Procurement News from the US — Weekly Round-Up

Let’s begin with guest contributions, because we had two that were especially great (and well-read) this week:

How do you treat your suppliers? Josh Preacher of Archstone Consulting writes a piece: Leverage, Leverage, Leverage Networks -- What Comes After Supplier Relationship Management “Over the last five years there has been a sea change in how buyers treat suppliers. Not long ago, the standard practice was for buyers to simply beat them up, with techniques that included ‘Dear Preferred Supplier’ letters describing ‘partnerships’ with veiled threats to bring about desired price reductions.”

Not sure if there are any American football fans reading, but there’s a good lesson in here from Mark Schaffner of Verian Technologies (though I thoroughly detest the Cowboys, myself): What the Dallas Cowboys Can Teach Us about Purchasing & AP “I couldn't help but think of a legendary football story after reading one of Spend Matters' concluding recommendations in their most recent Compass Research report "A Foundational Look at P2P Technologies." It says that companies pursuing a P2P system should "make collaborative decisions with finance (including accounts payable) to address both the up and downstream components of the P2P lifecycle." Following the unceremonious firing of Dallas Cowboys coach and football legend Tom Landry, new owner Jerry Jones hired University of Arkansas head coach Jimmy Johnson. Many doubted that the pair (both notorious control freaks with fiery demeanors) could work together to turn around the tarnished silver and blue.”

In other news...

Chipotle sucks. Paying a Premium for Local Source at Chipotle? When the Product Doesn’t Cut It, Who Cares? “We used to be fans of our neighborhood Chipotle. But after near weekly pilgrimages from the office, we realized that the typical salt content of the meals, including the chips, seemed extremely high relative to other choices (even fast food), and found ourselves thirsty, to say the least. The salt at Chipotle may not be locally, organically or sustainably sourced, but just about everything else is, according to a recent story we came across.”

A question worth your thought...Should Procurement and Supply Chain “Own” Their Applications vs. IT? “Within procurement, we've largely seen the disintermediation of IT departments in certain areas such as spend analysis, e-sourcing and supplier management. If anything, IT plays a supporting role as procurement selects and manages vendors in these areas. In the case of supplier management, IT might even be a customer, if an organization configures such a program to serve as a virtual system of record (a supplier/vendor master if you will) that populates other systems, including back-end financials (e.g., GL, AP, AR, etc.). Yet in other areas inclusive of eProcurement and electronic invoicing, including purchase-to-pay, I'd argue that we've seen a split among companies that embrace different visions.”

And finally, some supplier/technology hodgepodge:

Supplier Enablement and P2P Roadblocks -- Supplier On-Boarding (Part 1)

Supplier Enablement and P2P Roadblocks -- Supplier On-Boarding (Part 2)

Enhancing SAP SRM 7.0 with New Deployment Approaches and Enhancement Pack 1 -- EHP1 (Part 1)

Enhancing SAP SRM 7.0 with New Deployment Approaches and Enhancement Pack 1 (EHP1) (Part 2)

With that, I’m off to Mulvane, Kansas for a wedding this weekend. Wikipedia tells me that “Mulvane is near the replica of the Golden Gate Bridge built by Larry Richardson, a retired postman, over Cowskin Creek. The bridge, a scale model 150 feet long built at a cost of $5,000 in materials, is a novelty attraction typical of Midwestern towns.” Please don’t be too jealous of me.

- Sheena Moore

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