Profitable Buying Strategies: How to Cut Procurement Costs and Buy Your Way to Higher Profits

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Kogan Page Publishers, 2008 - Business & Economics - 237 pages
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Improving your organization's profitability can only be achieved in three ways: increase prices, increase sales volumes or reduce costs. Competitive pressures are making the first two options increasingly difficult, which leaves cost reduction as the key option available. Profitable Buying Strategies shows you a long term, structured approach to cost reduction through smart procurement practices. This straightforward guide explains the philosophy and psychology of buying; buying concepts, tools and techniques; changes that deliver cost reduction; market testing; outsourcing and insourcing; negotiation and the legal aspects; e-procurement; and organizational issues. A plethora of case studies, and appendices outlining the successful cost reduction drives of a number of major organizations, give you a real world explanation of cost reduction and procurement options to help you make your enterprise more profitable.
  

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Contents

Introduction
1
1 The philosophy and psychology of buying
7
2 Important buyingrelated concepts
21
3 Effective tools and techniques
34
4 The changes that deliver cost reduction
54
5 Market testing
72
6 Outsourcing and insourcing
87
7 Negotiation
97
Appendix 1 Service level agreement SLA
168
Appendix 2 Template for a request for proposal RFP for the supply of goods andor services
179
Appendix 3 The Chartered Institute of Purchasing and Supply CIPS
191
Appendix 4 Soft issues impacting on cost reduction drives
205
Appendix 5 Buying at Sainsburys supermarkets
209
Appendix 6 Buying at SmithKline Beecham
217
Appendix 7 Buyer remuneration in the UK
228
References
233

8 Contracts and contract law
110
9 Eprocurement
123
10 Organizational issues
147

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About the author (2008)

Mike Buchanan has 25 years of senior-level experience in procurement, almost all within major private sector organizations, in many market sectors. He is now a procurement consultant and the Chief Executive of the UK-based consulting firm Link Procurement Services.

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