Pivotal First Step

Posted: July 22nd, 2015 | Author: | Filed under: Uncategorized | No Comments »

This blog contains proven, useful techniques and best practices that will help you better prepare for negotiations with suppliers. The benefits are obvious, both for you and your employer.

But before you read any further, we strongly suggest you take a few minutes and watch this video:

Click for Video

It contains excerpts from a lecture given by Rod Sherkin at Bryant University, Rhode Island.  Watching will put everything below into context and – more importantly – accelerate your mastering of ProPurchaser’s CORE PRACTICES.

Shale gas blasts open world energy market

Posted: July 28th, 2015 | Author: | Filed under: Energy, Gem, Natural Gas | Tags: , , , , , | No Comments »

Shale gas drillingUnconventional treasure: Shale gas is trapped deep inside rock formations.

Shale gas is a new and abundant source of natural gas, trapped in rock formations. Oil companies have known about it for decades but always dismissed it because it was too expensive and difficult to extract.

In the past few years new technologies that pump water underground to fracture the rock and free the gas have been perfected. The breakthrough has opened a new frontier for the energy industry and turned long-held assumptions about the world’s dwindling supplies on their head.
via Shale gas blasts open world energy market on Propurchaser

Has our profession made strides over the last 7 years? – Part 1

Posted: July 23rd, 2015 | Author: | Filed under: Best practices, Gem, What's Happening in Our Profession | Tags: , , | No Comments »

Results of two time-staggered surveys

As you may know, back in 2003, we asked people to fill in an on-line survey to help Purchasing Professionals gauge their organization’s overall purchasing effectiveness.

We asked 7 questions that touched on senior management attitudes, corporate systems in place for gauging purchasing effectiveness, and the activities that consumed purchasers’ time.

We repeated the Purchasing Effectiveness Survey last month and over 600 people participated. We now have enough information to compare results and determine if anything has changed since 2003.

We plan to review one question each week. Here is the first one.

Read the rest of Has our profession made strides over the last 7 years? – Part 1 » » »


Posted: July 22nd, 2015 | Author: | Filed under: Best practices, Economic Indicators, ethylene, Negotiating with Suppliers, propylene, Uncategorized, What's Happening in Our Profession | Tags: , , , , , , , | No Comments »

NEGOTIATOR’S TAKE:  Not all plastic feedstocks are up – good information for pushing back against increases for Polyethylene and PVC based products and components

An upwards price surge for PS and PP may continue this month, although the driving factors are markedly different for the two resins: a spike in feedstock costs and tight supply for PS, strong demand for PP.  At the same time, prices for PE and PVC have remained flat, despite price increases already on the table.  Renewed attempts are being made by suppliers of both, and whether they have “legs” remains to be seen.  These are among the views of purchasing consultants at Resin Technology, Inc. (RTi), Fort Worth, Texas and CEO Michael Greenberg of The Plastics Exchange in Chicago.



Polyethylene prices were flat in June, following the 5¢/lb May increase.  Although suppliers were aiming for another 5¢/lb bump in July….read the rest of the ProPurchaser sourced article, here.


Source: Plastics Technology, August 2015

Article Author: LILLI MANOLIS SHERMAN, Senior Editor – View her profile at: LinkedIn


Posted: July 20th, 2015 | Author: | Filed under: Australia, Commodities, Energy, Energy, ethylene, Natural Gas, Plastics, Saudi Arabia, Shale gas, USA, What's Happening in Our Profession | Tags: , , , , , , , | No Comments »

NEGOTIATOR’S TAKE:  North American producers have a huge cost advantage for plastic products made from Ethylene.  You might want to re-think sourcing from China.

Now that the US has surpassed Saudi Arabia as the top crude oil and natural gas producer, it can produce cheaper plastic and bring better economic prospects to the nation.  How so?  Well, it’s ethane that’s the key ingredient:




Ethane can be derived from both natural gas and crude oil.  From ethane you get ethylene, which is the basic building block of many plastics….read the rest of this ProPurchaser sourced article, here.

