Lamine NIANG

The Importance of Five Rights of Procurement: Procurement incapabilities and aspects cost the organization a huge price either in the form of delayed purchases or any transaction dispute. Attempting to accelerate the procurement process with outdated tools becomes an issue within the organization’s bottom-line. Here the primary task of the procurement process is to give the right inputs for the organization’s process. The five rights of procurement include: Right Quantity Right Quality Right Place Right Time Right Price The procurement Rs can be also termed as key performance variables or procurement factors. The importance of achieving the 5 Rs are as follows: Right Quantity: The term right quantity refers to procuring a sufficient amount of products to meet the demand and lessen the excess stock by forecasting demand, inventory management, etc. Insufficient quantity can lead to stock-outs, will lose credibility in sales as well as goodwill, etc. Right Quality: Poor quality of product will only lead to incurring higher costs, loss of goodwill, and damaged reputation. Right product quality has aspects like reliability, quality conformance, safety, etc. It should be suited to the needs of internal as well as external stakeholders. Right Place: Right place refers to the place of delivery point. The arrival of products in a safe and secure way can be done by distribution planning, packaging, transportation, etc. Unhandled goods or goods delivered at the wrong place will cause unnecessary damage to goods and also add up in the transportation cost. Right Price: Right pricing is minimizing the procurement cost in order to maximize the profit. This can be done by continual price discovery, supplier price analysis, competitive pricing and, future negotiations. Without achieving the right pricing, profits will decline while the material and supply costs will rise. Right Time: Securing the delivery of goods at the delivery point at the stipulated timeline can be done by demand and supplier management. Therefore, it is must that requester provides procurement team with accurate data of the 5 Rs for the smooth flow of the procurement process within the organization and any missing data, will lead to loses in money, time, efforts and delay. #SupplyChainOptimization #Procurementleaders #Procurementprofessionals #Procurementexcellence #SupplyChainManagement

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To excel in Procurement, you need to know how all the other business functions operate: 𝗦𝗮𝗹𝗲𝘀 & 𝗠𝗮𝗿𝗸𝗲𝘁𝗶𝗻𝗴: You need to know the value proposition of your company to end customers. You also need selling skills yourself to sell the benefits and value of Procurement within the organization. 𝗜𝗧: You need to know how to integrate applications together to enable Digital Procurement. 𝗛𝗥: You need to know how to help colleagues develop and how to recruit the best people. 𝗣𝗿𝗼𝗱𝘂𝗰𝘁𝗶𝗼𝗻: You need to understand your core business to know what's important to the business overall. 𝗔𝗰𝗰𝗼𝘂𝗻𝘁𝗶𝗻𝗴 & 𝗙𝗶𝗻𝗮𝗻𝗰𝗲: You need to know how to impact the bottom line. For that, you need to know how to read financial statements. Do you know what depreciation is? Capex vs Opex? 𝗠𝗮𝗶𝗻𝘁𝗲𝗻𝗮𝗻𝗰𝗲, 𝗙𝗮𝗰𝗶𝗹𝗶𝘁𝗶𝗲𝘀 & 𝗪𝗮𝗿𝗲𝗵𝗼𝘂𝘀𝗶𝗻𝗴: You need to understand how the other support functions are essential and contribute value to the business. If you want Procurement to be taken seriously, you need to take the other functions seriously. What steps are you taking to 'learn your business'? Put concrete actions in your development plan. What's a business function I forgot in my list? Why do Procurement people need to learn it? Let me know in the comments 👇 _________________________ 𝗣.𝗦. I help companies choose and implement ProcureTech solutions for a living. Every Sunday, I send out a free newsletter which documents the best practices, trends and frameworks in ProcureTech. It's read by thousands of Procurement professionals (and counting...) 𝗦𝘂𝗯𝘀𝗰𝗿𝗶𝗯𝗲 𝗳𝗼𝗿 𝗳𝗿𝗲𝗲 𝗵𝗲𝗿𝗲: https://lnkd.in/eFs8dc-F

