A recent posting over on Supply Excellence left me questioning how far has procurement has really developed over the years. My major difficulty in using the vendors document starts right at the beginning of the procurement process – the message it sends to the vendor is that ‘the buyer does not know what they want’ and does ‘not have a … Read More
Procurement: Rising up the CEO Agenda
Most CEO’s and CFO’s could only guess about how much their company spends on goods and services, and certainly could not express this in terms of meaningful supply market facing spend categories. The reason for this is that it is not a requirement for financial statements or accounts, despite most companies spending between 30 – 80% of their turnover on … Read More
Sourcing Process Under Pressure
Sourcing Process Under Pressure Last week SM reported on a new sense of urgency in public procurement. The European Commission called on buyers to use an existing “accelerated procedure”, to cut tendering times by 57 days and as a result help deliver major projects faster. The purpose is to improve the economy by helping suppliers win business quicker, something that … Read More
Beyond Cost Savings – Reprise
In an earlier post, I talked about the need for procurement leaders to move beyond cost savings. On my travels, it seems that many procurement leaders are still struggling to get their message across. So, if procurement cannot define its value then why should it be taken seriously by anyone else? To close the gap between procurement and the strategic … Read More
Is your procurement team ready to lead?
Having the right people in Purchasing is a must to delivering procurements promised strategic contribution. So try to answer the following questions for your organization: Have you developed a Culture where people are deeply aware of and have internalized the Mission, Vision and Core Values needed to execute the Purchasing and Business Strategy? How well prepared and equipped to carry … Read More
Beyond Cost Savings
Procurement leaders must broaden the procurement agenda beyond cost savings and focus on growth and added value strategies. Tomorrow’s procurement leaders must link procurement strategies to the businesses drivers for competitive advantage and focus on outcomes that provide advantage for their customers. To do this procurement must become an integral part of the organization’s growth strategy: 1. Create a compelling … Read More
Inbev and Anheuser Busch – Integration Savings
The integration of InBev and Anheuser-Busch once again brings the importance of Supply Managements business contribution into the spotlight. The merger will integrate two strong companies with little overlap in their markets, which when combined represents 40% of the global beer market. In its search for “efficiencies” InBev, renowned for its efficiency has slated $1.5 billion annually from cost savings … Read More
Building the foundation for preferential supplier treatment:
Building the foundation for preferential supplier treatment: Introduction: Building the foundation for preferential supplier treatment: Suppliers have choices about which customer they will give new ideas to first. They also have choices regarding their use of scarce capacity, or even which potential customers they choose to target and work with in the first place. It makes sense therefore to become … Read More
Procurements Dilemma – Leader or Support Function
“We want to collaborate with our internal stakeholders, but at the end of the day we cannot tell them to buy into our sourcing strategy.” How many procurement professionals have spent their careers with this echoing loudly in their minds? Procurement professionals become indoctrinated into the profession with messages such as: “You have to take the internal customer along with … Read More
Finding the post integration savings:
Finding the post integration savings: M&A Integration – the moment of truth for purchasing professionals? Finding the post integration savings: It is always a telling time for procurement professionals when two or more organizations integrate, and the books opened for their respective contracts for goods and services. In our experience, those organizations that have invested in best procurement practices and … Read More