Author Archives: Paladin Associates -Rob Patton
If you think of the Procurement organization as a powerful engine that delivers all the goods and services needed to run the business while also contributing significantly to financial results and future growth then think of the individual sourcing talents and skills of the Procurement organization as the fuel that powers this engine. In this analogy Procurement training is the key ingredient that boosts the engine’s performance by insuring that the fuel achieves peak efficiency and cost effectiveness. The purpose … More
Cast a Wider Net Using World Class Bid Gathering and Bid Analysis Tools Optimization is the process of collecting and evaluating supplier proposals to arrive at the best possible sourcing solution that meets all the buyer’s needs. This process reaches out to current and prospective suppliers encouraging all to be creative and innovative. Optimization uses state-of-the art computer based tools that give suppliers an online platform for submitting proposals in a “non-auction” environment and enabling buyers to thoroughly evaluate hundreds … More
Now that we are faced with the biggest economic upheaval in over 30 years it seems appropriate to carefully reevaluate the use of Price Indexing. The alternative is to leave all pricing initiatives to your sellers. While this may be reasonable for small value and noncritical spend it is extremely risky for anything strategic. One of the critical challenges facing sourcing professionals is the determination of pricing mechanisms to deliver best value looking ahead to next quarter, next year and … More
In commercial markets all over the world it is pretty obvious that the balance of power has shifted dramatically, and in some cases very suddenly, from sellers to buyers. This shift often presents important strategic choices in how to best leverage the buyer’s newly regained advantage. Today’s conditions often present choices between maximizing short term gain versus optimizing longer term value. In many cases these choices differentiate strategic sourcing from opportunistic buying. While neither choice is inherently good or bad, … More
