What are the best practices for reducing purchasing cycle time and costs?

First need to develop a purchase dashboard, so we can see what is the purchase pendency in our system & where you need to work. Second need to develop the system with unique code instead of generic material code so we can take reference of price history. If we can develop the system like this so we can work with less purchasing cycle & also Focus on cost saving.

Best practices for reducing purchasing cycle is all about how you react once you get PR from any dept. Examples: 1) Work smart, we have ERP's now and perform our job on same, almost everyone does it. 2) Make sure you are good in excel as it save your time of data entry as well. 3) keep supplier email groups and make sure to contact the concerned one's only. 4) Most of the items are always based on routine or regular prices, no need to go with other suppliers at this moment, carry on with your regular one's. 5) Keep your work flow in chronology, it will help you to ease the process. 6) Don't wait for final approval of creating an order, being proactive is your talent, don't miss it. 7) Follow guidelines do your best, you are the best fit.

Develope a solid relationship with the supplier Streamline the process and consolidate the procurement activities Manage the inventories by reviewing thr par levels vs usage And most importantlymake sure your staff is on board of any project and well trained

Here are 5 crucial steps to reduce costs and improve effectiveness: 1. Automate and Standardize: Embrace automation to eliminate errors and standardize processes. 2. Streamline Operations: Cut unnecessary steps and align with your strategy. 3. Measure and Optimize: Monitor KPIs to identify improvements over time. 4. Supplier Focus: Prioritize key suppliers for better deals and simplicity. 5. Tech Integration: Invest in procurement software for transparency and efficiency. Implementing these steps enhances efficiency and cost-effectiveness in business operations.

My suggestion is to ask questions when you are being required to provide information - this can relate to setting up POs, vendors and/or items. For example, a PO should provide the information necessary for the seller to know how to fulfill your purchase request, but it should not need to include information that is duplicated elsewhere. An item number and basic description should be enough when a specification exists - no need to complicate the PO with extra information.

The best way to reduce the purchasing cycle and cost is to adopt an automatic cycle. The system should be connected at the supplier end. So whenever the requirement gets popped on screen of the system (SAP, ERP, BAAN, Oracle). On one click the information should pass on to the required supplier. Also there should not be too much authorization in the system. It saves a lot of time. Because much more time gets wasted in getting approval in the system. The system is used to get work done, we do not have to work for the system.

Importante trabajar la optimización sobre estos ejes. - Simplificar el flujo - Mitigar los riesgos - Asegurar cumplimiento - Engranar con los otros procesos Para que esto se dé, hay que escuchar, tener inmersión en el mapeo completo y alinearse a los objetivos. Cuando se cuida esto se está hablando de una optimización estratégica

Businesses can optimize their procurement operations by using technology for automated ordering, inventory control, and supplier relationship management to cut down on the time and expense of the purchasing cycle. Costs can be reduced and productivity can be increased by putting strategic sourcing techniques.

Il faut établir des procédures d'achat standardisées. 2 types de procédures doivent être mises en place : pour les OPEX et les CAPEX (il faut séparer les dépenses IT des autres dépenses d'investissement car les signataires sont généralement différents)

Extremely important to collaborate, but the cost/benefit of each additional task should be considered. Automation can improve things, but automation needs to be maintained. Analyze the incremental steps and ensure responsibility rests with the appropriate person(s) with the appropriate skill set. Procurement is very similar to project management.

To have transparency in the purchasing process communication has to be clear, concise, correct, concrete, coherent, complete, and courteous.

O fluxo de informa??es deve ser preciso e comunicado com clareza entre todos envolvidos. Essas informa??es precisas e acordadas previamente devem estar expressas e de forma clara no PO para fácil entendimento de todos e posteriormente realizar FUP adequado e sem ruídos.

Communicate with your vendors and/or suppliers. They should be part of the solution. Determine where they can help and crowdsource ideas from them as it relates to other customers where things are working well.

He sido un apasionado por el servicio; y la comunicación es parte fundamental para tener éxito en ello. La comunicación permite ser empático en cualquier etapa del ciclo de compra. - Con el cliente interno, para entender bien su necesidad e informarlos del avance de la misma. - Con los proveedores, para que aterricen y entreguen sus mejores propuestas, para hacerlos sentir valiosos al cominicarles la adjudicacion o agradecimiento. - Con los pares para pedir ayuda o ayudar en situaciones similares o bastantes distintas. - Con los superiores para mejorar la confianza en la toma de decisiones y el impacto a la organización. Esto hace que mediante las relaciones y el servicio se mejoren tiempos y se reduzcan costos en el ciclo de compra.

Definetely could be by applying lean six sigma also. Or in simple way just identify the waste and make Continous Improvement project for this monitor and improve part. All the related stakeholder must be involved to make sure that the project will have significant impact especially to our internal customers

Use simple and universal technique of ECSR -Eliminate , Combine, Simplify, Rearrange. This technique can be used for improvement in any area of activity. Apply this to all the activities involved in the process .

Important as well in having appropriate demand planning & sales goals validated... Ensure to maximise inbound shipments to reduce costs. Appropriate Incoterm based on the type of business. Ensure having the proper supplier matrix & options. There are more elements of course.

