Posted: December 10th, 2013 | Author: Rod Sherkin | Filed under: Gem, What's Happening in Our Profession | Tags: best practice, negotiation | No Comments »
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.
Read the rest of Negotiate knowing what you SHOULD be paying » » »
Posted: December 5th, 2013 | Author: Tom Bowers | Filed under: CSR in purchasing, Gem, Greening the Supply Chain | Tags: CSR, Greening the Supply Chain | No Comments »
We 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.
Read the rest of How important is a Green Supply-Chain in North America? » » »
Posted: November 30th, 2013 | Author: Rod Sherkin | Filed under: Gem, What's Happening in Our Profession | Tags: best practice, survey | No Comments »
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.
Read the rest of Benchmark Your Organization’s Purchasing Effectiveness » » »
Posted: November 25th, 2013 | Author: Tom Bowers | Filed under: CSR in purchasing, Energy, Gem, Greening the Supply Chain, What's Happening in Our Profession | Tags: energy saving, storage | No Comments »
When 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. Read the rest of When Warehousing Goes Green » » »
Posted: November 20th, 2013 | Author: Rod Sherkin | Filed under: Best practices, Gem, Negotiating with Suppliers, What's Happening in Our Profession | Tags: best practice, negotiation, steel, supplier | 1 Comment »
Years 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.
Posted: November 15th, 2013 | Author: Rod Sherkin | Filed under: Gem, What's Happening in Our Profession | Tags: best practice, plant tour | No Comments »
The 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.
Read the rest of Plant Tours Worth every Minute » » »
Posted: November 5th, 2013 | Author: Rod Sherkin | Filed under: Energy, Gem, Natural Gas | Tags: energy, fracturing, horizontal drilling, natural gas, usa | No Comments »
The story of U.S. natural gas gets referenced a lot but you may not know whats going on. Here are 15 charts that tell the story of the U.S. natural gas market which has been completely changed by the rise of horizontal drilling and hydraulic fracturing.
In the past few years, new technologies and cheaper costs allowed producers to access gas trapped in parts of the U.S. previously considered unreachable.
Read the rest of The U.S. Natural Gas Story in 15 Charts » » »
Posted: October 31st, 2013 | Author: Rod Sherkin | Filed under: Best practices, Gem | Tags: best practice | 1 Comment »
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.
Posted: October 26th, 2013 | Author: Pascal Blanc | Filed under: Best practices, Gem, Negotiating with Suppliers | Tags: negotiation, rfp, supplier, supplier negotiation, tradeshow | 1 Comment »
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.
Read the rest of A Supplier’s Advice for Purchasing Custom Tradeshow Exhibits & Environments » » »
Posted: October 11th, 2013 | Author: Rod Sherkin | Filed under: Best practices, Gem, Negotiating with Suppliers | Tags: negotiation | No Comments »
Suppliers often use wage increases to justify nudging up prices each year, usually 1 or 2%. 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‘ is about the same today as it was 5 years ago.
Read the rest of Use labor productivity to drive down purchase costs » » »