Search Results for: sourcing

Dumpsters: Where Food Goes to Die, or Waits for Those Who Dive

Kaitlyn McAvoy - November 25, 2014 10:07 AM

Last week, Spend Matters introduced a new series on the food supply chain – specifically, how much of it goes to waste (up to 40%). Today, we continue this discussion. Specifically, we talk about the food that ends up in dumpsters and the people who dig for it. We also share some more statistics about food waste in the US.

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Waste Matters! (Food Waste, That Is)

Kaitlyn McAvoy - November 21, 2014 6:22 AM

How much food do we waste in America? A lot: 30% to 40% of the food supply ends up in the landfill. In 2010, 133 billion pounds of food was thrown out at retail stores, restaurants and US homes. Today Spend Matters begins a new series on the food supply chain, the amount of food waste we produce and what is being done about it. We think it’s timely, too, as the holidays approach. We will take a look at this important issue gaining national attention and what it means for procurement and the supply chain.

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For IT Hardware Savings, Look at Services and Support – More on the Accenture Q3 2014 Spend Trends Report

Jason Busch - November 25, 2014 2:49 AM

CIOs – and more recently procurement executives – have been chasing IT hardware cost savings for years . Having been involved in IT sourcing projects earlier in my career – actually for a large OEM – I can attest to the often advanced market design elements that goes into the typical sourcing or category decision involving large hardware buying efforts. But might services be a better place to look for savings? Accenture's recent Q3 Spend Trends Report suggests that the opportunities for savings from third-party hardware maintenance are often significant – and have not necessarily been fully explored.

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The Urgent Need to Become a “Customer of Choice” in Logistics – More on the Accenture Spend Trends Q3 2014

Jason Busch - November 24, 2014 2:25 AM

In joint category research we conducted in the past with the Procurian team (now part of Accenture), I’ve found the logistics sourcing team to have an uncanny grasp of the market (see related links at the end of this post). The group is almost a hybrid of category intelligence professionals and sourcing experts. The Q3 2014 Accenture Spend Trends Report shares a number of other observations from the Accenture logistics sourcing team including the need for customers to avoid being fired by carriers! But how can shippers avoid being fired?

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What Does Dim Weight Have To Do With Me?

Guest Contributor - November 12, 2014 2:35 PM

Off in the nether regions of dirty fingernails supply chain execution, practitioners are leaving work early to stock up on sackcloth and ashes. Oh, the wailing, the gnashing of teeth! It is as if a plague of Biblical proportion had been loosed upon the people. The proximate cause of the hoopla and furor has been the announcement by UPS and FedEx of dimensional weight (dim weight) pricing for its commercial customers. Stripped of all the anti- rhetoric and pro-smooth talking, what dim weight comes down to this is: A parcel of twice the cubic size of another will cost twice as much to ship.

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Lessons From the HfS Blueprint Session Applied to Procurement Services Delivery

Jason Busch - November 20, 2014 10:14 AM

Earlier this week, I stopped by the HfS Blueprint event in Chicago, which brought together similar numbers of practitioners and providers in an intellectually-focused exchange. During one of the presentations, Lee Coulter, CEO of shared services at Ascension Health, and Charles Sutherland, EVP of research at HfS, explored a number of areas driving the future of cost reduction in services delivery. While the presentation covered various topics, one part I found particularly interesting is knowing when a particular function is ready to move to a lower cost labor approach.

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Anti-Dumping Effort Gains Attention (and Spend Matters Network Weighs In)

Kaitlyn McAvoy - November 20, 2014 6:16 AM

Rep. Billy Long is pushing federal authorities to take a closer look at the goods global suppliers are shipping to the US. And, the world’s largest bedspring supplier, Leggett & Platt, is throwing its weight behind the effort – going as far as to hire a lobbying firm to convince lawmakers this is an important issue that needs to be addressed.

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Jeremiah Was NOT A Bullfrog!

Guest Contributor - November 6, 2014 1:31 PM

Spend Matters welcomes a guest post from Art van Bodegraven. Fans of the innocent earlier days of popular music might remember the monster hit “Joy to the World,”by Three Dog Night. But an earlier Jeremiah was a prophet in the Kingdom of Judah, the "weeping prophet" who urged reform and repentance. He is recognized in Judaism, Islam, Christianity and Baha'i. Some think that I might be modeling Jeremiah, but my own views are not quite as pessimistic.

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AT Kearney Releases its 2014 ROSMA Benchmark Report – Context and Approach

Pierre Mitchell - November 17, 2014 2:26 AM

AT Kearney recently released a report titled “Building the Brand of Procurement and Supply,” which summarizes and analyzes its 2014 Return on Supply Management Assets (ROSMA) benchmark metric that it collects on its own (e.g., it has been part of Kearney’s AEP study since 2010) and through a partnership with ISM and CIPS. Members of ISM and CIPS (of any size) can participate in the benchmark study (and get a results readout) and we’d highly recommend procurement practitioners to at least read this report and familiarize themselves with the concepts and the structure of the ROSMA metric.

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Anticipatory Sourcing: Anticipating What, And When

Guest Contributor - October 30, 2014 2:15 PM

Spend Matters welcomes a guest post from Art van Bodegraven. When I use the term Anticipatory Sourcing without setting the stage fully and correctly with an audience, even an audience of one, the reaction is eerily reminiscent of the late and much lamented Richard Pryor exclaiming, "Say what?!?!?" (Shades of the cult classic film, “Stir Crazy.”) But, at the risk of offending and alienating, I will stake out the position that, unless you are doing anticipatory sourcing, you are taking up valuable space that ought to be occupied by someone more motivated, more aware, more understanding and, possibly, even a bit more intelligent.

