Tuesday, 29 January 2013

Action and Reaction: Supply Chain Moves Cut Apple’s Stock Price

To every action, there is always an equal and opposite reaction.

Newton surely wasn’t thinking of the supply chain when he created the laws of motion, but in today’s investor marketplace, the law often holds true.

As the darlings of the tech world, everything at Apple is closely monitored, analysed and measured, especially the supply chain. Recently, at least 5 core analysts lowered their price targets on Apple amidst reports that the company was cutting some iPhone parts orders in its Asia supply chain. The stock price quickly dropped roughly 9%.

Wednesday, 23 January 2013

Tapping into the Spend Opportunity: Category Management Best Practices (Part 2)

Resources focused on spend visibility are typically focused on categories, with specific knowledge on particular categories that are the differentiators on category appraisal. For instance, transportation management may require lane visibility, TL (truckload) and LTL (less-than-truckload) knowledge, and carrier restrictions. All of these are part and parcel of a complete category management plan.

Many research firms have identified best practices for category management; here are eight from firms such as Aberdeen, AMR Research, and Gartner. These eight represent characteristics of high performing category managers:

Sunday, 20 January 2013

Tapping into the Spend Opportunity: What is it? (Part 1)

What is your spend opportunity? When you take into account that supplier spend can represent from 40-80% of revenue (dependent upon industry and organisation), and that indirect spend is a large portion of supplier spend (at least 55% for non-manufacturing companies and as high as 50% for manufacturing organisations), the opportunity for Strategic Sourcing Centres of Excellence to capitalise on all types of spend is extreme. And for those looking for quick win, a laser focus on only indirect spend can bring vast rewards.

So why aren’t more companies reaping the spend benefit? It’s simple: complexity. Spend is spread across the organisation into many varied divisions and business units. Direct spend is typically reviewed as part of a product with the focus on product development, product release and maintenance of products. Most companies producing products have very tightly controlled releases and reviews tied to their cost of goods sold (COGS). And while this is great by division and business unit, it isn’t when viewed across the entire company. In many cases, the same suppliers are utilised by many of the divisions and business units, however emphasis is not placed on leveraging the opportunity of volume, intellectual property, risk or supplier value.

Wednesday, 2 January 2013

Mickey’s Top 5 Procurement predictions for 2013

It seems everyone has a list of predictions these days, from the Mayans to the financial analyst. I figured I would throw my two pence in and then grade myself at year’s end. Here are my top 5 Procurement Predictions for 2013.