Broken Procurement Theory

I recently read about ‘Broken Windows Theory’ from a 1982 Atlantic article by George L. Kelling and James Q. Wilson. It is a criminological theory that suggests small but visible signs of public disarray, such as broken windows, abandoned vehicles, litter, and disorderly behavior, create an environment that encourages more serious crime and a systemic breakdown in orderly conduct. Kelling and Wilson note:

“This is as true in nice neighborhoods as in rundown ones. Window-breaking does not necessarily occur on a large scale because some areas are inhabited by determined window-breakers whereas others are populated by window-lovers; rather, one unrepaired broken window is a signal that no one cares, and so breaking more windows costs nothing.”

This means that no matter how affluent or destitute the neighborhood, no matter who inhabits it, a non-compliant action will inevitably inspire further non-compliance.

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Achieving World-Class Procurement Part 2: Taking a Deep Look at Your Current Operations

As I mentioned in Achieving World-Class Procurement Part 1, today’s increasingly competitive market landscape is driving organizations to reinvest in their procurement and strategic sourcing departments like never before. Beyond establishing centralized purchasing operations, best-in-class companies are elevating their procurement organizations by taking a deeper look at people, processes, technology, and metrics and optimizing them in ways that support enterprise-wide goals – through procurement transformation.  Transformation initiatives allow companies to gain more value from their procurement operations, moving from a reactionary model focused on reducing costs to a more proactive approach to managing spend that streamlines purchasing practices and enhances supplier relationships.

 

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Best Procurement and Supply Chain Webinars 8/8 - 12

Although there are only a few webinars taking place (again) this week, they are all high quality and on a compelling range of topics. Click on the title of each event below to view the full description in our events calendar and to connect to their registration pages.

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How much should a procurement process vary by company or category?

Last week I shared six B2B buying processes being compared by Wake Forest University in North Carolina. You can learn more about their research here.

I looked at the processes, and can see where each of them would have a place in the right scenario. You would expect processes to be different by company or industry, but do you ever vary your process by category? Feel free to share you comments below or join the conversation on Twitter: @BuyersMeetPoint.

I think (E) Robinson, Faris, and Wind most closely resembles the standard strategic sourcing process that most organizations follow. A typical process usually 6-8 steps, starting with internal and historical data collection and leading to either supplier performance management or a hand-off to the internal stakeholders who will manage the relationship for the duration of the contract.

That being said, the other models match different (and maybe less typical but no less common in the grand scheme of things) procurement situations...

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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.

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Guest — Isaac
Process F represent what we are using
Saturday, 18 July 2015 14:44
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Webinar Notes: A Primer on Robotic Process Automation

“The bigger you are, the more likely you are to fail because of the change required in aggregate.” – Thomas Young, Founder and Managing Partner of RUMJog Enterprises

“This is real.” - Frank Casale, Founder of the Institute for Robotic Process Automation and the Outsourcing Institute

 

These webinar notes are from a May 28th event run by the Institute for Robotic Process Automation (IRPA), which was founded by the Outsourcing Institute’s Frank Casale. Casale was joined in the event by a panel of Robotic Process Automation (RPA) experts: Raheem Hasan (CMO, IRPA), Pat Geary (CMO, Blue Prism), and Thomas Young (Founder and Managing Partner, RUMJog Enterprises).

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Recent Comments
Guest — Kelly Barner
For anyone that is interested, the webinar can be viewed on demand using this link: http://www.irpanetwork.com/webinar-an-introduc... Read More
Friday, 05 June 2015 15:07
Guest — Jack
The new age of RPA (robotic process automation) which can transform the running cost and the overall operation of a business is as... Read More
Friday, 06 May 2016 09:00
Guest — Kelly Barner
Hi Jack, Thank you for sharing your experiences! RPA is such a new topic that most people are just starting to find their way. Wo... Read More
Friday, 06 May 2016 09:04
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Procurement Decision Making - Who Empowers Who?

This week’s Wiki-Wednesday article is part of the series on Next Generation Sourcing: Empowerment. As a strategy in procurement, empowerment has the potential to change the course of a project at many...
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