Don’t give the supplier an unrealistic proposal response date that is unachievable. This causes more unnecessary back and forth negotiations even before the pricing is received.

In my point of view, training employees involved in the purchasing process, as well as suppliers, is not just about training and coaching sessions. It is necessary to have well-defined work instructions, as well as policies for relationships with suppliers and service providers. Develop formal instructions, containing the necessary requirements to train suppliers. Demand quality certifications from suppliers, as well as performance indicators to verify their service capacity.

The most important practice is to have a proper coordination within the concerned depts. there should be policies to maintain the time frame of purchasing process. On time approvals and early communication is a must.

Es importante ense?ar a autogestionar. Dentro del proceso hay veces que la gente se enfrasca por información que podrían obtener ellos mismos en cosas sencillas pero se quedan esperando que alguien más se las dé. Es necesario por ejemplo que un usuario sepa consultar el estado de una requisición, códigos y fechas de entrega en las órdenes de compra, así como bajar algunos reportes.

Quanto mais os envolvidos entenderem o processo, mais fácil será as aprova??es, o acompanhamento e as entregas corretas do que foi solicitado. Para isso funcionar adequadamente seria recomendado ciclo de treinamento periódico nas ferramentas pertinentes e métodos de compras.

Empowerment goes hand-in-hand with trust. Encourage a culture where team members are trusted to make decisions within their areas of responsibility. This not only speeds up the decision-making process but also boosts morale and creativity. Additionally, continuous learning is essential. Provide ongoing training not just on processes but also on industry trends, ethical considerations, and emerging technologies. This prepares your team for future challenges.

Concerns to be dealt: 1) An Uneducated SCM will always trouble you, you need to be patient. 2) An experienced but uneducated SCM will overcome and be like bossy, you need to be tolerant and stand by your standards. 3) Your manager never will appreciate you if you see him/her taking all credit of your capabilities. 4) Deal with transparency as Procurement is always treated as (Source of passive income). 5) Make everything official, keep track record of every single transaction you make, Get all your deals updated with concerned supervisor.

Disponer de una metodología clara, sencilla y ágil; que te permita capturar los ahorros de forma rápida. Las organizaciones donde el porcentaje de las compras representa más del 50% del coste del producto, es imprescindible contar con un equipo de alto rendimiento, con proveedores homologados y con una fluida comunicación cliente interno-compras. De esta forma te puedes anticipar, la segunda variable más relevante aparte del precio es el tiempo.

Hace mucho tiempo internalicé de una empresa petrolera el lema de "hacer las cosas bien desde la primera vez". Ello implica que se evitan los retrabajos y se reduce muchísimo la posibilidad de perder tiempo crucial en materia de gestión de Abastecimiento. Al mismo tiempo, se logra la reducción de los costos del proceso. Por último, la planificación anticipada es clave.

In my experience of 8 years managing end to end procurment activities in the development sector, it is very crucial to stay have updated market research and ensure the right specifications are put out prior the solicitation phase, this helps to minimize or eliminate delays . You may also spread your risk by spreading a huge order amongst a couple or more vendors for example ordering 1000 delivery beds from a vendor may be risky if vendor is faced with a challenge, however spreading this across 2-3 vendors may help reduce the turn around time.

Innovate and adapt in the purchasing process to create value, differentiate, and stay competitive, utilizing strategies like market research and agile procurement.

It is recommended to implement below points to reduce purchasing cycle time & costs: 1. Standardization 2. Streamlined Processes 3. Automation 4. Supplier Relationship Management (SRM) 5. Strategic Sourcing 6. Centralized Procurement 7. Technology Integration 8. Performance Metrics 9. Cross-Functional Collaboration 10. Supplier Diversity

Automation is a very effective way to reduce cycle times and process costs, as long as a few critical things are in place: An unique item master (no duplicates) understood by all Negotiated agreements with approved/preferred suppliers, with electronic connections Approved budgets for ongoing expenses Trust and common sense Users can select what they want, prices populate and the total can be compared to the budget available. The PO can be sent directly to the supplier. Cycle time? Negligible. For inventory items, this should be obvious. For "discretionary" purchases, authorities can be revoked if they are abused. The next place to look is the fulfillment cycle, the receiving and invoice payment. This gives you clean data to negotiate.

Clear and precise specification. Raw & Packaging Materials Specification should be clear and precise, in align with customer requirements.

Reduce unwanted authorisations and acknowledgement. Unwanted authorisations and acknowledgements are time consuming procedures in purchase. For eg. 1.Avoid unwanted followup calls 2. Avoid unwanted authorisations or signatories for approval and confirmations.

Check these out: Implement Automated Systems: Utilize procurement software to streamline processes such as vendor selection, purchase order creation, and invoice management, reducing manual errors and accelerating transaction speed; Standardize Procedures: Establish standardized procurement procedures and templates for requests, approvals, and contracts ; Negotiate Supplier Contracts: Negotiate favorable terms with suppliers, including volume discounts, payment terms, and delivery schedules. Consolidating purchases with preferred vendors can lead to cost savings and faster order fulfillment; Enhance Communication: Foster clear communication channels between procurement staff, stakeholders, and suppliers.