Commodity Management Archives - Page 2 of 5 - Supply Chain Game Changer™

Create Collaborative Innovation with Suppliers!

Supply Chain Collaboration – The New Way to Drive Value!

Previous CIO of General Motors (GM), Tony Scott, was once quoted saying,“GM is a highly collaborative organization; we rely on a whole tier of suppliers for everything that we do.” They rely on collaborative innovation.

Our organization’s products, customers, and profit, are ultimately a byproduct of the global supply chain networks that operate on a daily basis to add value through collaboration. The complexity of global supply chains – especially in organizations like GM, often the elephant in the room – require hands-on relationship management of suppliers to ensure that supplier collaboration will lead to added value, and innovation.

It’s nice to see that their previous Chief Information Officer had enough perspective to recognize their suppliers’ importance.

Supplier Collaboration is a Win-Win Strategy!

How to Create Collaborative Innovation with Suppliers!

Suppliers are an intrinsic part of the Supply Chain. It does not matter what business you are in, what products you make, distribute and sell, or what part of the world you are in. And it doesn’t matter where in the Supply Chain you are. You can not accomplish anything without collaboration with your Suppliers.

Yet I have seen, like many of you, Suppliers treated in many different ways. No matter what the circumstances are poor treatment of Suppliers is never appropriate. Given that Customers fundamentally need their Suppliers to be successful why do people treat them badly? And how do we ensure there is a healthy and productive relationship between Suppliers and Customers?

Working together with your Suppliers is always a formula for success!

Why Procurement Transformation Can Fail!

What’s the Difference between Procurement and Purchasing? (Infographic)

Over these past 28 years of my career in Procurement (yes I started when I was 12), I’ve had the privilege and pain of seeing, not just procurement, but many different types of Transformation initiatives succeed and, unfortunately, fail. Let’s discuss why procurement transformation can fail.

What’s the Difference between Procurement and Purchasing? (Infographic)

Featuring Our 12 Best Procurement Articles!

It’s a good question. We often see these terms used interchangeably, but there are some concrete differences between Procurement and Purchasing such that we think they are two different practices, each with their own set of concerns and skills.

Supplier Quality Management: Drive Value By Safeguarding Value!

Differentiate With Supplier Relationship Management (SRM)!

Fall is in the air.

Pumpkins are chunkin’, the leaves are changin’ and Thanksgiving cornucopias are being filled by the second. There’s something about autumns crisp air that makes me romanticize the ‘coziness’ of it all, but can you blame me?

As an ex-pat American, I sometimes forget that my associations with the autumn season don’t align with those of my friends here in Stockholm, Sweden. But, if there’s one thing we’ve all come to an agreement upon, it’s that Thanksgiving dinner is a must.

I introduced the tradition a few years ago and it’s been an annual event since then, hosted at my place- in potluck fashion. I fix the bird, stuffing, and taters, and each attendee stands for their own dish. It is a feast of epic proportions, and there’s a spread of food big enough to feed Coxey’s Army (as my Grandmother always says).

Procurement Bots – Transformer or Destroyer?

The 3 Pillars of Digital Procurement!

The last few years have seen a lot of real (and over) hype associated with the emergence of Software Robots (called Bots/Bot) and Procurement Bots which are disrupting the legacy procurement processes involving human interface.

This research paper introduces the concept and evolution of the Bots, their characteristics with focus on Procurement processes, the Pros and Cons and debates on the transformation of the procurement function (vs destruction of human interface).

In summary – Bots will have a high appeal on the transactional and digital side of procurement processes and will gain exponential growth in the coming years with the advent of cognitive and machine learning tools.

Tail Spend: The Hidden Procurement That’s Hurting Your Bottom Line!

Indirect Procurement – It’s Time to Rise and Shine!

In the fast-changing world of strategic Procurement, certain categories of spend get all the thunder: IT Procurement gets to help drive a company’s innovation. Business Services Procurement gets to restructure a company’s operations and drive competitiveness. Travel Procurement gets to look at pictures of exotic destinations all day (just kidding). But what about tail spend?