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👉 Ep. 84/2024 - 𝗔 𝗰𝗼𝗻𝘁𝗿𝗮𝗰𝘁 𝗶𝘀 𝗹𝗶𝗸𝗲 𝗮 𝗿𝗲𝗻𝘁𝗮𝗹 𝗰𝗮𝗿 - All starts with the Business Function talking the Procurement about its needs & goals. Together they define: 🔷 the "destination" - the type and the form of the contract(s) that the business function needs 🔷 the "path" - what it needs to reach the "destination", in terms of actions, plan, subjects to be involved, etc. and together they "build" the contract(s), each function with its competences and role in the company (and including the support of the Legal Function). 📌 Ok, we've followed the path and the contract has been awarded to the Supplier XYZ... what's next? 𝑨 𝒄𝒐𝒏𝒕𝒓𝒂𝒄𝒕 𝒊𝒔 𝒍𝒊𝒌𝒆 𝒂 𝒓𝒆𝒏𝒕𝒂𝒍 𝒄𝒂𝒓, therefore: 💫 1 - The Procurement gives the "keys" to the Business Function, so that they could use the "car" for the services/supplies it has been created for. 💫 2 - The Business Function is free to use and manage the contract within the limits/actions defined: 1) by the contract itself (its clauses and the technical specs); 2) and by the company's internal procedures. 💫 3 - With that "car" the Business Function goes where it needs to go, it manages the daily relationship with the supplier and it evaluates the supplier's performance against what is defined in the technical specs of the contract (KPIs and SLAs), applying the defined contractual actions in case of disservices (e.g. penalties). 🤔 Contrary to what has been said above, the Procurement is often portrayed as someone who does its role and 𝘢𝘭𝘴𝘰 all (or the most part) of the above things 𝘪𝘯𝘴𝘵𝘦𝘢𝘥 of the Business Function, as an actor between the Business Function and the Supplier, trying to perpetuate a sort of “you ask, I do” paradigm. Well, besides simplest and/or specific contexts where there might be an overlap of roles and responsibilities, 𝒊𝒕 𝒔𝒊𝒎𝒑𝒍𝒚 𝒄𝒐𝒖𝒍𝒅𝒏'𝒕 𝒃𝒆. 🔎 You may be thinking "Why that?". Think of a medium-large company. For each Business Function there could be dozens, maybe hundreds of contracts. The Procurement has its role/responsibilities, from defining the sourcing strategy and solutions with all the Business Functions, to creating the contracts, to renewing them, to the (overall) supplier relationship management, to the negotiations, etc., and it cannot also put itself in the role of all the Business Functions to use and manage all the contract of the company instead of them (and without having the specific in-deepth knowledge of the interested services and products). 👉 Once the contract is awarded, the Procurement gives the "keys of the car" to the Business Function, like a rental car. The Procurement is called for action in case of severe disservices/problems, when defined by the contract and/or the internal procedures of the company, and, of course, for all the activities and responsibilities of its role. What do you think? Add your thoughts and comments ✍ Share it, spread information and ideas 💫 ----- #micheleromano

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Learn 7 critical supplier metrics every procurement professional should track in this cheat sheet below. This isn’t just another “nice-to-have” checklist. You can practically use it as your playbook for holding suppliers accountable and boosting your bottom line. P.S. Want to learn most of what you should know about strategic procurement? Check out the CIPP - CERTIFIED INTERNATIONAL PROCUREMENT PROFESSIONAL program here: https://lnkd.in/gKiikvwn #Procurement #Supplier #Supplychain #Procurementtraining #Procurementjobs

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To unlock greater cost savings and value in Procurement, you need to think about innovation. And the reason for this isn't farfetched, traditional cost saving methods no longer suffice in procurement. In other words, you must embrace innovation and explore new approaches to stay competitive and achieve sustainable savings. In this blog post, we'll delve into 4 innovative strategies to unlock greater efficiency and value. Discover more here>>>https://lnkd.in/dMxsauJV #efeminiacademy  #newblogalert #agilestrategies #changemanagement #procurement  #procurementmadeeasy

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Defining procurement technology, improve processes, and drive compliancy on procurement policies won’t be effective.... ... or value driven without defining required skills & competencies needed to deliver the change or transformation. As procurement professionals we need to realise best practices includes asking for help to get the right support to deliver that will help the procurement profession deliver their best. Let me know if you'd like know more on how we can achieve this for you.

