Improving your organization's profitability can only be achieved in three ways: increase prices, increase sales volumes or reduce costs. Competitive pressures are making the first two options increasingly difficult, which leaves cost reduction as the key option available. Profitable Buying Strategies shows you a long term, structured approach to cost reduction through smart procurement practices. This straightforward guide explains the philosophy and psychology of buying; buying concepts, tools and techniques; changes that deliver cost reduction; market testing; outsourcing and insourcing;…mehr
Improving your organization's profitability can only be achieved in three ways: increase prices, increase sales volumes or reduce costs. Competitive pressures are making the first two options increasingly difficult, which leaves cost reduction as the key option available. Profitable Buying Strategies shows you a long term, structured approach to cost reduction through smart procurement practices. This straightforward guide explains the philosophy and psychology of buying; buying concepts, tools and techniques; changes that deliver cost reduction; market testing; outsourcing and insourcing; negotiation and the legal aspects; e-procurement; and organizational issues. A plethora of case studies, and appendices outlining the successful cost reduction drives of a number of major organizations, give you a real world explanation of cost reduction and procurement options to help you make your enterprise more profitable.
Mike Buchanan has 25 years of senior-level experience in procurement, almost all within major private sector organizations, in many market sectors. He is now a procurement consultant and the Chief Executive of the UK-based consulting firm Link Procurement Services.
Inhaltsangabe
Introduction 1. The philosophy and psychology of buying The philosophy of buying The psychology of buying Vendor conditioning of buyers Personality types and aptitudes Risk management 2. Important buying-related concepts Terminology -- cost reduction, cost containment, cost avoidance The buying portfolio The Pareto Principle (the '80/20 rule') Single sourcing and multi-sourcing Buying power and intrinsic cost-savings potential Market segregation Quality Total cost of ownership ('TCO') 3. Effective tools and techniques Spend mapping Estimating and targeting cost-savings opportunities The buying cycle Price benchmarking Specifications -- goods Specifications -- capital equipment Specifications -- services 4. The changes that deliver cost reduction Engage the current vendor(s), and potential new vendors Change WHAT is bought Change HOW it is bought Change WHEN it is bought Change WHO buys it Change WHERE you buy it from Rent rather than buy Involve procurement at an earlier stage in the buying cycle 5. Market testing Why market testing is so important Different types of market testing Locating potential new vendors Buying internationally Market testing in difficult markets Case studies 6. Outsourcing and insourcing Background Deciding what to outsource Levels of outsourcing The top three legal issues Insourcing 7. Negotiation The distinction between buying and negotiating Aligning style and tactics with the nature of the buyer--vendor relationship Why most people are poor negotiators How to develop your negotiating abilities The five golden rules of effective negotiation Minimum and maximum settling points (MSPs), and the 'killer question' The buyer's power over the course of the buying cycle How to leverage your buying power Vendor pre-conditioning 8. Contracts and contract law Why formal contracts are important Contract fairness Contract duration Which contract terms to use Vendor terms to be challenged Developing your own contract terms Contract termination Contract terms and the buying cycle Contract register 9. E-procurement Background Terminology The development of e-procurement A brief introduction to auctions -- Dutch, Chinese, reverse, electronic, English... E-auction 'do's and don'ts' eWorld 2007 An overview of e-procurement -- The Aberdeen Group E-procurement enabler #1 -- Procuri E-procurement enabler #2 -- BravoSolution E-procurement enabler #3 -- Vendigital 10. Organizational issues Politics Buying development stages Approaches to buying Building buying capacity and capability: employees, interim managers, consultants Maximizing the value derived from external experts Matching buyer personalities/aptitudes to tasks Buyer motivation and incentivization Individual roles, responsibilities and authorities Buyers' product knowledge Buyers' contract law knowledge Buyers' competence development Performance measurement and reporting Ethics Appendix 1: Service level agreement (SLA) Appendix 2: Request for proposal (RFP) Appendix 3: The Chartered Institute of Purchasing and Supply About CIPS Membership Training and events Professional Code of Ethics Appendix 4: Soft issues impacting on cost reduction drives Background Corporate social responsibility Sustainable procurement Appendix 5: Buying at Sainsbury's supermarkets Overview Goods and services for resale Goods and services not for resale Appendix 6: Buying at SmithKline Beecham Background Structuring an effective cost management programme Tactical control through purchasing category management Buying at the right geographical level Impacting total cost of acquisition Determining appropriate category strategies Appendix 7: Buyer remuneration in the UK Job level 5 Analysis References Index
Introduction 1. The philosophy and psychology of buying The philosophy of buying The psychology of buying Vendor conditioning of buyers Personality types and aptitudes Risk management 2. Important buying-related concepts Terminology -- cost reduction, cost containment, cost avoidance The buying portfolio The Pareto Principle (the '80/20 rule') Single sourcing and multi-sourcing Buying power and intrinsic cost-savings potential Market segregation Quality Total cost of ownership ('TCO') 3. Effective tools and techniques Spend mapping Estimating and targeting cost-savings opportunities The buying cycle Price benchmarking Specifications -- goods Specifications -- capital equipment Specifications -- services 4. The changes that deliver cost reduction Engage the current vendor(s), and potential new vendors Change WHAT is bought Change HOW it is bought Change WHEN it is bought Change WHO buys it Change WHERE you buy it from Rent rather than buy Involve procurement at an earlier stage in the buying cycle 5. Market testing Why market testing is so important Different types of market testing Locating potential new vendors Buying internationally Market testing in difficult markets Case studies 6. Outsourcing and insourcing Background Deciding what to outsource Levels of outsourcing The top three legal issues Insourcing 7. Negotiation The distinction between buying and negotiating Aligning style and tactics with the nature of the buyer--vendor relationship Why most people are poor negotiators How to develop your negotiating abilities The five golden rules of effective negotiation Minimum and maximum settling points (MSPs), and the 'killer question' The buyer's power over the course of the buying cycle How to leverage your buying power Vendor pre-conditioning 8. Contracts and contract law Why formal contracts are important Contract fairness Contract duration Which contract terms to use Vendor terms to be challenged Developing your own contract terms Contract termination Contract terms and the buying cycle Contract register 9. E-procurement Background Terminology The development of e-procurement A brief introduction to auctions -- Dutch, Chinese, reverse, electronic, English... E-auction 'do's and don'ts' eWorld 2007 An overview of e-procurement -- The Aberdeen Group E-procurement enabler #1 -- Procuri E-procurement enabler #2 -- BravoSolution E-procurement enabler #3 -- Vendigital 10. Organizational issues Politics Buying development stages Approaches to buying Building buying capacity and capability: employees, interim managers, consultants Maximizing the value derived from external experts Matching buyer personalities/aptitudes to tasks Buyer motivation and incentivization Individual roles, responsibilities and authorities Buyers' product knowledge Buyers' contract law knowledge Buyers' competence development Performance measurement and reporting Ethics Appendix 1: Service level agreement (SLA) Appendix 2: Request for proposal (RFP) Appendix 3: The Chartered Institute of Purchasing and Supply About CIPS Membership Training and events Professional Code of Ethics Appendix 4: Soft issues impacting on cost reduction drives Background Corporate social responsibility Sustainable procurement Appendix 5: Buying at Sainsbury's supermarkets Overview Goods and services for resale Goods and services not for resale Appendix 6: Buying at SmithKline Beecham Background Structuring an effective cost management programme Tactical control through purchasing category management Buying at the right geographical level Impacting total cost of acquisition Determining appropriate category strategies Appendix 7: Buyer remuneration in the UK Job level 5 Analysis References Index
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