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Showing posts with the label Procurement

Efficiency is Simple: Fix the Two Doors That Let Inefficiency In

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Everyone Talks About Efficiency, But What Is It Really? Everyone wants efficiency. Everyone talks about efficiency. But if you ask ten people what efficiency really means, you’ll probably get ten different answers. For me, the definition is simple: Efficiency = Output ÷ Input It’s as basic as that. If the formula is so simple, then why do we often make efficiency improvement exercises so complicated? They don’t need to be. If you think as a layman and ask yourself: "How do I make something more efficient?" the answer is straightforward: 1️⃣ Remove existing inefficiencies. 2️⃣ Don’t allow new inefficiencies to enter your system. That’s it. Do these two things, and the major part of efficiency improvement is done. Where Do Inefficiencies Come From? Now, ask yourself: Why were these inefficiencies in your plant or systems in the first place? How did they enter? How did they build up over time? Do a basic root cause analysis , and you’ll find the answers. You...

Procurement Isn’t About the Cheapest Option—It’s About the Smartest One

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" Your purchase team works only on L1, that’s why I don’t disturb you." These were the words of a young sales officer, sitting in my office years ago. He was fresh in the industry but had already helped me solve a major problem in the plant. After that meeting, he walked out with confidence. And later? He became a major supplier for our plant. His solutions helped us reduce costs in his product range—not by simply being the cheapest but by being the smartest choice. Because procurement isn’t about finding the cheapest option. It’s about finding the SMART option: S – Specification M – Material Quality A – After-Sales Support R – Return on Investment T – Timely Delivery Sales, Procurement & The Bigger Picture Over the years, I’ve built strong relationships with sales professionals from different companies. Some of them met me early in their careers—just like the one in this story. I shared insights on the cement industry, discussed their sales strategies, and taught ...