Afternoon Coffee: Reduce Supplier Network Fees, Foxconn in the US, P.F. Chang’s/Intesource Partner

Today on Spend Matters PRO:
10 Negotiating Tactics To Reduce Supplier Network Fees (Part 1) -- With apologies to former Presidential candidate Ross Perot, supplier network fees (and broader supplier enablement and management costs) can often become the giant sucking sound that not only restricts the potential ROI of purchase-to-pay projects in the first place but also causes unbudgeted supplier headaches and heartburn along the way. But supplier network fees don't have to get the better of procurement organizations. In fact, there are a number of negotiating tactics and approaches that one can leverage when confronting vendors such as Ariba/SAP, Basware, OB10, Hubwoo, IBX, TradeShift and numerous others that are building material books of business off the backs of transaction-based revenue.

But can Americans handle making Apple products?
Foxconn Sees New Source Of Cheap Labor: The United States -- Foxconn Electronics – the China-based contract electronics manufacturer also known as Hon Hai – is planning to build manufacturing plants in the U.S., DigiTimes reports, in a story attributed to "market watchers." The company is reportedly evaluating "cites such as Detroit and Los Angeles." The story says that "since the manufacturing of Apple's products is rather complicated, the market watchers expect the rumored plants to focus on LCD TV production, which can be highly automated and easier."

e-sourcing in the restaurant industry.
P.F. Chang's Partners With Intesource for Competitive E-Sourcing -- Following three successful pilot events, P.F. Chang's has selected Intesource to manage its e-sourcing operations. The new partnership with Intesource will deepen P.F. Chang's sourcing rigor and open the restaurant's options to new suppliers and competitive bids to create huge cost-savings. Through the technology-enabled engagement, P.F. Chang's gains efficiencies to quickly ensure all participating suppliers meet the restaurant's high standards for sustainability, safety, and quality. As a result of this successful proof-of-concept pilot, P.F. Chang's will continue to use Intesource and its full servicee-sourcing solution to find the best sources of supply and achieve the highest levels of operational efficiency.

Black Thursday?
Wal-Mart Moves Up Start of Thanksgiving Sale -- The world's largest retailer is also guaranteeing shoppers that it will have three popular items available if they line up inside the store during a one-hour event that day. The stepped-up strategy comes as Bentonville, Ark.-based Wal-Mart is trying to keep its momentum going at its U.S. business. The holiday shopping season accounts for as much as 40% of a retailer's annual sales. Wal-Mart's strategy raises the competitive stakes for the start of the holiday season. American retailers have increasingly expanded their hours on Black Friday to get ahead of the competition, but now the kickoff is creeping earlier into Thanksgiving Day.

- Sheena Moore

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