Has the purchasing profession made strides over the last 7 years? – Part 2

Posted: May 19th, 2015 | Author: | Filed under: Best practices, Gem, What's Happening in Our Profession | Tags: , | No Comments »

business man with a dollar symbolFollowing the results of responses to the first area probed in our Purchasing Effectiveness Survey which focused on Senior Management’s view of Purchasing, we continue with results from the second area (leaving money on the table). 

Here are the results.

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Are Green Supply-Chains More Expensive?

Posted: May 14th, 2015 | Author: | Filed under: Gem, Greening the Supply Chain | Tags: , , | No Comments »

SurveyThis is the second article discussing the results of our ongoing survey examining what Supply-Chain professionals in North America are thinking and (more importantly) doing about greening their supply-chains.

The first article, How important is a Green Supply-Chain in North America?, focused on the perceived importance of a green supply-chain, homing in on senior management’s expectations, as well as our own attitudes towards suppliers with green credentials.

The survey asked how strongly participants agreed or disagreed with the following statements:
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Made in the USA: A Case for Reshoring

Posted: May 9th, 2015 | Author: | Filed under: Gem, Labor | Tags: , , | No Comments »

Reshoring USA

Reshoring Gives Economic Hope to Manufacturers

Offshore outsourcing has become one of the hot button political issues of the day. Especially in light of the U.S. economic downturn, there is a desperate need for more jobs for American workers, while at the same time companies are looking for ways to save money to keep themselves afloat. But now it looks as though reshoring might be an idea that makes sense for both sides, making reshoring a trend that just might stick.

The OffShore Outsourcing Controversy

Off-shoring in the manufacturing, customer service, and tech industries has been happening for some time now and opponents feel there are far more negatives than positives to offshore outsourcing (delays, hidden costs, quality control), while others see nothing but an effective strategy for keeping costs down.

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Use Peer Pressure to Drive Down Costs

Posted: May 4th, 2015 | Author: | Filed under: Best practices, Gem, Negotiating with Suppliers, What's Happening in Our Profession | Tags: , , | No Comments »

Drive down costsDriving down costs by ‘coaxing’ voluntary behavior change. Anyone who survived the social pressure cooker of high school knows about the power of peer pressure.

For purchasing professionals trying to drive down cost, the good news is that peer pressure can have the same impact in corporate corridors as it did in the blackboard jungle.

from The Power of Peer Pressure in Propurchaser’s Negotiating Nuggets.


Negotiate knowing what you SHOULD be paying

Posted: April 29th, 2015 | Author: | Filed under: Gem, What's Happening in Our Profession | Tags: , | 1 Comment »

Negotiate

In a Perfect World

Imagine the negotiating edge you would have if you knew—and could demonstrate—what you SHOULD be paying for the products you buy, especially when suppliers come to you with sad tales about price increases they just can’t hold off any longer because of global commodity price rises.

This is not wishful thinking.

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How important is a Green Supply-Chain in North America?

Posted: April 24th, 2015 | Author: | Filed under: CSR in purchasing, Gem, Greening the Supply Chain | Tags: , | No Comments »

Green supply-chainWe certainly hear a lot about the importance of reducing the amount of carbon our species is releasing into the atmosphere. But we don’t hear much about what this really means to our profession: in other words, how important is a ‘green’ Supply-Chain in North America?

To answer this question we recently sent out a 14-question survey to hundreds of Supply-Chain professionals. The results are in and you may find them interesting.

Three Key Findings.

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Benchmark Your Organization’s Purchasing Effectiveness

Posted: April 19th, 2015 | Author: | Filed under: Gem, What's Happening in Our Profession | Tags: , | 1 Comment »

Purchasing survey

Dear Colleague

Back in 2003, we created a simple, on-line survey to help Purchasing Professionals gauge their organization’s overall purchasing effectiveness.

The goals were to first measure attitudes and practices, and then offer concrete suggestions for making improvements. The initiative was successful: almost 3,000 people participated.

One of our readers had a great idea – why not re-do the survey? We could compare new results to the original numbers and see if there’s been a shift in attitudes and practices, over the past 7 years.

These 7 areas are covered and answers range between strongly agree and strongly disagree.

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When Warehousing Goes Green

Posted: April 14th, 2015 | Author: | Filed under: CSR in purchasing, Energy, Gem, Greening the Supply Chain, What's Happening in Our Profession | Tags: , | No Comments »

Green buildingWhen considering the greening of any supply chain it is easy to ignore the impact of warehousing and distribution centres.
Transport miles are often shown to potential consumers, but what about the environmental cost of storage?

Understandably, the main focus in distribution centres is often the streamlining of the distribution process. This video of the Ocado distribution centre makes this optimisation geek very excited. But it is not difficult, and not necessarily expensive, to improve the green credentials of your warehousing.

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Don’t Sweat the Details – It’s the Direction that Counts

Posted: April 9th, 2015 | Author: | Filed under: Best practices, Gem, Negotiating with Suppliers, What's Happening in Our Profession | Tags: , , , | 1 Comment »

DirectionYears ago, while working for Green Giant, I phoned our steel can sales rep to ask for a 4% reduction. We had information suggesting steel prices had fallen 8%.
He certainly wasn’t very happy and, as expected, argued against any decrease.

“Are you saying you’re still purchasing steel at the same price as before?” I asked. “That would be surprising.”

“Um… no, of course not”, he said, “but look – let me get back to you.”

To learn more, follow the Negotiating Nugget on Propurchaser.


Plant Tours Worth every Minute

Posted: April 4th, 2015 | Author: | Filed under: Gem, What's Happening in Our Profession | Tags: , | No Comments »

Plant, factory tourThe struggle to find “good fit” suppliers never ends. And finding the right suppliers has never been more important than right now. The global recession has put many companies’ very survival at stake.
How do you make sure – really sure – that your supplier is capable of going the distance providing you with the price, quality and service that your company and your customers demand?

Well, you could take the sales rep’s word for it. But we strongly suggest you see for yourself.

Simple as it sounds, an actual tour is the best way to gather reliable information about your supplier‘s all-important cost drivers, quality commitment and service culture.

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