Sourcing & Categories Content

America Needs a Bigger Closet

warehouse

Spend Matters welcomes this guest post by H. Cole Hassay, economist at IHS Markit.

Americans need more space to store their goods, according to warehouse construction data. Warehouse construction rose in 2016 by 8%, coming off three years of double-digit growth as consumers continue to demand more storage space. Rising demand, along with historically low interest rates, prompted this construction explosion. Though the Federal Reserve has signaled interest rates will be rising in the near term, warehouse construction should remain positive, though less dramatic, as demand persists.

Why It’s Important for Logistic Category Managers to Be the Gateway to Emerging Disruptive Technologies in the Marketplace

trade

Spend Matters welcomes this guest post from Rodrigo Sánchez, consultant in strategy and operations management at GEP.

Procurement strategies aim to identify the service providers that can offer the products and services an organization requires at the most competitive prices. At the same time, they also need to meet the requirements established by the different departments across the company. Logistics, however, defines the strategy that will allow companies to move raw materials into manufacturing plants and distribute its finished goods across its supply chain. And all of this aims to be cost efficient. So how is it possible for procurement to identify additional opportunities for logistics, since it does not own the logistics strategy?

Category Management Survey and Report: Groundbreaking Results and Webinar Next Week

category management

Consultancy Future Purchasing completed late last year the largest category management survey of its kind ever attempted (as far as we know). With more than 300 respondents from a range of sectors and countries, the results provide much fascinating material to help understand just what differentiates the best exponents of “CatMan” from the pack. And if you have any interest in the topic, as a category manager or a procurement leader looking to improve performance, or indeed as a less mature organization in the field, we are confident you will get something useful out of our upcoming webinar next Tuesday, March 14, at 11 a.m. EST.

ICYMI: Trends and Predictions in Sourcing, Supplier Management, CLM and More

For those of you who missed it, last week Spend Matters Founder Jason Busch presented a webinar live from the U.K., with Spend Matter UK/Europe Managing Director Peter Smith some 50 feet away, doing another webinar live. “It’s the first time we’ve had two analysts in the same building doing a webinar at the same time,” Busch said. Busch’s webinar, Sourcing, Contract and Supplier Management: Predictions and 2017 Tech Trends, looked at four areas within the strategic procurement technologies landscape — spend/supply analytics, strategic sourcing (e-sourcing), supplier management and contract management.

Sustainable Innovation: What’s Good for the World Can Be Good for Business

wind power

Spend Matters welcomes this guest post by Jean Sweeny, chief sustainability officer at 3M.

Imagine a world where every life is improved – where natural resources are readily available, people have access to education and opportunity and communities are safe, healthy, connected and thriving. This utopia isn’t just positive for the people of the world, but it’s these types of environments that also drive business by fostering innovation.

Shining a Light on Dark Procurement: Getting Complex Categories Under Control

category management

Spend Matters welcomes this guest post from Brian Miller, vice president of services at Proactis.

“Dark” procurement, a new label for a well-known challenge in the discipline, is elevating concerns over purchasing waste and threatening efficient, optimized procurement. This is especially apparent in complex spend categories, particularly business services. Characterized by a lack of procurement awareness and process transparency in these categories, “dark” purchases leave organizations exposed to inefficiencies, greater costs and more risks.

Hackett Research Proves Supplier Diversity is More Than Just About “Getting the Warm Fuzzies”

supplier diversity

Companies putting time and money into supplier diversity programs experience no loss in efficiency, according to new research from The Hackett Group. Hackett’s 2017 Supplier Diversity Study found that nearly all diverse suppliers meet or exceed expectations and in fact bring additional benefits such as new revenue opportunities. These new findings dispute executive assumptions that pursuing supplier diversity initiatives will divert attention from other strategic activities.

A Primer on Supply Risk Management and Compliance

risk

While the area of supply risk management is attracting growing interest and investment from procurement organizations, organizations typically deal with risk on a piece-part basis. That is exactly the wrong strategy, argue Spend Matters analysts Jason Busch, Pierre Mitchell and Michael Lamoureux in their latest report, Spend Matters Landscape Definition and Overview: Supply Risk Management and Compliance. One of their core aims in publishing this analysis, they write, is “to change this perspective and help organizations integrate these supply risk management initiatives more effectively.”

Consumer Buying Power: A New Meaning in the Age of Trump?

retail

A report by Trade Extensions titled “Consumers’ Attitudes Toward Manufacturers, Retailers and Suppliers” has implications for many facets of the CSR trend — from brand reputation, to ethical sourcing, to the classic “what does it mean for the bottom line?” One finding from the report indicates that the retailer is the most important entity (above manufacturers and suppliers) that U.S. and U.K. consumers think about when buying something — which is perhaps related to why the recent Nordstrom firestorm was more about Nordstrom, not who makes Ivanka Trump's clothing line or how it sells. But the survey’s more interesting findings touch on fair treatment of suppliers.

Global Contracting: 3 Factors to Understand Before Involving Developed and Developing Geographies

change of control clauses

Spend Matters welcomes this guest post from Iyappan C., senior research analyst, FM/CRE Services at Beroe.

One of the clear trends in the current business world is that global organizations are increasing their operational presence in developing geographies and, as a consequence, procurement teams are forced to seek and attain benefits from integrated supply contracts including these geographies. If they can attain such integration, it will consolidate the organization's’ overall supply bases more efficiently.

E-Sourcing Must be Easy to Adopt: Brand New Research

Simply stated, e-sourcing is the process of securing bids from a multitude of suppliers via one online portal. This allows for streamlining the sourcing process and creating competition among bidders that will in turn reduce prices and create a trusted avenue of sourcing information. When adopting an e-sourcing solution, there are plenty of rules and standards to adhere to, but one thing is for certain: e-sourcing must be easy to be adopted.

riskmethods: A Unique Risk Management Solution for Manufacturers — Year-End Tech Review

risk

This post is part of our 2016 Year-End Procurement Tech Review series, in which we offer procurement practitioners a bird’s-eye view of key vendors and their solutions in select categories. This week, we’re highlighting companies in the risk management and spend analytics spaces.

Riskmethods, which Spend Matters estimates is the fastest-growing supply chain risk management provider, is more than just a cloud-based provider of supply chain risk management software. It is a new type of supply chain intelligence utility. While the provider is still too small to have a solution that is “going viral,” its growth rate is significant relative to all other vendors in the sector and also a bright spot on the broader procurement and supply chain technology market.