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 →
As procurement professionals, we continually need to be able to sell our value. The value proposition of a world-class procurement organization goes beyond placing purchase orders and negotiating pieces prices at discounts. Today’s CPO is tasked with measuring procurement’s value contribution to the company in addition to whether the procurement team actually pays for itself. Selling procurement’s value to the company cannot be done as a one-size-fits-all approach. Continue reading →
After this harsh winter, most of us (me included) are relishing the hot summer weather that has descended upon us. As far as business is concerned, however, the warm temperatures bring their own set of hazards that can ultimately pose serious risks for many supply chains. Continue reading →
I am a gardener. Every spring I diligently clean up the flowerbeds by trimming, pruning, transplanting, spraying, mulching and adding a new plant or two. For the last 11 years, my husband and I have been making our outdoor garden a blooming success and an extension of our home! We love our roses – hybrids, floribundas, grandifloras, miniature and English varieties. Over the years we have added day lilies, irises, black-eyed susans, carnations, hydrangeas and sedum. Adding to it a patio that is both a living and dining room plus a grape arbor for shade, and you a have an outdoor home. We love it. Continue reading →