It is not uncommon for procurement to receive a bonus payment based on the savings the department has achieved. In this post we discuss if procurement would benefit more from being on a salary plus co...

Procurement is undergoing a transformation, moving away from process and price and towards undertaking initiatives that demonstrate value for the business. Therefore, when the opportunity arises for p...

Mobile devices are now part of the modern business uniform. Mobile phones created a culture of always available, but mobile devices enable constant connectivity. What telecom companies don’t want CPOs...

These are tough times to be in business. Costs are rising but selling prices are not, mainly due to global competition. The arithmetic is simple: profits are being squeezed. Finding ways to drive down...

Jack Welch once noted that the only two departments that drive revenue directly to the bottom line are sales and procurement.  He noted that the other departments were basically overhead. I would also include supply chain professionals in this revenue generating group.

One of the aspects of ever-growing experience is the sorrow of knowledge. In times of economic turbulence, procurement could be dragged into a cycle of faulty practices that starts well before the cri...

Procurement is a significant business function, having operational and commercial impacts on multiple departments. Although procurement process excellence and strategic sourcing initiatives can drive ...

“We can spot an Expensive Sentence by its impact. Expensive Sentences limit information. They end conversations. They create urgency and isolation. They reduce options. They steal choice.” (p. xviii) ...

After a break for the Thanksgiving holiday in the U.S., we’re now watching as the last few grains of sand pass through the hourglass. While there are technically 4 weeks left in the calendar year, onl...

In addition to the webinars listed below, we have a Dial P for Procurement livestream this week! Join me and Scott Luton on Tuesday, November 16th at 12n ET as we welcome Bill DeMartino and Constantin...

Continuous cost reduction in the manufacturing industry is a supply chain best practice, but all too often it is mistakenly seen as unsustainable by strategic sourcing and procurement departments. For...

How often can you find 80% savings in your telecom bills? When it comes to legacy services, more often than you’d think! In all industries there are mergers and acquisitions: Telecommunications and Te...

Can buyers create value for customers and reduce costs?   The two main objectives of a buyer in most organizations are: Reducing Total Cost of Ownership (TCO) or Life Cycle Costs (LCC)Creating va...

Leaders of procurement teams at manufacturing and process companies are decisive. They know what they want in a supplier. They want a supplier with a similar culture and competitive quality, service a...

In a July 14^th article on NewsDay, NYASHA CHIZU asked ‘Is Procurement an Art or a Science?’

In the article, he makes the following statement:

“There is definitely an art to good procurement but on the other hand, taking a scientific approach to options analysis, requirements development and the procurement evaluation process can facilitate a more successful procurement project.”

In this week’s featured event we heard from the Sourcing Interests Group Thought Leaders Council. They offered their definitions of savings as well as best practices. If you are interested in more about the members of the Council, read the SIG page about them in the Resource Center.

The Thought Leaders Council advises SIG on the build-out of the SIG Resource Center, makes regular contributions, serves as subject matter experts, and conducts working groups. The Council is representative of the SIG Membership, in that the majority of members are sourcing executives from the Buy-side. The Working Groups take suggestions from the SIG community and build guidelines for sourcing initiatives and categories.

This week’s featured event (hosted by ISM and sponsored by Zycus) was primarily presented by Spend Matters’ Jason Busch. The webinar was recorded and will be available on ISM’s webinars page.

“Crate training uses a dog's natural instincts as a den animal. A wild dog's den is his home, a place to sleep, hide from danger, and raise a family. The crate becomes your dog's den, an ideal spot to snooze or take refuge during a thunderstorm.”

– Humane Society

This week’s Wiki-Wednesday article is about the challenges of capturing savings due to cost reduction and avoidance. One of the sections addresses Total Cost of Ownership (TCO), and the difficulties of calculating and reporting on those costs.

It is the worst question Procurement ever faces. C'mon – you know what question I'm talking about. That horrible, terrible question from Finance for which there is no good answer… If Procurement worke...