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Closer collaboration between stakeholders in IT procurement and logistics

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Leigh Juul | Head of Business Development and Strategic Alliances | Supply Chain Services

Leigh Juul | Head of Business Development and Strategic Alliances | Supply Chain Services

As supply chains become more integrated, there’s a greater need for closer collaboration between stakeholders in IT in the value chain. Supply chain management is no longer simply the freighting of the product; the process begins far earlier.  Organisations recognise the need for advanced procurement, sourcing, and supplier relationship management.

Internal procurement teams provide valuable input in terms of vendor negotiations, quantities, product specifications, pricing, discounts and lead times. Finance departments take care of invoicing, managing all payments and collections and checking that taxes and duties were paid correctly.

If all parties collaborate closely with project management teams, they can coordinate delivery within project deadlines. The more closely all these parties collaborate, the more efficient, transparent and cost-effective the entire supply chain and all its connected processes will be.

A supply chain service provider must know its client’s strategic plans in order to provide valuable input and feedback during the early stages of decision-making.  Successful procurement and logistics begins with the supply chain service provider’s involvement during early project planning and scheduling phases.

Leading companies are adopting the following best practices to have a strong foundation for supply chain excellence:

  • establishing a governing supply chain council
  • properly aligning and staffing the supply chain organisation
  • making technology work for the process
  • establishing alliances with key suppliers
  • engaging in collaborative strategic sourcing
  • focusing on total cost of ownership, not price
  • putting contracts under the supply chain function
  • optimising company-owned inventory
  • establishing appropriate levels of control and minimising risk
  • taking sustainable initiatives and social responsibility seriously

A good supply chain partner helps you understand and incorporate important elements during your planning cycle, such as correct pricing, the legal and timing complexities of moving goods around the world, taxes, and monetary regulations.  There are many parties involved in a successful supply chain. In order to achieve successful procurement and logistics, you need to consider the following:

  • Which country are products being purchased from?
  • Where is the equipment being moved to?
  • What are the tax implications?
  • What are the risks for each country involved and across the entire process?

Having a single service provider makes the procurement and logistics process simpler.

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