U.S. federal procurement teams – as discussed in our last post – have come under immense scrutiny for failing to provide transparency into government spending.
While this situation has many layers, two primary issues stick out: missing information and poor data quality. In fact, despite publicly-stated goals to be more transparent, a recent report from the Government Accountability Office (GAO) found that USASpending.gov is missing a whopping $619 billion in spending. And of the data that was actually recorded, less than 7% can be confirmed as accurate. Continue reading →
Know who you’re paying, how much and for what. It’s one of the most basic principles of procurement.
And if you’re in the public sector, be transparent.
While most government procurement professionals would agree wholeheartedly with both of these statements, in the case of the U.S. federal government, intent is not translating into action. Continue reading →
Have you heard the phrase “it’s just business” tossed around? Every time that I hear someone say that, it makes me pause. What does that even mean these days? That we can be rude, burn bridges, worry about no one but ourselves and forget we have a business to run? That doesn’t sound like a recipe for success.
Even in the work place, we’re all humans interacting with each other, and business relationships? Well, at the end of the day, they’re still relationships with an eye on profitability. Continue reading →
Most procurement teams want to impact operating margin, returns and earnings-per-share, but very few (less than 7%) have the resources and plan in place to do it.
Steal a page from the winning playbooks of the procurement organizations that are driving financial performance and profitability today; here are a few secrets of success:
The procurement department can make a big impact on the success of the company by delivering financial performance that improves operating margins, returns and earnings-per-share every quarter.
But how does a procurement team achieve this? What distinguishes a highly effective procurement department from the rest? These secrets will help the purchasing team achieve profitability and growth that all members of the organization will enjoy. Continue reading →
Resources are the lifeline of our business and work places. Technology, talent and processes are all resources and directly influence the outcome or performance achieved. Each has its own intelligence, qualities, maturity and life cycle. At any point in time we can measure the maturity of each, suggest improvements and watch as they become fully developed; topping out a resource to its fullest potential. Maturity, it is said, comes from experience. Each of the three resources we depend upon daily has a maturity level in its current state. It is only with change — education, training, collaboration and innovation — that we see a new knowledge or maturity level evolve. As this evolution occurs, we must review our resources and align the right resources for the short term, longer term and the future. Continue reading →
You do your day-to-day job and at some point it can become mundane, if not routine; you have become a master of the process. Then something happens to change it up a bit – perhaps a new employee, product, technology, customer or supplier. Just one change can have a ripple effect upon your processes, day-to-day interactions with your stakeholders and on your performance. Continue reading →
When I was a practitioner, one of my former companies hated the word “vendors” to discuss suppliers so much that if you used it, you were asked what circus vendor you meant (vendors were considered circus suppliers, not business suppliers.) And “partners” were considered your top 50 suppliers in the top right section of the Kraljic matrix. Today the world is composed of all sorts of suppliers and some of these suppliers are really partners to our business. It is important that we understand the difference between vendor and partner. Because it can make a substantial difference to the way we work with them, how they work with us and the joint value we both can bring our business. Continue reading →
Public sector procurement in North America is undergoing massive change for the first time in decades, as government procurement teams aim to improve efficiency, supplier participation and savings.
Ontario is leading the charge and raising the bar for other Canadian provinces and the United States. The Ministry of Government and Consumer Services is creating a modernized, streamlined procurement process that is open, fair, and transparent.
Other governments are now following in Ontario’s footsteps. Change is always hard, but there are two ways to make this transformation easier on both users and suppliers. Continue reading →
Problems arise every day in every community world-wide. Problems such as road surface hazards, parking availability, substance abuse, neighborhood surveillance and prisoner re-entry are just some of the multitude of problems that communities face globally. Every country, city and town has their own way of managing problems that usually include discussions with local leaders and citizens, debate over the right course of action and finally a vote or movement into a direction or two to fix the problem. This can often take months to even years to move from problem identification to solution execution and achieving optimal citizen results. Continue reading →
Supply chain risk is a hot topic, but there’s one threat that looms over the rest – the talent gap.
Baby boomers are retiring, and there’s a shortage of next-generation contenders to take over. Few companies are fully aware of the magnitude and implications of this problem, which are likely to last for at least a decade. The U.S. Census Bureau predicts more than 60 million Baby Boomers will exit the workforce by 2025, and approximately only 40 million new bodies will enter. Continue reading →