This week’s Flip Side coverage comes from last week’s webinar on negotiation hosted by Think! Inc. The primary speaker was Brian Dietmeyer, CEO and President of Think! Inc and author of several books on negotiation including Strategic Negotiation. Although this event was predominantly geared to a sales audience, negotiation is negotiation. If you aren’t sold on the connection to procurement performance, read on to learn more about the ‘moment of truth’: when a sales person is facing their procurement counterpart across the negotiating table.
This week’s featured webinar was hosted by Supply & Demand Chain Executive and sponsored by C.H. Robinson, a global leader in third party logistics. The speakers were from Nature’s Path Foods and the Sustainable Food Trade Organization. Twitter #ShipGreen for more information or to join the conversation.
The Sustainable Food Trade Organization shared the structure that Nature’s Path was able to leverage for their sustainable logistics program. Most members of the SFTO see both consumer demand and regulatory pressure as drivers for their sustainability programs. As with other change management efforts, companies find it difficult to get started on being more resource efficient and strategic about their sustainability.
The SFTO also recognizes the common wisdom that you can’t manage what you don’t measure. They had identified the need for appropriate metrics to help guide businesses through the implementation of sustainability programs. It took years to collect the member feedback and research required to put together a list of eleven metrics specific to the organic food industry: organic, energy, climate change, distribution, water use, packaging, waste, animal care, labor, education, governance. These metrics are used for reporting, accountability and continuous improvement, and are available on their website.
Nature’s Path is a member of the SFTO, and they used the sustainability metrics to drive cost reductions and environmental impact reductions through their third party logistics program. Key among the measurable goals of their program was to reduce waste, defined as contributions to landfills and their CO2 footprint including supplies coming into their facilities as well as consumer-ready product going out. 78% of their ingredients are sourced in North America, production takes place in Canada, Washington and Wisconsin, and their product is shipped to 42 countries. They share their annual sustainability report on their website.
Nature’s Path Sustainable Logistics Case Study
With the support of the SFTO measurement framework, Nature’s Path began working with C.H. Robinson on improving the sustainability of their logistics needs. From the beginning this was a collaborative effort between the organizations, and they co-created the program based on shared goals. Nature’s Path wanted to be involved with the direction of the process but not the details of how to make it happen because the logistics piece is not their focus.
They were able to take advantage of a number of opportunities to improve both environmental impact and also cost effectiveness by strategically locating distribution facilities as they expanded and taking advantage of intermodal optimization: blending the use of rail, ship and truck to manage both costs and emissions.
They minimized border crossings between Canada and the US to reduce miles as well as customs fees, and looked to find new eastern ingredient sources so they were sourcing where they sold – both supporting local communities and minimizing transportation costs. Another example of benefitting financially while staying true to their core values was in the handling of damaged packages. Nature’s Path and C.H. Robinson would find a way to donate them to local food banks or shelters: saving the cost of return shipping while also supporting local communities.
With the structure of metrics in place from an early point in the process, data management and therefore reporting were a high value outcome. Reporting was key to helping Nature’s Path understand their progress and successes and also to continue to grow the benefits through their customers and stakeholders. The facts allowed Nature’s Path to demonstrate to their customers how they could further reduce costs and environmental impact with their ordering procedures.
- CO2 footprint reduced by 20%
- Customs charges reduced by 60% (less finished goods moved across borders)
- On time delivery over 90%
- Reductions in transport costs through modal conversions, consolidation, fewer miles traveled
- Shortages, damages, returns almost eliminated
- No increase in size of the Nature’s Path internal logistics department
This week’s featured webinar notes are from a My Purchasing Center sponsored event that looked at the evolving role of procurement in today’s organizations. Speakers Barbara Kline (BreakThru Center) and Michael Walters (Transformance Inc) shared their knowledge and experience, predominantly through a case study on the purchasing organization from Honda’s North American operation.
The webinar was recorded and will be available on demand from the My Purchasing Center website.
This week’s featured webinar was hosted by Emptoris and Procurement Leaders, with a supplier lifecycle management (SLM) case study from The ABB Group. You can view an on demand version of the event by clicking here. ABB is a global leader in power and automation technologies that enable utility and industry customers to improve their performance while lowering environmental impact. In 2010 they had $32B in revenue. As a 120 year old organization, they were decentralized with five divisions.
Processes will always have some variations in output despite the best controls. Constant measurement is the best approach, tracking variations on a sampling of product. The key measurement technique is sigma, a measurement of standard deviation. A small sigma (or deviation) is most desirable, with the expectation that supplier quality will be within six sigmas (or 2 parts per billion) of the center.
