BMP 10 banner logo

LinkedIn Buyers Meeting Point procurement Kelly Barner twitter Buyers Meeting Point procurement Kelly Barner scribd Buyers Meeting Point procurement Kelly Barneryoutube Buyers Meeting Point procurement Kelly BarnerAdobeStock podcasticon

Blog

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

Procurement Perspectives Podcast: Procurement Career Development - Is MBA vs. Certification a False Choice?

This week our audio comes from a Financial Times conversation with Ian Clark, Dean of the University of Edinburgh Business School.

The core question behind their conversation is whether MBA programs provide professionals with the skills and knowledge they need to have competitive careers in today’s business environment. The full video is available on YouTube.

You can listen to the podcast on the PI Window on Business Blog Talk Radio channel.

 

Continue reading
  3770 Hits
  0 Comments

Guest Post on Design News: Your Supplier is Not Your Friend

Companies should never confuse a supply relationship with friendship. In fact, part of the role of any good provider is to challenge its clients in a productive way. Many times, companies outsource in order to transfer the majority of risk to suppliers.

In June, Design News hosted a webcast on product lifecycle management presented by team members at Sparton, a firm that handles the both design and manufacturing efforts for low/medium-volume, high-complexity components. Their presentation, “Why Product Lifecycle Management Is an Emerging Trend,” included all of the cost, timing, and supply chain implications of PLM.  

During the webcast, Sparton presenters spoke about the importance of building relationships with key suppliers. That emphasis makes sense because, in Sparton’s role as an outsourcing provider to manufacturing companies, the company sees advantages realized with those that they are able to partner with versus those that hold them at arm’s length or push back on project recommendations.

Good suppliers will bring their interests into alignment with those of their clients and make sure that the risks they are being asked to bear do not come back to bite their clients in the end. They understand that there are costs associated with each risk and, in order to service their customers efficiently, suppliers need to help them root out the causes of those risks.

CLICK HERE TO READ THE REST OF THIS POST ON DESIGN NEWS

Continue reading
  2393 Hits
  0 Comments

Keeping Procurement Moving at the Speed of Modern Communications

Many thanks to the Market Dojo team for their cooperation and collaboration on this post - proof that they have attention spans longer than goldfish. 

 

Everywhere you look, there is evidence that the pace of the world is picking up. We share our status instantly in 140 characters or less. Meetings are routinely scheduled for 30 minutes rather than an hour. We check email, make phone calls, catch up on the news, etc. while walking from one place to another so we are fully informed when we arrive. Saying, “Oh, I hadn’t seen that yet...” is likely to be received with skeptical looks and rolled eyes.

 

As an active part of this constantly updating, clipped environment, procurement professionals need to be aware of the general pace of interaction between people and organizations. We have to be both purposeful and accurate if we are going to hold people’s attention long enough to get from them what we need.

Continue reading
  4752 Hits
  0 Comments

Guest Post on the Social Contracting Blog: Contract Management: Yours, Mine, and Ours

In his recent book Global Supply Chain Ecosystems, Mark Millar wrote, "…today's supply chains encompass complex webs of interdependencies, frequently spanning the globe, designed and deployed to optimize critical attributes – such as speed, agility, and resilience – that drive competitive advantage."

His point plays out on a daily basis through the contract management strategies and practices in many organizations. Because our supply chains are no longer linear or consecutive, we may be buying from and selling to the same company at the same time. This puts our organization in the role of being simultaneously both buyer and supplier.

While there is no problem with this, it does raise complexities for the procurement and sales teams if one or the other is unaware of something going on. I can honestly say I have seen this happen firsthand.

CLICK HERE TO READ THE REST OF THIS POST ON THE SOCIAL CONTRACTING BLOG

Continue reading
  2119 Hits
  0 Comments

Guest Post on the Ivalua Blog: Can Technology Cure Procurement’s Budget Blues?

Budgets are concrete things, based in fixed numbers. But it’s amazing how much time is spent discussing budgets subjectively. Much like the spend procurement brings under management, finalizing a budget can be managed with the 80/20 rule: 80 percent of the time should be dedicated to discussing 20 percent of the spend. The trick is to discuss the right 20 percent!

