An effective procurement strategy can be a key to supply chain risk mitigation!

May 2nd, 2012

Today’s post is by Ryan Melowic Director of Customer Services at SafeSourcing.

Supply chain risk management is the process of identifying factors that could disrupt the production process.  Because conducting business is such a complex activity, the sources of such disruption are going to be many and varied; but because they cost the people who run and work for the business so much time and money, these people will naturally want to have some way to minimize the amount of risk— though of course they will never be able to eliminate it altogether.  And one of the most effective means of supply chain risk management is establishing a sound, effective procurement strategy— procurement being defined as the acquisition of goods and services, in both the proper quantity and the proper quality, when they are needed, where they are needed, and usually by means of a contract.

There is a company that devotes itself to helping other business owners to determine which procurement strategy will work best for them.  Our company, SafeSourcing, has developed a proprietary six step process for e-procurement, which is enhanced through the use of multiple tool sets. The SafeSourceIt Database, which has 427,000 suppliers and uses a set of over thirty safety certifications (which continues to grow) to screen out any suppliers that don’t meet your quality criteria, and a highly innovative e-negotiation  (Reverse Auction) tool, in which buyer and seller exchange roles and the seller attempts to underbid the competition within a certain period of time.  Those who wish to join may also learn more about procurement strategy by going onto the SafeSourcing procurement professional’s network, Sourcebook.

For more information, please contact a SafeSourcing Customer Service Representative.

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