Daily Archives: December 12, 2012

IT Sourcing: Forget What You Know About Software Licensing

Spend Matters welcomes another guest post from NPI, a spend management consultancy, focused on delivering savings in the areas of IT, telecom and transportation. Software licensing has been turned on its head. Remember when licenses simply equaled the number of users or desktops? Those days are gone. Vendors like Oracle, SAP and Microsoft are scrambling to capture revenues associated with powerful market trends like BYOD, mobile and cloud computing. In response, they're coming up with complex formulas and product strategies to make sure that every device in the enterprise and every application accessed requires a license. For example, SAP and […]

Afternoon Coffee: Another Honda Recall, The “Decadence” of Procreating, Levi’s & Gap’s Supply Chain

Airline rows: now closer together!! Airplane rows could get closer together -- Been thinking airliner seats offer more leg room than you really need? Me neither. But Airbus is reportedly looking at putting rows closer together. European plane maker Airbus is studying a 236-seat version of its A321 airplane, Aviation Week reports. "In addition to the vehicles being recalled in the United States, 64,000 are being recalled elsewhere." Honda Recalling 807,000 S.U.V.'s and Minivans -- Honda is recalling 807,000 utility vehicles and minivans because of a defect that could allow the vehicles to roll away, the automaker said in a […]

Supplier Diversity Meets Supply Management: A Roadmap for Success (Part 3)

Perhaps the most important element that supplier diversity professionals should incorporate into their program management efforts is how to constantly incorporate general procurement efforts within their own. Working with general procurement should be the top priority for diversity teams. All too often, the trap for supplier diversity professionals is to lead a silo-based activity with few touch-points with general procurement.

Is Washington Finally Serious About Sourcing and Procurement? (Part 1)

It appears that the US federal government is finally taking lessons from the private sector in getting serious about sourcing and procurement – strategic sourcing, to be exact. In a Whitehouse memorandum addressed to the "Heads of Executive Departments and Agencies" dated December 5th, Obama's Deputy Director for Management Jeffrey Zients Obama outlines a detailed approach to "improving acquisition through strategic sourcing." Those interested in reading the memo for themselves can find it here. What we find most curious about the memorandum are the largely positive steps we see the Obama administration taking to ensure greater strategic sourcing adoption practices […]

Source-to-Pay Criminals: Getting Away with Procurement Fraud

Over on Spend Matters UK/Europe, Peter Smith has been weighing in quite a bit on procurement fraud (and previously covered on Spend Matters PRO), a universal purchasing and procurement topic. In his multi-part rehash of the PRO material, Peter explores examples of different types of fraud and how to combat them. He's far more expert in the topic than we are at the Spend Matters domestic HQ, but one point that needs further emphasis is the difference between purchasing fraud and procurement fraud. Simply put, we see purchasing fraud as something that occurs at the frontlines of the enterprise – […]

Is Apple Manufacturing in the US an Important Move?

Spend Matters welcomes a guest post from David Simchi-Levi, MIT engineering Professor and OPS Rules Chairman. On December 6th, Apple's CEO Tim Cook announced a plan to invest $100M in manufacturing a line of Mac Computers in the US. While cynics may say that this is only assembly, will create only 200 jobs, and is partly motivated by public relations, there may still be practical considerations for the move and it may ultimately have some positive unintended consequences for US manufacturing. In the last year, there has been a lot of discussion and excitement around reshoring. In parallel, a growing […]