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indirect supply chain

Understanding GNFR’s Spend Impact Upon Revenue

Understanding GNFR’s Spend Impact Upon Revenue GNFR spend is an area of supply chain management that often does not receive the attention it deserves. This is most likely due to the fact that its effects are difficult to connect directly to revenue. But this oversight is what can greatly affect a company’s bottom line by cutting drastically into profit margins. It’s a crucial area of spending that savvy organizations are starting to hone in on in order to cut spending and increase profits. ...
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Understanding the Additional Indirect Costs of Add-On Orders

Calculating additional costs of add-on orders
Understanding the Additional Indirect Costs of Add-On Orders Add-on orders may not seem like anything that would affect the acquisition process, but when you consider all the implications, you will see just how much of an impact they can have. In every stage of the Perfect Order process, there is the potential for a glitch. And just like a cog in a well-oiled machine, it can completely break down the system at any level. GNFR Perfect Order The ultimate goal of any company is to create the...
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Understanding GNFR Perfect Delivery

Acquiring the Perfect Delivery
Understanding GNFR Perfect Delivery Previously, we discussed the GNFR Perfect Order and everything needed to achieve it. GNFR is a complex area in terms of the number of suppliers, number of product/service categories, number of transactions, and number of internal stakeholders. Therefore, it should come as no surprise to learn there are various pieces that must move into alignment to succeed in ordering the right goods at the right time so they’re delivered to the right location when they’...
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Understanding GNFR Perfect Order

GNFR perfect purchase order, or Perfect Order
Understanding GNFR Perfect Order In this blog series, the topic of goods not for resale (GNFR) is one that has appeared quite a few times. This is due to the fact that, when it comes to improving a company’s bottom line, there’s no area that goes overlooked as often as GNFR. As previously stated, GNFR is made up of all purchases of goods and services that do not go into the final sellable product. However, though such items are not sold to customers, they’re essential for a company’s day...
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Understanding the GNFR Supply Chain

E2E visibility of the GNFR supply chain
Understanding the GNFR Supply Chain GNFR supply chain optimization is one of the keys to the future of big business. GNFR spend varies widely depending upon company type. As opposed to a service firm, such as one specializing in accounting, or a marketing firm, a retailer incurs a significant GNFR spend. For those companies with a significant GNFR spend, one of the biggest strides that can be made to cut costs and maximize profitability is increasing the management of the GNFR supply chain....
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Understanding Indirect Spend VS GNFR

Understanding indirect spend VS GNFR
Understanding Indirect Spend VS GNFR Indirect spend is the total costs a company must put forth to operate the business, and GNFR is a subcategory of indirect spend. It includes goods and services purchased from outside vendors that are not resold. These purchases are normally authorized by a purchase order, but indirect spend is not always an actual purchase (e.g., payroll for indirect spend and SGA). This is the key difference regarding indirect spend VS GNFR. Not all indirect spend is...
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Understanding Indirect Spend

Calculating indirect spend
Understanding Indirect Spend In any area dealing with procurement, you will likely hear the term “indirect spend,” along with “direct spend.” You might also hear references to “indirect materials,” “GNFR,” “indirect procurement,” “overhead,” and “variable and fixed indirect costs.” It may come as a surprise, but these terms have roots dating back to 1760 during the Industrial Revolution, when cost accounting was first introduced to calculate the cost of a product in order to calculate th...
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Understanding GNFR

Goods not for resale, or GNFR
Understanding GNFR Cost accounting was originally introduced during the Industrial Revolution so that businesses could organize their operational/manufacturing costs to price their products in order to turn a profit. Though indirect spend is a term that was coined during this time, GNFR—a subset of indirect spend—is a more modern phrase in the procurement world. GNFR, or goods not for resale, is often a difficult concept for individuals to comprehend. This is largely due to the fact that...
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Understanding GFR VS GNFR

GFR VS GNFR
Understanding GFR VS GNFR Those who work within a company’s accounting department know exactly how to account for direct and indirect spend without question. However, the same cannot necessarily be said for those who work outside of accounting. Understanding the difference between GFR vs GNFR can be extremely helpful for addressing problems in each one’s respective supply chain, which is why we’ve laid out the similarities and differences between these two types of goods. GFR and GNFR D...
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