Search Results for: sourcing

 

Cross-Functionally Manage and Govern External Relationships – 10 Services Procurement Secrets (No. 5)

Jason Busch - March 30, 2015 6:28 AM - Available @ Spend Matters

Within both direct materials procurement as well as large IT vendor relationships, program governance, management and orchestration go hand-in-hand with overall vendor performance management, and ultimately, the outcomes one can achieve with the contribution of third parties. Yet in the realm of services procurement today, the ability to cross-functionally manage and govern large external relationships consistently and effectively is a skill that procurement has all too often abdicated to others (e.g., MSPs) and/or not entirely embraced internally.

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For Sourcing to be Strategic, You Have to do More Than Just Negotiate

Guest Contributor - March 26, 2015 2:06 PM - Available @ Spend Matters

Spend Matters welcomes this guest article from Ole Nielsen, CEO of Scanmarket North America. The word “strategic” gets thrown around a lot lately. The other day, I actually overheard one of my wife’s friends say she “wanted to be more strategic” when talking about saving time on her trip to the local grocery store. While being efficient about the path through the aisles of your local supermarket is admirable, it’s tactical, not strategic. Sadly, the overuse of the word “strategic” occurs all too often in our industry, as well.

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The Need For a Formal Capacity Model – 10 Services Procurement Secrets (No. 4)

Jason Busch - March 26, 2015 6:29 AM - Available @ Spend Matters

In direct materials procurement and supply chain activities, capacity modeling is one of the first steps to creating an optimal process design and subsequent flow of goods, parts and materials – on inbound, production and outbound levels. Understanding the requirements for production planning is a critical part of maximizing the use of all available resources and minimizing waste and inventory. In reality, capacity modeling for human talent on a contingent workforce basis is not all that different. Getting the most from a single resource or set of resources while minimizing total cost, waste and rework is similar to what we attempt to achieve on a shop floor or in a supplier’s facility when work is carried out on our behalf.

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Model and Manage Total Costs – 10 Services Procurement Secrets (No. 3)

Jason Busch - March 25, 2015 6:34 AM - Available @ Spend Matters

Modeling and managing total cost is an important best practice for procurement organizations expanding their services procurement efforts. In the direct supply chain, cost management is religion. From modeling the total cost of individual parts or components – including raw materials, labor, value-added elements, etc. – to factoring in inventory carrying costs and general working capital, total cost is the direct procurement king. But in services procurement, we typically only build limited visibility into total cost both from the buyer and the provider (cost breakdown) perspective.

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Focus on Forecast Requirements In Business Planning Process – 10 Services Procurement Secrets (No. 2)

Jason Busch - March 24, 2015 6:28 AM - Available @ Spend Matters

In our recent research study Applying Supply Chain Rigor to Contingent Workforce Management, we were somewhat surprised at the number of organizations that suggested they invest the time to forecast services procurement requirements up front in business planning processes, especially compared with services procurement sophistication overall (compared with direct procurement maturity).

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Manage the Transactional Lifecycle – 10 Services Procurement Secrets (No. 1)

Jason Busch - March 23, 2015 8:39 AM - Available @ Spend Matters

One of the challenges of the services procurement ecosystem is that there is too much “group- think” from those that have focused on the area – either as practitioners or providers – for their entire careers without spending time in other parts of the business. But by looking outside of services procurement and learning from the direct (and even indirect) materials supply chain, there is a tremendous amount we can gain that can translate to better contingent workforce activities. In a 10-part series exploring lessons learned from the direct supply chain, Spend Matters will share a number of secrets from the supply chain trenches. We begin today with our first tip: emphasizing the importance of managing the transactional lifecycle.

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The Funky Market Dynamics of Procurement Technology: Vendor Management Systems (VMS)

Jason Busch - February 26, 2015 3:42 PM - Available @ Spend Matters

Earlier today, Spend Matters PRO published a detailed company and geographic update on IQNavigator, IQNavigator: From Strength to Strength – 2015 Company and Solution Outlook. This was the first research brief in a series providing an updated look at one of the top 3 VMS providers by volume and growth (Fieldglass, Beeline and IQNavigator together control the majority of the VMS market). Once a tactical tool to manage compliance and basic workflow for contingent labor, the humble VMS is growing into a full-fledged source-to-pay suite for the broader services procurement market. But the VMS is an atypical relative to other procurement technologies for a number of reasons.

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Beyond Invoice Discounting and Dynamic Discounting Alone: 6 Triggers for Receivables and Payables Financing

Jason Busch - January 15, 2015 6:42 AM - Available @ Spend Matters

I sometimes tell people that we’re in the top half of the first inning, with the lead-off hitter on plate, to describe where we are in the evolution of purchase-to-pay (P2P), supplier networks, business networks and trade financing. And the first pitch we’ve tossed to the plate is the approved invoice (net of dilutions) as the trigger for online-driven financing. This is the premise behind financing-centric network and e-invoicing providers like Tungsten and Taulia. But e-invoicing is only a single trigger...

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Jeremiah Was NOT A Bullfrog!

Guest Contributor - November 6, 2014 1:31 PM - Available @ Spend Matters

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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The Irony of Globalization and Trade: Declining Capital Availability and Financing

Jason Busch - January 1, 2015 2:14 AM - Available @ Spend Matters

With globalization and increased trade flows, could available credit and capital to fuel global supply chains actually be declining? It almost sounds impossible. But financing needs have not kept up with booming global trade between countries, raising risk in the supply chain and creating situations that favor larger suppliers over smaller ones.

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Supplier Enablement: What Types of Partners Exist for Trade Financing?

Jason Busch - March 9, 2015 9:02 AM - Available @ Spend Matters

In terms of data collection and management, the individual elements that factor into a trade financing onboarding program for suppliers will vary depending on the individual initiative/type, geography, etc. But who should companies turn to for supply chain financing and invoice discounting enablement generally?

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Waste Matters! (Food Waste, That Is)

Kaitlyn McAvoy - November 21, 2014 6:22 AM - Available @ Spend Matters

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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What Does Dim Weight Have To Do With Me?

Guest Contributor - November 12, 2014 2:35 PM - Available @ Spend Matters

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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Anticipatory Sourcing: Anticipating What, And When

Guest Contributor - October 30, 2014 2:15 PM - Available @ Spend Matters

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 - Available @ Spend Matters

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 - Available @ Spend Matters

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

Jason Busch - September 26, 2014 2:43 AM - Available @ Spend Matters

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 - Available @ Spend Matters

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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Measuring Supplier Onboarding Success in Trade Financing

Jason Busch - March 3, 2015 6:20 AM - Available @ Spend Matters

My colleague David Gustin (Trade Financing Matters) likes to say that supplier onboarding success is measured in 3 simple ways: The success rate onboarding suppliers you targeted, the success rate in having suppliers use the service and the retention rate after a period of time. These metrics are a perfect starting point to measure the success of supplier onboarding initiatives in buyer-led trade financing, regardless of program type.

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

Jason Busch - August 26, 2014 10:30 AM - Available @ Spend Matters

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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