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: September 26th, 2013 | Author: Pascal Blanc | Filed under: Gem, Labor, What's Happening in Our Profession | Tags: labor, labor cost, reshoring, reshoring usa, us labor | No Comments »
After making the case for reshoring in a previous article, PwC identified 7 key factors influencing potential US manufacturing resurgence. Obviously, labor cost is one of those factors but not the only one.
“Industrial manufacturers may increasingly rethink their U.S. strategies, including the merits of continuing to separate production and R&D and producing abroad and importing back to U.S. buyers. Depending on the industry, there may be considerable benefits to establishing regionalized supply chains and R&D facilities in the U.S.,” said Bob McCutcheon, PwC’s U.S. Industrial Products leader.
Read the rest of 7 key factors for US reshoring » » »
Posted: September 16th, 2013 | Author: Rod Sherkin | Filed under: Best practices, Gem, Negotiating with Suppliers, What's Happening in Our Profession | Tags: buyers, negotiation, negotiation tactics, steel, supplier | No Comments »
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.
Posted: September 11th, 2013 | Author: Rod Sherkin | Filed under: Gem, What's Happening in Our Profession | Tags: best practice, negotiation, propurchaser, savings, supplier | No Comments »
It’s still quite scary out there: recession clouds are still lurking. Sales volumes are struggling to rise; unfortunately, costs are struggling less, as suppliers pile on price increases, citing higher raw material costs as the reason.
Call to action
What can Purchasers do?……plenty, by taking a leadership role in pushing back costs. Makes sense when you think about it. Your role is critical, since purchases typically represent the largest single source of cost savings for most organizations. Try this 3-step approach.
via Purchasers’ Turn to Shine on Propurchaser.
Posted: September 6th, 2013 | Author: Rod Sherkin | Filed under: Best practices, Gem, Negotiating with Suppliers, What's Happening in Our Profession | Tags: best practice, cost reduction, cost saving, negotiation, supplier | No Comments »
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.
Posted: August 31st, 2013 | Author: Rod Sherkin | Filed under: China, Economic Indicators, USA, What's Happening in Our Profession | Tags: factory, reshoring, reshoring usa, usa factory | No Comments »
Even if you doubt the bit about China, the notion that the US will comfortably beat out Europe and Japan makes sense. It has a more flexible labor market, and cheaper energy and plastics thanks to the oil fracking boom.
Yesterday’s pleasant surprise: The US economy grew much faster than we thought in the previous quarter: 2.5% on the year, thanks to robust exports.
Read the rest of American factories competitive edge » » »
Posted: August 27th, 2013 | Author: Rod Sherkin | Filed under: Best practices, Gem, What's Happening in Our Profession | Tags: best practice, purchasing effectiveness, survey | 1 Comment »
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 » » »