Improving sourcing decisions

Improving sourcing decisions – not only in turbulent times

We are excited about Prof. Dr. Bogaschwesky’s whitepaper about enhancing SCM performance. Especially about him mentioning mysupply in the area of the future of negotiations.

In the following we will give you a short summary about Prof. Dr. Bogaschwesky’s findings:

WHITEPAPER: Improving sourcing decisions – not only in turbulent times
(short summary)

Negotiations with vendors that have qualified to become a firm‘s supplier are still a core task in most Purchasing & SCM departments as stated from Prof. Dr. Ronald Bogaschewsky.
The process for a proper negotiation starts with analyzing the purchasing situation. First of all, the characteristics of the product to be purchased have to be defined, including technical aspects as well as demand volumes, frequencies, timeline, etc. Then, the market situation regarding general and specific demand and supply has to be analyzed. Many other factors that reflect on the strengths on the supplier‘s side versus the buying company’s side may be considered as well. These may include factors such as market size and growth, supplier’s capacity and utilization ratio, competitive structures on the market, profitability measures, cost and price structure, potential entry barriers, logistical characteristics and situation, etc.
Evaluating all these factors, weighting their relative importance and summarizing all this in order to get a clear picture of the „field for negotiation opportunities“ requires a lot of time and effort so procurement practise nowadays is doing this groundwork for truly strategic items – and rather not for the rest of approx 90% oft he goods.
Obviously this is not acceptable, when the aim is to establish high perfomance Purchasing & SCM function.
So the question comes up, how far is technology to support the procurement function to speed up the tender process in order to automate the sourcing process.
This would consequently include the supplier search, the evaluation of the offers and the negotiation process itself.
We invite you to learn more about negotiation the easy way in the whitepaper from Prof. Dr. Ronald Bogaschewsky, Chair of Business Administration and industrial management at the University of Würzburg.  

We are very happy about Prof. Dr. Bogaschwesky’s contribution and if you want to read the whole whitepaper, we will provide it to you only one click away.
Enjoy reading!