This week Zycus and Ardent Partners presented ‘Sourcing for Value: Using Non-Price Attributes to Find the Best Suppliers’. Historically, not making an award decision based predominantly on price has been a reason stakeholders give for not wanting to follow the strategic sourcing process. Today, procurement professionals and the technology they use are accustomed to incorporating quantitative and qualitative measures of value into optimization scenarios and award decisions.
This week’s featured webinar was presented by the Next Level Purchasing Association and featured Joe Payne and Bill Dorn from Source One Management Services as the main speakers. You may also know them as the co-authors of ‘Managing Indirect Spend’, a relatively new publication that walks through the challenges and opportunities associated with indirect spend as well as a few category-based case studies.
Like their book, the guys from Source One kept their speaking points to the practical learnings from their extensive combined procurement consulting experience.
This week’s featured webinar was presented by ISM, Ariba, and CFO Research Services. It was based on a recent study of 263 finance executives from North America, Europe and Asia about their perceptions of procurement. The study was originally conducted in 2007, so this can also be considered a five-year revisit. If you are interested in reading the full report, you can download it for free (without registration) from CFO.com.
This week’s featured event was presented by Supply & Demand Chain Executive and John Galt Solutions. The main speaker was Dr. Larry Lapide, the former director of the Demand Management Council at MIT, who also spent time in his career at AMR Research and Accenture.
This week’s featured webinar was presented by IASTA, with speakers from Spend Matters and Cushman Wakefield (a global real estate and facilities management firm). Together they provided a fair balance of general recommendations and practitioner perspective. You can view the slides (with audio) on Slideshare.
This week’s featured webinar was presented by CPO Agenda: ‘Practical Steps to Strategic Sourcing’. Their selection of this topic has interesting timing, as Strategic Sourcing was just crowned as the ‘champion’ in the CPO Rising March Madness tournament.
This week’s featured event was presented by Procurian, the new name for ICG Commerce. They officially changed their name in February of this year, at the same time as they launched a philosophy the call “New Procurement”. New Procurement is based on six principles, ranging from leveraging market intelligence to identifying and fueling new sources of growth.
This week’s featured event was presented by Sourcing Interests Group and Emptoris (an IBM Company). The main speaker, Mitch Plaat, is Con-way’s VP of Procurement and CPO and has been with the company for 22 years. He has overseen quite a transformation, starting six years ago with the decision to engage Emptoris for help in the form of solutions and services.
This event was conceived in response to Outsourcing Institute members who had concerns about political policy regarding outsourcing based on President Barack Obama’s 2012 State of the Union Address. One quote that was called out in the event overview was that it is time to "stop rewarding businesses for taking jobs out of the country and start rewarding them for bringing jobs back home." (Note: if you are interested in hearing the relevant portion of the State of the Union, listen to the Buyers Meeting Point Weekly Update for March 19th on Blog Talk Radio.)
This week’s featured webinar notes are from an event hosted on Thursday by Supply and Demand Chain Executive, “Supply Chain Risk Mitigation: Minimizing Exposure To Supplier Failure, Volatile Commodity Prices, And Manufacturing Disruption’.
This week’s featured webinar was presented by Supply and Demand Chain Executive. The approach that was emphasized in this webinar got back to old-fashioned data quality. Having a solid dataset to work from is the first line of defense against risk – or at least against missing and mis-information.
Joining Supply & Demand Chain Exec was Jon Bovit, VP of Enterprise Solutions and Chief Marketing Officer for CVM Solutions, a provider of supplier management solutions that enable clients to achieve operational excellence, drive cost savings and mitigate supplier risk.
This week’s Flip Slide notes are from ValueSelling Associates, a sales training and professional skills development organization. The audio from the webinar as well as the slides are available on their website.
As with the other content we cover on The Flip Side, the message of this sales training session is absolutely applicable to a procurement audience. In fact, if once I’ve shared the list of the ‘5 Keys’ with you, it doesn’t even really look like advice for sales.
On Wednesday, the Sustainable Business Forum hosted "Supplier Management - Social Responsibility" presented by SGS, the world’s leading inspection, verification, testing and certification company. The Sustainable Business Forum is a platform for the voices of leading experts and promotes constructive discussions on business sustainability, focusing on the crucial topics that make up the core of sustainable business strategy.
Last week, MyPurchasingCenter hosted a webinar called, ‘Innovating With Suppliers To Cut Costs, Support Growth, And Navigate An Uncertain Economy’. The main speaker was from Vantage Partners, a Boston-based management consulting firm specializing in negotiation skills development. We don’t usually cover events presented to a buy-side audience on The Flip Side, but this particular event shared a significant amount of supplier perspective on innovation between buyer and supplier.
You can view/listen to the event on demand on MyPurchasingCenter's site.
This week’s featured webinar is ‘Tail Spend Management: How to Squeeze Savings from the Most Fragmented 20% of Spend’ by Proactis. If you are interested in more after reading our notes, you can access a white paper on Proactis’ site.