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.
Procurement is a core function in every single company. Whether purchasing goods or services to support the company’s product offering or purchasing goods or services to support the infrastructure and operation of the company, Procurement is key and featuring our best Procurement articles is more than appropriate.
Depending on the type of industry you are in the Procurement of goods and or services can be the largest, or one of the largest, expense areas. As such the ability to efficiently procure goods to meet all objectives of cost, delivery, quality, and more is essential for not only success, but for survival.
In this “Featuring” series article we are putting the spotlight on Procurement and Purchasing. We are presenting our Top 12 best Procurement articles with information, techniques and approaches which will have something for everyone to learn from and apply in their own situation.
The theory is simple! If you can increase spend levels through centralized spend aggregation across entities then you increase your leverage in negotiations. This leverage should translate to lower costs and better terms and conditions. But there is a spend aggregation obstacle course to be overcome first.
These entities may be different departments or facilities within your own company. They may be different companies under common ownership. They may be disparate companies within an industry. Or they may be unrelated companies spanning many industries.
The benefits seem clear. So why is there so much resistance when it comes to trying to aggregate spend across these entities?
Indirect procurement of goods and services can be one of the largest areas of expenditure in any company. And the operational impact that the provision of Indirect goods and services can have on a company can be significant, either positively or negatively.
Yet the lack of attention and focus that Indirect Procurement is often given is inconsistent with the true importance of this area. Indirect Procurement takes a back seat to Direct Procurement unfortunately.
Doing business with suppliers located overseas or in another country can be an overwhelming and daunting task even for expert Sourcing professionals. But what if you considered Outsourcing Sourcing?
Recently a friend of mine asked me to have lunch with him and one of his associates. The other gentleman had invented a new product. He had a marketing plan. He knew what his cost point had to be on the product which meant that he had to have the product manufactured overseas.
But beyond that he had no idea on where to start to source his product.