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, Transport & Logistics
Procurement People: Careers, Leadership, People on the move, Talent Management
A recent post on the HBR Blog Network on Six Drucker Questions that Simplify a Complex Age poses us with a interesting inquiry -- can they simplify a complex supply chain?
- What Does the Customer Value?
SI agrees that regardless of what has happened since his death, Drucker would still be asking this question -- and it would probably be the first question out of his mouth in any business discussion. The tighter times get, the more the customer focusses on what they really need where necessity is concerned and what they really want where discretionary spending, which is limited in difficult ...
- What Does the Customer Value?
While strategic sourcing and procurement groups around the globe continue to make headway into new departments and address categories previously off the table, their popularity with business owners and stakeholders has never been lower.
Headlines and titles like "Everybody Hates Procurement: Here's How To Fix It" and "The End of Procurement, Forever!" and "The Problem with Procurement: Misalignment" seem to pop up every day. I attribute these headlines to the growing pains strategic sourcing and procurement will naturally experience as the role of this group continues to expand and evolve.
Inflationary times are back, economic growth is slow, the job-situation hasn't improved much, employers would rather keep a job vacant nine years waiting for the perfect candidate over spending even a single dollar on training, and CFOs are being told to put pressure on Procurement to cut costs to the bone. In other words, despite all the talk in recent years about training, innovation, and value-generation, it's still business as usual at review time.(Read Full Article)
Are you in the top tier of organizations who actively monitor the global news for potentially disruptive events and that identifies those events that will likely disrupt the organization's supply chain before the shockwaves disrupt the chain and cause shipments to be late or missed entirely in first, second, and even third tier suppliers, or do you wait until a shipment is late, Sales is screaming, and then figure out what happened? Be honest.(Read Full Article)
Supply chain investment is finally on the rise again, but many companies are finding that effectiveness still declines over time after the introduction of a new solution, be it technology, business process, outsourcing, or some combination thereof. Why is your average supply chain, which, by now, showered by best-of-breed technologies, still not operating at peak efficiency?(Read Full Article)
A recent article over on Forbes.com presented 3 Ways to Manage A Global Supply Chain from UPS. The article focussed on how to ease the transition when a business is going global for the first time. It gave three pieces of advice:
- Look to Local Experts
When expanding internationally, find a partner that is a local market master who can guide you in developing the brand in that market. Whether it's taking the time to seek out the right suppliers, or contracting with a skilled business consultant in the area who can do the same, there's no ...
- Look to Local Experts
Mark Perara recently penned a great post on Nine Rules for Stifling Supplier Innovation. Here are Mark's Nine Rules. 1. Be suspicious of ideas that come from your suppliers - your strategy, innovation and R&D teams know your business better than anyone externally. 2. Keep suppliers really really busy. Change your requirements and staff regularly so suppliers have no time to focus on innovation. Their account managers will be too busy to try and second guess what your business needs as well as not knowing who to speak to.
...(Read Full Article)
According to Steve Hall of Procurement Leaders, the CPO's challenge is to re-imagine supply chains. Traditional transformation is just not enough - you have to come up with radically different designs. You have to do for supply chains what Walt Disney Imagineering does for Disney - blending imagination and engineering in a unique way to create unique experiences with their creations.(Read Full Article)
HBR recently published a post on understanding customers in the solution economy in which they noted that creating new value will require suppliers to combine their expertise with their understanding of their customers' business needs. Which is completely true. They also said that this calls for changes in how B2B companies gather customer intelligence.(Read Full Article)
A recent article over on Outsource Magazine had a good article on legal considerations when outsourcing to India that addressed core legal issues that should form the basis of your Master Services Agreement when outsourcing to India. The four issues addressed could be very problematic if not covered by your agreement.(Read Full Article)
A recent article on Sustainable Success over on the CPO AGenda discussed three challenges that, when addressed, can lead to success in sustainability efforts. The challenge of tools and transition to better processes is well known, and straight-forward to address. The challenge of recognizing the achievements of supply management professionals is lesser known, but there are a number of techniques that can be used to address this challenge.(Read Full Article)
Purchasing Insight just ran an awesome article by Ian Burdon who talked about the e-wheels on my wagon. Attempting to carefully explain why the e-Procurement debate is at least ten years behind the curve (and that if you're not doing proper e-Procurement by now, you probably just crawled out of a cave somewhere ... or at least that's the doctor's interpretation), he makes a great point that has been often missed in the internet age that must be repeated: ...(Read Full Article)
