Why is Supplier Performance Management important? Supplier performance management is important for a number of reasons: It helps ensure that goods and services are delivered on time and meet quality standards. This is especially important in industries where timely delivery and high quality are crucial, such as in the manufacturing or healthcare sectors. It allows…

Reverse auctions are a great tool for buyers to save money, but many suppliers tend to be apprehensive about participating in them. Suppliers do not like participating in reverse auctions because they are typically viewed as a race to the bottom in terms of pricing.  There are more apprehensions which we will articulate in this…

How do you achieve success with strategic sourcing? What do you need to do to be successful with strategic cost reduction? This article outlines some of the best practices on how to effectively perform strategic sourcing, so you can achieve your goal of lowering your costs without sacrificing the quality or reliability of your supply…

It is up to the buyers to enforce practices in their sourcing process that build trust with suppliers. These practices assume greater importance when companies resort to eProcurement.

A Request for Proposal (RFP) represents a document or a sourcing stage where proposals are solicited from suppliers or solution providers.

The Buyer uses the RFP to state the requirements of the goods or service being procured, the terms and conditions of the engagement, the vendor evaluation criteria, and most importantly the bidding sheet. This bid sheet outlines the quantum of goods or services and suppliers need to quote the price for the same.

Simple mistakes can prevent your organization from reaching the potential for reverse auctions. Here are 6 reasons why reverse auctions fail.

The process of Sourcing involves looking for new suppliers, assessing their capability, comparing their products and their offerings with the demand or with the incumbent supplier’s offering, uniting with all suppliers to receive marketable bids, researching the bids, and negotiating for the optimum price & capability mix.

What is eSourcing? The process of Sourcing involves finding new suppliers, evaluating their capability, comparing their products and offerings with the requirement or with the incumbent supplier’s offering, collaborating with all suppliers to receive commercial bids, analyzing the bids, and negotiating for the optimum price & capability mix. Depending on the strategic nature of the…

Procurement teams often face a scenario where they have to compare bids from suppliers that aren’t exactly similar. What do we mean by that? Here are some scenarios where bids received from suppliers aren’t comparable. Shipping costs are incurred by the buyer and are different for each supplier i.e. supplier provides goods ex-works and the buyer is responsible for the transportation of goods. Payment terms are different Quality and esourcing services levels are different Switching costs are incurred with a…

Reason 1: Inviting unqualified suppliers to the auction event Auctions should ideally be the final step in the negotiation process. Negotiating with suppliers post the auction is a big no-no. Similarly, qualifying suppliers post the auction has its demerits too. Assume the lowest-ranked supplier is disqualified post the auction. The next ranked supplier will doubt the veracity of the event and will likely be peeved. Reason 2: Poor supplier management Suppliers would much rather compete in a transparent and…

In the last couple of months, we have been successful in signing up new customers across 4 countries. These companies are from varied industries - Financial Services, CPG, Auto, and Energy & Utilities. Here are 5 reasons why companies select the eSourcing services of Krinati to tide over the ongoing crisis.

1. Immediate Savings With Online Auctions Conduct Reverse, Forward, and Dutch auctions for direct materials, indirect materials, and capital expenditures. Our customers also conduct online auctions for…

A combination is formed when businesses agree to act together for an anti-competitive purpose rather than contending against each other. The combination-forming companies divide the requests and guests between themselves and agree on prices. The consequences are increased prices and deteriorating quality of products and services. Several profitable studies and legal opinions of antitrust authorities have planted that the median price increase achieved by cartels in the last 200 times is around 25. Principal…

The reverse auction dates back to the 1990s; it made its debut when the internet opened its doors as a platform for auctions and e-purchasing. It's known by colorful other names similar as e-auction, sourcing event, e-sourcing, and procurement auction. For those strange with this setup, it'll first help to touch upon in brief how a reverse auction works here. In a regular auction, the one you and I know about, there's a dealer who has an item up for trade. The interested buyers place flings on the item. The one that…