Thought Zone Inspiration for Procurement Professionals

Thought Zone

Thought Zone comp 3We believe in and are passionate about procurement and the supply chain. We think about it a lot. It’s what we do.

Because suppliers provide the majority of your company’s goods and services; their bottom line impact is significant and your organizations next breakthrough may come from your suppliers, not R&D to drive growth. 

Here we share some key thoughts to call you to action…

Procurement Capability: People Matter Most

Many procurement functions are finding lasting success elusive because they fall into the trap of relying entirely on technical tools like spend analytics, SRM and so on.Its about the people stupid!They forget transformation does not happen simply by providing the “tools”, it’s always the people that are the key factor in creating procurement success.Because it’s people that do the work, people – not computers, strategies, or ‘world-class’ tools and templates…

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Category Management: Establishing Governance

Strong effective governance defining the way work gets done is critical to implementing Category Management in any organization.Without it turf wars will ensue and the implementation initiative will likely lose its way.So what is Category Management Governance?At its core any governance structure is about “decision rights”, but it is much more than that. Setting up governance needs , frameworks, plans, organization, and process to define the ‘rules’, direct work, have…

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The New CPO’s F100D

The CPO’s chair has become a true corporate hot seat with an average tenure of a CPO of four years or less. The first 100 days (F100D) in this hot seat can set the tone for the months ahead and the F100D of a new role can be stressful; how bad are things? What are the expectations of me? Will I fit the culture? Do I have what it takes to do the job? Can I win support to make the changes required? These are all natural questions and concerns which are only amplified by the changing role of procurement, the ways in which it supports the organization, and what it takes to lead this complex function.In this post I will attempt to answer for the first time the following…

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Strategic Outsourcing – Part 1

The ‘make or buy’ decision is still at the heart of business strategyA guide for CEO’s, CFO’s and CPO’s on developing a formal outsourcing strategy to support their core business goals What’s in it for you? Discover how to take control of outsourcing by developing a systematic outsourcing methodology as a core sourcing management tool in your organization.Reading time: 10 minutesIntroduction:Businesses globally are under pressure like never before to meet strategic goals, reduce costs, provide efficiency improvements and even survive. In response many CEOs are committed to outsource as many of their non-strategic operations as possible over the next few years. Yet most companies do not have a formal process by which to do so. CPO’s should therefore ensure they have an outsourcing strategy for their organization or risk having…

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The Corporation as a Negotiating Entity – Part 3

The last in a three part guide for CEO’s, CFO’s and purchasing leaders on developing a corporate level capability to negotiatePart #3: “Dealing with Backdoor Selling”What’s in it for you? Ensure your company is organized and equipped to maintain the upper hand in negotiation by controlling information to maintain power and maximise negotiating outcomes.Reading time: 10 minutesIntroduction:If your organizations procurement has not been radically overhauled during the last 10 years, then the chances are that a large portion of your supply base will have been exploiting you for years, and without the resolve and skills to tackle these suppliers they will be intent on continuing to exploit you.One of the ways this exploitation occurs is through “backdoor selling” which suppliers deploy to undermine procurements and the buying organizations leverage during…

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The Corporation as a Negotiating Entity – Part 2

The second in a three part guide for CEO’s, CFO’s and purchasing leaders on developing a corporate level capability to negotiatePart #2: “The Negotiation Tool Kit”What’s in it for you? Understand the tools needed to build a corporate capability to negotiate and generate significant bottom line savings and enhanced value from business relationships.Reading time: 10 minutesIntroduction:Here in the second part of a three part series, we discuss the processes, tools and infrastructure that must be developed by organizations to provide consistency of application, excellence in execution and support organizational learning and development, either as part of a strategic sourcing initiative or as a standalone negotiation.Negotiation Management ProcessThe corporate level negotiation strategy and formal governance structure discussed previously determine the rules which govern corporate level negotiation interactions. Once these have been…

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The Corporation as a Negotiating Entity – Part 1

A three part guide for CEO’s, CFO’s and purchasing leaders on developing a corporate level capability to negotiatePart #1: Getting startedWhat’s in it for you? Generate significant bottom line savingsand add value by developing a new strategic capability without any demoralizing impact on employees.Reading time: 10 minutesIntroduction:Organizations must recognize that they negotiate as an entity and develop a corporate level capability to do so, because how well organizations negotiate can impact their bottom lines significantly. Despite this most organizations have still to develop a corporate capability to negotiate. Here in the first part of a three part series, we discuss how organizations can start to develop a corporate level capability to negotiate to improve their bottom lines.The concept of the corporation as a negotiating entity is not new, but remains…

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Purchasing Leader or Laggard

A guide for CEO’s, CFO’s and purchasing leaders to assess how well their purchasing organization, strategies & processes have adapted to changes in the competitive environment?Many readers will be in the fortunate position of working in businesses that are growing strongly; others will be part of businesses that are in a dynamic rapidly changing market place whilst others are fighting for their very survival. In all these situations those organizations will be focused on the objectives of delivering sustained growth, customer and shareholder value and achieving improved profitability.At Purchasing Practice we believe our experience places us in a unique position to provide thoughtful strategies on how purchasing can make a powerful contributions to these objectives. Through our experience we see companies whose purchasing organization, processes and competencies have fallen significantly…

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Is your financial supply chain placing your company at risk?

A guide for CEO’s, CFO’s and purchasing leaders on managing Supply Chain Finance (SCF) to build competitive advantage for their company What’s in it for you? Discover how supply chain finance management can provide higher returns to shareholders by balancing the conflicting pressures of improved payment terms, reduced prices and better cash flow.Reading time: 15 minutesIntroduction:According to a survey by the Association for Financial Professionals, the dramatic events impacting Wall Street during September 2008 have had a profound impact on organizations’ access to short-term credit. Combined with the pressure on selling prices and over supply, the credit crisis has brought supply chain liquidity and access to capital to the top of most CEO’s and CFO’s agenda.LeadershipThe pressure on CEO’s to grow quarterly earnings requires that organizations continually improve performance, and…

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