This winter, Chief Executive ran an article on The Synergy Mirage: A Case Study that had a great lesson for every Supply Management team looking to select an e-Procurement system with the intent that anyone in the organization who wants to order something will use it. The lesson was simple: Customers don't want to buy new tires. They need to buy new tires. It's expensive and it takes time out of their day. As a competitor, [Chairman] [Bruce] Halle benefited from making the process somewhat less expensive and taking less of the customer's time. He also ...(Read Full Article)
This recent CSR briefing over on the CPO Agenda on when good procurement can be a life and death factor is great food for thought as it points that not Supply Management is more then just sourcing and procuring, it's also also sustaining and securing -- in more ways than one! Focussing on how the early 2000s saw several incidents where hospital patients inadvertently received excess doses of their drugs that resulted in fatalities, the article pointed out how a poor selection of IMDs (Interactive Medical Devices) that didn't do anything to prevent common human errors was ...(Read Full Article)
I think we can all agree that sustainability is important - very important. You might be in business to make money, but the only way you're going to make money is if you stay in business. The only way you're going to stay in business is if you're sustainable, because, otherwise, you risk running out of resources, money, or, and I'm not kidding, customers. The earth is finite, so it stands to reason that there is only a finite amount of any resource. A company has a finite amount of money, and wasting ...(Read Full Article)
A recent article in Canadian Transportation & Logistics that asked where the missing links in your supply chain are did a great job of of pointing out that when it comes to supply chains, what you see is what you get. And it often is the situation that the more you can see into the chain, the more benefits you can receive. It also hit the nail on the head when it noted that the ability to view timely, accurate information from the beginning of the chain to the end is essential for: ...(Read Full Article)
- As I've told everyone who has ever asked, charging suppliers to bid is a really bad idea. Not only does it generate ill-will, but as this recent article over on the CPO Agenda that gave tips for understanding why charging suppliers to tender is a bad idea noted, it could even be illegal. But let's take the tips one-by-one because it seems that this practice, which started rearing its ugly head at the start of the recession, is still trying to push through. It is Counter-Productive ... (Read Full Article)
In yesterday's post, we asked how much an enterprise supply management solution really costs because the up-front license cost or annual subscription fee is only one part of the puzzle -- and until the full puzzle is understood, it's hard to figure out what the true cost is and, ultimately, what's the right solution for the organization. The difficulty is the plethora of license models, and add-on fees, that have been invented by on-premise and SaaS/Cloud vendors over the years in an effort to get a leg-up on their competition (and a siphon ...(Read Full Article)
Cost cutting has been a major focus of your average Supply Management organization for most of the decade. A few efforts have been focussed on the long term, but the majority have been short-term efforts. And this is not a good thing, because, as Patrick Dunne of Alliance Boots said in a recent article over on the CPO Agenda everything has to be a long-term activity.(Read Full Article)
Let's Talk! It's deja vu all over again! Robert Rudzki is not the only blogger and consultant to recently hear that a potential client had, just a few years ago, hired a large consulting firm to do a high-profile "strategic sourcing program" with nothing sustainable to show for it.(Read Full Article)
It's a tough question, and one that you need to answer sooner rather than later. If you read this recent article on how global shipping lines grapple with plunging rates, overcapacity, and faltering recover, you realize that the global shipping industry is likely in for a very shaky ride over the next few years.(Read Full Article)
EQ, short for Emotional Quotient and also known as EI, short for Emotional Intelligence, and the next resurgent craze in talent management, is very important in Supply Management given the regularity with which supply management professionals need to interact with suppliers and peers around the globe.(Read Full Article)
Last year, JP Morgan had to pay $88.3 Million in fines for breaking U.S. embargo laws and trade sanctions, including Global Terrorism Sanctions Regulations and Weapons of Mass Destruction Proliferators Sanctions, in three incidents between 2005 and 2011 that involved Cuba, Iran and Sudan, as reported on AllGov. That's a huge penalty that resulted from simply making loans and wire transfers. And in 2010, Maersk had to pay a $3.1 Million fine for using ships registered in the U.S. to carry commercial cargo to Sudan and Iran between January 2003 and October 2007. Another huge ...(Read Full Article)
One of the key takeaways from Hackett's 2012 Procurement Agenda is Globalization and Global Operating Models. Why? The Hackett Group 2011 Key Issue Study found that not only is globalization critical for enabling revenue growth but the level of planned transformation over the next two to three years is such that the respondents' ambitious plans will nearly triple today's level of globalization within two to three years. Wow! Within three years, the percentages of organizations with the following key activities at the maximum global level achievable is expected to enter the double digits almost across ...(Read Full Article)