New Procurement strategies for combating recession

Corporates across the globe are implementing new strategies to reduce cost in areas like supply chain management and mainly into procurement activities .

Here are few main strategies which are now being implemented by majority

• Head count reduction
• Technology investment /Automation/Increased usage
• Pricing adjustments/renegotiation with vendors
• Low cost country sourcing
• Reducing travel budget
• Restricting individual technology usage
• Working capital optimization
• Demand management
• Centralised purchase
• Outsourcing or Off shoring business process
• Use of technology in areas like spend analysis , E -procurement , Supplier portal and contract management , Vendor evaluation .