Source: Spend Matters

Article Author: RAJIV JOARDER of Mintec – View his profile at: LinkedIn

US Electric Power Markets – National Overview

Posted: July 18th, 2015 | Author: | Filed under: Energy, Gem, Negotiating with Suppliers, Uncategorized | Tags: , | No Comments »

Electrical powerIf you have ever wanted to understand changes in your suppliers’ electricity costs, you might find this U.S. federal government website useful. It identifies regions and ‘hubs’. The best news is that pricing for most hubs is free and a matter of public record.

via FERC: Electric Power Markets – National Overview.

Sustainability Trends

Posted: July 13th, 2015 | Author: | Filed under: Best practices, CSR in purchasing, Gem, Greening the Supply Chain, Negotiating with Suppliers, What's Happening in Our Profession | Tags: , , , , , , | No Comments »

Conference Board of CanadaWe have picked up a few tips recently from participating in a Conference Board of Canada webinar where sustainability thought leader and governance specialist, Coro Strandberg discussed the drivers and trends of CSR governance and shared emerging best practices in the Canadian context.

We have also been reviewing the Carbon Disclosure Project and other reports to highlight some of the key points that are useful to the supply chain profession.

Read the rest of Sustainability Trends » » »


Posted: July 13th, 2015 | Author: | Filed under: Best practices, Commodities, Negotiating with Suppliers, ProPurchaser Core Practices, Uncategorized, What's Happening in Our Profession | Tags: , , , , , | No Comments »

ProPurchaser CORE PRACTICE: Never enter negotiations without first researching what has happened to your supplier’s costs

Two Ways We Engage with Suppliers

A different way to negotiate

As Purchasing professionals, we use two main approaches to establishing prices with suppliers.

The first is through a bidding process. We prepare formal documents and invite several suppliers to participate – a tried-and-true best practice for engaging with suppliers. We know that promoting competition between suppliers is a reliable and effective way to achieve good results.

The second approach is through direct (one-on-one) negotiations with current suppliers. We know that this method is akin to the Wild West, with few tried-and-true best practices. We are usually on our own to achieve good results.

“Why not just use bidding all the time?” an observer might logically ask. Good idea in theory, but not in practice. Bidding is rigorous and time consuming, and few Purchasing departments (including governmental ones) have enough staff to bid everything, all the time.

  • Direct negotiations, without the benefit of competitive pressure, are a fact of life.

There is good news… read the full article to learn more about this ProPurchaser Core Practice, here.


Source: ProPurchaser.com (Core Practices)

Article Author: ROD SHERKIN rod.sherkin@propurchaser.com

For comments/questions about our blog, please email: blog@propurchaser.com




Posted: July 10th, 2015 | Author: | Filed under: Aluminum, Best practices, Commodities, Negotiating with Suppliers, Uncategorized, Wall Street Journal | Tags: , , , , , | No Comments »

NEGOTIATOR’S TAKE: Good to know next time you are talking to your aluminum or aluminum parts supplier.

Manufacturers of goods from cars to soda cans are benefiting from declining aluminum costs, a sign that new warehouse rules aimed at loosening the grip of Wall Street banks are having the desired effect.

Read the rest of this ProPurchaser sourced article, here.

Source: The Wall Street Journal

Article Author: TATYANA SHUMSKY 

Cutting Carbon in the Supply Chain

Posted: July 8th, 2015 | Author: | Filed under: CSR in purchasing, Energy, Gem, Greening the Supply Chain, What's Happening in Our Profession | Tags: , , | No Comments »

Cutting Carbon in the Supply ChainFor many manufactured products, the majority of their carbon footprint comes from energy used in extracting, refining, processing, manufacturing and transportation.

There are several options for reducing the carbon footprint:
· redesign manufacturing process; use alternative raw materials and new technologies to find energy efficiency savings
· shorten supply chains; reduce CO2 from transport
· Use / purchase renewable energy; renewable energy produces (almost) zero carbon
Read the rest of Cutting Carbon in the Supply Chain » » »

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