It’s spring, and ‘tis the season for sustainability and corporate social responsibility reports. As there’s been a glut of them out lately, with the majority running dangerously close to novella-length, Spend Matters read them so that you don’t have to. Here’s a roundup of the latest reports, plus the best, fanciest chart they had to offer.
Sourcing & Categories Content
Nowadays one doesn’t have to be a coffee snob to appreciate a single-origin brew, not when even Starbucks is bandying around words like terroir. The same goes for so-called bean-to-bar chocolate. For years now, businesses and consumers have pored over the provenances of foodstuffs with a fervor that used to be limited to wine. Seafood may be getting there, too, albeit slowly. Imagine ordering from a menu where each seafood dish comes with a note on where it came from.
Spend Matters welcomes this guest post from Nitin Khandelwal, of GEP.
Forklift sourcing isn’t as complex as it seems (especially when we compare it with fleet), but there are a variety of factors that should be considered to ensure that you contract the right supplier.
People have pointed fingers at United for pulling passengers off after they have boarded; at the security officers who didn’t think it inappropriate to drag a 69-year-old man by his hands; at the passenger himself for not complying with airline policy — but who reads those policies when booking tickets, anyway? But our question is this: How much of the blame also goes to Republic Airline, the regional partner that operated the flight?
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
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?
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.
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.
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.
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.
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.
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.”