Buyers Meeting Point procurement by Kelly Barner

RSS Feed Buyers Meeting Point procurement by Kelly Barner LinkedIn Buyers Meeting Point procurement Kelly Barner twitter Buyers Meeting Point procurement Kelly Barner scribd Buyers Meeting Point procurement Kelly Barnerblogtalkradio Buyers Meeting Point procurement Kelly Barner podcast BMP Radioyoutube Buyers Meeting Point procurement Kelly Barnersoundcloud Buyers Meeting Point procurement Kelly Barner

"The Point" is written by BMP Editor Kelly Barner as well as a diverse group of guest contributors.

Blog Pick: Procurement ROI vs Relevance and Influence

Blog Pick: Procurement ROI vs Relevance and Influence

Back in April, Greg Anderson, President of Directworks, wrote a post for their blog that contained a classic good news / bad news scenario: Making the business case for sourcing automation is more about executive relevance than ROI.

First, the good news: because of the cost reductions associated with cloud delivery models, delivering an amazing ROI shortly after implementing a sourcing solution is pretty much a slam dunk. This is especially true if you put direct as well as indirect spend through the solution.

Continue reading
2769 Hits
0 Comments

Procurement depends on the honey bee

Procurement depends on the honey bee

We have several very large rhododendron bushes in our yard. In the spring they are beautiful with pink and lavender flowers. There are thousands of blooms. What we have noticed over the years is that the honey bees are fewer and fewer. It seems impossible for what seems like less than a dozen to be able to hit all the areas they should be covering.

Of course no one likes to get stung so fewer bees is a good thing right? WRONG! They are desperately needed to pollinate all the fruits and vegetables that we have in our food supply. The impact on the economy is in the billions of dollars.

The article this week from The Strategic Sourceror is “What’s the Buzz? Honey Bees in serious danger”. It reveals in simple terms why we need to pay attention to this and solve the problem. We have created this issue with the increased use of pesticides and the planned crops instead of wildflowers. Apparently the wildflowers sustain the bee population better than other crops.

Published in June 2014, the US White House has issued a fact sheet,  “The Economic Challenge Posed by Declining Pollinator Populations”. Here are a few facts stated in the document:

  • Honey bees pollinate 90 of the North American crops and 87 of the leading 155 food crops, representing 35% of the global food production.
  • Honey bees account for more than 15 billion dollars to the US economy

How does that impact procurement? The law of supply and demand could cause prices to increase on a something needed for your business. All the supermarkets, restaurants and food services will be impacted if the price of food increases. When the consumer has less disposable income, less is spent on clothes, cars, travel and entertainment. There is a ripple effect that will cause procurement to seek alternatives in order to contain costs.

How has your organization been impacted by the honey bee? Perhaps not at all but do you have something similar? Is it something that seems minor but has the potential to cause a major shift in your industry?

Share your thoughts by commenting below or tweeting us @BuyersMeetPoint.

Continue reading
2679 Hits
0 Comments

Boomers vs. Millennials in the Marketplace

Boomers vs. Millennials in the Marketplace

Recently, we were at a hotel and happened to meet the resort president as we waited for our table. We had a wonderful conversation and explained we were celebrating our anniversary. Several hours later, we arrived in our room to a bottle of champagne and chocolate covered strawberries. We were so surprised and found it was compliments of the president. That was amazing customer service and truly they have gained our loyalty.

How do retailers or any organization for that matter gain your loyalty? For decades, the marketing was focused on the Baby Boomers (b. ’43-’64) as they were such a force in numbers and buying power. While that is still the case by spending power, The Millennials ( b. ’76 – ’92) are coming on strong in numbers and soon will be reaching their peak spending years.

This study, by Synchrony Financial, Balancing Multi-Generational Retail Strategies, reviews some of the different approaches and how organizations could benefit from utilizing them. As the subtitle suggests, you want to win over Millennials without losing the Boomers.

