Addressability of Spend

CIOP sessions are conducted by a pool of faculties who also offer the other international certification programs. The typical faculties are having experience between 20 to 30 years in the domains of procurement and supply chain and have a wealth of industry and teaching experience. All of them have great passion for teaching and believes in continuous learning and sharing those learnings. The faculties also go through periodic trainings titled “Faculty Development Programs” to keep them abreast with the latest developments in supply chain and teaching methodologies. Basically, all the faculties are practitioners or consultants who work for the industry and teach supply chain during their spare time or execute this as a project.

Addressability of spend involves the question of how to make sure that your money is being spent on the right things. In order to understand this in detail, you need to have a clear understanding of the relationship between the supplier, the manufacturer and the manufacturing process. The supply chain deals with the steps that an individual or organisation takes to obtain raw materials, components, machines and resources needed for production. 

The manufacturer is involved here as well as the distributors and suppliers. The whole process is then coordinated through a series of steps which are continually undertaken until the final product is delivered to the client for sale.

When examining the relationship between the supply chain and the addressability of spend a company will first have to determine what their needs are. This will involve establishing what the company intends to produce and who they plan to sell it to. The manufacturer will then have to establish how much of the overall spend will go towards researching and developing the production capabilities of its existing assets and how much of it will go towards purchasing the necessary raw materials and components from suppliers. Finally, the company will have to identify and define its own requirements, in addition to those of the customer, in order to ensure that the production process remains on track.

Once all of these activities have been completed an addressability of spend review will be conducted. This is an assessment of the relationships between the spend, the supplier and the manufacturer. This report identifies gaps in the supply chain and those areas that require additional attention to streamline the production process in order to ensure that sufficient quantities of goods are available for sale to meet customer demand. By analysing the data contained in this report companies can quickly establish the areas in which they require further investment in order to improve the efficiency of their supply chain. This analysis provides a key insight into the efficiency of the entire supply chain and a key way to increase company profitability.

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