Author Archives: DWilmes
Is your procurement team presenting symptoms of a serious addiction? If its members are truly and utterly addicted to their macros, pivot tables and spreadsheets, now is the time to stage an intervention. It’s time to take back the efficiency and sanity of your procurement team. This endeavor will not be easy, but remember that you invested tens of thousands of dollars on very powerful sourcing software. Remind them that your sourcing solution helps to minimize the project cycle time. … More
by: Dan Wilmes Many companies have been on a rollercoaster of uncertainty for the last two years, but the unpleasant ride might be coming to an end soon. Over the last year, the economy has inched its way back to positive growth rate. It has been slow growth, but growth nonetheless. An article from the Wall Street Journal, entitled Economist Predict Growth in 2011 provides a very clear picture for business leaders on expectations for the next 12 months. Here are … More
This discussion on Key barriers will be divided into three broad categories – leadership, team, and project issues. Although this is not meant to be a complete list, it defines the major barriers that must be addressed to allow a sourcing team to focus on clearing the path for strategic sourcing. Rigidity If the team (and / or organization) is resistant to change, it will not embrace today’s efficiency-producing software tools or leverage best practice sourcing procedures. The team will … More
The Federal Reserve has just announced its intentions to buy back 600 billion dollars worth of government bonds in hopes of boosting the GDP at or above 5%, which will help to lower unemployment. Here’s how it’s supposed to work this time, according to an article from MSNBC: The Fed buys Treasury bonds from banks, providing them cash to lend to customers. Buying so many bonds also lowers interest rates because demand for Treasuries leads to higher prices and lower … More
Originally, many procurement managers prided themselves on their ability to negotiate with suppliers. While negotiation skills are certainly an important requisite to success, that ability no longer stands alone as a key requirement to maximizing a sourcing process. New capabilities, such as optimization, are now becoming standard elements of an effective sourcing strategy. Procurement organizations must now rely on their analytical skill-sets as well as their negotiation capabilities to identify and implement the best possible outcomes. And they must continue … More
Unless the supply base is extremely experienced with e-Sourcing, there will always be concerns and objections – especially from incumbent suppliers. Here are some common supplier objections that all sourcing teams must learn to address. As always, messages to the supply base should be consistent, diplomatic and respectful. Objection: What if something goes wrong during the event? Response: The e-Sourcing software has been thoroughly tested and has been found to be robust. In the rare occasion that something happens during … More
by Dan Wilmes In 2009, 24 ships navigated the Arctic Ocean to reach their final locations — and they did so in record time. The number of successful trips across the Arctic Ocean is notable considering that only 69 ships made that journey between 1906 and 2006. The frequency of vessels making this journey successfully has increased mainly because of the melting Arctic Ocean, which has the potential to create a new trading route for ocean carriers. An article, Ships … More
Bid Optimization allows procurement teams to apply business rules to collected bids to understand how different allocation scenarios will affect the bottom line. Prior to software providers optimizing bids with technology, companies used complex Excel calculations. And some actually still do. The biggest problems encountered when utilizing Excel for complex alternative award scenarios are the time intensive effort involved and the inevitable inaccuracy of some calculations. Here is a short example as to why online Bid Optimization truly provides added … More
by Josh Dials, Solutions Consultant Robert A. Rudzki, contributor to the Spend Matters blog, brings up a great point in a recent post. “’Strategic’ is perhaps one of the most overused (and misused) terms in business today,” he says. “Simply adding a few bells and whistles to conventional purchasing and then slapping the word strategic onto the process … is not the same thing as adopting the process as it is intended.” This holds especially true when companies are seduced … More
By Jim Kane In this second post on preparing your health care organization for cloud computing, I will address how health care businesses subject to HIPAA should carefully select a service provider with the capabilities to address HIPAA Privacy, Security, and Audit as well as provide secure, scalable, low cost IT infrastructure. HIPAA’s Privacy Rule requires that individuals’ health information are properly protected by covered entities, meaning that patients’ “protected health information” (PHI) cannot be transmitted over open networks or … More
Don’t forget to sign up for the “Procurement Leadership in the Perfect Storm” webinar on August 18, 2010 at 10 a.m. EST (NYC Time). Iasta is co-hosting the webinar with Procurement Leaders. Mike Williams, Senior Director of Strategic Sourcing-Energy of Office Max, and Matt McCarrick, Managing Director of Professional Services of Iasta, will both speak about procurement transformation. Join in as they help you raise the profile of sourcing and procurement within your organization during this ‘perfect storm’ of opportunity. … More
A recent article from the New York Times on the state of shipping around the globe caught my eye. It seems as though retailers are feeling the pressure. Retailers are now seeing an even larger effect from the recession: they are in bidding war to ensure that their goods are delivered to store locations. “The grills shaped like kegs and toolboxes, ordered for a Father’s Day promotion at Cost Plus World Market, arrived too late for the holiday. At the … More
Iasta, the leading provider of eSourcing software and solutions, was titled as the 10th Fastest Growing Private Company in Indiana for 2010 by the Indianapolis Business Journal (IBJ). A third time honoree, Iasta boosted its three-year growth rate at 134 percent. The report profiled Iasta’s founding’s, current offerings and future outlook. Ten years ago, four technology professionals discovered a niche with potential: providing software for companies to bid and negotiate with vendors. Ever since, it’s been profit and growth for … More
Speculation that Germany and other northern European nations may launch a new breakaway euro means businesses must focus on how they buy goods and services, say procurement experts ADR International. Robin Jackson, CEO of ADR International, says exchange rate movements present risks and opportunities for procurement professionals. In the latest issue of the ADR International eBulletin, he says changes in exchange rates can mean huge differences in the prices paid for goods and services from abroad – in favour of … More
