SUPPLY CHAIN RESOURCE COOPERATIVE

Category Archives: Strategic Sourcing

  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. RACI Charts have been around for years, yet are often discounted.  RACI stands for Responsible, Accountable, Consulted, and Informed – which refers to the relative governance structure that exists in an organizational relationship.  Although RACI “charts” are often viewed as irrelevant and bureaucratic, they can provide an important clue regarding the “decision-rights” for procurement and […]

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  3. 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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  4. Stuart William was in one of my former MBA classes at NC State in 2008, and graduated into one of the worst economies ever in May of 2009. Upon graduation, there simply weren’t any jobs available at all! During that period, he networked with as many people as possible, including a fund raising arm at […]

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  5. 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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  6. Jeff Townley, former Chief Procurement Officer at Nortel Networks, provided some fantastic insights in my MBA class this evening.  In so doing, he shared some great insights about “Outsourcing:  The Good, The Bad, and the Ugly.” The GOOD – “ODM’s were a wonderful way to outsource, and we had a great experience with them, as […]

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  7. A new post discussed the development of a sustainable procurement standard developed by the International Standards Organization.  ISO 20400, Sustainable procurement – Guidance, has just reached a second draft international standard stage, meaning interested parties can submit feedback via their ISO member on the draft before final publication in 2017. It’s about time that the concept […]

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  8. 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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  9. 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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  10. 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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  11. Today I travelled to Baltimore to attend the ISM/Spend matters Global Procurement Tech Summit.  I will be speaking on procurement analytics tomorrow, but got to attend a set of great sessions over the first half of the day. The first speaker was Anne Rung, Administrator from the Office of Federal Procurement Policy. In this session, she […]

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  12. I had an opportunity to go on a “Google Hangout” with Alex Zhong from IBM yesterday.  We recorded the hangout discussion, and it gave me an opportunity to share some of my thoughts on how procurement needs to really step up and change.  You see the video here. A lot of the discussion was focused on […]

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  13. I had a chance to review the new book by Jim Hansen and Kelly Barner, “Procurement at a Crossroads“, which explores the many changes that the profession is facing, and challenges individuals to do things differently.  (I blushed a bit at the number of my  citations in the book including an interview I did with […]

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  14. Gerard Chick and I were recently interviewed by Kelly Barner on the Buyer’s Meeting Point Blog Talk Radio yesterday, and this was posted on their site for any interested parties to view.  We spent a lot of time talking about the need to move up the maturity ladder, as well as the different sets of […]

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  15. 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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  16. Globalization has created the emergence of sophisticated supplier networks, creating management challenges as exposure to volatility and complexity of global sourcing has emerged.  While Western organizations have met short-term cost reduction and flexibility goals through outsourcing, it has been at the expense of lower transparency into suppliers’ operational processes within these far-flung areas of the […]

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  17. I have been interviewing a number of CPO’s on the subject of procurement analytics and predictive analytics.  In this discussion, an issue that frequently comes up is the debate over spend analytics and contract management systems. For organizations in the early stages of procurement transformation, which ones are more critical.  And how important are systems […]

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  18. The Supply Chain Management Review, one of the leading practitioner journals in the field of supply chain, is hosting their first ever conference in November at the Rosemount Hilton at O’Hare Airport in Chicago.  The conference, titled Supply Chain Outlook promises to be an exciting event, with many leading speakers and academics attending.  I look […]

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  19. I have been having a number of fascinating interviews with Chief Procurement Officers this past week on the subject of procurement analytics and supply management risk.  This is part of a study I am doing that will result in a white paper later this fall, and will likely be one of our key themes for […]

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  20. As organizations continue to discuss the notion of procurement value transformation, there is a noticeable gap between the stated intentions of organizations to pursue value, and their actions as they pertain to on-going adversarial approaches to supplier relationships. As Gerard Chick and I noted in our recent book “The Procurement Value Proposition” (2015), many organizations see […]

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  21. A new face of procurement is emerging which is recognizing that a new set of value drivers must be developed in the face of massive environmental changes. Some of the emerging views on the “future of procurement” focus on the importance of being a strong internal consultant, the importance of building relationships, coaching suppliers, post-award […]

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  22. Against the many new articles and books being produced on the changing face of procurement and the importance of value creation and collaboration, Andrew Cox’s new book “Sourcing Portfolio Analysis” came out earlier this year. The book is essentially a series of prescriptive 2 X 2 and 8 X 8 matrices that establish different typologies for […]

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  23. 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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  24. One of my recent students from last year, Gaurav Chhabra, just graduated this semester, and landed a job in Apple’s supply chain organization.  I had a chance to catch up with Guarav today, and we chatted briefly about his experience in the Jenkins MBA program, the role of the Supply Chain Resource Cooperative in helping to shape […]

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  25. A group of my MBA students are working on a project benchmarking vendor profiling approaches.  If you’re interested in this topic, be sure to take the survey. The goal of the study is to Understand different information companies ask from suppliers Identify industry classification codes for categorizing suppliers Compare your company’s supplier profiling practices to […]

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