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Introducing Procurement Tactics’ T-Shaped Model! 🚀 The T-shaped model is our own idea at Procurement Tactics on the competencies we believe all procurement professionals should have, regardless of their level or position, to be successful in the ever-changing procurement landscape.    T-shaped procurement professionals are characterized by their vertical expertise in specific procurement domains: 🎯 Empathic negotiation 🎯 Analytical and strategic thinking 🎯 Soft skills  🎯 Sustainability These are supported by Functional Competencies that depend on their specific role or organizational requirements! 💡 What do you think about our model? 👇 #Procurement #ProcurementProfessionals 

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The Procurement Maturity Model is a GREAT framework that organizations can use to assess and enhance their procurement processes. It usually consists of different maturity levels, each representing a stage of development in the organization's procurement capabilities. These levels often progress from basic and ad-hoc processes to more advanced, strategic, and optimized practices. Can you identify at which stage your processes are? #Procurementmaturity #Development #Spendmanagement

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At Business Platform, we emphasize the value of hands-on learning. Gaining knowledge is important, but true understanding comes through practical application.

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Procurement Reports: Importance, Benefits & Challenges In this video you will Understanding the different forms of procurement reports are critical for effective procurement management. These reports function as navigational tools, providing insights into many aspects of the procurement processes. This video divided into 5 sections. Section 1 : Introduction of Procurement Reports Section 2 : Importance of Procurement Reports Section 3 : Benefits of Procurement Reports Section 4 : Procurement Reporting Steps Section 5 : Challenges in Procurement Reporting

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Procurement Hot-Take of the Week! Relying on price alone in procurement is the fastest way to destroy long-term value. Focusing only on price in procurement can lead to poor quality, supply issues, and hidden costs. It may seem cheaper upfront, but it risks long-term value. Building strong supplier relationships and considering overall value, not just price, is the smart way to ensure sustainable success. Do you agree?👇

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Procurement Models - Your Free Guide 🎁 I’ve just read ‘The Procurement Models Handbook’, by Andrea Cordell & Ian Thompson. It’s an essential resource for Procurement Pros. In these slides I’ve simplified it with a picture of every Procurement model and a quick explanation. Models that explain ➟ Key Processes ➟ Strategic Analysis ➟ Relationship Building ➟ Negotiation Techniques ➟ Management Theories ➟ Organisation Structures You can use this slide deck as ✅ your personal checklist ✅ an interview revision guide ✅ to share with your team ✅ give it to stakeholders to explain ✅ store it on your intranet as a guide Has this helped? Which model is your favourite? Any model I’ve missed? Let me know in the comments. 👇 Feel free to ♻️ repost or share this with your network. ____________________ 📌 Do you want a hi-res PDF of this carousel and all the other ones I release straight to your inbox? I’m Tom Mills Procurement Protagonist®️ I simplify Procurement. Just sign up to my free newsletter here: https://procurebites.com/ You’ll get weekly insights and my PDF cheat sheets for free, released every Monday via the newsletter.

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TIPS – TOP TEN PROCUREMENT CONCEPTS – (1) Just ask; (2) Understand the marketplace; (3) Define your objectives; (4) Educated Decisions are Value Driven; (5) Pricing; (6) Investigate Multiple Options; (7) Multiple Decision Makers can be an advantage;  (8) It’s Business, Not Personal; (9) Relationships; and (10) Ink the Deal. For more information contact [email protected]. #csuiteIMPACT #businesslawyer #attorneyatlaw #lawfirmlife #lawyering #lawyerstyle #lawyertalk

