Thursday, 15 May 2014

What’s the new Supply Positioning Model for Green Procurement?

The new supply positioning model for green procurement is made up of four parts:

Tactical Acquisition - Low expenditure & low risk including the following strategies:
  • Simple procurement procedures
  • cash orders
  • paperless systems
  • purchasing cards
Tactical Profit – High expenditure & low risk cutting costs and increasing profits through methods such as:
  • active sourcing
  • exploitation of the market
  • Flexibility
  • Short term contracts
Strategic Security – Low expenditure & high risk to ensure supply (even if it means paying premium prices), purchasers need to:
  • Be vigilant of costs to ensure they don’t spiral
  • Seek long term contracts
  • Use indexation
  • Stockholdings
  • Seek alternatives
  • Use cost incentives
  • Be conscious of volumes
Strategic Critical – High expenditure & high risk ensuring supply but no using high spend to trade. Buyers need to:
  • Understand the supply market and be aware of the major players
  • Use medium term contracts
  • Have detailed contracts
  • Price management
  • Use contingency planning
  • Analyse suppliers

No comments:

Post a Comment