We all hear about the rise of social collaboration in business beyond just posting our résumés on LinkedIn. Many of us are likely using at least a few social tools in our personal lives — Facebook, Instagram, Twitter, Snapchat. Even more are using social tools built on peer-to-peer and crowdsourcing-type models. For example, UberX or UberPool have become ubiquitous as crowdsourcing a method of getting from Point A to Point B using peers rather than professionals. Yet in business — and especially within procurement — social collaboration has been largely limited to the use of LinkedIn or rudimentary collaboration capabilities built into select procurement technologies.
Category Archives: Suppliers
Automakers need to do a better job of working with suppliers to succeed in an increasingly competitive market, according to a new analysis. The North American Automotive OEM-Supplier Working Relations Index Study from Planning Perspectives Inc., a Mississippi-based consulting firm, looked at six original equipment manufacturers and their working relationships with suppliers. None of the automakers received scores on the index that Planning Perspectives considers “good” or “very good.”
Supply chain risk management (SCRM) is becoming a top priority in procurement, as organizations lose millions because of cost volatility, supply disruption, non-compliance fines and incidents that cause damage to the organizational brand and reputation. Bribes to shady government officials, salmonella in the spinach and forced labor in the supply chain can all result in brand-damaging headlines that can cost an organization tens of millions in sales and hundred of millions in brand damage. And while reputation may only be important for name brands, cost volatility and supply disruption affect all manufacturers.
Half of IT professionals are not confident their suppliers have effective security measures in place to protect sensitive data, but many are not requiring suppliers to pass security audits and some even continue to do business with suppliers that fail security standards. These were some of the key findings in a recent report from Tripwire, which provides IT operations solutions. Of the more than 320 IT professionals surveyed, 47% said they are not confident in their business partners’ security measures.
In Part 1 of this series, we introduced supplier management from a process and methodology standpoint before mapping it to various solution areas that are out in the marketplace. Supplier management often is called SLM because of its lifecycle focus, which spans initial analysis (analysis and opportunity identification), planning (sourcing), negotiation (contract management) and execution (performance), and closes the process loop by leading back to the analysis phase of the strategic sourcing cycle as a result of future opportunity identification. Third-party management (3PM), which deals with non-suppliers that are also critical to your organization — such as government agencies, third-party logistics, partners and (media) agencies — is simply the application of the appropriate finely-tuned subset of supplier management capabilities to the third party that needs to be managed for organizational success. And, of course, you also need good supplier information. In this installment we cover what is in scope from a process and information standpoint before mapping to solution categories that are available in the market.
Consumers today are demanding more information than ever before on the food they buy and eat. It’s not a new phenomenon, but it’s an important point for food companies and retailers to take note of, especially as they compete for customers’ dollars and loyalty. A new report, however, has shown nearly two-thirds of consumers don’t think food companies are transparent enough — they want more food production information than they are finding at the grocery store.
A flood of foreign imports and a resilient dollar have depressed commodity prices for the past two years. For many procurement organizations, this may seem like an ideal moment to renegotiate contracts and secure unexpected savings. What lies beneath this opening, however, can wreak havoc on procurement. For every opportunity these depressed market conditions create, they reveal just as many new risks — ones procurement can rarely manage to full effect without the help of predictive analytics.
This is your last chance to join us today at 12 p.m. CDT for Connecting the Dots of Risk, Return and Compliance in Strategic Procurement with Pierre Mitchell, chief research officer at Spend Matters, and Jim D'Addario, senior director, Oracle ERP Cloud. They will discuss how the supplier management lifecycle, sourcing, qualification and contracting can all be joined together to add real value to your organization.
Spend Matters welcomes this guest post from Jeremy Friedman, COO of Greenwing Technology.
E-procurement has come a long way from the days of just Ariba and the fortune 500 companies it supported. By my count there are now more than 50 platforms, and every few months I hear about a new platform entering the market, all claiming to revolutionize the industry. In every article, case study and seminar talk I hear about the benefits of how Corporation X saved $2 million by moving to e-procurement or University Y saved countless hours moving to a paperless environment. All that is great, but one thing I rarely see is how the suppliers of these large entities are affected.
Spend Matters welcomes this guest post from Sachin Yadav, of GEP.
Negotiating the best value out of monopoly suppliers is a tough challenge. Monopoly suppliers will always steer a relationship in a direction that doesn’t benefit the buyer. A lot of suppliers that also act like a monopoly are where the transition cost is exceptionally high. Here are some of the major issues faced by companies while negotiating with a monopoly.
Join us today at 12 p.m. CST for Sourcing for Long-Term Supplier Relationships in a Hyper Competitive Cost Environment: Lessons from the Retail and Grocery Industry. Jason Busch, founder and head of strategy, Spend Matters, will be joined by Price Chopper Supermarkets to discuss developing clever sourcing approaches, maximizing your value from supplier relationships and more.
How do you find a balance when it comes to managing long-term supplier relationships in an incredibly competitive cost environment? The answers may surprise you just as much as the source: The retail and grocery industry. Join us this Wednesday at 12 p.m. CST for Sourcing for Long-Term Supplier Relationships in a Hyper Competitive Cost Environment: Lessons from the Retail and Grocery Industry with Spend Matters and Price Chopper Supermarkets.