How encouraging it is to see SRM and risk management being recognised among the main levers of procurement’s business contribution according to the Supply Management 2011 Reader Research and this month’s news focus. (more…)
I am responsible for all manufacturing, engineering, maintenance, planning and operational excellence at The Royal Mint. The relationship we have with procurement is very good and adds a huge amount of value to the business overall. It’s in line with The Royal Mint’s strategy of working as one team – working for what we call ‘the country’ (the whole organisation) rather than just ‘the club’ (an individual department). (more…)
Supplier challenges are on the rise. Research by Achilles and Nottingham University into challenges brought under the EU procurement regime in the UK over a 20-year period indicates there has been a sharp rise in recent years in the number of cases reaching the courts. Compounding concerns for procurement professionals will be evidence that in 37 per cent of those cases at least one of the claims was supported by the court. (more…)
As we approach year-end for many organisations, procurement leaders can be forgiven for their anxiety as the deadline looms for the cashing-in of all those cost-reduction initiatives planned and launched earlier in the year. The early year optimism has given way to trepidation as the savings delivery moves ‘to the right’ and a 2011 shortfall looms. (more…)
This week, a report by AT Kearney found that 90 per cent of companies believe their procurement function has become more strategic. Where before its role was to cut costs, now it is to factor in overall value. This finding is not unique – it’s been a hot topic over the past couple of years and it is merited. (more…)
Service level agreements – or SLAs – had long been seen as the domain IT service provision but are now broadly used in many industry sectors to help provide a framework of understanding. These can encompass such critical areas as mechanisms for monitoring and reporting of service, as well as service standards. (more…)
There is a piece in the news today that ties in superbly with what Ellis Watson said during his presentation to the CIPS Conference last week.
A survey by the magazine Computeractive claims that one in three workers spend more time emailing their colleagues than talking to them in person. (more…)
Sir Roy McNulty’s recently published review of Britain’s railways lists 10 main barriers to efficiency in the industry and makes recommendations to deliver savings of £1 billion a year by 2019. In asserting that ticket prices are “already too high”, the report highlights the need for the industry to offer greater value to the travelling public and a 30 per cent efficiency improvement target has been presented as the way to achieving this aim.
Making savings of this magnitude will require the rail industry to work far more collaboratively and much smarter. In procurement, an initiative is underway to reshape the way buyers and suppliers work on pre-qualification and tendering processes. The governance for the industry’s supplier qualification scheme, Link-up, has changed to make it accessible to the whole industry on a collaborative basis – creating a scheme that will be “by the industry, for the industry”. (more…)
The other day I responded to a question from someone in my network who was interested in whether “ownership” of particular suppliers is defined by the sector the buyer is operating in – as if some sectors have a magic ingredient that makes procurement’s role clearer and easier.
This question arises time and time again in my SRM client work. I think it’s the wrong question to ask. If there is a distinction regarding ownership, then we should look at the split between direct and indirect products and services. (more…)
While software has helped revolutionise the supply chain over the past few decades, a recent conference call with members of the Strategic Sourcing & Procurement group on LinkedIn emphasised an important point: no amount of technology can replace the need for building mutually beneficial relationships between suppliers and buyers.
The question posed was: do supplier penalties and incentives make for a better supply chain operation? I would argue they can, but only if used systematically and effectively. (more…)
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