Category Archives: Suppliers
In the past few years, the procurement world has developed better ways to level the playing field between new suppliers and incumbent suppliers. Buyers have successfully driven costs down by embracing processes and technologies that increase competition between suppliers. Generally this trend has made it easier for suppliers to get “introduced” to buyers. Supply relationship management technology has also increased the pressure for incumbent suppliers to maintain competitive pricing. Clearly the risks associated with switching suppliers are commodity dependent. It’s … More
Over the last several years, health care providers such as physician offices, clinics and hospitals have seen a dramatic increase in costs to run their facilities. The new HIPA regulations and the much anticipated “Obamacare” will continue to raise costs in the coming years while reducing reimbursement payments for services rendered. These changes will make it even more critical to find ways to reduce costs and maintain a high quality of service to patients. A Practice Management and Healthcare Billing … More
In the past decade, manufacturing and service firms, to name two examples, have become increasingly aware of the importance of supplier performance and its impact on their own performance and market competitiveness. A number of factors have converged to create the perfect storm in these sectors: • Increased outsourcing and reliance on suppliers for both goods and services • Globalization of business and supply chains • Increasing complexity in managing suppliers • Increasing supply risks • The view of suppliers not just as a cost, … More
Have you ever considered that Thanksgiving might be the perfect time of the year to think about how to get valued suppliers more involved in helping your business succeed? Setting up an awards program that recognizes your supplier’s accomplishments, business improvements and future initiatives is an excellent way to show your gratitude. Supplier award programs help solidify your relationship, drive motivation and make the supplier feel like they are a critical contributor to your team. One of our clients, a … More
On Friday, McDonalds announced the company dropped its egg supplier after learning about reports of animal cruelty. From a recent article, “A three-month investigation conducted by ABC News and Mercy for Animals, a non-profit organization devoted to animal welfare, produced a video alleging abuses at farms run by McDonald’s egg supplier Sparboe in Iowa, Minnesota and Colorado. The video, first shown on “Good Morning America,” shows hens packed into industrial cages too small for them to spread their wings. It … More
While reading through the Procurement Professionals group posts in LinkedIn, I came across this discussion post: “hi guys, explain why companies are turning toward having a few preferred suppliers rather than selecting on price alone (the traditional method of supplier selection).” Immediately, this question entered my mind: Is price alone truly the traditional method of supplier selection? By selecting a supplier based solely on price, buyers may be failing to gather critical supplier information such as quality, service, dependability, and … More
Today, many children will roam the streets trick-or-treating, and people of all ages will attend costume parties and decorate their homes with all things “scary.” This spooky holiday got us thinking about what fears keep procurement professionals restless and awake all night. Below are three of the scary situations we came up with for procurement: 1. Supplier risk – Risk should always be taken into account as part of good supply chain governance. Without having a process in place to track and … More
A recent post on SupplyChainDigest featured new findings from CAPS Research, which affiliated with the Institute of Supply Management. The article included 12 key factors for successful Supplier Relationship Management (SRM). The 12 Keys to SRM Success from CAPS Research 1. A consistent approach that encompasses all of the work streams identified above in an integrated way. There is no silver bullet. 2. While SRM can be approached as an initiative with a beginning and an end, the greatest success … More
