Purchasing Practice

Boeing’s sole-bidder status for tanker could be costly

dave — Wed, 10 Mar 2010 18:09:04 +0000

The decision by Northrop Grumman Corp. to walk away from a potential $35 billion contract to build U.S. aerial-refueling tankers and leaving Boeing Co. as the sole bidder is a blow to foreign partnerships and will cost taxpayers in the long run, industry observers said Tuesday.

Standard Life targets £100m of savings by 2012:

dave — Wed, 10 Mar 2010 17:58:48 +0000

After reporting better than expected profits, Standard Life will look to boost margins with another £100 million of savings by 2012, including from technology and procurement.

More governments look to procurement to reduce deficites

dave — Tue, 09 Mar 2010 21:51:59 +0000

The New Zealand Department of Internal Affairs has released its much anticipated all-of-government PC tender, which could lock in - and lock out - PC makers from supplying government agencies.

The move is the first part of Commerce Minister Simon Power’s drive to reform government procurement, worth $30 billion a year, announced last June.

BAA T2: Supplier performance to be rewarded

dave — Tue, 09 Mar 2010 21:20:29 +0000

BAA is offering financial incentives for suppliers to encourage improved performance and reward outstanding behaviour and results.

The construction of Heathrow Terminal 2 will be purchased using an award fee approach. The airport operator will pay suppliers a margin of between 2 and 4 per cent if they suggest successful ideas on cutting costs

Politicians demand action on U.S.-Mexico cross-border trucking

dave — Mon, 08 Mar 2010 19:14:57 +0000

A group of 56 members of Congress this week penned a letter to United States Trade Representative Ron Kirk and Department of Transportation Secretary Ray LaHood, requesting that U.S.-Mexico cross-border trucking program situation be addressed and resolved, according to a Reuters report.

Adidas sets supplier targets

dave — Mon, 08 Mar 2010 19:09:11 +0000

Sportswear giant Adidas has set tougher targets for suppliers in a bid to make improvements to supply chain operations.

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CBI: procurement savings of £130 billion could be achieved by 2015-16

dave — Mon, 08 Mar 2010 19:06:35 +0000

The UK government must “re-engineer” public service delivery and improve procurement to make vital spending cuts, the Confederation of British Industry (CBI) has urged.

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Procurement helps ITV return to profit

dave — Fri, 05 Mar 2010 22:19:16 +0000

ITV’s procurement team has smashed its £16 million savings target and been credited with helping the company return to profit.

The UK broadcaster’s purchasing department saved £23.5 million for the year ending 31 December 2009 after undergoing a significant transformation.

Survey: Procurement should be placed firmly at the core of corporate strategy

dave — Fri, 05 Mar 2010 01:37:41 +0000

In a survey of 40 CIOs, general counsel, heads of procurement and senior executives at technology vendors and customers in the UK, Europe, the Middle East and Asia. The take-away message from the survey for customers is that procurement should be placed firmly at the core of corporate strategy and have proper resources allocated to it for maximum benefit from IT expenditure to materialise.

Sellers or Buyers contract in IT - the legal view?

dave — Wed, 03 Mar 2010 20:21:50 +0000

Should you use the form contracts of the vendor or the customer when outsourcing information technology?

This is the question the editor of The Metropolitan Corporate Counsel asked in an interview with Paul G. Madison , Partner, Kelley Drye & Warren LLP. This is a subject dear to my heart and one I have commented on in previous post.

Madison rightly supports the use of the Buyers form as the best way to get what you want and cites:

reflects the needs of your business.
allows similar terms to apply across all your IT service providers.
form is a significant management tool for a large project or dealing with a group of long-term vendors.
vendor’s willingness to work from your form agreement is a reflection of the vendor’s ability to provide the services and products sought by your company and how well the vendor may work with your company
The contract should be sent with the RFP at the beginning of the vendor selection process, to increase the likelihood that the buyer’s form will be used and reduce the likelihood that there will be a long negotiation about boilerplate. The RFP should make it clear that the vendor’s response to your agreement is part of your decision-making process. If a vendor says we can’t use your agreement and another vendor with similar services can that is going to be a plus for that other vendor.

These points support the Purchasing Practice view expressed in our previous post and should serve as a call for action to those buyers still content to take the easy option of using the sellers form. S0 start working with the legal department now and develop your own form of contract for IT goods and services.