Procurement technology can play a bigger role in budgeting than it does today. When spend categorization aligns with projects and line items in a budget, the whole process becomes more fact-based. Past budgets can be compared to actual spending for an improved understanding of where forecasting was the most (or the least) accurate. Projects that never took place will be easier to spot, as will overages by cost center or supply requirement.

Predictable categories of spend shouldn’t be the main focus. Assuming the need was properly anticipated, only minimal changes (if any) are likely to be required from one year to the next. Instead, more benefits come when discussion centers on investment opportunities with upside, or those that carry specific risks.

CLICK HERE TO READ THE REST OF THIS POST ON THE IVALUA BLOG

Continue reading
  3232 Hits
  0 Comments

Which sequence best represents your buying process?

Professors Michelle Steward and Jim Narus at Wake Forest University in North Carolina are learning about the B2B buying process. In particular, they are interested in the buying process that you find fits your current job. Please select one of the six models (below) that best fits your buying process. Feel free to note any differences or customized aspects if what you see does not match your job exactly. The collective findings from the study will be used for academic journal articles that are aimed at explaining how the buying process has changed over time. All participants will be sent a copy of the final paper. No names (personal nor company) will be used in the publication, only general findings will be reported.

Continue reading
  5070 Hits
  1 Comment

Procurement as a ‘Worldly’ Profession: What are your news habits?

In May I covered the first chapter of Xchanging’s 2015 Global Procurement Study. (You can read my notes here). The primary take aways were that capacity is more of a constraint than capabilities, KPIs are very diverse, and that practitioners may be getting the wrong idea about the field from media coverage that steers them one way when they need to take another.

The new chapter: External Threats Plaguing Procurement (available for download here after a brief registration) looks into global risk factors. The report couldn’t have been more timely, given how much coverage the Greek banking crisis has been getting.

Continue reading
  4693 Hits
  0 Comments

Guest Post on the Social Contracting Blog: Is there “Tough Love” Embedded in Your Budget Process?

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 worked so hard and saved all of this money, WHERE IS IT?

Ugh.

The problem is that the space between negotiated and realized savings is full of pitfalls: unexpected requirements, inaccurate demand, and budget holders who see an opportunity to unofficially reallocate savings elsewhere. Even when additional value is created, many times by the end of the year the savings have all but evaporated.

This is a problem that has to be handled by the top level of the organization. If the strategic vision of the leadership team requires that all uncommitted funds be returned to a central account, they have to be willing to support Procurement by issuing a mandate. Declaring that all funds saved by Procurement are to be removed from line of business budgets is a tough love decision. But all that really matters is whether or not it is the right decision for the company as a whole.

CLICK HERE TO READ THE REST OF THIS POST ON THE SOCIAL CONTRACTING BLOG

Continue reading
  2115 Hits
  0 Comments

Procurement Perspectives Podcast: Hear from the 30 Under 30 Supply Chain Stars

This week our audio comes from the ThomasNet and ISM 30 Under 30 Supply Chain Rising Stars program. They hosted a panel-style interview and discussion with some of the 2014 award recipients at this year’s ISM conference. The full hour-long conversation is available on Sound Cloud if you want to hear it.

The podcast starts with each of the participating recipients and program mentors introducing themselves and then moves on to a press-conference style question and answer session with some of the most recognizable names in procurement media – including the Hackett Group, Manufacturing Talk Radio, and Spend Matters.

The excerpt I selected to share starts with a question from Supply Chain Management Review’s Editorial Director, Bob Trebilcock, as he asks how these rising stars ended up in supply chain.

You can listen to the podcast on the PI Window on Business Blog Talk Radio channel or on our Sound Cloud page.

Continue reading
  2052 Hits
  0 Comments

Guest Post on Design News: Understanding the Differences between Strategic Sourcing Goals, Objectives, and Requirements

Early in the course of a product design and manufacturing organization’s strategic sourcing project it is common to have a kickoff meeting that includes the engineering team. It is the opportunity for the sourcing project team to lay the groundwork for the rest of the effort. One of the most critical discussions that should be a part of the kickoff is around the goals, objectives, and requirements for the project.

