Search Results for: sourcing

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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Supply Ecosystems: Creating Value For Shareholders and Members

Jason Busch - October 21, 2014 10:19 AM

The notion of collaborative “supply ecosystems” is one that puts the notion of traditional competitive supply chains on its head. For those who are curious, this paradigm is being posited by Penn State’s Christopher Craighead, Auburn University’s David Ketchum and the University of Tennessee’s Russell Crook in a forthcoming journal article in which they suggest that one of the elements that members of supply ecosystems will have to follow are balancing the “dual goals of creating value for themselves as well as other ecosystem members.”

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Supply Ecosystems: Leveraging Skills and Knowledge

Jason Busch - October 20, 2014 10:13 AM

One element behind the concept of “supply ecosystems,” a new supply chain paradigm argued by Penn State’s Christopher Craighead, Auburn University’s David Ketchum and the University of Tennessee’s Russell Crook, is very much alive today, albeit at the early adopter stage. This point is that within supply ecosystems, “each organization’s knowledge and skills must be leveraged across the entire ecosystem.”

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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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Supply Ecosystems: Co-opetition – Where Cooperation and Competition Meet

Jason Busch - October 16, 2014 6:16 AM

We recently shared some thoughts around the premise of an article that will soon be published in the Journal of Business Logistics authored by Penn State’s Christopher Craighead, Auburn University’s David Ketchum and the University of Tennessee’s Russell Crook that argues why a new type of supply ecosystem will replace current sourcing and supply chain models. One of the arguments the authors make is that in this new model, rising levels of co-opetition will take place within supply ecosystems. Co-opetition does not just have to mean “supplier vs. supplier.”

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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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MBO Partners’ Gene Zaino on the Rise of the Independent Worker (Part 2)

Jason Busch - October 15, 2014 6:28 AM

Spend Matters recently interviewed Gene Zaino, president and CEO of MBO Partners, on his firm’s recent study looking at the rise of independent workers in America. In Part 1 of the interview, Gene began to share his thoughts on key takeaways from the MBO survey, surprise findings from the report and what it means for government and tax policy. Today, we continue our discussion with Gene.

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Supply Ecosystems: The Next Big Thing?

Jason Busch - October 15, 2014 10:24 AM

Thanks to the rise of purchase-to-pay (P2P) software, we hear quite often about “supplier networks” and “business networks” as the next big thing that will link buyers with vendors. But what about the concept of a “supply ecosystem” that goes further? This is the premise in a forthcoming Journal of Business Logistics article authored by Penn State’s Christopher Craighead, Auburn University’s David Ketchum and the University of Tennessee’s Russell Crook. Based on the author’s definition, these new supply ecosystems appear to more closely resemble giant industrial conglomerates or trading firms, but without necessarily having corporate parent/child ties between members (think Toyota, Mitsubishi, Samsung and to a lesser degree Siemens and GE).

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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 (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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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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Providing Sustainable Supply Chain Guidance Upstream – Improving Both Price and CSR Impact at the Design Phase

Jason Busch - October 14, 2014 10:19 AM

One of the hallmarks of direct materials sourcing in discrete manufacturing is the typical percentage of spend that is “locked in” during the design process – it can be has high as 90-95%. In other words, the design decisions that engineers make are also the “cost decisions” that procurement and the business must live with. These include factors that span materials, tolerances, processes, dimensions, durability and many 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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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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New Downloadable Paper Delves Into Sourcing, Supply Chain

Kyle Fitzsimmons - July 22, 2014 2:22 AM

Get the Spend Matters viewpoint on sourcing and its transformation into supply chain with a new, downloadable paper from Jason Busch (managing director). "When Sourcing Becomes Supply Chain" enforces the notion that data-driven analysis in procurement is essential and already underway. This movement can benefit organizations and businesses from various industries, and the paper digs deeper into the continuing outcomes that can be expected when sourcing and supply chain become one and the same.

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MBO Partners Gene Zaino on the Rise of the Independent Worker: Men, Women and Surprise Findings

Jason Busch - October 13, 2014 10:07 AM

I recently had the chance to ask Gene Zaino, president and CEO of MBO Partners, to share his comments and thoughts on his firm’s 2014 State of Independence in America workforce study. In this two part-series on Spend Matters, we feature Gene’s perspective on the topic.

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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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