Procurement News from the US: FedBid, Proxima, Re-Shoring Procurement and Manufacturing Debate, and the US Federal Government

Hello!  --  Sheena is out this week, so I’m filling in to provide you with today’s round-up. Please enjoy and have a lovely weekend!

See me after class!
Strategic Sourcing Failures: Is the US Federal Government Failing to Implement Savings? -- There are many definitions of the phrase "strategic sourcing." For many in the procurement world, it refers to a specific phase-gate sourcing process (often 5, 7 or 9 steps depending on the specific flavor being employed). For those within IT, "strategic sourcing" is a phrase tossed around by analysts to make buying IT goods and services sound more important (please excuse our cynicism but how Gartner and Forrester, among other tech shops, have usurped and basterdized the phrase over the years still irks those in the actual procurement profession). Within the federal sector, a "strategically sourced" contract refers to one that has gone through a specific public-sector variant of a strategic sourcing event…

A three-part review of FedBid's experience with Detroit’s Public Schools (DPS)
FedBid – Saving $ for Government and Transforming Procurement in Detroit’s Public Schools (Part 3) -- Continuing on in our review of FedBid's experience with DPS, we'll conclude with an overview and analysis of FedBid's fee structure and the services they have provided as part of this engagement. Last, we'll offer final observations and recommendations regarding their position in the market. Fees – Knowing how to work government budgeting and programs is as much art as science. FedBid has likely tailored related programs in the past compared with DPS to work with public budgets and similar grant type organizations. As such, they require no upfront fees to run the solution for DPS. Fees are collected from suppliers when awards are made. As mentioned in Part 1, the percentage fee calculations plateau once spends reach the $1 million level. Larger spend amounts are not taxed, so to speak…

Proxima’s top differentiator 
Proxima: Procurement BPO With a Category and Customer-Intimate Twist (Part 3) -- Proxima bills its top differentiator as "client intimacy," which includes "tailoring services for each client" and sees this in marked contrast to others that tout "operationally efficient" operating models. In our discussion with a strongly opinionated reference account (a senior executive with oversight of multiple functions, including procurement) for Proxima, this intimate yet opinionated approach came through loud and clear. However, in this case, Proxima was able to deliver the bitter medicine with a level of empathetic sweetness in a way that not only improved the capabilities and savings generation for procurement, but caused the business spend owners to want to work with them…

A popular guest post from Verian.
Reaping the Benefits of Enterprise Mobility -- What if submitting expense reports was as easy as taking pictures of your receipts and uploading them to a cloud-based T&E system via web browser, submitting them to your manager while waiting to catch your flight home? Sound far-fetched? Not really. Emerging enterprise mobility is impacting the procure-to-pay landscape in a number of helpful and productive ways, including reducing the cycle time for employee expense reporting. As we all know, mobile technology amps up out-of-office productivity by providing remote access to content and applications in ways never before possible…

The conclusion of our re-shoring analysis…
The Hard Dollar Costs of the Re-Shoring Procurement and Manufacturing Debate (Part 5) -- In closing out our re-shoring analysis on a hard dollar basis, it's also important to begin – or at least attempt – to quantify some of the softer costs and risks associated with longer supply chains. As we've noted previously, political risk is something companies worry about but it's usually associated with governmental stability. Yet as we've seen in the past with China, public policy is a form of political risk…

 

- Brianna Tonner

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