The Marketplace and the Five-Hundred Pound Gorilla

Purchasers know how hard it can be to convince our superiors & peers that we are doing a good job.
We struggle with Suppliers all the time, arguing, calculating, cajoling, pushing back to get the lowest possible all-in costs – and still we sometimes go over budget!

Does this mean we are doing a poor job? Probably not!

via The Marketplace and the Five-Hundred Pound Gorilla on Propurchaser.

A Supplier’s Advice for Purchasing Custom Tradeshow Exhibits & Environments

Dear Purchasing Professional,

We usually don’t get to speak with you directly when we respond to an RFP. But if we could, this is what we’d say.

We’d like you to know that to get the best value when buying custom tradeshow exhibits you need to take a slightly different purchasing approach. These products  require creative thinking (like advertising), and work best when uniquely crafted to fit your company’s needs.

Custom trade show exhibits are not one-size-fits-all. They differ from system or portable exhibits such as standard pop-up and tabletop exhibits. In a nutshell, they are properties created specifically for your company and should not be valued strictly on a basis of price.

“Will this design represent our company better and thus generate more leads, sales, and press coverage?” is what you really need to ask yourself. Read the rest of A Supplier’s Advice for Purchasing Custom Tradeshow Exhibits & Environments » » »

Use labor productivity to drive down purchase costs

 Suppliers often use wage increases to justify nudging up prices each year, usually 1 to 3%. And it’s hard to argue: – seems reasonable, and it’s less than inflation.
But wages aren’t the real issue – labor costs are.

And the reality is that the average cost of a ‘unit of labor‘ has risen very little, over the last 5 years – only about 1/2% per year.

Read the rest of Use labor productivity to drive down purchase costs » » »

Sustainable supply-chain at risk: the US drought example

Weekly drought figures released  by the US Drought Monitor show the situation continues to be a problem with approximately 50% of continental US now suffering from a moderate drought or worse.

Despite recent precipitation bringing welcome relief and downgrading of the drought status in some parts of the country, the long term picture shows challenges remain.

Changing weather patterns and increasing likelihood of extreme weather events are pushing sustainable supply chain management up the agenda for many companies. The US drought is just one of many examples of how changing weather patterns can create clear and present supply chain risks.

Read the rest of Sustainable supply-chain at risk: the US drought example » » »

Greendex: Survey of Sustainable Consumption

If your business is expanding into new or facing competition in existing markets, can you benefit from enhancing your green credentials to meet consumer preferences?

Greening your supply chain could provide a competitive edge in markets where consumers are increasing concerned with environmental issues and making spending decisons based on those concerns.

Find what you can learn from the Greendex Survey.

Rack Up Savings

Stan Hankowski, a seasoned Buyer with a major American retailer tells an intriguing story that shows how Purchasers can help themselves by helping their suppliers.

He went to market last year to buy steel racking. He expected higher prices because he’d been tracking steel costs and knew they had gone up sharply.

via Negotiating Nugget on Propurchaser.

Fishing with Suppliers

I once had a very smart boss whose favorite expression was “Fish where the big fish are!”
So where do the “big fish” lurk for reducing costs for the products and services we purchase – in better pricing, in longer terms, in faster order processing, in speedier delivery? All important yes, but in my experience they are not the trophy-fish.

The best cost-savings opportunities are to be found in your suppliers’ organizations: knowledge and ideas inside the heads of their managers, engineers, operations and planning staff.

via Negotiating Nugget on Propurchaser.

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

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 » » »

Sustainability Trends

We 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 » » »

New Tool to Measure (and Manage) the carbon footprint of your supply Chain

Reducing the amount of carbon imbedded in the raw materials we source can be a very good thing – especially if it helps us meet our Corporate Social Responsibility goals as supply-chain professionals (not to mention helping the planet).

Virescent and ProPurchaser have just developed a tool to measure and manage the carbon footprint of a supply chain. And, we are pleased to announce that our blog readers are invited to take out a free, 3-month trial.