This is an effort to be taken seriously by both procurement, which should facilitate the discussion, and engineering, which provides critical inputs. Unlike a mission statement, which is often dismissed as being an overly soft (and largely meaningless) feel-good expression of early-stage enthusiasm, goals, objectives, and requirements are tools that will be used actively in the sourcing project once it reaches the decision-making stage.

When I worked as a consultant at a procurement solutions provider, I held workshops on kickoffs for the procurement teams I coached, as part of their project management skills development. There are two tricky lessons to be learned about goals, objectives, and requirements: how to formulate them and how to tell in which category an idea belongs.

CLICK HERE TO READ THE REST OF THIS POST ON DESIGN NEWS

Continue reading
  1880 Hits
  0 Comments

Trans Fats Replacements: A Moment on the Lips, a Lifetime in the Sourcing Pipeline

On Tuesday, the Food & Drug Administration (FDA) announced that by 2018 all partially hydrogenated oils (the primary source of trans fats in the American diet) must be phased out of the food supply chain. The many costs associated with this change will give procurement an opportunity to have a positive impact at a time of transition. When you add up the costs of experimenting with replacement oils and reprinting/redesigning packaging and labels, Roger Clemens, a pharmacology professor at USC, estimates it could cost companies as much as $200K per product.[1]

Continue reading
  3943 Hits
  0 Comments

Guest Post on the Ivalua Blog: Looking at Procurement's Assets with Fresh Eyes

Sometimes the best ideas are right in front of us. This can be evident when you look at a situation with fresh eyes, much like what the United States Postal Service recently did.

The USPS is a large organization facing unprecedented changes that are challenging long-held assumptions about how to operate efficiently and effectively. Ideas to improve their declining financial situation were mostly variations on past strategies: closing branches, stopping Saturdaydelivery or raising prices. Not surprisingly, those approaches did little to improve the situation.

But the tide may be about to change. On May 21, the Inspector General of the USPS issued a report with some bold new ideas such as exploring ways to better leverage an under-appreciated asset: their national network of localized offices. Rather than pursue tired old approaches, they are exploring ways to increase the financial services they offer and create new revenue streams without making significant additional investments into infrastructure or personnel.

CLICK HERE TO READ THE REST OF THE POST

Continue reading
  2197 Hits
  0 Comments

Guest Post on the Social Contracting Blog: Whole Foods Markets Shifts Their Cost Model as They Target Millennial Shoppers

In March, I wrote a post for this blog about the Whole Foods grocery chain in which I asked the question: "How Much Can Procurement Change on Their Own?" I looked at how Whole Foods has defied the low margins commonly seen in grocery retail by employing an operational strategy that merges brand reputation, consumer identity, and high-quality products in justification of higher prices. Their procurement team is part of a top to bottom approach to creating the right value proposition for their customers.

Although they have been successful to this point, Whole Foods has found it difficult to expand their market share beyond their existing customer base. Whole Foods has never professed to be the supermarket for all shoppers, or even for most shoppers. They choose their markets carefully, making sure that the demographics in each area fit their business model. They do, however, need to find a way to build loyalty in other shopper segments that can later be channeled into the primary chain.

CLICK HERE TO READ THE REST OF THIS POST ON SELECTICA'S SOCIAL CONTRACTING BLOG

Continue reading
  1971 Hits
  0 Comments

Insights from the Cutting Room Floor: The Source One Podcast Series and the Unknown Unknown

This week we’ve been sharing a series of podcasts based on a recent conversation I had with Source One’s Diego de la Garza. Here are the links to Part 1 and Part 2.

The funny thing about podcasts, or any content based on creative interaction, is that there is always more good content than you get to use. Sometimes the most interesting detail or insight ends up buried deep in a less-consequential part of the dialogue. I had exactly that experience with Diego. There was a lot of back and forth in preparation for the podcast. In one revision of the notes we were all working from, a single statement jumped out at me:

“Although it may seem obvious, it is not until recently that many companies realized that their supplier base can propel them to the next level (strategically speaking) or be their demise. The reality is that more frequently than not, suppliers are given a lot of power by their customers, and unfortunately many times companies’ simply don’t know it, or they don’t understand how much they rely on some suppliers, who may or may not be looking after their best interests.”

