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Gerald S


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July 10, 2016








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For example Reliance Communications is characterized by high annual growth in excess of 40 percent. In addition to this, operations are being scaled up via network expansion involving huge capital expenditure and a considerable part of the expenditure is for procurement. In several organizations, often the approach to buying stationery items and critical components is no different...
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This is not only a risky way of doing business but it also limits options in reducing costs. Items on the procurement list could be categorized in accordance with costs and risks to the business and then separate set of guidelines can be evolved to set out practices for procurement. Taking risk exposure on one axis and costs on the other following procurement matrix is generated, wherein each quadrant represents a distinct category of items to be procured: This matrix helps in grouping goods and services to be procured into four categories in accordance with simple yet very useful criteria...
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