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What is procurement governance? procurement governance is the process and framework for governing the acquisition of goods, services and intellectual property by organizations. It ensures that all procurements are conducted in a fair, legal and transparent manner, reflects the organization’s overall strategy and meets specific business needs. The main goals of procurement governance are to: 1- Ensure compliance with relevant laws and regulations. 2- Protect the organization’s resources from misused or irregular contracts. 3- Avoid conflicts of interest within the organization. 4- Helps ensure that contracts are awarded in an objective, competitive and ethical manner, 5- Efficiently manage contract costs and timelines. What are the benefits of procurement governance? One of the most important benefits of effective procurement governance is ensuring that contracts are awarded in a fair and transparent manner. This protects both the government agency awarding the contract and the company bidding on it—both of whom could be impacted by corrupt or fraudulent behavior. It also helps to ensure that contracts are awarded based on merit rather than favoritism or political influence. Another benefit of effective procurement governance is preventing costly conflicts of interest. When contractors have close ties to government officials, they may be more likely to lobby for favors or pressure the government into making decisions that are in their own best interests rather than those of the taxpayer. By implementing proper procurement procedures, agencies can avoid these conflicts and ensure that taxpayer dollars are being spent efficiently and effectively. Why is procurement governance important? Achieving effective procurement is critical for a number of reasons. First and foremost, proper procurement can save businesses money. By avoiding unnecessary costs and connecting with the right suppliers, organizations can reduce their overall expenses. Second, procurement can help organizations improve their productivity and efficiency. By streamlining the procurement process and ensuring quality products are delivered on time, organizations can improve their workflows and save time overall. Finally, good procurement practices can protect companies from fraudulent activities or misconduct by suppliers. There are a number of key elements that make up a robust procurement governance system: an efficient identification and acquisition process; well-defined contractual terms; robust monitoring capabilities; clear standards for supplier performance; strong enforcement mechanisms; and effective communication channels between buyers and suppliers. #ProcurementProfessionals #ProcurementAwareness #CorporateGovernance #SupplyChainOptimization

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📢 The Procurement Value Circle is a framework that is used to guide and optimize procurement activities within an organization. It consists of four main stages, which are: 📌 Strategy: In this stage, the procurement team works closely with the organization's leadership to identify the organization's goals and objectives, as well as the procurement objectives that will support them. The procurement team also identifies the resources that will be needed to achieve these objectives. 📌 Sourcing: In this stage, the procurement team identifies potential suppliers and evaluates them based on various criteria, such as cost, quality, and delivery time. The team then negotiates with the selected suppliers to obtain the best possible terms and conditions. 📌 Execution: In this stage, the procurement team ensures that the agreed-upon terms and conditions are met, and that the goods and services are delivered on time and to the required quality standards. The team also monitors supplier performance and manages any issues that arise. 📌 Value: In this stage, the procurement team evaluates the results of the procurement activities and identifies opportunities for improvement. The team uses data and analytics to measure the value that has been created, and identifies ways to optimize procurement processes and achieve better outcomes in the future.   💡 By following the Procurement Value Circle, organizations can improve their procurement practices and achieve better results, such as cost savings, improved quality, and increased efficiency. #SupplyLinker

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"Hope is not a procurement strategy!" In procurement, relying on hope or luck isn't enough to deliver successful outcomes. A strategic approach, grounded in clear objectives, data-driven decisions, and effective supplier management, is essential for driving value and minimizing risks. Procurement professionals must take proactive steps to ensure compliance, transparency, and efficiency throughout the process. In my experience, having a well-structured plan is the key to overcoming challenges and achieving sustainable results. Remember, hope can inspire—but strategy delivers! #Procurement #StrategicSourcing #SupplyChain #ProcurementExcellence #SupplierManagement

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Upstream and Downstream in Procurement #innovation in #procurement

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After 7 Years in Procurement You Must Know How to: 1. How to Negotiate Like a Pro: You should have experience in using advanced negotiation techniques to protect your company's interests while building strong supplier relationships. 2. How to Manage Risk Effectively: Excel at identifying potential procurement risks early and developing mitigation strategies to address them. 3. How to Effectively Leverage Technology: Specialize in utilizing the latest in procurement technology to streamline procurement decision-making. 4. How to Lead Sustainability Initiatives: You must be able to champion sustainable procurement practices that not only meet compliance but also contribute to CSR goals. 5. How to Conduct Strategic Sourcing: You should be able to balance between tactical buying and strategic sourcing to create long-term value and competitive advantage for your organization. Feeling Behind? Don't worry! Even seasoned professionals have room to grow. If you're questioning whether your skills stack up, it might be time to consider enhancing your expertise with a certification. Enroll in CIPP or CIPM certifications today at: https://lnkd.in/gKiikvwn and close any gaps in your procurement skill-set in 6-weeks! #cipp #cipm #procurement #procurementexcellence #certifications #purchasingandprocurementcenter

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