The similarities in the two generations are not surprising:

  • Both love coupons and discounts and bargains
  • Both use social media to share recent experiences
  • Both use online shopping
  • Both own tablets and smart phones

The article then goes into some of the differences and suggestions on how organizations should stay current in order to attract the future generation and buying power.

Millennials are more price conscious and make their purchasing decisions accordingly. Boomers are also price conscience but have brand loyalty based on customer service.

While Boomers and Millennials both own tablets and smart phones, they use them quite differently. Boomers have to think and ‘work’ their devices while Millennials use them as an extension of themselves, almost as simple as breathing. The mobile experience has to be fast, helpful and productive for Millennials as a given, not an exception.

With all that in mind, how do these generations and their preferences impact you as a procurement professional? What factors are you considering as you plan your assortment and your go-to-market strategy? What is your approach to the "bottle of champagne" surprise?

Share your thoughts by commenting below or tweeting us @BuyersMeetPoint.

Recent Comments
Guest — Anon
Well... another article stereotyping generations.I'm not entirely sure I agree with any of this if I am being completely honest.As... Read More
Thursday, 21 May 2015 12:04
Guest — Cindy Allen-Murphy
The intention of the article was not to stereotype but to indicate the times are changing and organizations need to react accordin... Read More
Tuesday, 26 May 2015 11:49
Continue reading
1958 Hits
2 Comments

Procurement Delivering on Best Value

Procurement Delivering on Best Value

When our children were ready to buy their first cars, they had saved up enough to get something that was safe for driving around town and within their budget. However, they did not take into account the total cost of ownership so we outlined it for them. It was not just the purchase price of the car but also gas, insurance and repairs. They were not excited about those expenses. Buying new tires or fixing an exhaust problem was not high on their list of ways to spend money. Believe me, it is not high on anyone’s list no matter what age they are!

This week’s article by Kate Vitasek, “Use Best Value to get Your Best Bottom Line”, discusses the role of procurement and shifting to focus not just on cost but on the full cost of ownership. It emphasizes that while most professionals understand getting to the TCO is the best value, many do not employ that methodology.

It is often about so many other things such as how soon a new piece of equipment needs to be repaired and how much do the parts cost when a repair is needed. How far away are the service centers that could impact the length of time a piece of equipment is out of service? When it is time to dispose of the equipment, what is the cost of that or is there some ability to recycle or sell it?

What success stories do you have around procurement and the TCO or Best Value approach? Is it easier to apply in some cases and not in others?

Share your thoughts by commenting below or tweeting us @BuyersMeetPoint.

Continue reading
1897 Hits
0 Comments

How Consumers Influence Your Procurement Team

How Consumers Influence Your Procurement Team

Panera is in the news this week with their “No-No list”. They will be eliminating over 150 artificial ingredients from their recipes, beginning immediately with their salad dressings. This is in reaction to the increasing consumer demand to understand what they are eating and requiring heathier choices.

I was reading an article from Social Media Examiner, “5 Ways you can Influence Consumer Purchasing Decisions”. Obviously there are a lot of choices of where to eat and Panera is hoping to influence you to choose their establishment.

One of the suggestions is to appeal to millennials. Using social media, you can reach the millennials but it has to be done in the right way. They are not looking for generic messages but those that are tailored specifically to them. Being very aware of the environment, the move for Panera is more than likely to appeal to that age group so interested in sustainability and healthy choices.

So what does that mean for a procurement professional at Panera? It will require new supplier agreements, finding alternative sources of supply, including various lead times. The supply chain has been altered based on consumer demands. The purchasing group has to be consistently learning new marketplaces and sources for their organization.

Has consumer behavior changed your company’s direction and product offering? How did that impact you and your team? How did this impact your bottom line?

Share your thoughts by commenting below or tweeting us @BuyersMeetPoint.

Continue reading
2239 Hits
0 Comments