Archive for the ‘Supply Chain Procurement’ Category

Think about Santa?s Logistical Challenges.

Wednesday, December 23rd, 2009

Now if geographical challenges were not enough, we have to also consider that the Christian population of the world is about two billion people. That?s a whole lot of zeros even if Santa were to eliminate 10% as naughty. So just how does one man and one sleigh and eight tiny reindeer deliver? all of those presents in one night across multiple time zones when the primary fuel used is hay? That?s a good question.

We checked with Federal Express, and their hub in Memphis Tennessee handles approximately 1.5 million packages per day. That means they handle a little over half a billion packages annually. This of course does not even equal one third of what jolly old Saint Nick handles in one night.

Personally this author believes it is a little faith and a little magic. The same type of faith used to convince Virginia O?Hanlon that there is indeed a Santa Claus in the September 21, 1897 edition of the New York Sun when her friends had told her that he did not exist.

In a time of economic upheaval and with many of our countries young men and women protecting our liberties around the world, we all need a little faith and maybe some magic. So from the famous poem Twas the Night before Christmas written in 1822 by Clement Clarke Moore. “Now Dasher! now, Dancer! now, Prancer and Vixen! On, Comet! On, Cupid! , on Donner and Blitzen! To the top of the porch! to the top of the wall! Now dash away! Dash away!? Dash away all!”

Sometimes questioning what is just does not make sense. Here?s hoping all of your holiday wishes are magical.

We look forward to and appreciate your comments.

Think about Santa’s Logistical Challenges.

Wednesday, December 23rd, 2009

Now if geographical challenges were not enough, we have to also consider that the Christian population of the world is about two billion people. That’s a whole lot of zeros even if Santa were to eliminate 10% as naughty. So just how does one man and one sleigh and eight tiny reindeer deliver  all of those presents in one night across multiple time zones when the primary fuel used is hay? That’s a good question.

We checked with Federal Express, and their hub in Memphis Tennessee handles approximately 1.5 million packages per day. That means they handle a little over half a billion packages annually. This of course does not even equal one third of what jolly old Saint Nick handles in one night.

Personally this author believes it is a little faith and a little magic. The same type of faith used to convince Virginia O’Hanlon that there is indeed a Santa Claus in the September 21, 1897 edition of the New York Sun when her friends had told her that he did not exist.

In a time of economic upheaval and with many of our countries young men and women protecting our liberties around the world, we all need a little faith and maybe some magic. So from the famous poem Twas the Night before Christmas written in 1822 by Clement Clarke Moore. “Now Dasher! now, Dancer! now, Prancer and Vixen! On, Comet! On, Cupid! , on Donner and Blitzen! To the top of the porch! to the top of the wall! Now dash away! Dash away!  Dash away all!”

Sometimes questioning what is just does not make sense. Here’s hoping all of your holiday wishes are magical.

We look forward to and appreciate your comments.

Thanksgiving is really a story of a supply chain found and developed!

Thursday, November 26th, 2009

One hundred and two pilgrims and crew arrived in Massachusetts after a 3,000 mile trip from England on the Mayflower. It is safe to say that as a result of that distance there was no existing supply chain to leverage, so one had to be developed and quickly. This began with basic hunting and gathering and later included trading with the areas indigenous peoples known as the Wampanoag?s for corn, seed and foraging and planting techniques.

The Thanksgiving holiday we celebrate today really stems from the feast held in the autumn of 1621. Since the pilgrims had only arrived on November 21st of 1620 they had really not been there long enough to develop a fully reliable and renewable supply source. They had however established collaborative relationships with the local Wampanoag people who became regular trading partners and who helped them celebrate the colony’s first successful harvest.

The most detailed description of the “First Thanksgiving” comes from Edward Winslow from A Journal of the Pilgrims at Plymouth, in 1621:”Our harvest being gotten in, our governor sent four men on fowling, that so we might after a special manner rejoice together after we had gathered the fruit of our labors.

The fowl referred to above certainly could have included a wide range of fowl that was plentiful in the area such as wild turkey, pheasant, goose, duck, and partridge and unfortunately by today?s standards even eagles.

The pilgrims probably didn’t have pies or much of anything sweet at the harvest feast because they did not yet have ovens. They had brought some sugar with them on the Mayflower but by the time of the first Thanksgiving, the supply had probably run out.

Their meals also included many different types of meats. Vegetable dishes, one of the staples of today?s Thanksgiving, didn’t really play a large part in the feast. Other items that may have been on the menu certainly included sea food such as clams and lobster, Indian corn, wild fruits and nuts, meats such as venison and seal and certain dry herbs and spices.

The Thanksgiving meal that has today become a national holiday is a symbol of supply chain cooperation and interaction between English colonists and Native Americans.

We look forward to and appreciate your comments.

Happy Thanksgiving.

Traditionalist retailer thinking says e-negotiation tools will never work for them.

Friday, November 6th, 2009

On many occasions I have discussed the various benefits of using e-negotiation tools with retailers. I still believe that the primary benefit to any retailer if they were to assign twenty percent of their above the gross margin line spend to these types of tools could be an increase in their net earnings of up to 100%.

Beyond an earnings improvement however many of the following benefits could also take place.

1. They would continue to source high quality products.
2. They would continue to have great supplier relationships.
3. They would free up time to do other tasks.
4. They would improve their company?s net earnings by up to 100%.
5. They would support our fragile environment.
6. They would support global food and product safety initiatives.
7. They would have a larger audience of piers to converse with daily.
8. They would have a single source of information about their profession.
9. They would be instantly alerted to product recalls.
10. They would support a traceable supply chain.
11. They would have an endless source of new suppliers to review easily.
12. They would have product specifications at their finger tips.

You might be wondering why many companies are not enjoying these benefits today The following are common objections you might hear daily from procurement knowledge workers that have not been exposed to e-negotiation tools in the past.

1. We already get the best cost.
2. We?ve done business with our supplier for years.
3. We don?t have product specifications.
4. We don?t have time for this.
5. Switching costs will be too high.
6. We can?t insure the same quality.
7. We need to adhere to certain standards.

If you don?t feel that these benefits would support both corporate goals and underlying CSR initiatives, give us a call and we?ll make you a hero and get you promoted.

As always, we look forward to and appreciate your comments

Sourcing Generic Drugs has its own group of challenges

Thursday, October 29th, 2009

As such, it is not the easiest thing to find suppliers that provide all line items in a generic event that a retailer may want to take to auction. The U.S. Food and Drug Administration offers a one hundred and eighty (180) day exclusivity period to generic drug manufacturers in specific cases. During this period only one or sometimes a few generic manufacturers can produce the generic version of a particular drug.

It may be obvious to readers, but requires restating that the principal reason retailers even care about generic drugs is that it can save there customers and insurance companies substantial amounts of money. This does not necessarily help retailers in an era of earning comparisons when a high priced prescription drugs patent expires as sales of the generic equivalent is a negative drain on top line sales.

One benefit to retailers is that it may be relatively easy to drive lower prices of generic medicines over the long term as competition increases among producers once these drugs no longer are protected by patents or exclusivity periods.

Locating suppliers or agents for offshore suppliers is an ongoing task and fairly time consuming when hosting a generic drug event. As such, it is important to have an adequate source of suppliers that you can rely upon. It also helps if you have a list of their products in your database and associated NDA numbers to save time in the discovery process. Ask your solution provider how many generic suppliers they have in their database and what RFI information they have on file for your review.

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.