Category Archives: Optimization

On the Curve of Innovation — Part 3: Enabling Collaboration & Self-Service

Making your organization run efficiently requires that you are able to take a clear and honest look at your workflows as they were designed. With the right enterprise technology, you not only can do this, but can also easily collaborate and communicate the business process you intended for those workflows, while enabling self-service capabilities to meet the demands of a wide variety of users. In this regard, consider the number of various user types involved with contract management, where workflow … More

Contract Automation Tips to Keep Your Global Business on Track

These days, the world is going paperless for good reasons. However, with contracts stored online instead of in drawers, they can lead to new risks for your business, especially if you operate on a global scale. Those risks, however, don’t outweigh the benefits but they do mean that you have to adjust to some new processes to make sure everything is done efficiently and securely. Many companies continue to make basic errors when converting to paperless processes, especially when moving … More

3 Optimization Tips for Success

Optimization is undoubtedly one of the most advantageous parts of managing a project using an eSourcing solution. Look at any standard sourcing process diagram, and you are likely to find optimization placed near the end, squeezed in just before negotiations are scheduled to begin. While optimization scenarios cannot be run until supplier bids and information are received, planning must begin well in advance before opening an event, whether it is an RFP, RFQ or Auction. Cost components may be straightforward … More

Key Ingredients for Baking the Perfect Sourcing Cupcake

Have you ever thought of what ingredients it would take to bake a sourcing cupcake? Unless you’re a baker and procurement pro, the thought has probably never crossed your mind. But I’m a baker – and refer to myself as a “Modern Betty Crocker”, so this crazy thought crossed my mind the other day when I was baking Mudslide cupcakes. (Mmmmm) So, I started thinking, “What ingredients would I need to bake the perfect sourcing cupcake?”  In order to bake … More

In the New Norm of Fiscal Cliffs, Governments Need Powerful Budgeting Tools

Until recently, governments at all levels have found the market for budgeting tools to be woefully inadequate. Accordingly, most governmental organizations continue to use cobbled-together, Frankenstein-like budgeting tools that, more often than not, rely on users to extract or re-enter data in offline spreadsheets to analyze budgetary policy proposals. Such tools are labor-intensive, inflexible, error prone, limited by the data collected and fail to provide timely, sufficient budgetary insight to optimize resource allocation. In this time of greater public budget … More

10 Ways to Drive Procurement Influence Using Advanced Technology: Part 1

Recently, Iasta sponsored a Webcast featuring Jason Busch from Spend Matters. Busch presented 10 ideas that go beyond basic sourcing to enhance procurement’s value to the business. By embracing new sourcing-related tools and services, teams can gain critical knowledge about spend to drive additional cost savings. The following post blogs will outline the 10 ways, outside of transactional related focus areas, that both Spend Matters and Iasta see delivering new value to organizations. The first idea Busch presented was to … More

Upcoming Webcast: 10 Ways to Drive Procurement Value Using Advanced Technology

Procurement professionals like you have indicated two main roadblocks hindering them from becoming a best in class procurement organization include: 41% a lack of culture that accepts procurement as strategic 38% a lack of technology to automate the strategic sourcing process Join us for a Webcast on  May 2 at 11 AM EST, “10 Ways to Drive Procurement Influence Using Advanced Technology.” Jason Busch from Spend Matters and Joanna Martinez from Cushman & Wakefield will discuss tips on how you can … More

Structured Sourcing Process and e-Tool Deliver Double Digit Savings

As sourcing organizations mature, it becomes more and more challenging to deliver significant savings across well-sourced categories.  However, it has been Paladin Associates’ experience that there continue to be opportunities in both direct and indirect categories.  Recently a client engaged Paladin to lead the sourcing process for Flexible Intermediate Bulk Containers (FIBCs).  While the process was not unusual, its rigor demonstrated efficiency, effectiveness and the capability to deliver not only savings, but to provide greater understanding of and continuity of … More

Optimization: Guarantee Best Total Value

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

eSourcing Does Not Equal Reverse Auctions

It seems that there are still some misunderstandings in the marketplace about the place of reverse auctions in eSourcing. I’ve noticed that several procurement professionals are facing resistance from their internal stakeholders to using eSourcing platforms. This puzzled me, so I decided to put on my detective’s hat. In my investigation, I determined that many procurement professionals: • Use a rigorous sourcing process or “playbook” • Have a common platform that provides a centralized place for everyone to collaborate and gain visibility … More

What Industry Made One of the Best Comebacks in 2010? Part 2

Today’s post is the second half of Iasta’s interview with Ed Kuyon, Director of Sales Operations for Aeroxchange, as he goes into more detail about PMA parts, finding additional cost savings in the airline industry and future plans for Aeroxchange. The manufacture and sale of aircraft parts is highly regulated, and there are a large number of sole-source suppliers in the industry.  Over the past 10 to 15 years, however, PMA parts have gained a wider acceptance in the industry.  According to the … More

Put “Strategic” Back into your Strategic Sourcing

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

Optimization – Solving the “What if?” Implementation Dilemma Part 1

What if… Actual demand for our product is greater (or less) than forecast-ed? My facilities have different quality standards for the same product? I need to select a “green,” “low-cost country” or “diversity” supplier? My preferred suppliers have capacity or lead-time issues? I have only 10 days to decide the best award for five locations from 10 suppliers, 20 line items and hundreds of bids? A successful sourcing project does not end with an auction; it ends when the awarded … More

Utilizing outside warehousing and distribution with new acquisitions

2010 should bring a flurry of new acquisitions with many established companies looking to expand product lines and increase growth within the organization. Of these companies looking to expand through acquisition, raising capital expense to fund the newly acquired business unit will be a challenging experience in ramping-up operations with manufacturing and warehousing distribution. Many companies will be looking to outside warehousing and distribution ( 3PL’s ) assistance in order to compensate the need to either add-on to a existing … More

Logistics effectiveness and impact

Effectiveness, is key to competing in today’s business environment. Logistics is a process, a supply pipeline which connects you with your vendor/supplier and your customer. Whether you compete domestically or globally competitors, vendors, suppliers and customers are worldwide. The significant cost of logistic/distribution effects the entire supply chain. Logistics importance integrates and develops long-lasting alliance is between the vendors/suppliers and customers. Logistics contributes to a competitive advantage, viewed as a comprehensive process objective, making your product more competitive in the … More