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 .

Goodyear rolls suppliers back into product development

What Goodyears new CPO has done is that he has introduced their major vendors/suppliers to its manufacturing process of making tyres and asked them to help Good year reduce manufacturing cost through their Ideas , methods and tips . As the saying goes two brains are better than one . This method helps to get new ideas as vendors looks manufacturing from different angle than what Good year professional does.

Good year listed out their major problems and matched with vendors who can help them in meeting that challenge .Technical team of Goodyear interacted with technical team of its supplier and came out with solutions. This has also brought technical team closer to procurement team and that made procurement decisions more specific towards requirement






Goodyear rolls suppliers back into product development