Whether it's process optimization or minimizing spend, procurement leaders have traditionally under-prioritized indirect materials in favor of direct materials. This is primarily due to the overall impact on the budget as well as the complexity in the buying process and supply chain of indirect materials.[...]
MRO purchasing strategies, and overall indirect materials spend can vary widely across organizations, but proper management can save your business time and money in the long run. [...]
I sat down with Michael McFerrin, DSSI’s Global Director of Category Management, this week to discuss what he and his team are hearing in the market regarding the relentless pricing pressure for all sides. Michael, a long-time veteran of the indirect materials market starting with his work at General Motors over 25 years ago, leads a team of Category Managers in both the U.S. and EU. [...]
The ongoing COVID-19 pandemic has rocked manufacturers worldwide, impacting procurement and supply chain operations at an extraordinary level. While there is an unprecedented demand for certain products, manufacturers are themselves grappling with sluggish growth and diminished profitability. It's left most procurement teams asking, "How do we ensure we're better prepared next time?" [...]
If you've ever organized a sourcing event for MRO, you can appreciate the amount of item data preparation that is required. Making sure you have accurate item data with correct manufacturer names and part numbers can be a tough but critical task. How do you know you are getting the best pricing if you are not certain what you are buying? [...]
Closing or consolidating an office? Let DSSI help with the final touches.[...]
As part of its commitment to deliver continuous year over year savings, our DSSI Team presented its long-time client, a multi-billion-dollar automotive supplier, with a great opportunity for product standardization in early 2020 saving them time and money, while delivering the highest levels of support.[...]
When it comes to optimizing supplier performance management, quality business reviews (QBR) have proven to be an effective tool for best in class companies. The intent of the review is to provide an update on the state of the business as well as address any areas of concern for both companies.[...]
Pens, copy paper, pencils, envelopes. They are the basics that every office uses regardless of industry or function. So if every business consumes these items, wouldn’t an effective procurement strategy for this category be to aggregate your organization's spend with that of other companies?[...]
Whether the group is made up of several companies within the same industry or various companies coming together to purchase similar products, the advantage remains the same. Increasing the amount of combined spend vastly improves your position in the market and leads to greater cost savings over time. [...]
A lot has been said lately about reversing the trend in keeping suppliers at arm’s length. Many companies are finding that bringing their suppliers into the conversation can lead to sustainable supply chains and considerable overall cost savings. [...]
Many points were made in an earlier post about the benefits of consolidating your organization's indirect materials spend with that of other like companies. Aggregation of high-use MRO categories consistently produces cost savings well beyond what any one company could realize on its own. [...]
The advantages of e-procurement tools are widely recognized in the industry. From boosting productivity to controlling spend to having visibility into what each department or plant is buying, the benefits are immense. That said, not all e-procurement tools are created equally. [...]
If you've ever organized a sourcing event for MRO, you can appreciate the amount of item data preparation that is required. Making sure you have accurate item data with correct manufacturer names and part numbers can be a tough but critical task. [...]
How do you know you are getting the best price / value if you do not know what you are buying?
MRO and Industrial Materials Purchasing involves millions of different SKU's, purchased from thousands of different suppliers & distributors, purchased by dozens, hundreds or even thousands of different employees within your company.
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The focus of most industrial procurement improvement efforts address item related purchases. Yet, the procurement of plant related services is an area that can provide significant opportunities to save money and improve service levels.
You have a new purchasing system and you feel ready to execute seamless purchasing transactions, improve spend visibility and support program compliance. Unfortunately, your team tells you that the item data is a mess and this is creating a host of processing and supplier settlement errors. How did this happen?
Rigorous measurement and tracking of supplier performance is the key to managing a successful relationship. Suppliers can use this information to improve performance while buyers can identify top performers and eliminate suppliers who do not meet standards.