KINETIC / PROCUREMENT SPECIFICATION
Compare purchasing decisions by total cost, not unit price alone.
Give procurement and finance shared assumptions for supplier terms, purchase volumes and total acquisition cost.
Discuss procurement finance
Kinetic Procurement Finance
Purchasing-category and supplier-commitment economics
Look beyond unit price
Purchasing-category budgets
Compare payment terms
Supplier-term comparison
Align procurement and finance
Purchase-volume scenarios
Kinetic Procurement Finance
Purchasing-category and supplier-commitment economics
Give procurement and finance shared assumptions for supplier terms, purchase volumes and total acquisition cost.
Total acquisition costPurchasing-category budgets
Purchasing-category budgets. Planning priority: Look beyond unit price. Scope and limits are agreed first.
Supplier-term comparison
Supplier-term comparison. Planning priority: Compare payment terms. Scope and limits are agreed first.
Purchase-volume scenarios
Purchase-volume scenarios. Planning priority: Align procurement and finance. Scope and limits are agreed first.
Inventory and commitment assumptions
Inventory and commitment assumptions. Planning priority: Look beyond unit price. Scope and limits are agreed first.
Management questions
Does unit price show the full acquisition cost?
Method
Map categories, terms and commitments
- Frame the decision
- Inspect the inputs
- Compare options
- Review and revise
Operating contexts
Purchasing constraints vary by operation
Industrial manufacturing
Purchasing-category and supplier-commitment economics in the context of industrial manufacturing.
Wholesale distribution
Purchasing-category and supplier-commitment economics in the context of wholesale distribution.
Machinery and components
Purchasing-category and supplier-commitment economics in the context of machinery and components.
Illustrative scenarios
How does total cost move with order volume?
Resources
A shared specification for procurement and finance
Define inputs before purchasing-category budgets
A practical framework for purchasing-category and supplier-commitment economics.
Which assumptions need an owner?
A practical framework for purchasing-category and supplier-commitment economics.
A review agenda that supports decisions
A practical framework for purchasing-category and supplier-commitment economics.
Compare scenarios without claiming certainty
A practical framework for purchasing-category and supplier-commitment economics.
Kinetic Procurement Finance