Monday, 29 April 2013

The Benefits of Appointing a Super User in the Successful Adoption of an eSourcing Solution

Authored by Asif Khan

eSourcing has become essential in best-in-class procurement organizations. Strategic sourcing improves efficiency, communication, and consistency – all of which are highly regarded in any organization. As companies implement an eSourcing solution to take them to the next level, often all of the emphasis is placed on negotiating the best price or having all of the bells and whistles of functionality.

A tool however is standalone unless the organization sufficiently allocates dedicated resource to drive adoption and best practice.

Friday, 26 April 2013

Mass Auto Recall Highlights Importance of Supplier Diversification

Authored by Sara Omer

Last week, Japanese automakers, Toyota, Honda, Nissan and Mazda announced that they are recalling 3.4 million vehicles sold around the world due to faulty airbag inflators.

So what’s the thread that ties these four automakers together? Their airbag supplier – Takata Corp. the automakers all purchase airbags from the suppliers in an effort to improve collective buying power, driving prices down.
However, mass recalls like this highlight the risks of relying on only a handful of suppliers – or even worse, one supplier.

Wednesday, 24 April 2013

Technology Cube: Business Apps are filling the Value Chain Visibility Gap

Authored by Mickey North Rizza

Among the hot new technology trends are mobile device applications (apps) that assist the business community. With global on-demand business now a way of life, more and more businesses are moving towards the use of apps that simplify business tasks, while creating jobs for individuals.


Monday, 22 April 2013

Who Deserves More Training: Sales or Procurement?

Authored by Shayda Sharfaei

If you haven’t been keeping up with Maggie Slowik’s updates about the Procurement Leaders Mini MBA series, you definitely should. In her latest post, she cited a remarkable statistic: “An experienced sales representative could get nearly four times as much training as their procurement counterparts.”
 

Skills training in our industry is often debated and talked about – but few companies ever dedicate enough time, resources or budget to the training that inevitably will increase the effectiveness and efficiency of your procurement team.

Three things holding procurement back from making the investment in training include:

Thursday, 18 April 2013

Addressing Four Barriers to Effective Cost Reduction

Authored by John Shaw

Deloitte’s latest survey of Fortune 1000 companies highlights a shift in procurement strategy that is becoming increasing popular with our clients: Save to grow. The survey responses represent a major step forward for procurement. They demonstrate that major companies are continuing to focus on cost reduction as top strategy even as they shift back into a period of revenue growth. Furthermore, they see this savings as a catalyst for driving the future growth.

Mickey North Rizza writes about shift often…

What I found particularly interesting in this survey was that despite this increasing focus on costs, 48% of cost reduction initiatives did not meet their goals. Organizations are putting more internal resources into these project but they are not yielding the results that they need.

These are the top 4 barriers for cost reduction success and some thoughts on each:

Tuesday, 16 April 2013

Why Projects Fail: Building a Business Case, and Addressing Gaps

Authored by John Shaw

In our last post, we talked about overcoming internal barriers to gain support for a project. In this post we’ll address the need for a compelling business case and overcoming a skills gap.

A compelling business case is not enough. It must be communicated clearly and effectively to all parties involved. It needs to be reinforced in every project communication to help ensure everyone understands the change drivers. A compelling business case not only fuels a project, it is crucial to securing executive support and employee compliance.

Skills gap. Know your strengths and, more importantly, your weaknesses – and then create a plan to address them. Focus on what each employee group needs to be successful and identify which players need help in particular areas. Map those skill gaps out on a timeline of activities that corresponds with a training plan to help bring the right skills, to the right people, at the right part of the project.

Stay tuned for our third and final post on why projects fail.


Monday, 15 April 2013

Why Procurement Projects Fail: Internal Barriers

Authored by John Shaw

Five of the top eight barriers in transformation identified by a Deloitte survey of Fortune 500 CIOs are directly related to change management – employee resistance, inadequate sponsorship, non-compelling business cases, skills gap, and a lack of a plan.

CPOs can overcome these barriers if they understand:
  • Why big ideas or new processes fall short
  • What triggers the failures
  • How to prevent roadblocks from limiting your vision
Here’s a look at the first two barriers and how CPOs can address them:

Thursday, 11 April 2013

March: Top Supply Chain and Procurement Headlines

Authored by Fayaz Haq

It was another busy month in the supply chain and procurement worlds; here are two headlines that grabbed our attention in March. We will also share two additional headlines later in the week – and a few things to be on the lookout for in April.


Tuesday, 9 April 2013

Real World Sourcing Series Takes The UAE By Storm!

Last week, Tejari in partnership with CIPS MENA held the first briefing in the 2013 Real World Sourcing series in Dubai, and what a great start to the series it was!

Over 50 of the regions top procurement professionals attended the briefing which was hosted by industry experts Peter Smith of Spend Matters and Guy Allen, Real World Sourcing. This being the first event of its kind in the UAE, the lead up to the event created a real buzz and was said to be highly anticipated by many of those in the procurement industry. The event was held in the serine and stunning location of the Al Badia Golf Club where guests listened to best practice tips and real world examples from the two presenters.

Wednesday, 3 April 2013

Starbucks Becomes Its Own Supplier

Authored by Shayda Sharfaei

Starbucks
recently bought its first farm, a large plot in Costa Rica. From a CSR and ethical sourcing point of view, Starbucks plans to use the centre to help coffee farms mitigate climate change and support long-term crop stability, in addition to helping support growers and their families. 
 
Arguably the more important benefits include: Starbucks’ move gives them more control than ever over their supply chain, and allows them to test and create new blends of coffee. The company can now oversee the production of their coffee, literally from the moment the seed is sown.
 
What this means for the sourcing process: