The procurement industry is undergoing sea change given technology advancement, business practices and growing consumer demands. Priorities in procurement have changed over the years with the evolving industry. The focus has shifted from sourcing strategies based on facts and research to meeting company’s objectives and catering to multiple projects at one time.
The purpose of a procurement management plan is to define the requirements and how it will be managed from developing procurement documentation through contract closure. The purpose of procurement definition is to describe, in specific terms, what items will be procured and under what conditions. Sometimes, items which must be procured for a project can be made internally by an organisation. Additionally, procurement deadlines are usually affected by the project schedule and are needed at certain times to ensure timely project completion.
Pankaj Kumar, Vice President, DOZCO (INDIA) Pvt Ltd said, “Over the years the priorities in project procurement has changed and complete FMC is being given to the manufacture or supplier. This way the cost related to operation and maintenance of equipment is frozen till the completion of the project.”
Leveraging value with suppliers
The company is moving towards customer value-focused sales management based on tonne per hour, cubic metre per hour and cost per hour, in order to increase customer-perceived value. Creating superior customer value is central to a company’s success in competitive markets. Companies today are searching for new ways to leverage value from their suppliers into growth and profitability. They want to take advantage of global competition to find better sources of supply and, at the same time, decrease their supply chain complexity, meet shorter response times, and build resilience. These opposing forces are rapidly leading to a crisis at many companies and for a few leaders, an opportunity to create a new kind of competitive advantage. However, with most of the customer value literature is focusing on concepts of value, not their application.
Hydraulic rock breakers
DOZCO’s advanced series of hydraulic rock breakers enhance safety, productivity and profitability and are durable, reliable, cost effective and user friendly. Comprising over 17 models from 1-100 tonnes, the company delivers complete bespoke equipment packages to meet customer needs. Some special features include reinforced body for greater reliability, accumulator designed for higher efficiency, larger piston diameter for increased impact energy, improved power or weight ratio to maximise productivity, lower operating cost and easy maintenance.
• Breakers that can be mounted to a mobile carrier range in size from those that can be paired with a carrier weight class ranging from 1-100 tonnes, for excavator, backhoe, and skid steer loader etc.
• Ideal for trenching and breaking hard rocks, huge stones, concrete, asphalt, etc.
• Hydraulic rock breaker digs through tough materials much more quickly and effectively than the expensive and now difficult to find manual labour.
• Hydraulic rock breaker also reduces or eliminates the need for explosives and blasting, which helps to improve safety conditions for workers and the public.
Procurement organisations are able to reduce their operating costs and head count by embracing technology and focusing on internal customers, say experts.
According to Kumar, streamlining procurement as below will buoy efficiency and is likely to deepen credibility.
• Incorporating contract management system.
• Increasing employee capability through training and development.
• Maintain good supplier relationships.
• Reducing expenses.
• Using analytical and negotiation skills.
An effective procurement process will improve an organisation’s bottomline pulling up efficiency and profitability. “Of course, making changes can seem daunting at first but in the long run, they prove to be beneficial in multiple ways,” Kumar added.
Effective procurement process will improve an organisation’s bottom line thereby buoying efficiency and profitability.
Pankaj Kumar, Vice President, DOZCO (INDIA) Pvt Ltd