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Traditional procurement approaches prioritised lowest price, which led to unintended consequences like accepting bids of lower quality, a lesser performance record or that did not adequately allow buyers to consider equity, sustainability or socio-economic objectives like creating local jobs.
They may not consider potential issues of integrations, supplier onboarding, supply chain data management, changemanagement and system optimization, all of which add to complexity and costs. Implementation is challenging: Healthcare organizations tend to underestimate what’s involved with successful implementation.
Orsay (France), September 02, 2019 – Viparis has chosen e-Procurement software vendor Ivalua and Consulting firm CKS to optimize the management of supplier relations, source-to-contract (purchase orders, calls for tender and contracts), expense analysis and measurement of Procurement performance.
However, they could probably leverage their great buyers in a better way by having proper data delivered to them upfront and allowing them to identify the most strategic new projects. By bridging the gaps, Amrest could even start the tendering process earlier with a wider range of suppliers. Part of the Solution.
Organizational abilities to effectively assess risk and engage suppliers to mitigate it are woefully lacking in most cases. For example, nearly half (43.9%) of CPOs responding to a recent survey by Ardent Partners indicated that they do not know what percent of their suppliers are high risk. Has past performance exceeded a threshold?
ChangeManagement. Communication is the largest part of changemanagement, but it deserves independent consideration as well. Ensuring that there is a dedicated changemanagement workstream mitigates the risk level of the entire implementation. Where are the greatest changes taking place?
How has the role changed over the past few years? It’s changed dramatically. Procurement teams were just buyers who delivered what other departments told them to buy. And we can run security checks on suppliers to make sure we don’t experience a cyber incident with a company that’s under contract.
Companies should consider the force majeure and changemanagement clauses in their contracts, and the doctrines of impossibility, impracticability and frustration of purpose under applicable statutes and the common law, to assess whether they are entitled to relief.
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