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Projects in purchasing

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  • #38377

    McNabb
    Participant

    We could use some help describing an approach to improve our purchasing process. We are a small lot custom chemical formulation producer, therefore a few 1000 items are purchased, some for the first time. Quantity and grade of items are cost factors as is variation in delivery times. The process map is fairly constant, however, Purchasing looks like a short order cook at a breakfast bar. Since I am new to this, I could use some advice on an approach which would 1.organize the process and 2. reduce many of the high costs due to non-negotiated purchasing agreements. Your advice or related projects would be helpful.

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    #114736

    Mike Carnell
    Participant

    Mary,
    “Since I am new to this, I could use some advice on an approach which would 1.organize the process and 2. reduce many of the high costs due to non-negotiated purchasing agreements.”
    Number 2 seems like a big statement. That by itself would be intersting to work on if you can prove it with data.
    Good luck 

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    #114740

    Samir Gandhi
    Member

    A proper problem statement with correct scoping and key deliverables would create focus on what processes can be organised. Automation of indenting processes, reduction of functional handoffs, online information availability for more informed decisions are some of the key benefits I have seen when I set out on a similar project a year back (we purchase more commodity products). Consistency of pricing is a real challenge if forecasting techiques are not being currently used, but an elementary ABC analysis could generate good benchmarks.
     

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    #114826

    McNabb
    Participant

    Thank you very much for the advice.We were looking at it as one big problem. However, as both of you state partitioning the problem into manageable pieces would be a better approach. Some times the trees block the forest.

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