OUA LSCM 5052: Procurement Strategies, Software, and Negotiation

This document provides a comprehensive overview of procurement strategies, encompassing various aspects from software utilization to negotiation techniques. It explores the significance of effective procurement in achieving organizational growth, emphasizing the role of procurement software in managing spending and ensuring optimal prices, quality, and quantity. The content delves into the advantages of procurement software, the importance of developing commercial skills, embracing ethics and sustainability, and managing risks. The document highlights the application of procurement strategies across diverse sectors, including aviation, banking, and manufacturing. Furthermore, it addresses new trends, such as cloud-based procurement, analytics-driven approaches, collaboration, mobility, and digital procurement. The document also provides insights on saving money through working capital optimization and explores e-procurement solutions, including spend analysis and supplier discovery. Information sourcing, research in the field of procurement, and supplier base trends are also discussed. The provided assignment also includes details on negotiation approaches (adversarial and collaborative), and category management.

Succeeding with new procurement
strategies

 It includes the finding, acquiring, buying goods and
services and it helps in ensuring to provide the
best prices to buyers, quality and quantity can be
compared with competitor’s.
 Procurement software are used by the
professionals for managing the organizational
spending's. Effective procurement strategies helps
in achieving the objectives for the growth
Procurement strategies

 Ease of administration
 Long term cost savings
 Easy monitoring of Spending
 greater control of organization-wide
spending
 Increase in productivity
 Security
 Flexibility and functionality
 Saving time
Advantages of procurement
software

 Effective procurement strategies are required
for delivering savings
 Developing of commercial skills
 Effective understanding of big data
 Embrace ethics and sustainability
 Managing risk
 Digitization of supply chain
 Artificial Intelligence
Procurement strategies

 Aviation
 Banking and financial services
 Consulting
 industrial manufacturing
 media and entertainment
 Logistics and transportation
 Retail and leisure
 Telecommunications
Implementation of procurement
process in different sectors

 Process insourcing
 Working capital management
 Tightened spend management
 Improved cross-functional relationship
 Higher savings target
 Contract reviews
 Technology investments
Importance of procurement
processes

 Pervasive Talent shortage
 Continuing Rise of Digital Technologies
 Cyber security Concerns- Growing in crime is the serious
issue for the professionals to consider in supply chain.
 Fact-based Procurement Decisions- decisions which are
taken by professionals must be fact-based.
 Impact of Tariffs- Strategic sourcing is required in
procurement
New trends in procurement
process

 Effective technology is required by the
procurement professionals
 Constant change is required to run the
business and procurement team is required
to play a strategic role in the growth of the
business. Team is required to focus on the
cost reduction and risk mitigation.
 Areas which are required to be focused are
efficiency, accessibility, and sustainability
for making the effective purchasing
decisions.
Advancement in
technology

1. Cloud based pattern- procurement is
required to move towards the cloud. It helps
in offering single-tenant cloud, on-premises
and hybrid solutions.
2. Analytics- Analytically driven approach in
procurement helps in providing innovation
solutions to tackle with the challenges like
taking uncertain decisions, inefficient use of
resources. Data driven insights helps in
demonstrating more values and
organizational change.
Advancement in technology which are required
to be adopted for competitive advantage

3. Collaboration- it includes the shifting of
procurement technology for procuring to pay
solutions.
4. Mobility- in the process of procurement,
professionals can adopt the change facility for rapidly
accelerating trends, for allowing the stakeholders to
access the and taking part in the process of
procurement function at any time in an efficient way.
In procurement strategy, mobility must be adopted
by professionals for selecting the effective vendor.
5. Digital procurement- The shifting of operations to
digital approach helps in bringing new advantages
and it helps in focusing on high-impact and value
driven activities.

 Reducing travel budgets
 Headcount reductions
 Restricting individual technology
 Working capital optimization
 Demand management
 Low-cost country sourcing
Best ways to save money in the
process of procurement

 It is necessary for the organization to save
money as well as manage it properly.
 Working capital optimization is the main
focus of the organization for managing the
cash in the procurement process effectively.
 Improvement in cash flows
Cash management in process of
procurement