Friday, October 31, 2008

The Economy In Fall 2008 & It's Effect On Procurement

Here's a little vlog where I share some of my thoughts on procurement's position in today's economy...



By the way, this is the 500th post here on the Purchasing Certification Blog which, when started in March 2005, was one of the first procurement-related blogs.

Happy Halloween!

To Your Career,
Charles Dominick, SPSM
President & Chief Procurement Officer
Next Level Purchasing, Inc.
Struggling To Have A Rewarding Purchasing Career?
Earn Your SPSM® Certification Online At
http://www.NextLevelPurchasing.com

Thursday, October 30, 2008

Today's GDP Release Leaves ISM With Egg On Its Face

If you've been a long-time reader of this blog, you know that I am critical of ISM's claims that its PMI is a good economic indicator. Well, today, we've got some pretty conclusive proof that I'm not wrong about it.

Today, the United States Commerce Department reported that the economy contracted in the July - September 2008 quarter with GDP shrinking at a 0.3% annual rate.

So what did ISM say happened to the economy during this same time period?

They said it grew.

Here's what they said in their last three "Reports On Business" covering the same quarter:

  • In the July report, ISM said that "the overall economy grew for the 81st consecutive month"; "the PMI indicates the overall economy is growing and the manufacturing sector is unchanged from June"; and "if the PMI for July is annualized, it corresponds to a 2.8 percent increase in real GDP annually."
  • In the August report, ISM said that "the overall economy grew for the 82nd consecutive month"; "the PMI indicates the overall economy is growing"; and "if the PMI for August is annualized, it corresponds to a 2.8 percent increase in real GDP annually."
  • In the September report, ISM said that "the overall economy grew for the 83rd consecutive month"; "the PMI indicates the overall economy is growing "; and "if the PMI for September is annualized, it corresponds to a 0.8 percent increase in real GDP annually."

While others in the sector have given an argument such as "well, at least ISM's index is directionally accurate," here's a perfect example of how it's not even directionally accurate.

Sure, when you have seven years of growth and an index indicates growth - even disproportionate growth - it's easy to believe in the index. But it is times like these when we have swings between expansion and contraction that the true colors of an index are revealed.

If you're interested in more details about why ISM's PMI is so flawed, here are links to some of my earlier posts and an interview:

Caveat Emptor: Economic Indices Could Be Misleading You (November 30, 2006)

ISM's PMI is BS (February 6, 2008)

The ISM Index Gets More Amusing By The Second (March 4, 2008)

Another ISM Index Contradiction (March 5, 2008)

I dislike being negative due to there being enough of that in the election, but the release of the GDP report demanded the right timing.

More positive stuff coming soon, I promise!

UPDATE 11/25/2008: The US Commerce Department today released an update to the 3rd quarter GDP numbers, now saying that the economy shrunk 0.5% instead of 0.3%. This widens the gap between reality and the ISM numbers.

To Your Career,
Charles Dominick, SPSM
President & Chief Procurement Officer
Next Level Purchasing, Inc.
Struggling To Have A Rewarding Purchasing Career?
Earn Your SPSM® Certification Online At
http://www.NextLevelPurchasing.com

Wednesday, October 29, 2008

Whitepaper Wednesday - Critical Procurement Information Requirements

I recently came across a whitepaper called "Great Expectations" from Oracle. Well, a procurement whitepaper from Oracle didn't exactly have my expectations high for the value of the content.

Sometimes, when I'm reading these whitepapers, my eyes start to glaze over because the authors try to tell CPO such basic, basic stuff about the procurement process and priorities. If the reader is already a CPO, chances are that they know about bundling demand across functions and consolidating suppliers. This whitepaper began with that familiar formula, although I must say that Oracle did a good job of describing core procurement activities in perhaps the most concise manner I've ever seen.

But the nugget of true value that I saw in this whitepaper was the section entitled "Critical Info Requirements Explode." This section listed out many of the key types of information that CPO's need to make sure are available to their people, such as:
  • Total spend
  • Contract compliance
  • Business process compliance
  • Procurement effectiveness
  • Procurement efficiency
  • Supplier performance
  • Sourcing compliance
  • Competitive intelligence
  • Supply base intelligence
  • Supply chain intelligence

The whitepaper elaborates on what is included in each information type. I didn't want to steal the whitepaper's thunder by including that here, but you can download the whitepaper to read it for yourself.

Now, based on my working with procurement groups, a listing like this is welcome. Information - good information - is the key to effective strategy setting and execution. But with so many types of information available, it can be difficult to know everything you need and to plan for how you will get it. Oracle does a good job of putting most of the key information requirements in one place so a CPO can develop a more comprehensive plan on getting the information s/he needs to deliver results.