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Improving Contractual Flexibility – The Difference Between Success and Failure (Article 2)

Guest Contributor - October 25, 2014 8:20 AM

Spend Matters welcomes this guest post from POD Procurement, a business consultancy that created the POD model. To achieve the maximum savings, buyers need to commit to procuring the goods/services from the suppliers. Once the contract has been awarded, both parties focus on delivery. If the business requirements reduce post-contract award it can lead to a difficult business decision.

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The Difference between Success and Failure (Article 1)

Guest Contributor - October 18, 2014 8:22 AM

Spend Matters welcomes this guest post from POD Procurement, a business consultancy that created the POD model. In our 3-part series we will explore these 3 core areas of achieving procurement success: Centralized Procurement (Article 1), Improve Contractual Flexibility (Article 2) and Encourage and Reward Post-contract Supplier Innovation/Efficiency Gains (Article 3).

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Why More Large Volume Shippers are Turning to Regional Carriers

Guest Contributor - November 12, 2014 2:02 PM

Spend Matters welcomes another guest post from NPI, a spend management consultancy focused on eliminating overspending on IT, telecom and shipping. As UPS and FedEx implement another round of annual rate and surcharge increases, along with dimensional weight pricing for all packages, shippers are seeking alternatives. Increasingly, many are turning to regional parcel carriers. Competitive (often, lower) rates, fewer surcharges and better service are quickly debunking preconceived notions of inferiority.

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Don’t Put the Veil on Your Tail (Spend)

Guest Contributor - November 11, 2014 2:36 PM

In today’s day and age, procurement folks have to be vigilant about their spend. The spend in question here is the strategic big dollar spend, for the simple reason that higher the spend, higher the savings when negotiated well. In some cases, while concentrating the efforts on the big savings, we let go of the small dollar spend. One should look at the top 5 spend categories. Miscellaneous items may not stand out in the large chunk of data, but when cumulated, they result in a chunk of money (to the effect of about 15-20% of total indirect spend) and may result in the top 5 categories of spend. More often than not, these have been put under a veil far too long. From my experience, here are some of the simple steps and strategies that one could look at to effectively manage this tail spend...

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Centralized vs. Decentralized Procurement: Technology as (one of) the Great Governance Disrupters

Jason Busch - September 26, 2014 2:43 AM

In procurement, we often look at technology as an enabler. For example, sourcing optimization technology can change how we source by allowing us to gather an increased set of data points from suppliers (and then apply our own constraints to understand how various biases or requirements create additional supply chain cost, such as requiring higher inventory levels, not awarding to the lowest bidder, etc.). Yet technology can enable more than just tactical activities like sourcing – it can also help redesign how we structure procurement teams and leadership to begin with.

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Local Sourcing and Localized Supply Chains for Magma and the Automotive Industry

Jason Busch - September 5, 2014 6:30 AM

Auto News recently reported that Magna International, one of the top three auto suppliers based in Canada, has been rethinking its supply chain of late, noting that “local strategy and efficiency improvements as key cost-saving measures within its supply chain.” In particular, supply chain localization was one of three trends within Magna’s supply chain identified by Carrie Van Ess, vice president of procurement for the Americas, at a recent industry briefing. Van Ess said a new supply chain model is emerging in which “goods are produced, sold and consumed in the same geographic region,” according to the article.

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Accenture Spend Trends Report: Logistics Market Intelligence – “Get Local” and More

Jason Busch - August 26, 2014 10:30 AM

Accenture's Spend Trends Report from Q2 (published in October) covers a number of macroeconomic areas impacting procurement and supply chain costs while also diving into a number of category-specific trends. One area the research brief explores is the logistics market, offering a global perspective on it and opportunities for savings and procurement improvement.

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Exploring the Very Real Reality of Financial Challenges for Smaller Suppliers

Kaitlyn McAvoy - November 4, 2014 6:11 AM

When it comes to accessing working capital at market rates, there has become a greater division between larger and smaller firms – not to mention those in the middle. In today’s environment, investment grade companies have no challenge borrowing at extremely low interest rates. Whether printing commercial paper or accessing the long-term debt markets, it’s a good time to be big – and highly rated.

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Universal Comments on Transactional Procurement Scarcity From South of the Border

Jason Busch - November 5, 2014 2:39 AM

We’ll be calling much more attention to our recently (and quietly launched – shhhh!) Spend Matters Mexico y America Latina in the coming weeks. But in the meantime, I wanted to give a shout out to a post by Jesus Campos, a new analyst and contributor in the region (Jesus works with Xavier Olivera, who is our director for Spend Matters Mexico and Latin America, as well as our new P2P solutions analyst). In his recent musings, Jesus hits on a topic that is relevant regardless of your geography: procurement scarcity in transactional buying.

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An Interview with Corporate Ink’s Amy Bermar, Part 1: What to Know Before Hiring a PR Firm

Thomas Kase - August 12, 2014 2:30 AM

Many public relations firms get fired after two or three years – hardly an ideal track record. With procurement more involved than ever, it’s time to look beneath the covers and boost the odds – not just the budget – in your favor. Thomas Kase interviews Corporate Ink's Amy Bermar, who has been on all sides of the agency pitch – selecting, winning, and losing. In Part 1 of this two-part interview, Amy talks about what companies should know before hiring a PR agency.

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