Invoicing & Payment,
Spend Analysis & Benchmarking,
Supplier Relationship Management,
B2B Social Media: Online Supply Communities, Open Innovation, SM B2B Marketing, SM Customer Driven Support
Industry Groups: Construction, Defence & Aerospace, Education, Financial Services, Healthcare, Manufacturing & Automotive, Public Sector, Resources, Retail & CPG/FMCG, Utilities
Categories / Commodities: Business Travel, Capital Equipment, Construction & Building, Electronic & High Tech, Fuels & Lubricants, Managed Print Services, Marketing & Advertising, Metals & Minerals, Office Suppliers, Services Procurement, Supply Chain Management, Transport & Logistics
Procurement People: Careers, Leadership, People on the move, Talent Management
Articles in category: Leadership
As uncomfortable as it may be, procurement needs to hear from unhappy suppliers. In fact, giving suppliers the opportunity to complain or otherwise rate the way they are treated is a vital part of effective supplier relationship management (SRM).
Procurement Leaders, citing news stories in other media, reported last week that suppliers to giant UK food retailer Tesco are unhappy with the company’s organization and certain business practices, branding the firm as leaderless and difficult to work with. It’s a stunning indictment, all the more so since it turns the table on the usual paradigm of buyers complaining ...
The modern procurement executive and Chief Procurement Officer often lists “improve visibility” on their corporate to-do list nearly everyday. For some organizations, this goal is often a pipe dream or something they “feel” they should be doing in the greater scheme of supply management. However, top-tier CPOs realize that improving visibility isn’t a simple goal on a list crowded with other objectives: it’s a formidable, real target that must be achieved in order for procurement to drive true value across the greater enterprise.(Read Full Article)
At the start of 2014, independent research showed that less than 50% of large UK businesses were regularly auditing their Tier 1 suppliers on whether they used slave labourers. That figure fell to 36% at Tier 2. Since then, we have seen multi-national buyers advance significantly their efforts to address slavery within their supply chains.(Read Full Article)
Leading company procurement organizations reap double the measurable cost reduction versus other companies, while also driving competitive advantage through supplier-driven innovation and risk management. While procurement organizations for leading companies have continued their upward trajectory, most companies only sustained the gains they made between 2008 and 2011.
These findings were reported in a study released today by A.T. Kearney titled “Procurement Powered Business Performance: Assessment of Excellence in Procurement (AEP) Study 2014.” This year’s AEP is the eighth edition in a series that started in 1992.
.(Read Full Article)
Innovation may require investment and progressive thinking but it gets the attention of the business and is a crucial step in maintaining a competitive procurement function.
Today the procurement function faces a longer list of tougher challenges than ever before. Long gone are the days when a CPO could get cost savings targets signed-off and then put his or her feet up.
Eliminating fraud from our food supply chains is imperative but it’s easier said than done. Modern supply chains have become increasingly intricate and larger supply chains inevitably have a greater exposure to risk.
In this guest post, Procurement Leaders invites Charles Morrison from supply chain management solution provider NQC to look at tactics being used to tackle supplier fraud and with precise data.
There are changes afoot, and what’s most important is not necessarily just the ascent to board-level recognition as much as it is a growing understanding of what procurement does and where its potential lies.
I admit a certain level of cynicism whenever I read about the c-suite increasingly viewing procurement as a strategic function.
JPMorgan Chase announced yesterday that the customer information of 76 million households may have been compromised. The personal data, which was under its care, was stolen in a hacking attack.
Currently, the bank is undergoing the blame game. Who is at fault? The risk guys? The compliance guys? Procurement?
The disclosure had come at the hands of a long-lasting hack. It was discovered in July, but criminals were accessing the names and contact details of households and over six million businesses since June. In total, they hacked into 90 servers.(Read Full Article)
How do you become a customer of choice?
Udesh Kaul, VP of global supply management at Delphi Electronics and Safety, told Procurement Leaders’ Boston Forum: "First, earn the trust of the suppliers."
But earning trust requires a disciplined approach to supplier relationship management.
Kaul said: "We see our suppliers as our biggest asset, and we help them by discussing our growth plans so they can grow with us. We bring our business leaders to discussions with suppliers."(Read Full Article)
A series of supply chain management books, aimed at assisting with executive supply chain management leadership development, will be published by Professor Douglas Boateng in partnership with Sasol and the PanAvest Group.
