Sourcing & Procurement

View highlighted excerpts from the EBN live chat on The Future of Direct Procurement, along with Pierre Mitchell, chief research officer at Spend Matters, and host Hailey Lynn McKeefry, managing editor of EBNOnline.

This White Paper examines the true costs of global sourcing and highlights the impact of sourcing strategy, the potential for global savings and the need to balance cross-functional costs and tradeoffs.

In the business world, why is competition so often the norm, while cooperation seems like an impossible goal? Why do we so often settle for “better than nothing” compromises? One of the most destructive assumptions we bring to negotiations is the assumption that the pie of resources is fixed. The mythical-fixed-pie mindset leads us to interpret most competitive situations as purely win-lose.

Firms can manage their sourcing better by developing relationships not only with their suppliers but also with their suppliers' suppliers, according to two papers co-written by a University of Illinois expert in supply chain management.

A firm’s raw material sourcing knowledge can be a strategic resource, and therefore we explore how firms can capture and use this knowledge. We examine the sourcing experiences of four firms in four different countries in the automotive industry and identify the raw material sourcing knowledge‐related parameters with appropriate theoretical explanations.

For most companies in asset-intensive industries, MRO inventories can represent millions of dollars in investment, the vast majority of which often sits unused year after year. This white paper will help shift this MRO mindset while illustrating the economic impact of the silo’ed viewpoint.

Top-performing CPOs can increase their influence over strategic business imperatives by driving efficiency and performance, introducing innovative new processes and uncovering new insight into supplier networks that have a measurable effect on the bottom line.

The IBM Institute for Business Value executive report, “Chief Procurement Officer Study: Improving competitive advantage through procurement excellence” examines the practices of those select few procurement organizations that have developed and mastered the capabilities, influence and innovation that enable them to contribute to the competitive advantage of their enterprises.

With the increase of on line buying and sourcing of goods and services, educators, consultants, writers, and industry leaders have spent a great deal of time and resources attempting to improve the identification and selection of suppliers and the associated purchasing processes.

For years, the labor rate has been the primary advantage benefiting Chinese manufacturers. However, wage rates in China are growing at an accelerated rate, and IHS predicts that China will lose its low-cost edge for some products in the near term.

Have you considered the chain reaction toxic MRO master data can create throughout your organization?

John Anton of IHS Global Insight provided a forecast earlier this week calling for HRC prices to rise into the 1st Quarter 2014.

"Trying to manage all of the market drivers and dynamic forces that introduce variability into material, equipment and labor supply is extremely difficult. The IHS PEG Engineering and Construction Cost Index provides powerful insight on cost trends that enable faster, more confident decisions that drive operational excellence."

If your company is not already planning for this transition, it may be time to begin researching the solutions that are available, as well as the costs and benefits of adopting an electronic solution for both procurement and payables functions.

Companies that succeed over the long term tend to focus on both “performance” and “health,” with heavy emphasis on upfront training in new tools, processes, and approaches so they can build up a cadre of experienced managers who can sustain this effort far into the future.

A fire that destroyed a Tesla electric car near Seattle began in the vehicle's battery pack, officials said Wednesday, creating challenges for firefighters who tried to put out the flames.

At many companies, there is a divide between procurement and supply chain operations that robs the organization of vital efficiencies. Companies that have recognized that gap and worked hard to close it now see sizeable financial benefits along with qualitative wins such as supplier-integrated contracts and streamlined processes.

Experts point to certain key traits of procurement excellence, including an overall strategic orientation, alignment with business objectives, a risk management role, and an ability to collaborate both internally and externally. Here are some insights on developing these capabilities.

Procurement leaders attending the CPO Roundtable noted they need continued transformation, short time to value, educated and trained employees, and competitive advantage delivered in their corporations' balance sheets and income statements.

Is the inbound direct materials supply chain getting the attention it deserves? How can these crippling parts shortages occur? Why is there not greater visibility into this segment of the supply chain?