Procurement Best Practices for the Construction Industry
We love the focus of this recommended article on identifying the challenges facing the global, as well as local, construction industry.
The construction industry is challenged to get the right supplier chosen with their products delivered to the right job site, arriving exactly at the right time, and purchased at the right price. Not an easy task.
This article sourced from Singapore identifies six best practices for effective procurement/purchasing executions.
What sets Singapore apart as a global leader is their win as the 2018 global Smart City of the Year Award for implementing technology advances to drive economic development. Further, Singapore’s budget for 2019 includes One Billion dollars to drive the adoption of more Smart City initiatives. The construction industry in Singapore is booming as a result.
The author is writing for the Singapore Institute of Purchasing and Materials Management (SIPMM). The in-depth article is a fascinating read for anyone touched by purchasing management or hoping to leverage the strategic advantage of active procurement for the construction industry.
While the goal is the same for purchasing and procurement, which is to get the right product at the best possible price, there is a lot to master in the twin arts of buying right. First, is to understand the difference between purchasing and procurement.
Purchasing covers the system and processes from sourcing to order management.
Procurement involves the strategic implementation of Purchasing, as well as, active interaction with both internal customers and the external suppliers, through Supplier Relationship Management (SRM). Read More…
The graphic in this blog post illustrates the differences between Procurement and Purchasing in managing a construction company and is explained in greater detail here.
About SnapAP for Construction Companies: Regardless of the size of your construction company and the number of job sites you have to purchase for, SnapAP has a simple requisition and purchase order to invoice payment process.
This purchasing and automated invoice payment process will improve efficiency and cost control management for your company’s bottom line. In less than 20 minutes online, or on a phone call convenient to your availability we can explain our Construction accounts payable software benefits.