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
Will this be the year procurement finally evolves from its “cost center” image to one that will gladden the hearts of corporate CFOs worldwide? Researchers at the IBM Institute for Business Value (IBV) think so, and present a compelling argument that change in perception is well underway.
In “The journey to value – Transforming procurement to drive the enterprise agenda,” IBM reveals how it worked with The Economist Intelligence Unit (EIU) to obtain management feedback on the current state of procurement. While most of the answers were hardly startling, a new pattern is clearly emerging in the global marketplace(Read Full Article)
Is formal legislation the way to bring down payment terms that stretch beyond 60 days, and what role should procurement play?
As a business community, what can or should we be doing about the length of payment terms? Over the last few months there have been a number of stories to hit the headlines criticising the likes of Diageo, Mars and Mondelez over plans to increase their supplier payment terms.
The ability to connect with an audience is critical in getting your key message and the content of your presentation across. It is so important that it must be considered a make or break factor. If you hook the audience from the start, you have immediately increased your chances of keeping them engaged.(Read Full Article)
Telkom’s chief procurement officer Ian Russell took up the mantel a year ago, at a time of great change for the telecommunications giant. Facing industry disruptions and aggressive competition, Telkom is looking to improve its offerings and provide better customer care – all while meeting ambitious cost savings goals. Enter a revamped procurement strategy to the rescue.(Read Full Article)
The saying goes: “The only constant is change.” Nowhere is that statement truer than in procurement!
If you’re a procurement professional and you haven’t adapted to new ways of carrying out your work, the world is passing you by. But it’s not enough to try to get to where procurement is today. You must prepare for the future of these important business functions.
We here at the Next Level Purchasing Association asked procurement experts across the world their predictions and greatest challenges they expect to tackle in 2015. As expected, we received a rather diverse range of ...(Read Full Article)
Ian Ballentine, procurement director at Heathrow Airport, was offered a seat on the executive committee if he could “reshape” the function within a year of joining the firm. Ballentine told SM about the deal, struck with the then chief executive, just over a year after he succeeded in the challenge and took his place at the top table.(Read Full Article)
The first—and arguably most overlooked—opportunity to improve procurement decisions is to take the time to understand and challenge what the business needs. As a category manager, this may seem obvious to you, but I invite you to step back, take a deep breath, and consider asking different questions.(Read Full Article)
CPOs are contributing real value to the organization. Is this really true?
If a new CPO study from IBM’s Institute for Business Value is to be believed, it’s actually starting to happen. The firm surveyed just over 1,000 companies – a sampling that was exceeded only by IBM’s study from the prior year, according to author and research lead Steve Peterson. All of the respondents were companies with annual revenues of $1bn or more.
As procurement takes on a more strategic role, Milan Panchmatia examines how CPOs can make the move to CEO. A bleak economic landscape combined with a global financial crisis saw procurement take on a key role in many businesses’ growth strategies. With traditional growth patterns being undermined across many industries, CEOs turned to procurement to deliver the cost effective initiatives and process innovations that would help improve margins.(Read Full Article)
That was the question asked of me by a CEO of a large multinational corporation. I was sitting next to him at a dinner event, looking forward to talking about how I was working to develop capability within his procurement team. “Ah Procurement… the function that buys the pencils” he said.
I replied, “No, the function that that could make a dramatic contribution to your bottom line but one that needs your full support to do so.” The problem here is not just a CEO who is out of touch with his organization but rather a common and inhibiting mindset ...(Read Full Article)
The doomed ship Titanic has more in common with your business than you probably realise.
Both are massive entities, run by people with years of experience, moving full steam ahead, in a sea of risk, assuming that they’ll be able to see and manoeuvre around any danger that might present itself.
The problem, with both your business and the Titanic, is the unseen danger - the risks below the surface.
Titanic, as we all know, struck an iceberg, which sliced open the hull beneath the surface of the ocean. If your business isn’t careful, something similar could the same ...
When can payment for goods received reasonably be expected? A buyer buys from a supplier, supplier gets paid; it’s the foundation of any business. But what happens when the balance of power sits so definitively with the buyer?
