SUPPLY CHAIN RESOURCE COOPERATIVE

Category Archives: Contract Management

  1. Procurement is always thinking about cost savings, year over year.  But is this really a true measure of competitiveness? So procurement will have a budgeted amount for, say 4.5 cents per unit for a product, when the current price is 4 cents.  They are able to hammer the supplier and get them down to 4.2 […]

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  2. Nowhere are disruptions more prevalent than in Low Cost Countries (LCC’s), which have become the focal point for outsourced contract manufacturing for major apparel brands such as Nike, Under Armour, Gap, Apple, and others. As organizations have expanded their supply chains globally, they have moved to outsourced manufacturing that reduces cost, but which also exposes […]

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  3. Fall semester at the Poole College of Management kicked off this week, and a new group of MBA and engineering students walked into our hallowed halls.  In my MBA 541 class on supply chain relationships, I spent some time introducing the students to some of the topics we will cover this semester.  Although some may […]

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  4. In industries that are going through a lot of Capital Expenditure investments, including construction of pipelines, LNG facilities, and mining operations, the role of procurement on the success of the organization is somewhat different.  The supply chain function impacts a company’s financial performance through improved operations in several areas of the business. Here are some […]

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  5. In today’s Guest Blog, Alexander Zeller from Migration Translators comments on the supply chain for translation projects, how they occur, and how they are used in projects such as those involving contract negotiation. Increasingly, the translation of web pages is becoming rooted in the virtual world but translation of contracts is becoming a much more […]

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  6. I have been having a lot of interesting discussions recently with both procurement and legal executives who are increasingly concerned with the state of their contract management processes.  This is occurring for several reasons.  The exposure of many companies to greater risk is heightening the focus on contracts. The need to write better statements of […]

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  7. I had an opportunity to watch some hilarious sourcing videos recently that I discovered on a sourcing blog by Citro Strategy. The three scenarios depict the actions of “hardball negotiating” procurement approaches, that are  translated into  negotiation scenarios that  individuals in the consumer sector would never dream about using!  (Actually, I’m sure that anyone who has worked […]

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  8. As a young assistant professor at Michigan State University in 1992, I was part of a group called the Global Procurement Benchmarking Initiative. This initiative benchmarked over 300 global companies, and set forth many of the principles for what we called “World Class Supply Chains”. Many of these principles became the foundation for consulting practices […]

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  9. The number of workers who are “contingent is growing rapidly.  Brian Hoffmeyer from IQ Navigator, a procure to pay solution, spoke today at IBM’s Empower event on this trend, and the implications for procurement.  I had the opportunity to sit in on this presentation and get some takeaways… Several factors are driving the move towards […]

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  10. A recent discussion with my colleague Tim Cummins at IACCM suggests that an increasing number of oil and gas companies are exploring alternatives to traditional “lump sum bid” contracts, that are typically used for large oil and gas construction projects.  This is largely due to risk aversion and the unpredictable nature of new project environments, […]

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  11. It is that time of year again, and the SCRC team is getting ready to prepare for a new semester starting the week of August 15th!  As always, we have a great set of new projects that we are teeing up for this semester, which provide an interesting set of “real-time” challenges for our students. […]

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  12. I had the opportunity to attend the Procurement Leaders in San Francisco forum two weeks ago, followed by attending the ISM Carolinas-Virginia meeting in Winston Salem last week.  Procurement analytics was discussed at length at both sessions. Several key takeaways emerged from the discussion with executives, which represented a wide array of companies including AARP, Roche-Genentech, […]

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  13. I had an opportunity to sit in on the second day of the Sourcing Industry Group meeting in Orlando today.  Ed Hansen from the law firm of Morgan Lewis presented on the essentials of writing a good contract.  Good is a difficult word here, but it is important to think through how contracts operate in the […]

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  14. Automotive news seems to be coming up a lot lately.  A story in the Wall Street Journal revealed that Bo Andersson, the current CEO of Russia’s largest car maker AvtoVAZ, plans to step down. The Renault-Nissan Alliance is the majority owner of the firm.  According to the story, Mr. Andersson joined Renault in 2013 after he helped turn […]

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  15. Debates over outsourcing are appearing with more frequency in the press. Companies have outsourced so many of their processes, through “Business Process Outsourcing”, that many now just sit as marketing companies. Examples include Apple, Google, Amazon, IBM, and many others, that produce very little, but have contract manufacturers such as Jabil, Flex, and others produce […]

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  16. I had the opportunity to visit with Tim Cummins and Katherine Kawamoto from IACCM, who came by the SCRC offices yesterday to chat.  We spent some time catching up on recent events in the news, and also had the opportunity to exchange ideas based on a recent webinar we ran with Shell, in which we […]

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  17. I am speaking at the Zycus Horizons conference this week, being held at the Reynolds Plantation in Georgia.  As part of the conference, I’m delivering a talk on five predictions that every procurement professional should consider.  These aren’t so much “predictions”, as opportunities that procurement professionals should become aware of, and educate themselves on.  I […]

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  18. I was recently involved in a survey of best practices in establishing a diverse supply base.  The most important and common method for driving diversity objectives in the survey (in 73% of firms)  involves explicitly building in diversity as an objective into sourcing processes. It is not uncommon to find that sourcing managers do not […]

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  19. I had the opportunity to engage in a negotiation seminar with a large insurance company last week, and had the team work on a software contract role play.  In the scenario, there was both a buyer and supplier, and there were multiple facets to consider in the negotiation.  The problem in preparing for such a […]

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  20. I visited Calgary, Alberta this week, and found it to be an odd environment indeed! Oil has leveled off at $60/bbl, major companies have all gone through major budget cuts, have cut headcount and released hundreds of supply chain managers and others to reduce payroll. At the same time, a drive through the streets of Calgary is held up […]

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  21. I had the opportunity to visit with the American Red Cross in Charlotte, NC yesterday, and held a negotiation workshop with the supply chain directors and managers.  This was at the request of my good friend, Tom Nash, who I have known since 2000, when he was an IT Sourcing executive at Shell Oil in […]

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  22. I participated in the Diversity Alliance 4 Science event last week held in Newark, NJ.  For those of you who don’t know, this is a fantastic event held by most of the major life sciences companies, to encourage networking and open collaboration with a host of small, minority-owned, women-owned, and veteran-owned businesses.  Life Science companies […]

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  23. A recent post by my colleage Kate Vitasek (author of the “Vest Outsourcing” model) in Forbes magazine argues that procurement is taking too aggressive a stance in negotiations with major logistics providers.  She uses the example of a company who decided to use a reverse auction to award business for a logistics contract worth hundreds of […]

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  24. I have been working with Jay Golden at Duke University on the biobased forecasting project for the USDA, seeking to understand the current scope of the biobased product market ( focused on non-fuel, non-food products).  I had the opportunity to speak today with an educated economist who works  for the OmniTech International.  He has been working […]

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  25. Joydeep Ganguly from Biogen Idec spoke in my Supply Chain Relationships class last week, and shared his insights on how Biogen’s supply chain evolved.  Since graduating from the NC State Jenkins MBA program in 2006, Joydeep Ganguly has risen through the ranks at Biogen Idec – the world’s oldest independent biotechnology company and the largest […]

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