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Wise Words: Thought Leaders Share Best Procurement Knowledge

Procurement and supply chain wisdom was abundant at the recent Horizon 2014 conference, a procurement conference sponsored by Zycus. It's clear the leaders in a variety of industries, from casino gaming to healthcare, have plenty to teach electronics industry about best-practices in procurement. Click on the image below to see some of the wise words that conference speakers offered.

— Hailey Lynne McKeefry, Editor in Chief, EBN Circle me on Google+ Follow me on Twitter Visit my LinkedIn page Friend me on Facebook

7 comments on “Wise Words: Thought Leaders Share Best Procurement Knowledge

  1. Hailey Lynne McKeefry
    November 13, 2014

    One of the themes that I heard a lot about at this confernce was the realization that we have to get beyond price/cost discussions to really innovate about how we approach procurement and the supply chain. Sustainability, social media, and other emerging trends will definitely change the way the electronics indsutry does supply chain activities.

  2. prabhakar_deosthali
    November 14, 2014

    As I understand from the various quotes from the industry experts is that we have to reduce the difference between the “Cost” and “Price” by innovationg on the processes, tools and the Knowledge base .

    This approach can result is reducing the dead overheads that we add to the cost , and provide products, services at competitive price.

  3. Anand
    November 17, 2014

    If somebody understands the difference between “cost” and “price”, they are certainly the engineers who are developing more efficient processes for production. Engineers know the cost of making the goods, and managers know how to sell it. If engineers were allowed to make marketing decisions as well as price-tag creation, prices would become a lot cheaper.

  4. Anand
    November 17, 2014

    “Sustainability, social media, and other emerging trends will definitely change the way the electronics indsutry does supply chain activities.”

    Since the media world is evolving in the face of new technology too, I would put social media above marketing partners because when something is trending, that is the biggest marketing without the expenses of such marketing involved.

  5. Hailey Lynne McKeefry
    November 18, 2014

    @prabhakar, there is certainly a big difference between just price and total cost–and a focus on the later is critical.

  6. prabhakar_deosthali
    November 19, 2014

    @Hailey,

    Actually I thought the otherway round.  The cost is what you paid for making an item and the price is what you put on that package when you want to sell it.

    Whereas the cost is actual, the price is notional – depending upon your brand value, the demand, your expected profit margin and the distribution overhead.  So the “price” becomes negotiable whereas the cost does not. To reduce cost the company has to work right from the basic prodcut design to production processes.

     

    So a company attempts to “reduce the cost” of the product while attempting to get “Maximum price” for its product.

     

    Wider the gap, the more profitable the company becomes.

  7. Hailey Lynne McKeefry
    November 19, 2014

    That's definitely one way of looking at it. I was thinking of an example from one of the speakers who was working wtih purchasing to stop them from focusing solely on teh price of the products they were buying (in our industry, price per component) and instead look at the entire cost structure (transportation, dock worker time of loading and loading, time spent tracking and managing bought assets, and the like). By looking at this second area, and especaily the way that OEMs work with their suppliers to reduce costs in creative ways–then they won't have to worry as much about always getting the price of the products they buy lower, which isn't long term sustainable.

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