In this guest post, Procurement Leaders invites Accounts Payable News editor Ellen Leith to share her views on the recent scrutiny of payment terms and to look at what kind of options are available to procurement teams.
For governments to carry out their day-to-day functions, procurement -- or their ability to purchase goods and services -- is critical. It is both a service function and a strategic policy tool which can help achieve a broad range of social and economic welfare objectives. It cuts across all areas of public administration and builds on cooperation among multiple public and private stakeholders.(Read Full Article)
It's clear that CEOs recognise the strength of their CIO and are giving them responsibility in other areas of the business.
Corporate procurement - There has been a steady rise in the percentage of CIOs that take responsibility for procurement and vendor management. The fact is that IT has always done a lot of sourcing so CIOs generally find themselves well equipped to broaden their responsibilities here.(Read Full Article)
The Deloitte CPO Global Survey is a benchmark indicator of procurement sentiment, tracking key indicators such as CPOs perception of cost, supply market and price volatility.
The CPO survey results focuses on key procurement topics including market outlook, business engagement, talent, risk and technology. In it, we make a case for steps to broaden capabilities and transform the procurement function into a multi-speed gear box that must be:(Read Full Article)
CPOs around the world may have some sleepless nights in 2015 as they defend themselves and their companies against powerful disruptive forces.
In the true spirit of social media, I’ll highlight just five of these disruptive forces and have created the convenient “METOO” acronym to cover – Markets, Ethics, Transparency, Optionality and Organisational alignment.
2015 is the time to make sure you have your bases covered in these areas:
In our latest 2015 Trend Report, we surveyed CPOs around the world to understand their strategic intentions for the next twelve months. Will procurement headcount increase or not? And, what about procurement technology, and risk management?(Read Full Article)
Procurement is often a company’s biggest cost item, in some industries accounting for as much as 80% of total costs. And it is often one of the first areas companies target for cost savings. However, when companies set out to gain those benefits, they often find themselves face to face [...](Read Full Article)
We rightly celebrate examples of high ethical standards in procurement and supply chain and rightly criticize apparent lack of such standards as well. There is plenty to celebrate today, but unfortunately also plenty to criticize.
Successful athletes and successful business people have much in common, including drive, determination, perseverance, creativity, versatility, and adaptability to changing circumstances. Often, successful athletes become successful business people.
Nowadays IT procurement is not simply managing the vendor relationship, but it includes the pursuit of the business value behind any investment. Ensure that any service agreement and goods is properly attached to the right business value, If it is only the fact of procuring, you might have a partial view of the problem. In weaker organizations, there isn't much of a tight alignment between the cross-functional groups (IT typically does their own procurement without much involvement from a central group).(Read Full Article)
Do you believe that your suppliers think it is worth the time and effort to bring you the innovations you are looking for to grow your business in a sustainable way? Procurement can be a key driver if the right resources, processes, incentives and metrics are established. Are you ready to engage your suppliers to unlock the value from them?(Read Full Article)
Closer Relationship With Suppliers
Increased competition, higher consumer expectations and shifting attitudes towards the environmental and social impact of products and services means that today, the development time is compressed, and the expected lifetime of a product is becoming ever ...
It is stating the obvious to say ‘our world is changing’. What is not obvious is how many of the changes link with others to become major forces and trends that will determine much of our future.(Read Full Article)
The recession and other business factors put procurement in the spotlight in 2014. The horse meat scandal that engulfed several supermarkets and slave wages in the supply chain of some clothes retailers are just a few examples. The demand for better supply management is likely to intensify in 2015 and beyond. Procurement functions will need to up their game to meet expectations! Here are some top tips for propelling your procurement success in the year ahead: • Think ‘people’ not ‘purchasing’.(Read Full Article)
There’s a right way and a wrong way to do everything. Bullying suppliers into slashing their prices, as alleged in this report last week, is the wrong way to control costs. While the report concerns a UK company in the retailing industry, the practice of bullying is in no way restricted to that industry or country. US automotive manufacturers were notorious in the past for their hardball tactics with suppliers, though today they see the value of collaboration. Some miners in North America were bringing heavy pressure on suppliers to slash prices last summer.(Read Full Article)