Knowledge Base
Gain foundational procurement knowledge tailored for beginners. Learn key procurement concepts, terminology, and processes to build a strong understanding of sourcing, supplier management, and contract negotiation in the early stages of your career. These post support the introduction and basic level courses.
All basic level posts are an integrated part of the program: LHTS 10 week Basic Procurement training and the connected Certificate.
In the world of global trade, clarity in shipping and delivery terms is of paramount importance. While Incoterms are the gold standard for this purpose, businesses often come across other terms in their dealings. In this blog post, we’ll explore ten such delivery terms not found in Incoterms and suggest the most closely aligned Incoterm…
As a professional buyer, assessing financial health of a new supplier is crucial to ensure stable and reliable supply chains. This evaluation typically involves analyzing the Balance Sheet (B/S) and Profit and Loss (P/L) statements. Understanding these financial documents helps identify a supplier’s financial stability, profitability, and operational efficiency. Key Indicators of Financial Health Financial…
The United Nations Sustainable Development Goals (SDGs) are 17 goals, covering every triple bottom line (people, planet, prosperity) aspect of sustainability and help organizations drive Sustainable procurement. These Global Goals are broken into smaller targets that governments, corporations, and other organizations can pursue to meet the goals. Article written by Dr Aurora Dawn Benton.…
Cost reduction in procurement is not just about trimming expenses—it’s about adding value and bolstering the company’s financial health. As a vital Key Performance Indicator (KPI), cost reduction can be nuanced into two distinct categories: cost avoidance and cost savings. Understanding these concepts, along with their impact on the company’s profit and loss (P/L) statement…
Conflict minerals in the supply chain influence procurement. Why the name Conflict Minerals? Deep in the heart of the African continent, there was a vast land rich in minerals and natural resources. Unfortunately, this abundance would eventually become a curse for its people, as the region’s resources would become the source of one of the…
Many buyers have heard about Kraljic Matrix. But how and when should the Matrix be applied? Let us discuss. Who is Peter Kraljic? Peter Kraljic is a name synonymous with innovation in the field of procurement and supply chain management. Born in the mid-20th century, Kraljic’s work has had a lasting impact on how companies…
Sustainability is becoming an increasingly important consideration for businesses and consumers alike. Companies are recognizing the importance of ensuring that their supply chains are sustainable and environmentally responsible. However, verifying the sustainability of supply chains can be a complex and challenging task. This is where companies like Worldfavor and EcoVadis come in. In this blog…
Scope 3 for buyers, as a professional buyer it is crucial to understand the different scopes of greenhouse gas emissions as defined by the Greenhouse Gas (GHG) Protocol, especially Scope 3, which is relevant to procurement activities. Here’s a breakdown of Scope 1, Scope 2, and Scope 3 emissions, along with their implications for supply…
As a professional buyer, mastering the tools of the trade is essential for success. Among these tools are Request for Quotations (RFQs), Requests for Information (RFIs), and Requests for Proposals (RFPs). Each serves a unique purpose and understanding the distinctions and appropriate uses of each can significantly enhance your procurement strategy. Let us help you…
Introduction to PPQ (Production Part Qualification) Process in Supplier Qualification Ensuring that every component sourced from suppliers meets defined quality standards is paramount. This blog post aims to provide a first introduction to PPQ, the Production Part Qualification process — a critical part of the supplier qualification framework. The PPQ process is a component of…
