Sourcing & Procurement

The latest assessment of excellence in procurement (AEP) study from A.T. Kearney confirms procurement’s power to drive real money to the bottom line and value to the top line. among the leaders who do this best, seven characteristics stand out. this article gives the highlights of the study, followed by a Q&a with co-author John Blascovich on what the findings mean for supply management professionals.

In today’s complex world, the responsibilities of procurement and purchasing have never been higher. Developing a competitive advantage in this critical business area can drive cost savings, free up time, and ensure that suppliers are giving their all for your company.

In the company’s zeal to design, test and produce cars faster than any auto company in history, Peter Carlsson, Tesla's Supply Chain Vice President, is helping Tesla imbue the same entrepreneurial and innovative spirit in its supply chain as it does in its groundbreaking vehicle design and performance.

In the wake of rumors that Apple is set to abandon its one-size-fits-all design policy and release a budget iPhone and iPhones with larger screens, where does this leave its current standard bearer? Apple has also started “reshoring” production of some of its products (but not iPhones, yet) back to the US. Will this move eventually change the big picture that follows?

The management team at Biogen Idec knew they had to transform the supply chain to cope with increasing volume and complexity at this biotech company. Beginning with a detailed gap analysis, they launched a comprehensive transformation program that addressed factors as varied as vendor continuity and purchase order processing times, drawing from sourcing best practices. The overhaul to date has proved to be a resounding success.

IHS has created a volatility price indicator to help identify turning points and future commodity price swings. Knowledge is power. Understanding the characteristics of recent periods of volatility outlined in this paper can provide valuable guidance in how to face volatile times to come.

Commodity prices have soared in recent years. Unfortunately, these higher and often-volatile commodity prices have placed pressure on finished product and service prices and made market intelligence that much more critical to cost mitigation and the bottom line.

The last several years have witnessed not just strong commodity price increases, but also tremendous volatility. After a sharp sell-off during the 2001 recession, commodity prices rose to unprecedented levels between 2006 and 2008, only to collapse late that year.

Many organizations struggle to make use of financial data from a variety of information systems, which are often disaggregated, complex and duplicated. This makes it harder for the CPO and CFO to see the “true situation” and to skillfully manage cash, volatility and risk in the supply chain.

It is essential to identify where you want to be, perform a current state analysis, and drive the organization and supply chain toward that new vision. In many cases, the journey takes 5 – 10 years. Indeed this is a long time to be in a state of change, but when planned and directed wisely, it’s not only bearable, it can be quite liberating for employees and for the organization.

The rise of questionable ethics may be partly driven by the financial crisis that began in 2007-2008. As the global economy tanked, companies became increasingly desperate to maintain and grow their business. This could be a reason why purchasing now receives more intense gifting efforts aimed at creating implied obligations.

Too often, supply chain and procurement leaders are not well-prepared for complex negotiations with key suppliers. So what does it take to get ready for even the toughest adversaries? Here are seven techniques that top supply management negotiators put into action—techniques that prove effective even when the deck is stacked against them.

IBM Emptoris Strategic Supply Management solutions help companies maximize savings, drive improved supplier performance and mitigate risk.

The report looks at what separates outperformers from the rank-and-file organizations that fall short. And, finally, the report provides a roadmap that CPOs can follow that will enable them to begin emulating the practices of outperformers to positively impact the competitive position of their organizations.

GT Nexus Cloud Tools enables you to manage that change and support the complex network of data which form the backbone of your supply chain. Once you are on the platform with GT Nexus, you may be receiving data from suppliers, carriers, third party logistics providers, agents and banks.