Procurement strategies

A Procurement Strategy is not just something for the Contracting and Procurement function.  It should extend to supply chain and – for maximum benefits – to the R&D function as well.

For most Lubricants blenders, there cannot be a one size fits all arrangement that covers the Big Four additives suppliers (from whom many additives arrive in bulk) and those small and large chemical companies who deliver a few kilos per annum.  It is preferable therefore to develop a series of approaches, segmenting the suppliers on volume and/or value to the customer. You might consider questions like

• what additives do we want to buy from the Big Four?

and

• does anything change if the competition is a small unique player?

more to come....