Improving Performance In Procurement Using Key Performance Indicators Improving Performance In Procurement Using Key Performance Indicators Improving Performance In Procurement The responsibilities of the procurement process span across several internal department warehousing, logistics, sales and finance as well as external organisations including suppliers, carriers and other third party support organisations. Some external organisation work can be monitored by checklists or other simple data collection and analysis activities. The value of measuring the performance of external suppliers, distributors etc. Key performance indicators KPIs can be used to analyse data based on performance objectives and set actionable goals for improvement.
Because, today companies are often not considered independent entities, but parts of multi-company, multi-echelon networks, i. Companies today are under pressure to better manage the supply chain and to improve efficiency and logistics operations while remaining responsive to changing market conditions and customer demands.
As a result, organizations need to adopt IT to support their supply chains and increase their efficiency by achieving tighter cooperation over the supply-chain. Importers and exporters need to know where their product is.
Lenders need to know when and how to pay for it. Innovative companies have sprung up to harness the power of the IT, making it easier than ever for logistics managers to track and manage international shipments, and to serve their changing needs as they reach ever further across the globe to source goods.
Companies such as Home Depot, Xerox and Sears already use on-demand, Web-based data hubs to identify where their goods are in real time, and if delays along the way should be corrected to avoid broader supply chain disruptions and expensive recovery work. Transaction processing Supply chain planning and collaboration Order tracking and delivery coordination Transaction processing stands for the use of IT for increasing the efficiency of repetitive information exchanges between supply chain partners.
In this type of IT use the exchanged information is typically related to such tasks as order processing, billing, delivery verification, generating and sending dispatch advices, and producing order quotes. Supply chain planning and collaboration represents the use of IT for sharing planning-related information such as demand forecasts and other demand information, inventory information, and production capacity information, with the intention of increasing the effectiveness of the supply chain.
Order tracking and delivery coordination refers to the monitoring of individual orders or shipments, which may consist of components or final products, with the aim of coordinating their delivery or conveying timely information of their location. Sensor data such as abrasion, temperature, humidity, or brightness can be measured automatically for each transport unit and stored on the RFID chip.
Later this data is made readily available by IT for aligning the flow of goods with the actual demand. In an optimal scenario, goods arriving at the GDC can be directly forwarded to the retailers without stocking Cross-Docking. Overall, the results indicate that it has powerful business potential that goes well beyond incremental operational improvements.
Patrick Penfield of the Whiteman School of Management defines Green Supply Chain Management GSCM as "the process of using environmentally friendly inputs and transforming these inputs into outputs that can be reclaimed and re-used at the end of their lifecycle thus, creating a sustainable supply chain.
Hardware Perspective - Optimizing hardware resources to support the business. Technology providers are innovating and developing energy efficient solutions that have a more favourable impact on the environment. IT can enable more effective supply chain planning, execution and collaboration, thereby reducing resource requirements.
Green Supply Chain Planning: Green Supply Chain Collaboration: In the absence of LOC, banks need other kinds of information to gain greater visibility into their collective risk. One way of establishing and monitoring all of this information is through an online system that allows banks to see this data immediately and securely via the Web.
Yet another improvement offered by reliable, real-time IT enabled supply chain is that it provides the basis for in-transit inventory financing, by providing access to electronic trade documents and on-line visibility to the actual movement of inventory.
Simplified supply chain process, including control over suppliers, improved process cycle time, close cooperation relationships, improved supply chain efficiency, raw materials on time for suppliers. Process automation, including reduced errors, capability to obtain and exchange real time information.
Improved purchasing process, including reduced arrangement and handling times, shortened response time for purchasing, improved order process speed, reduced labour costs.
Reduced stocking including reduced risk, reduced stock capital costs, reduced unused raw material stock. Improved payment process including faster payment operation, lower interest rate, and lower credit risk.
Improved distribution process, including delivering on time, reduced delivery enquiring time, improved distribution management. Improved global competitiveness including global order opportunities. A competitive firm needs to directly manage the flow of goods through its distribution networks in a cost-effective manner.
Organizations have come to realize that they can achieve this by integrating their supply chains. The adoption of IT to support the supply chain management can be seen either as a way to provide efficiency savings, or as a strategic response either driven by necessity or due to competitive pressure.
Therefore, IT implementations deliver many benefits like standardized production, optimized supply chain process, and automated process. If you are interested in writing articles for us, Submit Here Share this Page on:How the Supply Chain Uses Benchmarking Supply chain functions are using benchmarking for decision making, but can do more to track its impact.
APQC’s research shows that supply chain functions tend to be ahead of other functions with regard to using benchmarking to . Management information systems, of course, are still doing their jobs, but their function is now one among many others that feed information to people in business to help them manage.
The Benefits of E-Procurement. One of the key areas of debate currently in the procurement sector is the how e-commence can be harnessed to improve the efficiency of organisations and thus can be used to support the drive for organisation profitability. The purchasing function of operations management seldom uses the Internet to make purchasing decisions.
Internet-based companies have emerged to help businesses find the best supplies at . Procurement and sales Asg Computers. May – Present 10 years 7 months. Kempton park. Public Procurement and supply chain, ; Languages.
English. Full professional proficiency. Bachelor's degree in Marketing Management at University of South Africa. Kevin Gunkel The purchasing management Purchasing management directs the flow of goods and services in a company and handles all data relating to contact with suppliers.
Effective purchasing management requires knowledge of the supply chain, business and tax laws, invoice and inventory procedures, and transportation and logistics issues.