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The best of Procurement and Supply chain - edition 23rd October

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Here are the best articles of last week. In no particular order, all in one place so you can sit back and enjoy!

The Art and Science of Procurement Performance - CPO Rising

Why Supply Chain Complexity Isn’t a Bad Thing - Logistics viewpoints

How Do You Plan for the Unpredictable? Advice for Supply Chain Planners in 2020 - Toolsgroup

Could AI Be the Key to Successful Supply Chains? - SDCE

4 Reasons To Diversify Your Supply Chain = StrategicSourceror

What Will Business Look Like a Year From Now? - CPO Rising

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Incoterms explained - Procurement basics

So, what are Incoterms? They are created about 100 years ago, precisely in 1936. The organization who is issuing the Incoterms is the International chamber of commerce. Their page is in the sources area if you would like to dig deep into the topic. Also, below you can see the latest 2020 edition of the Incoterms. Save this picture on your computer, you will need it. First, the official definition. “ “Incoterms®” is an acronym standing for international commercial terms. “Incoterms®” is a trademark of the International Chamber of Commerce, registered in several countries.” The Incoterms define the basic rules of trade and are worldwide accepted. When you look at the picture, it looks quite simple. The seller is responsible for the delivery until one point, where the buyer takes over. Well, Incoterms take care of the four main points in goods transportation: • What are the duties of each stakeholder? • Who needs to arrange permissions, documentation and is responsib...

Procurement jargon

In procurement, we use a lot of three-letter acronyms and this resulted in a jargon that is sometimes confusing. So, what are RFQ, LPO, LPR, SLA, SRM, preferred suppliers, e-tenders …? This is a short list of the most commonly used 3-letter abbreviations and a couple of terms that are very often used in procurement. CAPEX – Capital expenditure. Companies have their own definition of CAPEX, but the core idea is that this is the spend on a piece of equipment that will be used in more than one production cycle, usually longer than a year at minimum. Also, it needs to cost above a certain limit, usually $1000. CAPEX needs to be budgeted annually, requires a bit complicated acquisition procedure and the cost of purchase gets split across multiple years. OPEX – Operating expenses. These are expenses required for the day-to-day operations of the company. Direct spend – All materials that go into the finished product (or service) of the company. If it is not there, no output for the company. I...

Procurement courses for all pockets – my top 10+1

You joined the procurement team. And liked it. Now you would like to learn more about the profession. But, unfortunately, there are not many colleges offering courses in Procurement, even Supply Chain. Here comes some help, a list of available courses as of 2020. Here is my list of procurement and Supply Chain courses. All are 100% online, some have also a blended learning option. They are mostly pre-recorded. Several are free or have a short course that is free. In some cases, the course is free, but you have to pay for the certificate. Supply Chain for Dummies Daniel Stanton Daniel Stanton is the author of the book “Supply Chain for Dummies” and has several very good courses hosted on LinkedIn learning. LinkedIn Learning is a premium service you will have to pay a monthly fee for. But it makes sense to pay for a month or two and get as much as possible out of it. Oxford home study Free short course They have a free short course and paid full-time courses. The ...

Procurement positions and job descriptions

Unfortunately, there is no clear classification of procurement-related positions. Some folks have the title procurement assistant and are responsible for contracts valued millions of dollars, while others are VP’s of procurement for a grocery store. Plus, there is some strange designation in between, that will confuse someone not familiar with them. Procurement assistant is the starting position in procurement. The daily job of an assistant is to issue and send orders and follow up for deliveries. Also, all administrative and database maintenance tasks sit with the assistant(s). They are as well involved in RFQ’s and tender, but mostly with no direct responsibilities for the outcome. · Buyer is the first real purchasing position. The buyer takes responsibility for the complete tactical purchasing process: RFQ’s, negotiations, contract signature, orders and follow-ups. Buyers have usually good market knowledge and know more about th...

Procurement Basics Blog

P rocurement is rarely a topic taught at school. Still, thousands of people start their journey into procurement every year. I have created this blog to help them figure out whether this job is for them, and to help with the first steps into this career. Why Procurement Basics blog During my career, I hired and trained several procurement teams. And the biggest issue for me was to introduce them to the basics. All these three-letter abbreviations: LPO, PRF, DN, RFQ, RFP. The words that are not familiar to everyone: spend, category. Explaining what is source to procure, procurement to payment. How the whole process works. Unfortunately, there are only a handful of College programs that touch procurement even in a couple of lessons. Also, online courses in this area are quite rare and usually require some kind of basic knowledge. Learning someone to do is not the difficult part. But making the team member understanding the “why” requires a lot more work. And this is the part where the Pr...

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