Procurement cost and supplier management method

[China Glass Network] The difference between procurement and strategic procurement:

Four aspects:

1. Traditional procurement focuses on unit price, while strategic procurement focuses on total cost. "We are going to win a war, not a small battle." "Suppliers may make a lot of concessions on the unit price, and he may make up for it in other areas."

2, the number of suppliers, more traditional, to small, or even single. Choose a supplier and build a long-term partnership with him, so you will get more benefits for you.

3. The relationship with the supplier changes from transaction type to partner relationship. "Based on long-term benefits" "may not earn your MONEY in the short term, traditional procurement is more passive, while strategic procurement emphasizes initiative, that is, early participation.

4. Reasons for the transformation of traditional procurement to strategic procurement: market competition and globalization. Fast and on-time delivery (more emphasis is on fast delivery and shorter lead times).

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