And most large companies are well aware – by now – of the cost savings and strategic advantages of being more strategic about the way you buy things in an organization. For the most part. For most of the stuff a company buys.

But there’s another sort of spend that never gets any love, a sleeping giant that’s actually costing companies millions of dollars and opening them up to risk: Tail Spend.

How to Mitigate the Lumber Supply Shortage!

The Lumber Supply Chain is Going Against the Grain!

With new building codes using light-frame construction, there are limits on how many trees are cut down before putting our environment at risk. It puts pressure on manufacturers to find alternative sources for materials that are readily available elsewhere given the lumber supply shortage.

What is Tail Spend and Why Doesn’t it Wag Procurement?

What Gets Measured Is What Gets Done!

Every Procurement organization is faced with the need to deliver cost savings. But virtually every Procurement organization ignores or gives lip service to an area that promises substantial savings opportunity: Tail spend.

What exactly is Tail spend? Why does it not get the attention that its saving potential promises? And what can companies do to tackle this area without compromising their focus on larger spend areas?

Procurement Transformation Delays – The Role of Personality!

Manage Procurement Spend Like It’s Your Own Business!

We’ve all heard of the need for Procurement to embrace the Digital Procurement transformation for many years.

So why are so many organizations still in the beginning of this process?

Why are industry projections failing to materialize despite ample technological advancements in Procurement?

7 Essential Attributes of Strategic Supplier Partnerships!

Strategic Supplier Relationship Management – Do’s and Don’ts

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Though the phrase partnership is often used, what really constitutes a strategic supplier partnership?

In a previous article about supplier management, I suggested that the more a supplier tells you that they are strategic, the less they really are. Strategic is a term that is often overused. Whether the phrase refers to sourcing, procurement, relationships, or other matters, its use is prevalent.

The notion of partnerships is equally ubiquitous and similarly both mis- and over-used. This article will identify a taxonomy for a strategic partnership between two parties.

The Future of the Chief Procurement Officer … Is Already Here!

Could the CPO Be Replaced by the Chief Value Officer?

Kodiak Rating’s CTO was recently in attendance at a Chief Procurement Officer and Procurement Leaders event held in London, titled DITx — Data Intelligence and Tech Forum.

As written by Procurement Leaders, “DITx is Europe’s ONLY event specifically designed for procurement professionals wanting to capitalize on a whole new set of opportunities that disrupt yet provide new transformative, value adding capabilities” (Procurement Leaders 2017).

4 Steps for Establishing Healthy 3PL Relationships!

What is a 3PL? The Ultimate Guide Including Definitions of 1PL, 2PL, and 4PL!

The key to establishing healthy 3PL relationships starts with quality of the information that is provided at the time the request for a proposal (RFP) is submitted.

If you ask any 3PL service provider you will find that the lack of quality information provided in RFPs is one of their greatest frustrations.

7 KPIs Your Procurement Team May Be Ignoring!

Strategic Supplier Relationship Management – Do’s and Don’ts

Procurement bridges the gap between product, internal stakeholders and customers. Elements of that bridge include KPIs.

In order to support the weight of internal and external expectations, Procurement teams must be prepared to perform as a key value adder within an organization.

Meeting expectations at the door isn’t always the easiest task, especially when those expectations can be wide sweeping (example: minimize cost).

Procurement (and Purchasing) Job Interview Questions & Answers

20 Supply Chain Job Interview Questions and Answers!

Procurement, or Purchasing, is an area of Supply Chain that involves and requires very specific skills and expertise. This is particularly apparent if you are conducing a job interview and hiring a Procurement professional, you are looking for a Procurement job, you are looking to outsource anything, or you are dealing with Procurement people in the course of conducting business.

Regardless of your position or situation it is highly valuable to understand the type of interview questions, and answers, appropriate for Procurement and Purchasing professionals.

Check out this list of 25 Procurement and Purchasing and Supply Chain interview questions and answers.