Continue reading
  3806 Hits
  0 Comments

Guest Post on Design News: Strategic Sourcing Processes are Designed to Ensure Good Decision Making

While people may talk about the procurement process, the procurement discipline actually encompasses a number of different processes. They include spend analysis, supplier relationship management, and contract management, just to name a few. If you have ever worked with procurement, there is a good chance that it was during the strategic sourcing process. Strategic sourcing touches many other stakeholder groups in an organization, such as engineering, as well as supply partners -- both current and prospective.

For engineers, if you are asked to be part of a strategic sourcing project team, you will probably learn early on that there is a standard, defined project management approach just like any other discipline would have, including product design and development. The process that guides this approach may include six steps or more, but it clearly divides the project effort into phases such as the identification of a need through the contract award as well as supplier performance management. Starting at a very high level, the process gradually narrows down the potential outcomes as more is learned and the company better understands the requirements that will ultimately guide its final supplier and sourcing decision.

TO READ THE REST OF THIS POST ON DESIGN NEWS, CLICK HERE

Continue reading
  2245 Hits
  0 Comments

Perception vs Reality: The Real Root Cause of Procurement’s Challenges (UPDATED)

It’s been a good couple of weeks for research in procurement. Late last week, Proxima Group released their findings around how consumers perceive companies that find themselves entangled in supplier-related controversies. Then on Tuesday, Xchanging shared the first results from research they did with input from over 800 procurement decision-makers spread evently across the U.S., U.K., and mainland Europe.

While the complete research will be released one chapter at a time (starting with the New Role of Procurement), the high level findings suggest that the sources of procurement’s challenges aren’t what we previously thought.

Continue reading
  4729 Hits
  0 Comments

New Research Reveals Consumer Expectations for Supplier Management

Late last week, Proxima Group revealed the initial findings of research they commissioned into how consumers – American consumers specifically, feel about companies that find themselves on the wrong end of a supplier scandal.

According to the release, “The study of typical American consumers, commissioned by sourcing and procurement specialist Proxima, reveals that 74% of respondents stated they would be unlikely to buy products or services from a company involved in controversial supplier practices. Furthermore, nearly 66% would stop giving such a company their business even if that company was the most convenient and cheapest option.”

Continue reading
  3727 Hits
  0 Comments

Time to Speak up and Be Heard, Procurement!

In my PI Window on Business Podcast this week (listen here), I shared audio of Mark Hager, an author and a professor at Arizona State University, talking about why people join professional associations and how that is changing.

The interview was loosely based on a paper he wrote on the same subject (you can read it here) and which digs deeper into the idea of private (individual) versus public (collective) motivations for joining an association.

Continue reading
  3522 Hits
  0 Comments

New YouTube Video: A Positive Approach to Supply Chain Risk

This week at ISM, my Supply Market Intelligence for Procurement Professionals co-author Jeanette Jones presented a session on supply market intelligence specifically for risk. I couldn’t be in Phoenix this week, but I wanted to contribute to the session, so I committed to making a 10-minute intro movie. After all, I do a podcast every week - and I have a Mac - so how hard could a video be?

Continue reading
  3683 Hits
  2 Comments

Deem Shopping is Easy on the Eyes

If you are at ISM2015 in Phoenix this week, you may have seen Deem unveil their new Shopping application Monday morning. I got a sneak peek at it, and my primary take-away was that Deem Shopping is a highly visual experience. You can learn more on Deem's site

Shopping, which is primarily intended for use by the buying (rather than sourcing) colleagues in your organization, was designed to incorporate some of the key user-friendliness aspects of B2C shopping sites, including machine learning focused on tracking the frequency of use of templates and items. It also involves something I didn’t initially recognize the importance of – the space between graphics. Apparently, the amount of white space you incorporate into a display is connected to how user friendly an application is. And we all know what user friendliness leads to: ADOPTION.

Continue reading
  3743 Hits
  0 Comments

BMP 10 banner logo