Newsletter

Dynamic Procurement > Edition 16

outstanding success demands
THE BEST SYSTEMS & SKILLS...

Better systems and upskilling were identified as the two factors which are in the forefront of a procurement director’s mind when it comes to improving their purchasing departments.

This was captured from a Vendigital survey which took place in 2007 surveying 109 purchasing directors. Outsourcing is a way of accessing better systems and increasing skills but remains controversial.

Could insourcing be the missing piece?

In this issue

Dynamic Procurement > Edition 15

outstanding success demands OUTSTANDING PEOPLE...

It takes the most outstanding people to achieve outstanding results. So getting the right team of individuals with all the necessary skills is critical to achieving success in procurement.

Our main article in this issue looks at how you can attract the most talented people. This is achieved by reorganizing your procurement operation so that you can create challenging projects that will appeal to the most ambitious candidates.

In this issue

Dynamic Procurement > Edition 14

success demands INNOVATION...

Accessing Innovation is the key to Cost Reduction in a Rising Market

As light bulb inventor Thomas Alva Edison once said “Genius is 1% inspiration and 99% perspiration!”

It is this genius and innovation that we are all striving for in our businesses today. The ability to access innovation such as a new process, a design change or a product differentiation via the supply chain is the key topic for discussion in our main article and in Professor Richard Lamming’s comment.

Edison’s percentages are also critical in the work of our sourcing teams. Only by approaching a high proportion of suppliers in a chosen supply market can we hope to identify the one or two optimum suppliers for our clients.

In this issue

Dynamic Procurement > Edition 13

success demands KNOWLEDGE...

Effective cost reduction requires market knowledge

Procurement professionals today agree that cost reduction is their number one priority. But to be successful in achieving cost reductions in a global economy requires a considerable amount of understanding and knowledge of supply markets.

When operating on a global scale, there are vast numbers of options and variables that need to be considered. Much like a jet pilot, the procurement professional needs sophisticated tools and instruments to measure what is happening in the market and how they are performing.

In this issue

Dynamic Procurement > Edition 12

success demands constant CHANGE...

There is no doubt that navigating the world in a yacht is not simply a question of unfurling a sail and setting a course. The multitude of variables that the sea and weather can throw at you necessitates a process of constant change to achieve the objective.

Sourcing components from some of the world’s low cost economies is very similar. Lower cost economies have attracted numerous manufacturers over the years. Today, China is seen by many as the place to be, whereas a few years ago it was Korea and tomorrow it may be India. Alternatively, if the price of oil combines with a carbon tax to push the costs of transport to new heights it could be somewhere completely different.

In this issue

Dynamic Procurement > Edition 11

outsourcing category MANAGEMENT...

Vendigital is assisting purchasing teams to increase their company's profits by providing category management services. Many companies already outsource the purchasing of spend with low value and low strategic importance, typically referred to as the 'C class' categories. This is done to reduce the relatively high transactional costs associated with buying such items and to potentially gain economies of scale. By contrast, Vendigital is providing category management services for 'B Class' categories of spend. These categories are often not large enough for in-house knowledge of supply markets to be developed sufficiently to purchase effectively. The benefits of outsourcing them are significantly reduced unit prices and/or increased value due to the category management focus that they are then given.

In this issue

Dynamic Procurement > Edition 10

creating CERTAINTY

The skill and consistency of a professional golfer is, for amateur players, impossible to match. But the reason for this is no secret. To attain this skill level and consistency there is no substitute for practice. Unsurprisingly, the greatest legends of the game are renowned for their dedication to practice. In meticulous detail each variable within their game is identified and worked on time and time again.

The result of this process and practice is the elimination of doubt and the creation of certainty. In today’s global markets the number of different supply options for many components and materials can be enormous and subject to rapid change. Similarly, being confident that the price for each commodity within a purchasing portfolio is the best available requires detailed purchasing processes and extensive practice in dealing with global markets to be able to refine these processes.

In this issue

Dynamic Procurement > Edition 9

Dealing globally

The impact of China on the cost of many commodities has in recent times been very marked. No manufacturing business, regardless of their geography, can be completely insulated from China’s influence. Companies must have an effective strategy to deal with the challenge that this influence presents. Throughout 2004 various strategies have been deployed to either mitigate or take advantage of the phenomena that is China. The challenge will not disappear in the imminent future so it is worth reflecting on how well our existing strategies have worked so far and considering what alternative strategies may be available.

In this issue

Dynamic Procurement > Edition 8

Dealing in the future...

Forecasting is always difficult and in the business world, often completely wide of the mark. However, comparison with other similar businesses and the evidence of significant benefit from pilot studies can help to provide some credibility to any view of the future. In the automotive world the success of a concept car has often helped to guide the development of the mainstream. In this newsletter we aim to provide our view of some of the changes that purchasing will undergo in the not too distant future and to provide some of the successes that the “concept cars” are seeing, as evidence to support our view. We are, as always, keen to hear from you our readers. Please let us know if you agree or have a different view.

In this issue

Dynamic Procurement > Edition 7

It’s about being the best...

The best combination of quality, service level and price is the aim of every purchasing professional in creating a link within a supply chain. However, in a global economy the number of possibilities that need to be evaluated in order to be confident that any particular supply option is the best available, can be an overwhelming task. Doing it consistently and professionally requires a best practice approach and the use of the best available techniques.

In this issue

Dynamic Procurement > Edition 6

It’s ‘exceptional’ and the ‘norm’...

In recent years, Ferrari has made success a habit. Schumacher winning has become ‘the norm’. Similarly, exceptional benefits through using e-sourcing and online auctioning have become, for many companies, the norm.

In this edition of our newsletter we look at how these techniques can be successfully applied to small spend levels in a cost effective way. Success in doing this means that market pricing with its significant benefits is a viable technique for large contracts right through to routine purchases.

In this issue

Dynamic Procurement > Edition 5

It's WORKING ON

The procurement techniques of e-sourcing and online auctioning have been around over 10 years. Many companies have used these techniques successfully to reduce the costs of their bought in materials and services. Every professional buyer has heard of the techniques and their successes in determining market price for commodity items, but if you thought commodity items only meant things like stationery and electricity you would be mistaken...

In this issue

Dynamic Procurement > Edition 4

It's about PROCESS
E-sourcing - the purchasing process that is setting the standard

When the first Model T rolled off Henry Ford's production process, the world of car building was irreversibly changed. This approach to employing robust processes is equally important in purchasing. Only with rigorous processes and the most effective tools, can the purchaser be confident that they have the best result that could have been negotiated in the market at that time. E-sourcing, when effectively applied, allows the buyers to know that they have achieved that optimised deal.

In this issue

Dynamic Procurement > Edition 3

It's about TIME
time for results

The techniques of e-sourcing and online auctioning are no longer on trial. The competitive advantage that can be gained through their use has been well proven. The question has become, who is enjoying the results? If you have not made the tools work for you, then isn't it about TIME?

In this issue

Dynamic Procurement > Edition 2

It's about KNOWLEDGE
knowing true market price is business critical

Any city trader, since they buy on a stock market, will know what is the market price for the equity or commodity they are buying before they buy. Why should buyers in any manufacturing company be different?

In this issue

Dynamic Procurement > Edition 1

It's about NUMBERS
e-sourcing and on-line auctioning adds up to be business enhancing

The numbers add up, e-sourcing and online auctioning is here to stay ... Vendigital is averaging 23% savings on direct materials for its customers ... this is a business changing tool you cannot ignore.

In this issue