Archive for the ‘Strategic Sourcing’ Category

Quality retail e-negotiation in a time of heightened Corporate Social Responsibility (CSR)

Friday, February 12th, 2010

Why do some companies succeed while others continue to implement program after program with no measurable benefit. First among these is the recognition that effective e-negotiation initiatives like any successful program requires strong support from the executive suite. In Retail this is important because the industry lags well behind other industries in utilization rates of e-negotiation tools. At a minimum in order to get off on the right foot, this means the involvement and sponsorship of your CEO, CFO, CLO or CPO is critical. Once you have this involvement directives can be issued. This will help in the required next step which is to identify savings targets across all corporate spend categories. Once these targets are identified and ranked, a category specific attack plan can be developed that best maximizes savings opportunities. It is important to note, that savings alone do not create a successful e-negotiation plan. What can not be sacrificed in the name of cost reduction is quality, which can include safety as well as Corporate Social Responsibility (CSR) goals including environmental support programs.
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A key challenge for any procurement team directed to implement e-negotiation tools across all of their unique spend categories, is to not over complicate the process into something that can?t be maintained. At a high level, the following 10 steps which are in no particular order offer some assurance that you are headed down the right path.

1.?Identify and rank all opportunities by spend
2.?Locate all contracts and identify termination language
3.?Document your safety and environmental goals
4.?Develop a total company strategy
5.?Source qualified suppliers
6.?Identified fragmented or maverick purchasing and aggregate
7.?Negotiate final terms and conditions
8.?Award of business
9.?Contract completion including review of evergreen and termination language
10.?Results Analysis

Most quality e-negotiation? solution providers have well developed and well thought out plans that will aid you in developing and implementing your best practices while maintaining quality and supporting your CSR initiatives.

We look forward to and appreciate your comments.

Giving it your best is more than a practice.

Friday, February 5th, 2010

Best practices only become best practices through a thoughtful paying forward of one?s careers learning to others in order to shorten their educational curve to the ultimate benefit of customers, partners and other stakeholders they may interface with in the hope that they will do the same thing.

According to Wikipedia a best practice asserts that there is a technique, method, process, activity, incentive or reward that is more effective at delivering a particular outcome than any other technique, method, process, etc.

When a company indicates to you that they use best practices, does this mean they are supporting what is the best practice for the entire industry they serve such as the procurement space. Or does it mean they are the best practices for just their particular product family?

This author does not believe that a best practice is just following a standard way of doing things that can be carried out by multiple organizations. A best practice is a life long process that by its nature has to evolve over time as tools, businesses, and existing processes change so that a current practitioner performs similar tasks more efficiently or cost effectively.

If one uses best practices, the result should?be an ideal state that a person or an organization set out to achieve in the first place. In fact if the process used is actually a best practice shouldn?t all of a companies customers use exactly the same process. I?m not sure that this is ever a question one asks when looking for a referral about a companies service offerings. Please tell me about your companies? best practice? Are they consistent and carried out each and every time to the desired result?

One way to ensure good quality results is to provide templates that can be used over and over again and are evaluated at the completion of each practice or session of a particular deliverable and changed as need be. This then requires passage to other customers in order to insure the integrity of the process. This elevates the actual process beyond just a buzzword and moves a particular process in the direction of becoming a best practice that drives similar results on a consistent basis regardless of customer.

This author will continue to refer to our services offerings as high quality process techniques focused on continuous improvement that deliver anticipated results. Our customers, supplier participants and business partners will determine if they are best practices for them.

We look forward to and appreaciate your comments.

New Moon Rising!

Wednesday, November 18th, 2009

The above can be applied to just about any subject. In this case we are talking about e-procurement, strategic sourcing, e-negotiation, reverse auctions and e-RFX which are all terms with similar meanings. You can visit Google, Yahoo, Bing, Wikipedia and other internet search sources and you will be taken to a link to a provider?s home page or to a web page with a definition of these key words. Some definitions have been updated; some solutions offer more current technology at a lower price. However the bottom line is still the same. If you assign a good amount of your spend to these types of tools the following is a partial list of benefits you should enjoy.

1. You will compress your pricing
2. You will improve your earnings
3. You will find new sources of supply
4. You likely will improve terms and conditions
5. You will likely improve quality
6. Your procurement team will be more productive
7. You will have process improvement
8. You will directly support safer products
9. You will directly support the environment
10. You will hold suppliers accountable to the line item detail.

Historically these tools have not been highly used by retailers other than the largest of corporations and even in those cases large amounts of spend have not been assigned to their use. These tools can be used for small spends, large spends and just about any spend in between. Since there is always a new moon on the horizon, there is always an opportunity for newly enlightened companies to take advantage. We are about to end the first decade of the twenty first century. Isn?t time to look at things in a new way?

We look forward to and appreciate your comments.

SafeSourcing Website experiences significant traffic growth.

Thursday, October 22nd, 2009

During the last ninety day period the SafeSourcing website www.safesourcing.com has experienced significant growth globally. According to a number of rating services including Alexa and Google Analytics our website has had visitors from thirty seven (37) countries. Our reach which is a percentage measure of global internet users has grown 130%. Our traffic rank has increased 168% and our page views have increased 150%.

This growth places us amongst the top websites in the procurement space. Spend Matters and Sourcing Innovation continue to be the ranking leaders in our space. Both are required daily reading for this author.

We are very proud of our growth as it indicates that SafeSourcing is providing valuable content to regular visitors as well as registered members. We are also enjoying a good mix of both returning and new users. In reviewing these data the entire website is being explored on a regular basis including the following areas.

1. Sourcebook our professional social network for procurement professionals.
2. The SafeSourcing Wiki
3. The SafeSourcing daily Blog
4. SafeSourcing environment and safety alerts
5. SafeSourcing specifications template library
6. The SafeSourceIt? Supplier Database
7. The SafeSourcing Query tool
8. SafeSourcing Product Information Sheets
9. SafeSourcing White Papers
10. SafeSourcing Press Releases.

Thank you to those of you that have allowed us to achieve this growth.

As always, we look forward to and appreciate your comments.