Daily Archives: January 7, 2013

Strategic Sourcing’s Evolution: A Roadmap For the Next Decade (Part 1)

As a level set on strategic sourcing enablement, tools-wise, most solutions approach the sourcing challenge the same way today as the best solutions did 10 years ago. On the one hand, the level of maturity is good (few, if any, truly bad solutions have survived in the marketplace – thankfully). But on the other hand, we can look at this and make the observation that the technology market for strategic sourcing has stagnated. There is hope, and we believe that change is starting to happen (and not just in the Omega Quadrant!) In certain circles, it’s actually changing how companies think about the sourcing process overall. In other words, technology is serving as a foundation for new thinking and processes rather than purely as an enablement, data gathering, or process automation tool.

US and Chinese Comparative PVC Price

Spend Matters welcomes a guest post from Mark Kozlowski, at Mintec Ltd. The prices of PVC from the US and China usually track each other fairly closely, but they diverged significantly during 2012. Prices in the US rose in the second half of 2012 as a limitation in domestic supply due to plant closures coupled with an increase in domestic demand as the US housing market improved and Hurricane Sandy led to an increase in PVC demand for reconstruction. PVC prices in China were kept stable by a low level of domestic demand and a high level of production overcapacity. […]

Afternoon Coffee: GT Nexus/TradeCard Link Up, TriplePoint Buys WAM Systems, Fuel Prices

Merger. The Daily Startup: GT Nexus, TradeCard Link Up in Global Supply-Chain Merger -- Oakland, Calif.-based GT Nexus and New York-based TradeCard have agreed to merge, VentureWire has learned, creating a global supply-chain management company that would employ about 1,000 people and serve about 20,000 businesses in industries ranging from manufacturing to retail to pharmaceuticals, assuming that regulators approve the deal. Both companies are venture-backed and share an investor–Warburg Pincus. Terms of the proposed merger are not disclosed and the new company, which would be based in Oakland, is not yet named. Acquisition. Triple Point Technology buys WAM supply chain […]

SRM Warning Signs: Why Companies Fail to Invest

Continuing our analysis of State of Flux's annual SRM report, we come to why organizations are failing to invest in supplier relationship management activities. Curiously, the differences between the survey results from 2012 and 2011 are quite large (we speculate perhaps owing to the different economic climates each year, especially within the UK, where the survey respondents are primarily based, which was in the early days of austerity in 2011). One of the largest declines in reasons reported for decline in SRM activity (among those reporting a decline) between 2011 and 2012 was "more immediate priorities such as cost reduction, […]

Supplier Relationship Management: Cost, Risk, and Value (Part 1)

Every year, State of Flux's Supplier Relationship Management (SRM) report presents one of the more comprehensive non-sourcing focused takes and surveys on the procurement market. The 2012 report is truly phenomenal. Its sample size (while definitely slanted towards the UK marketplace) is significant, representing responses from 287 individuals across 224 companies and public sector organizations. Anyone involved in supplier development, supply risk management, supplier on-boarding/enablement or related areas should reach out to State of Flux and request a copy of the 100+ page report. I promise, you won't be sorry. Before exploring some of the highlights, we'll start with State […]

E-Sourcing Research: ERP Software Solutions Compared to Specialist Providers

We're excited to announce our latest Compass research series paper: Evaluating the Capabilities of ERP Providers Compared to Independent Vendors: Know Your Size? Before Trying on the Suit. The paper, free to all registrants, provides a cursory scan of the relative capabilities of ERP providers in the e-sourcing sector compared to specialist vendors. It also provides recommendations for how to discern whether ERP vendors can provide the right mix of capabilities either replacing or augmenting existing providers (it's important to remember that a surprising number of the more advanced procurement organizations are using specialist e-sourcing tools alongside Ariba, SAP and […]