The purchase of capital equipment and its commissioning involves a number of phases. A cross-functional team consisting of professionals ranging from operations, production, finance, plant engineering and procurement is involved…

What is Capital Equipment? Capital goods are the goods required for producing finished goods from raw materials. These goods can also be called capital equipment in the context of procurement…

Transportation and Logistics Strategy Procurement logistics requires adequate involvement from purchasing professionals to ensure the lowest possible freight costs and effective delivery of materials to internal customers. Though transportation and…

In this section, you will study important documents that are used in international trade and their purposes. Some most important documents used in international procurement are as follows: Documents Used…

What is INCO Terms? The Incoterms (International Commercial Terms) are pre-defined commercial terms, which are standardized and meant for use in international and domestic trade transactions. They are published by…

What is Total Cost of Ownership? Total Cost of Ownership (TCO) is a concept used in procurement and supply chain management to understand the complete cost of a product or…

Blacklisting of Suppliers Once contract negotiation is over and an agreement is reached, the procurement department should track the supplier's performance over a period of time. The supplier performance evaluation…

Supplier Evaluation in Procurement Shortlisting suppliers helps in understanding the supply market and creating sourcing strategies. Sourcing strategies further help in generating solutions like outsourcing, long-term purchase arrangements, sub-contracting, spot…

What is Sourcing in Procurement? Sourcing is a critical component of procurement that involves the identification, evaluation, selection, and negotiation of suppliers and contracts to meet the needs of an…

What is Spend Analysis in Procurement? Spend analysis is the process of collecting, cleansing, classifying, and analyzing procurement data in order to gain visibility and insight into an organization's spending…