Challenges in the global economy mean public and private sector organisations are putting a relentless focus on cost efficiencies. This has placed the procurement function in many businesses in the spotlight as a source of expertise to deliver cost savings. This has raised the profile of procurement professionals, but is this new status permanent or is it a flash in the pan? (more…)
Traditional mains gas supply contracts for non-domestic users carry a ‘take or pay’ clause that allows the supplier to charge you should your demand rise or fall above certain limits. For some, this clause applies to contracts as low as >25,000 therms a year, while other suppliers only apply it to deals above 3M therms a year.
Typically these charges kick in if your actual consumption varies by more than, or less than, 20 per cent of your nominated contract volume. However, the clause may not only charge you for the difference in actual consumption back up to the 80 per cent limit but the difference back up to the 100 per cent of the nominated supply. (more…)
It’s hard to get people excited about governance. It grabs your attention when it goes wrong, but for the rest of the time, most of us assume it’s working just fine.
But if your governance isn’t actively supporting your organisation’s objectives then you could be missing out on a key enabler – and that’s why the current CIPS modernisation project is so important. (more…)
Earlier this year, Warwick Business School and consulting firm Simplicity published the Global Simplicity Index (GSI). For the first time, it quantified the true financial impact of complexity on company profits. It revealed that, on average, complexity is costing businesses over 10 per cent of profits, equivalent to US$237 billion of earnings before interest, tax, depreciation and amortisation for the Forbes top 200 firms.
This complexity tends to manifest itself in overly complicated business processes and lengthy decision-making, leaving firms unable to scale a business quickly or deal with new products or changes in market demands. Complexity derived from the purchasing process is a major contributor. (more…)
Unrest across Arab nations, the prospect of fresh elections and, in cases, regime change signals in a new era of opportunity for greater transparency and professionalisation of the procurement function right across the Middle East and Asia.
All too often in the past, complex planning laws and inconsistent tendering processes have deterred international companies from bidding for large government infrastructure projects within the region. (more…)
In recent months, I have been reading a significant number of media articles concerning rising costs in China, and how this will result in higher prices being passed on to US and European retailers and consumers.
From our Shanghai office’s experience on the ground, I am happy to say that statements such as “every single retailer has and is paying more for the items they sell” or “Americans, Europeans and other buyers will have to pay more for those goods or seek lower-cost suppliers elsewhere” can be proven inaccurate by improved execution in upstream supply chain operations. The reality is, there are greater cost savings in China to be achieved. (more…)
The feature “Blaze a trail for enterprise” (SM, March 2011) and the government initiatives to transform public sector and central government purchasing struck a welcome chord with me. After many years in private sector procurement I had always believed our role was to exercise our skills and talents in acquiring goods and services and negotiating best value for money.
This was not accomplished by being procedural and risk averse and I would often use small local suppliers who produced first‑class products on time and at competitive prices.
I now work with a small national career consultancy that helps redundant workers find new careers and am increasingly frustrated by our inability to get past the first hurdle in competing for public contracts. (more…)
There is little doubt that the UK’s electricity markets need reform, and the proposals on which the government is currently consulting are a radical departure. However, a closer study of the consultation documents reveals real concerns. (more…)
Entrepreneurs and business owners face many challenges in growing their firms, from sourcing finance to growing their customer base.
For many this will involve outsourcing part of the operation to an external company. It can be difficult to know exactly what you will need as your business grows and to assess who will make the best supply partner. (more…)
I feel passionate about procurement in healthcare, so I want to offer my insight on comments in the SM article Upping the dose (25 November) even if I run the risk of abuse from my peers.
Challenges in the global economy mean public and private sector organisations are putting a relentless focus on cost efficiencies. This has placed the procurement function in many businesses in the spotlight as a source of expertise to deliver cost savings. This has raised the profile of procurement professionals, but is this new status permanent or is it a flash in the pan? (more…)![[Bloglines]](http://blog.supplymanagement.com/wp-content/plugins/bookmarkify/bloglines.png)
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I feel passionate about procurement in healthcare, so I want to offer my insight on comments in the SM article