Wednesday, 27 February 2013

What is Sustainable Procurement?

Authored by Fayaz Haq

Safety is part of our culture, why not Sustainable Procurement too?

What if Sustainable Procurement were to become part of our culture at work, home and school, just as safety is now?

I see Sustainable Procurement as the process of improving the efficiency by which public sector (i.e. Government) money is spent whilst at the same time using influence to bring about major environmental and social benefits locally and globally. It is the process of sourcing and procuring goods,services, and even construction projects, taking into account the social, economic and environmental impact on communities, and still delivering value.

Tuesday, 26 February 2013

Case Study: Procurement’s Impact on 2013 Airline Profits

Authored by Mickey North Rizza

Recently the International Air Transport Association (IATA) made a bold prediction for 2013:
Airlines will earn global net profits of $5.17 billion despite volatile fuel prices and weakening demand.

But like all predictions for 2013, it will be interesting to see if and how, the global carriers meet the IATA’s expectations. Oddly, the articles about this prediction fail to mention procurement’s role in achieving these savings.

Monday, 25 February 2013

How can procurement encourage SME participation?

Authored by Asif Khan

Traditionally, category managers focus solely on finding lowest cost options and give little consideration to factors beyond the traditional procurement scope, such as increasing business with small-to-medium sized businesses (SME), local or diverse suppliers. However, most procurement teams have the tools in place to enable SME participation and it only takes a slight shift in how they are used. Here are a few tips to incorporate this new approach:

Thursday, 21 February 2013

Technology Cannot Be Procurement’s Safety Net

Authored by Shayda Sharfaei

Procurement Leaders reporter Tim Burt wrote an interesting post last week based on the results of the latest Procurement Intentions Survey. The numbers outline a story that we hear often: our industry is hungry for new technology.

Monday, 18 February 2013

When Cost-Cutting Goes Too Far

Authored by Fayaz Haq

Can you ever cut too many costs?

At first thought, your answer is probably an emphatic ‘no way.’ However, aren't Procurement executives are in the business of saving money? But if you think about it a bit longer, you realise that there’s far more to procurement than just cost reduction. Too much cost reduction can actually hinder quality and put a company’s reputation at risk.

Thursday, 14 February 2013

What we can learn from Business Travellers

Authored by Sara Omer

In a recent survey by Business Travel News, business travel policy was once again at odds with travellers and procurement. Only 54% of business travellers were aware of their company’s written travel policy compared to 95% of the buyers who are responsible for buying the travel services; 31% of travellers believed there was an unwritten policy compared to 5% of buyers; 12% of business travellers said there was no written corporate policy and 0% of buyers thought there was no written policy; and 4% of business travellers did not know their policy vs. 0% of buyers. The point is, policy might be set and enforced by procurement, but adherence to the policies is often the point of contention.

Monday, 11 February 2013

2013 - The Year of the Snake!

Authored by Mickey North Rizza

Happy Chinese New Year! How are you doing on your personal and business resolutions? Sunday 10th February was the start of the Year of the Snake and according to the Chinese Zodiac, the Year of the Snake is meant for steady progress and attention to detail.

The snake is the sixth sign of the Chinese Zodiac, which consists of 12 animal signs. It is the most enigmatic, intuitive, introspective, refined and collected of the animal signs. 2013 is the year of the water snake, and according to the Chinese, all things are possible.

Saving money and being thrifty will be top priorities – hmm, sounds like a typical Procurement department. And like great Procurement negotiators, the year of the water snake also tells us to stay alert because delusion and deception are common. Gaining the greatest benefits requires us to control our spending and use our talents wisely – another great feature of best-in-class Procurement organisations.

So, practice the art of the Chinese Zodiac ­stay alert, save money, be thrifty and use your Procurement Talents wisely. All will bring great value contribution on the road to Procurement Excellence.