Yearly Archives: 2005

Closing the book on 2005

Thanks to everyone that has been part of E-Sourcing Forum since we launched it in August. It has been a tremendous success with consistently increasing traffic and valuable information about and for the e-Sourcing industry. We have even more plans for the blog in 2006 and appreciate readers that let others know about our efforts. Since we have seen strong visitor growth, I have to assume that people are finding the content interesting and valuable and hope they continue to … More

Industry Health continued

As if on cue, Forrester Research released a report last week on the overall health of the IT industry. Although their analysis was a bit more detailed than mine from 3 days previous, it came up with some of the same conclusions. One excerpt paints a similar picture of growing health and stability but at modest levels: “The industry has recovered from the tech recession of 2001 to 2003. Employment, US IT spending, and US IT vendor profits and revenues … More

Surfs up or is it a Tsunami?

Globalization – a wave to ride or a tidal wave of massive destruction?

Globalization is changing traditional business practices and for many companies the changes are of tidal wave proportions. In North America many senior managers are having nightmares of their products are drowning in a flood of low-cost import competition. The company’s or its divisions’ survival is at stake and if the More

Spend Management to be highlighted

In the April 2006 issue of Fortune Magazine (my first option for plane reading material), will be a dedicated section to spend management and corporate purchasing. I have been told that the preliminary focus will be on supplier management, outsourcing, and strategic sourcing strategies, in addition to a review of technologies to effectively manage costs. It is very encouraging to see that a major publication will be devoting a portion of their content to the work of purchasing and supply … More

Private investment on the rise

In the late 1990’s and up until the stock market bottomed out in the early days of the 2000’s, B2B and Spend Management investments were virtually unparalled in their size and frequency. This brought huge market caps (eg, Commerce One, Ariba, FreeMarkets) and acquistion deal sizes (eg, Ariba + Suppliermarket.com, PurchasePro + Baybuilder) which defined the explosive enterprise software market. Of course, everyone remembers how the story went from there. However, as 2005 comes to an end, industry investment and … More

Catching the Reverse Auction Fever

Earlier this week, I posted a short blog on Spend Matters about a recent Stanford University study that supports the use of reverse auctions. You can read the direct link to the announcement of the research here. What I find most curious about the news is that is seems to coincide with a renewed interest in reverse auctions — in both the academic and real worlds. At around the same time of the announcement, I received an email from Wedad … More

Index Pricing Information for Low Density Polyethylene (LDPE)

This is the first of many postings that will look at a specific price index provided by propurchaser.com Why is this important? Tracking a commodity price index is an extremely valuable task to help understand and document why suppliers ask for price increases and to know when you should be able to negotiate lower pricing based on commodity cost reductions. Let’s all face it, I am sure your supplier will not come to you lowering their costs on merchandise bags … More

Pierre Mitchell drops in

I wanted to briefly bring attention to a comment that was post over the weekend because it was in a historical post named, “Bundling for Reverse Auctions — what is it, and why is it important?”. Pierre Mitchell, formerly of AMR Research, made some observations of the post and specifically made reference to a couple outside articles on Optimization technology from Purchasing Magazine and Chainalytics. It is very nice to hear from Pierre again, as I do not speak to … More

Industry Pricing Information – New Partnership

The E-Sourcing Forum is pleased to announce a new partnership with Propurchaser.com to provide information for purchasing processionals including; information that helps drive down costs including market trends, and to raise the status of the Purchasing profession by increasing senior-management awareness of its strategic, profit-increasing potential. Look for E-Sourcing Forum to relay valuable information on specific commodity issues which can be used for better market knowledge to our readers and customers. We will also attempt to give insight on how … More

Industry shakeup?

Well, it looks like it might happen again… Another highly respected e-Sourcing vendor could be close to meeting a very unimpressive end. It looks like this company (which is frequently described with very complimentary overtones) will join the ranks of PurchasePro and MaterialNet as being liquidated or other limper’s that have been swallowed like B2e, in the boneyard of dead software companies. As of right now, all sales and delivery personnel have been riffed and only a skeleton crew remains … More

Ten Proven Ways to Cut Your Spend

When CEOs want to generate cash—for new products, new plants, workforce compensation, or just… More

e-Sourcing: Keeping Suppliers Honest

I recently posted a blog on Spend Matters about how a range of suppliers across categories have been using Katrina as an excuse to bump up their margins, often deploying extortionist tactics in the process (e.g., refusing to honor existing transportation contracts by not picking up freight unless surcharges are paid on the spot). In my view, suppliers that rely on tactics like this will certainly hurt themselves in the long-term. But given the rise of transparent pricing through reverse … More

Purchasing Magazine on e-Sourcing

A very interesting and compelling article was written this month by David Hannon in Purchasing Magazine which extols the virtues of e-Sourcing as a ROI No Brainer. What I really liked was that there were a number of quotes from an Iasta customer which explained that they thoroughly examined the market with an evaluation that included 15 different vendors before choosing Iasta SmartSource. Another Hall of Fame quote was made in this paragraph: “Today, the ROI on e-sourcing should be … More

The training wheels are off

I think this is a good week to thank everyone that has been active with E-Sourcing Forum since late summer. November traffic is at levels of October traffic with 8 days to go and a long holiday coming. We have a loyal group of readers and growing exposure, which has proven that there is a need for this content and I am glad we have done it first. So again, thank you to the growing visitor community and the contributors … More

Enron’s legacy lives on..

Sometimes we are asked by suppliers if the buyer actually intends to procure the goods/services being put out to auction. The answer is – Of course! At least it should be, in any auction event. However, sometimes there are extenuating circumstances that may prohibit this, as I found out. Just think if Enron had spent more time building value for their shareholders with solid business decisions and less time creating phantom revenue, these suppliers would have had a nice order! … More