Procurement language article originally published by, and permission to publish here provided by, Sam Jenks at kodiakrating.com.
From one Procurement organization to the next, terminology differs.
Of course, it’s impossible to expect that every company would work within the exact same framework of understanding and messaging, but the lack of being able to communicate can sometimes be the difference between success and failure.
With change comes new methods of communicating. RFPs become RFSs (Requests for Solution), and people speak less about TCO and more about TVO (Total Value of Ownership).
Language has a funny way of working. Communication, verbal and non-verbal, is the thing that brings us together as humans and as collaborators in business. But, it’s also the very thing that can create a sense of otherness, confusion or disdain.
For many years the predominant priority in sourcing has been finding the lowest cost possible. This paradigm has driven an incredible the movement of a tremendous amount of production to lowest cost regions such as Asia.
However the continuity of supply issues caused by the pandemic has created a call to repatriate much of this manufacturing into domestic, albeit higher cost, regions.
What is the appropriate sourcing strategy going forward?
Should you keep work in low cost geographies, establish sources in multiple geographies, or on-shore work into high cost domestic countries?
Supplier vetting article written for Supply Chain Game Changer by, and permission to publish here provided by, Tyler Brown.
Does your business rely on at least one supplier? Or do you need multiple suppliers in order to perform your daily operations? Either way the quality, reliability, and value for cost of your suppliers is crucial to your organization’s success.
On the other side, if your suppliers don’t live up to the standards you require, your organization can be damaged.
Suppliers can tarnish your reputation by causing you to deliver unsatisfactory products to your customers. A supplier with internal problems can delay your orders, making you miss deadlines and break promises. Late or low-quality products could cause you to lose major customers or be forced to process refunds.
It’s vital, then, to use a consistent Supplier Management system to vet excellent suppliers and secure the ones that will help your brand to stay strong.
Article originally published by, and permission to publish here provided by, Sam Jenks at kodiakrating.com.
“Fish are friends, not food.”
Bruce, a great white shark, and his two shark friends gather alongside Dory and Marlin, taking a sacred oath, swearing off eating fish. This scene became an instant classic in the homes of the hundreds of millions that have seen Pixar’s mega-success, Finding Nemo.
If you’ve never seen the film, treat yourself by watching this clip below, and directly after you finish this blog, do yourself a favor and stream the entire film.
Now… Is there something to be learned from this quote in Finding Nemo, that we can apply to procurement and sourcing? As buyer and suppliers aren’t we all living in the same ocean, existing in the same ecosystem, and working towards the same value creation?
Shortly after I joined the Commodity/Category Management Procurement organization I was invited to attend the annual Strategic Supplier Awards event. It was all about Strategic Supplier Relationship management.
There were Executives from dozens of Suppliers in attendance. The event concluded with award recognition given to Suppliers based on their scoring and standing as being of Strategic value to the company.
Prior to joining the Procurement team I had neither understood nor appreciated the importance of Supplier Relationship management. But having seen how motivated and inspired these Suppliers were I started to understand.
But in the weeks, months and years to come I also became much more informed about the good and bad aspects of Supplier Relationship Management.
Aggregating your procurement spend for the purpose of delivering greater value is a sound objective. Theoretically you should be able to generate better service, better terms and conditions, and better cost. Therefore you should enable spend aggregation.
You may be trying to aggregate spend within your company or across companies, or you are trying to outsource this to a Group Purchasing Organization (GPO). To overcome the Spend Aggregation obstacles there are a series of enablers you need to enact to make this successful.
Differentiate with a Supplier Relationship Management (SRM) article originally published by, and permission to publish here provided by, Michael Massetti, Executive Partner at Gartner.
Democratic institutions around the world promote the core doctrine that all people are created equally. This is clearly not the case in the world of supplier management. All suppliers are not created equally and they should all be managed with this distinction in mind.
This article on how to differentiate with Supplier Relationship Management will look at a model for stratifying and segmenting your supply base within the confines of a structured and formal supplier relationship program (SRP).
Digital Procurement Ecosystem article originally published by, and permission to publish here provided by, Sam Jenks at kodiakrating.com.
I was in Paris last week, touring around as people do in Paris, and visited Fondation Louis Vuitton.
If you’ve never been before and are a fan of art, architecture, and culture, I can highly recommend adding it to any future itineraries.
The museum’s collections are magnificent, and the building itself is a true masterpiece. Beyond the artwork, Fondation Louis Vuitton offers an experience to tour the multiple levels of decks that interweave themselves between the inside and the outside of the building’s structure.
On one of the decks sits a piece of artwork named “Where the Slaves Live”. It is a living organism, composed of inorganic and organic materials, forming a ‘living sculpture’ that is a small scale ecosystem- an ever-changing work of art.
Background check technology article and permission to publish here provided by John Brooks.
There’s no doubt that recruitment is an HR department’s most important function. Manually screening applications and verifying their contents would be tiring and time-consuming. Fortunately, background check technology can help HR personnel save time and money. Moreover, it can make the recruitment process more efficient, resulting in HR tasks and responsibilities becoming much less labor-intensive than in the past.
The CEO called. “We’re out of Parts … I need your help!” And so it began. These are my confessions as a high priced expediter.
Every Supply Chain is going to have supply disruption and raw material shortages at some point. So if you work in Supply Chain you are going to get involved in some fashion. Maybe you are calling suppliers, qualifying new, replacement parts, or maybe you are arranging for fast delivery of the shortages.
I have been involved directly or indirectly in resolving part shortages throughout my career. Even as an Executive I still got pulled in to these situations and asked to personally get them fixed. Once an Expediter, always an Expediter.
Business practices article originally published by, and permission to publish here provided by, Sam Jenks at kodiakrating.com.
When I was a kid, my mom had a ’93 Ford Escort.
I remember that car as clearly as I remember banging with my fist on it’s ceiling singing Tom Petty’s Makin’ Some Noise.
Days and years went by, and eventually, the ’93 Ford Escort was living in the hybrid-dominated world of the year 2004. My mom decided that the Escort had seen better days, and started a new/used car hunt. She soon selected the Prius as her car of choice for its environmentally friendly features. The Escort joined its fellow junk metal comrades in an automotive-parts junkyard a few miles away from my childhood home.
Future of Procurement guest article provided by Milan Vyas.
There has been transformation in the Procurement function over the past decade. From the starting point of the traditional buy-sell, transaction-based purchasing, the practice has moved through stages of change that redefines most aspect of the business.