations to promote the purchase of products from smallholders. continues to be purchased from big food companies. To address this issue, WFP conducted training sessions on the mechanisms of sale and purchase to 17 municipalities using two different payment modalities: cash and voucher.

How to Calculate Ending Inventory

Ship Monk

Ending inventory takes into account all that happens each month, starting with beginning inventory (the cost of purchasing or manufacturing any inventory you added during the month) and the cost of goods sold that month. Methods for Calculating Purchases and COGS.

Going Straight to the Sourcing

247 Customs Broker

Strategic sourcing, which consultants popularized in the late 1980s/early 1990s, is a supply chain management approach that formalizes the way organizations gather and use information to leverage consolidated purchasing power and find the best values in the marketplace. Strategic sourcing involves developing supply channels at the lowest total cost, as opposed to the lowest purchase price. November 13, 2018 | By Paul A. Myerson.

Optimizing Your Freight Costs

GoShip Blog

Freight costs have a substantial effect on profitability and overall business growth. Learn how to optimize these costs to keep your supply chain running smoothly without paying exorbitant amounts for shipping. How freight costs impact your business.

What is strategic sourcing?

Fleet Owner

Strategic sourcing is a systematic approach to purchasing items needed for your business. It is based on a holistic view of the sourcing process. When you source in a strategic manner, you do so with four objectives in mind: Reduce overall costs Elim

Vos Expands in Benelux with SNEL Purchase

Logistics Business Magazine

Ben Vos, CFO Vos Logistics: By scaling up and digitizing business processes, we are able to deliver faster throughout the Benelux, better integrate with customers’ systems and keep rising costs under control.