Quick fire topical postings on purchasing and supply chain issues from independent expert commentators and the Supply Management editorial team.
The implications of two recent headlines appear to have escaped the procurement profession’s attention. One news story was the UK government expects to save more than £5 billion this year after a round of “tough contract negotiations” with suppliers. The other was that according to the National Fraud Authority, procurement fraud is costing the public sector £2.3 billion. (more…)
In 2003 a Harvard Business Review panel concluded that “despite years of process breakthroughs and elegant technology solutions, an agile, adaptive supply chain remains an elusive goal: maybe it’s the people getting in the way”.
This illustrates an undeniable truth; business plans, whether focused on growth, contraction, acquisition, integration or even business as usual are based on strategy and hard numbers, but their success depends on people and capabilities. This has a particular resonance for the procurement function as the both the technical and often, more importantly, the soft skills of the team, can have a huge effect on both the actual and perceived results. (more…)
I have just returned from Johannesburg in South Africa where I attended the CIPS Pan African Conference. And while it was nice to have a couple of days in the sunshine, more importantly it was very interesting to hear in person some of the procurement initiatives and strategies being used on the continent. (more…)
The winner of this year’s J Shipman gold medal award – the highest prize given to a purchaser by the Institute for Supply Management (ISM) in the US – went to Joe Cavinato.
The ISM supply chain professor is credited with developing the profession by recognising that supply chain management goes beyond purchasing and procurement because its professionals get involved before the product is even created. (more…)
I was surprised just how much of Doha, the location for this year’s CIPS Middle East Conference, is still under construction.
I mistakenly thought the Qatari city would have suffered from the financial crisis like other nations in the region, but there was no sign that this was the case as workers toiled in the roasting sun. And, with the announcement last week of plans to build an underwater hotel in Dubai, it seems the rest of the region continues its recovery. Last year the economy of Qatar grew by 15 per cent, and expansion is likely to continue, boosted by hosting the FIFA World Cup in 2022 (and – potentially – the Olympic Games in 2020). (more…)
There’s been a flurry of CPO appointments announced in the past month. Businesses hiring new purchasing chiefs include Philips, Diageo, Chrysler and KPN.
After having already faced four years of economic restraint, purchasing heads at companies operating in the US and Europe will have to be even more creative in finding ways to cut costs. However, there is concern in some quarters that procurement’s time in the spotlight is being reduced to little more than saving money. (more…)
A contributor to a recent study into the future of corporate travel suggested one of the major sources of stress exists because providers “are not incentivised to make life any easier for passengers”.
The same criticism could levelled at some business travel processes and policies. They are in place for the company’s benefit, not the employee’s. The growth of “consumerisation” in corporate travel suggests this could be about to change. (more…)
I am account director for a large blue-chip customer at Norland, which provides hard services-led facilities maintenance and support services. I lead a team ensuring our customer’s operational needs are exceeded and that we meet our financial commitments.
Our internal relationship with the procurement team has been on a journey in the past few years. I would have described the relationship as frosty before, but now there is a strong sense that we are all in it together and we are working proactively to deliver results to my customer. (more…)
If you lived above a shop, as prime Minister David Cameron does, you might think that getting to see your family would not be too much of a problem. But in his recent Today programme interview on Radio 4, the PM bemoaned the fact that sometimes he only got to take his children to school once a month. Sure – he’s a busy guy. But he must see his wife and kids a lot more than many people do. (more…)
A good bedside manner is a highly desirable component of a doctor’s skill set. A clinician may not be able to offer an immediate cure, but they can tell a patient what to expect and, vitally, provide a comforting influence. So what difference could this approach make to procurement? (more…)
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