Four-Eye Principle in Procurement: How Buyers Reduce Approval Risk

In this blog post, we will discuss how The Four-Eye principle enhance contract approval as well as the importance of signatories and power of attorney.

Supplier Responsibility Transfer: How Operative Buyers Take Over a New Supplier Range Without Losing Control

Taking over a new commodity, supplier range, or group of purchase parts can look simple from the outside. The responsibility is moved from one buyer to another, contact names are updated in...

Purchase Order Acknowledgment: How Buyers Prevent Order Mistakes and Delivery Problems

In operative procurement, a buyer may send a purchase order and believe the order is under control. But until the supplier has acknowledged the order, there is still uncertainty. These questions matter...

Supplier collaboration and forecasting process infographic

Sending Forecasts to Suppliers: How Operative Buyers Improve Delivery Reliability

In operative procurement, many delivery problems start before the purchase order is even sent. The supplier may not have enough material, production capacity, labor, or transport availability because the buyer has not...

Supplier Corrective Action Report in Procurement: How Buyers Stop Supplier Problems from Repeating

When a supplier delivers defective goods, missing documentation, wrong parts, or services that do not meet requirements, the first priority is often to solve the immediate problem. The buyer may need replacement...

a storage manager checking the Return Material Authorization

Return Material Authorization in Procurement: How Operative Buyers Manage Supplier Returns

When goods arrive with defects, wrong quantities, transport damage, expired shelf life, or the wrong specification, the operative buyer often becomes the person who must turn the problem into a controlled process....

Lead Time in Procurement: How Buyers Prevent Late Deliveries and Planning Problems

Lead time in procurement is more than the time between a purchase order and delivery. Learn how buyers use lead time to prevent late deliveries, control open POs, improve planning, and reduce...

Material Requirements Planning in Procurement: How Operative Buyers Use MRP Signals

A core component of ERP systems is Material Requirements Planning (MRP), which ensures that the right materials are available at the right time for production.

Where used function and Bill of material (BOM)

Where-Used Function in Procurement: How Buyers Use BOM Data to Understand Impact

One of the critical functions of ERP software is the Where Used function (collection BOM) for buyers, which helps buyers understand product data and inventory.

Supplier onboarding chacklist for operative buyer

Supplier Onboarding for Operative Buyers: How to Set Expectations Before Problems Start

Most operative buyers know the feeling of working with a “good” supplier and a “bad” supplier. Some suppliers respond quickly, confirm orders on time, update delivery dates, and understand what the buyer...

The Procurement Framework blog at LHTS

Category: Operative procurement