Effective procurement management is crucial to the financial efficiency of any business. It ensures that the correct goods or services are available at the right price and minimizes delivery times.
Procurement can be a complicated and time-consuming process. But, a robust procurement management system can streamline workflows, increase efficiency, and open the doors to new opportunities.
Sourcing
In procurement, sourcing refers to the first step of a process that focuses on assessing and selecting suppliers to acquire goods and services. It involves defining internal requirements, searching for vendors, and arranging sourcing events to evaluate supplier capabilities.
After receiving responses to an RFQ or RFP, the sourcing team begins evaluating and asking for clarification from potential vendors. Then, they can start negotiating with shortlisted suppliers to obtain lower prices, early payment discounts, and other benefits.
The TFHRC plans a research program to test new technologies for testing asphalt binders in the field rather than returning samples to the lab. One technology that aims to cut down on labor and equipment costs is a handheld spectroscopic device called a dynamic shear rheometer.
Solicitation
When government customers are ready to buy asphalt products and an asphalt supply near me, they will release a solicitation. Whether on GSA Schedules, these solicitations come in many shapes and sizes.
In this case, the project involved a complete plant design and build. The team included a family-owned asphalt supplier with a culture of direct personal involvement and a track record of collaborative innovation.
A significant part of the project involved supplying what is known as hot mix asphalt (HMA). HMA is used to construct roads, driveways, and parking lots and offers a flexible pavement that bends instead of cracking – a “bend-don’t break” approach to surface transportation infrastructure. The project also required a polymer-modified asphalt product, a liquid binder enhanced with cross-linking chemistry for improved low and high-temperature performance and fatigue resistance.
Evaluation
Asphalt suppliers offer several evaluation services to help contractors make informed decisions on their landscape projects. These include sub-surface inspections, which diagnose pavement issues and develop repair options. They also perform pavement design, which helps engineers and contractors optimize the performance of asphalt pavements.
Asphalt producers and suppliers are capitalizing on a booming demand for the product. COVID, President Biden’s infrastructure plan, and rising gas prices drive budgets for roadway and bridge projects back up, increasing opportunities to sell asphalt.
Contract Negotiation
The contract negotiation process is a vital part of procurement. During this phase, companies negotiate pricing models, delivery schedules, and other essential details in the final contract. Often, it requires compromise on both sides of the table to reach mutually agreeable terms.
Having a clear list of priorities can help guide the contract negotiations. This way, companies can ensure they receive all they need for the most critical aspects of the contract before moving on to less important areas.
It also helps to negotiate with the buyer directly, such as executive-to-executive or department head-to-department head, rather than going through juniors or associates in the company. This approach allows for open communication and a more collaborative process that promotes strong relationships.
Purchase Order
Once your procurement department has a solid plan for the asphalt you need, they’ll create an internal purchase requisition that will later transform into a purchase order. Purchase orders communicate the exact products, quantities, and terms you want to negotiate with your suppliers.
With this document, you can rest assured that every detail is spelled out for your suppliers. It prevents any miscommunication that would otherwise stall your progress. The software acts as your cosmic ally here, helping to verify and process the PO for you. It’s a seamless process that ensures your purchasing system runs like a well-oiled machine. Your supplier will then receive the purchase order, which sets off a symphony of fulfillment that ensures your desires are precisely fulfilled. Good job, procurement galaxy!