Search Results for: sourcing

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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Exploring the State of the Independent Worker: A Key Services Procurement Component

Jason Busch - October 29, 2014 6:31 AM

MBO Partners recently released its annual “State of Independence” report covering independent workers. Independent contractors, whether they work part-time or full-time in this manner, are an increasingly overall component of services procurement programs that are looking to tap specialized skills or take advantage of alternative labor and project-based delivery models (although one that is often not given enough attention relative to the staffing and SOW ecosystem).

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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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Procurement and Payments: Why Getting Smart on Bitcoin Matters More Than You Think

Jason Busch - October 28, 2014 2:23 AM

My colleague David Gustin recently posting a fascinating column on Trade Financing Matters titled Comparing SWIFT, Paypal and Bitcoin – and why this matters! that should be required reading for all procurement, accounts payable or treasury executives considering the impact of new financing and payment mechanisms within the supply chain. David suggests we should be paying closer attention to firms such as Bitcoin, not just based on their share of B2B activity today but rather what their underlying models and infrastructure could signal about the future.

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Is Services Spending That Much More Challenging Than Goods Procurement?

Pierre Mitchell - October 27, 2014 1:12 PM

When you look at modern supply chains, they’re certainly complex, but they’re also run pretty darn rigorously in terms of direct materials spending. Cost breakdown understanding and benchmarking? Check. Inventory requirements? Check? Continuous improvement? Check. Read on to find out how you can participate in a new Spend Matters poll.

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Is the Politburo in a Tizzy Over Reshoring?

Jason Busch - October 27, 2014 6:11 AM

When it comes to creating a harmonious society, the Communist Party in China pays far greater attention to fundamental economics than most western countries do. Keeping GDP growth above certain levels is not juts a goal – it is religion for the politburo’s economic planners that know that the country is held together by growth and economic improvement at all levels, not ideology. Given this foundation, the questions that this blog from Supply Chain Management Review raises are fascinating indeed.

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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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Sourcing Event Complexity – Thinking Through Event Size Limits (Part 2)

Jason Busch - October 23, 2014 6:31 AM

Earlier this month, I commented on Michael Lamoreux’s recent post in which he suggested that we should all “go big” when it comes to including as much coverage and complexity as possible in single sourcing events by leveraging sourcing optimization technology. His post is fabulous – but as I said earlier, Michael is channeling positive thoughts about most companies ability to even take advantage of the basics around sourcing event complexity (most aren’t even 10% of the way there to being able to push the limits of technology).

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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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Lower-End Sourcing Tools: When to Just Say No

Jason Busch - August 7, 2014 10:26 AM

In the first installment of this post, I considered the applicability of lower-end sourcing tools and when they’re most likely to be a good fit for organizations and under what scenarios. Today, as I continue this analysis, I’ll take the other side of the argument focused on when these tools can even do more harm than good, starting first with one of the biggest issues with e-sourcing technologies in the first place – the most valuable features all-too-often sit on the shelf, rarely if ever to be used by procurement organizations.

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Lower-End Sourcing Tools: When to Just Say No (Part 3)

Jason Busch - August 19, 2014 10:42 AM

So far in this series, I have written about both the strengths and some of the limitations of basic sourcing tools – and when organizations should consider using them as opposed working with those that really do specialize in supporting more advanced sourcing organizations and sourcing requirements. Another key area that I’ve observed again and again in my research (including both public and private sector) in the case of more advanced tools is when organizations must have sourcing applications reflect heavy levels of governance and process based on regulatory or other requirements.

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Accenture Spend Trends Report: The Drivers of Category Trends Start with Economics

Jason Busch - August 13, 2014 10:31 AM

Who says that former sell-side analysts on Wall Street can’t do something better with their lives – like helping millions of procurement and supply chain managers make more informed decisions? My old friend and colleague Mark Hillman has shown there is hope for former financial minds that want to make a difference to industry. Mark recently joined Accenture after his former employer, Procurian, was acquired, and is leading up market intelligence efforts. One of this first public reports was released in early August. The Q2 edition of Accenture’s “Spend Trends” is a great piece of research that stands far above the type of analyses that knowledge process outsourcing (KPO) firms would charge clients a fee to deliver.

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When Receivables and Payables Financing Meets Bean Counting

Jason Busch - August 4, 2014 10:24 AM

My Trade Financing Matters colleague David Gustin has spent quite a bit of time over the years investing the accounting treatments of various trade financing schemes (from dynamic discounting to approved trade payables financing). Yet what’s most curious about this area is that we shouldn’t accept the current state of various accounting treatments (e.g., rebates vs. non-rebates and balance sheet impact) as gospel. Regulators and the Big 5 alike are still exploring the area in more detail.

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Lessons from A&D: When Suppliers Take on an Outsourced Supply Chain Management Role

Jason Busch - June 16, 2014 6:26 AM

It is very easy today to “outsource” indirect procurement (though it’s not something that is necessarily by itself the right decision for companies – we’ll leave that topic for another day). But it’s a more difficult decision, no doubt, to indirectly or directly outsource parts of supply chain management to suppliers. Yet when companies turn to suppliers to provide finished parts and components, they’re doing precisely this, although they might not be hiring a partner such as a BPO to do it on their behalf. The same is also true, mind you, of the “outsourcing” that occurs when working with intermediaries and distributors in other spend areas, including logistics and MRO.

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Hey Brother, Can You Spare a Couple Hundred Thousand Tons of Local Cobalt and Graphite?

Jason Busch - June 2, 2014 6:35 AM

The benefits of local raw material supply are no doubt significant. But Tesla may directly face a “not in my backyard” challenge from environmental opponents as well as an indirect economic hurdle in identifying new local sources of supply given the business considerations involved. As SCD writes, “the US hasn't had an active cobalt mine since 1971. But a company called Formation Metals is developing a new one currently in Idaho. However, the Vancouver-based company needs to raise $120 million to complete the project, and new mine start-ups are historically risky endeavors.”

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Improving Government IT Procurement: Just How Serious is the Problem?

Sydney Lazarus - May 28, 2014 10:29 AM

Federal, state, and local governments in the U.S. spend more than $200 billion a year on information technology. The large scale of government IT programs means that delays and failures not only lead to wasted taxpayer money, but also negatively affect individuals who would benefit from these programs. After all, the success of these programs, whether concerning healthcare or security, in part hinges upon innovative IT. Public Spend Forum and Censeo have recently released a report titled "Billions in the Balance: Removing Barriers to Competition & Driving Innovation in the Public-Sector IT Market." We'll be covering findings from the report for Spend Matters readers.

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Webinar Replay: Check Out Last Week’s Recording on Supplier Collaboration in Strategic Sourcing!

Kyle Fitzsimmons - July 24, 2014 6:49 AM

Did you miss our webinar last week on supplier collaboration in strategic sourcing? Fear not because it is still available. Check out the recording of “Supplier Collaboration in Strategic Sourcing: an Oxymoron?” while it is still here to listen to! Thomas Kase (VP of Research) and Pierre Mitchell (Chief Research Officer) have also written a paper that provides helpful background if this topic is one of particular interest to you.

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