If we would allow our emotions to take control of us in times of hardship or times of major disappointment, we would never be able to grow into people who can make significant contributions to society – however talented we might be.(Read Full Article)
A study conducted by AT Kearney, the Institute for Supply Management (ISM) and CIPS found leading teams generate almost £1 million in financial benefits per procurement employee each year. Building the ...(Read Full Article)
15 September, 2014 The most successful CPOs “have highly developed interpersonal skills” and create an environment that “fosters the development of trust”. CPOs in ...(Read Full Article)
The winners of the CIPS Supply Management Awards 2014 were announced on 11 September. The even took place at the Grosvenor House Hotel, Park Lane, London.
Take a look at the category winners and runners up.
Successful executives in any firm are those who can win the trust of others and then capitalize on that trust to collaborate on projects. Those who do that achieve their own objectives while helping their colleagues achieve their objectives. Some might call efforts to win trust nothing but politics. Maybe it is. But, no function requires such trust building and collaboration (and politicking) more than procurement(Read Full Article)
What do companies like Unilever, Johnson & Johnson, Proctor & Gamble, Wilmar International and Mars have in common? They’ve all made public commitments to implement a zero-deforestation policy throughout their supply chains. With several of these announcements happening over the last few months, it’s clear that major corporations are recognizing what’s good for the environment can also be good for the bottom line.
When done right and systematically, sustainability and zero-deforestation policies lead to improved brand image and build stronger business relationships with other organizations and customers.(Read Full Article)
Relationship management is the primary skill missing from procurement teams, according to a survey.
More than half (60.3 per cent) of the 120 purchasing professionals surveyed by ProcureCon Europe, cited it as a skills gap in their organisation, followed by risk analysis (51.7 per cent), and supply chain analysis (39.7 per cent).
The poll emphasised the importance of building relationships in order to achieve sustainable success, not only internally with stakeholders but also externally with suppliers.
Roger Davies, group head of procurement at Marks & Spencer, told the survey that relationship management and influencing skills were core to ...(Read Full Article)
Procurement has a role in delivering value and smart cost reduction is about buying the products and services you need at a competitive price without exposing your business to risk or failure. If you are value driven, it goes beyond getting what is just cheaper, because cheaper in some industries could mean disaster. There’s a lot more to being a category manager than being a buyer – they need to take account of the consequences of their actions and recommendations.(Read Full Article)
The head buyer at Telkom has said he will be working with core suppliers in a “collegiate” way to cut costs by “as much as possible”.
Ian Russell, who has been CPO at the South African telecoms firm for six months, said in the past the company had “tactical and transactional” relationships with suppliers but he wants to treat them “more thoughtfully and carefully”.
In the last financial year Telkom spent R17 billion (£961 million) with around 2,400 suppliers, but 80 per cent of that spend was with 23 suppliers. Total revenues in the period were R32.5 billion ...(Read Full Article)
World-class procurement organizations outperform their peers by striving to providing unique value beyond cost reduction, including becoming a trusted advisor to the business, driving supplier innovation, and focusing on risk management, according to new research from The Hackett Group, Inc.(Read Full Article)
According to The Hackett Group’s research, world-class procurement organizations now operate at nearly 20 percent lower cost as a percentage of spend than typical companies. They also have 27 percent fewer employees.
World-class procurement organizations now generate purchased cost savings equal to more than 9x the cost of procurement, according to The Hackett Group’s research.
Recent research from The Hackett Group claims that procurement’s ability to generate big savings is declining dramatically. Despite what you might think, that’s good news.
It’s not that savings are unimportant. Of course, they’re important, and they always will be. They are a large part of what organizations expect from procurement. But, as every CPO knows, they aren’t the only things procurement can provide.
For example, in manufacturing companies, procurement can identify suppliers who can suggest alternatives to new product designs that can accomplish the design intent more cost effectively.
(Read Full Article)
Becoming a trusted advisor to the business, driving supplier innovation, and focusing on risk management are some of the ways that the top procurement organisations outperform their peers.
Research from the Hackett Group found that “world-class” procurement departments operate at almost 20 per cent lower cost as a percentage of spend than the average company. “They also have 27 per cent fewer employees,” the report said. “But world-class procurement organisations may have reached the limit of their ability to reduce costs.”(Read Full Article)
The challenge for leaders is not only to do the right thing, but to do the right thing, at the right time, for the right reason. A good leader inherently knows what the “right thing” is, and how and when it should be done.(Read Full Article)
The financial impact of ineffective procurement in Africa, calculated as value leakage, is estimated at a “staggering” $31.5-billion for the continent and $24.9-billion for sub-Saharan Africa, a recent report by professional services firm KPMG has revealed.
Although the firm believed that the role of procurement in an organisation was becoming increasingly strategic, 73% of C-level executives polled during KPMG’s ‘Power of Procurement 2.0 Survey’ did not believe that procurement added real value.(Read Full Article)