Daily Archives: November 29, 2012

Strategic Sourcing: Criteria for Selecting an E-Sourcing Provider

Certain types of solutions are obviously best suited to specific organizational types. It’s our working hypothesis – which we’ve already spent many years validating through hands-on recommendations and selection processes – that certain organizations are likely a good fit for solutions from ERP providers. These organizations will typically place a greater emphasis, in the case of SAP, on solution suite integration (e.g., supplier management, contract management) over other areas like advanced bidding structure/formats, bid gathering, scenario analysis.

3PLs Move Into Healthcare Supply Chain

Today, we thought we'd feature a recent post on Healthcare Matters: Third-party logistics firms (3PLs) are essentially travel agents for freight. They generally do not own transportation equipment, but instead buy capacity from the carriers who do –the truckers, railroads, steamship lines, or cargo airlines, and then mark it up and resell it to the shippers. The cost of purchased transportation is highly variable for 3PLs because they primarily buy capacity in the spot market. As a result, in periods of macroeconomic weakness when capacity loosens and carrier pricing falls, 3PLs can pass those declines to shippers on a lag, […]

Afternoon Coffee: Tazreen Factory Fire, Smoking Spend, IKEA in India, Procurement Transformation

"Calls made to The Walt Disney Company and to Sears Holdings were not immediately returned." Sears, Disney, Wal-Mart used factory in fatal fire -- Clothing and order books found at a Bangladeshi factory where a fire killed 112 people show that it was making clothing for Disney, Wal-Mart, Sears and other Western brands. Damned if you do...damned if you don't. Fewer Smokers Means Higher Taxpayer Costs, Study Finds -- while cutting the number of smokers trims government outlays over the short run, the increased longevity and higher end-of-life expenses of non-smokers eventually would cost taxpayers tens of billions of dollars […]

Should We Fire Procurement and Supply Chain From Supply Chain Risk Management? (Part 3)

Please click here for Part 1 and Part 2 of this series. Earlier in this series, we explored Accenture's Carlos Alvarenga op/ed from a recent HBS blog that makes the argument that procurement and supply chain groups are under-skilled to tackle the realities of supply chain risk. Yet change is happening. Specifically, Alvarenga suggests that "leading thinkers in industry, academics and the insurance/risk industry itself rethink this topic from top to bottom ... [resulting in] any leading companies are already moving in this direction, adding finance PhD's and actuaries to procurement and supply chain teams. This new generation of risk […]

13 for 2013: Sourcing and Procurement Talent Observations (Part 2)

Please click here for Part 1 of this series. Continuing on with our thirteen procurement talent observations and tips as we head into 2013, we come to item number seven. 7. Look for "desperate housewives" who can whip up a mean RFQ. In all non-politically correct seriousness, there is a great arbitrage on women in procurement who want family flexibility but not the consultant or standard travel career path that they were in previously before kids. If you can deal with part-time or work-from-home employees (or those in remote geographies) with minimal travel, thirty and forty something women that have […]

How to Attack Marketing Spend (Part 1)

A couple weeks ago, Thomas wrote a piece around his experience at ProcureCon's inaugural meeting around Digital and Marketing Services. Judging from the traffic it received, it appears that the procurement/marketing relationship is a hot topic. And why wouldn't it be? Baffling marketing spend works procurement into a spend analysis PPR tizzy, and marketing responds with a despondent, teenage-whine-level "but we're creaaaaative. You just don't understaaaaand." So Thomas decided to write up what turned into quite a lengthy series on Spend Matters PRO. We'll feature Part 1 today: How to Attack Marketing Spend (Part 1) What to try PRO? Click […]