To Your Career,
Charles Dominick, SPSM
President & Chief Procurement Officer
Next Level Purchasing, Inc.
Struggling To Have A Rewarding Purchasing Career?
Earn Your SPSM® Certification Online At
http://www.NextLevelPurchasing.com

Monday, October 27, 2008

Getting Started With Procurement Technology

I hope that you enjoyed the article "Procurement Technology Success Secrets."

While this article gave some advice around justifying to management a procurement technology investment and deciding which procurement technology to implement first, it represents only a small portion of what was discussed in the podcast on which the article was based.

In that podcast, I had the chance to ask Linda Peyton some questions such as:
  • How do you figure out what is hype and what is real when evaluating [procurement technology] vendors?
  • What should be done to minimize the risk to your technology initiative considering the possibility of one of your prospective vendors being acquired?
  • What non-technology ducks have to be in a row to make a technology implementation work?
  • What are some of the change management challenges faced by individuals implementing procurement technology and how can they overcome them?

If you want to know how Linda - a seasoned veteran with procurement technology implementations - answered these questions, be sure to check out the podcast here.

To Your Career,
Charles Dominick, SPSM
President & Chief Procurement Officer
Next Level Purchasing, Inc.
Struggling To Have A Rewarding Purchasing Career?
Earn Your SPSM Certification Online At
http://www.NextLevelPurchasing.com

Thursday, October 23, 2008

ThomasNet's Purchasing Tools

When I think to the early days of my purchasing career, I can't help but remember one very important tool at the time - the Thomas Register, a series of humongous green books that listed suppliers of nearly every product line you can imagine. This was in the days before online supplier directories!

Of course, the world has changed since then and, fortunately, ThomasNet - the company that published the Thomas Register - has kept stride with the changes. They eventually went totally online with their supplier directory and their site is very easy to use.

I just came across an article on SDCExec.com that covered ThomasNet's launch of its "Purchasing Tools," which includes free access to on-demand eSourcing and contract management software as well as a forum. The forum itself seems to be mostly just buyers saying "I need a supplier for [insert commodity here]." But the software aspect is interesting.

It appears that ThomasNet has teamed up with Source One, the creators of the Why Abe eSourcing software. Source One apparently now also offers Contract Management software as well. It's good to see them growing their product line.

So if your company still hasn't invested in procurement technology, ThomasNet might be a good destination for you to at least get started without the barrier of cost. And if you're interested in some more in depth learning about the procurement technology tools that are available, you might want to consider enrolling in our online class "Expert Purchasing Management," which features demos of many different solutions including eProcurement, eSourcing, contract management, spend analysis, and more.

To Your Career,
Charles Dominick, SPSM
President & Chief Procurement Officer
Next Level Purchasing, Inc.
Struggling To Have A Rewarding Purchasing Career?
Earn Your SPSM® Certification Online At
http://www.NextLevelPurchasing.com

Wednesday, October 22, 2008

Whitepaper Wednesday - MRO Procurement

Welcome to another installment of Whitepaper Wednesday here on the Purchasing Certification Blog. Today, I'll be examining a whitepaper from Global eProcure called "MRO Procurement: A Primer of Success."

This whitepaper begins by identifying all of the reasons that MRO procurement is problematic, mentioning some traditional problems as well as some interesting, less apparent tidbits such as:
  • Typically, over 70% of the MRO items in inventory turn less than once every two years
  • Spot buys, which are unplanned purchases for items not set up in inventory, can account for up to 50% of the annual (MRO) spend
  • Data management across plants is a challenge...same item identified many ways in different systems

The whitepaper then dives into some pretty decent detail on developing a sourcing strategy for MRO, going past the age-old distributor vs. manufacturer question and breaking down distributors into four categories, each with their own advantages and disadvantages. It describes how to build a market basket of MRO items similar to building a core list of office supplies as taught in the article "Office Supplies Sourcing Secrets" and the accompanying podcast. The whitepaper continues with a very detailed example of how to analyze bids from MRO suppliers.

Perhaps the most important piece of advice comes at the end of the whitepaper, however: "Is the procurement professional done when the MRO supplier selection process is complete? Far from it! Once the supplier selection process is completed, it is necessary to communicate, actually over communicate, the decision across the organization. It is critical that this communication be specific as to why the decision has been made and what the benefits the company can expect to result for this decision. The user community will not all be happy with the selection and some pushback can be expected. During the early implementation phase it will be necessary to work very closely with the supplier to proactively address user issues/concerns."

Amen.

Good job, Global eProcure.

If you're new to MRO procurement or even if you think you could use a refresher after years in MRO procurement, I highly recommend that you download this whitepaper from Global eProcure's Web site.

To Your Career,
Charles Dominick, SPSM
President & Chief Procurement Officer
Next Level Purchasing, Inc.
Struggling To Have A Rewarding Purchasing Career?
Earn Your SPSM® Certification Online At
http://www.NextLevelPurchasing.com

Monday, October 20, 2008

How Will The Next US President Improve Government Purchasing?

After one brief mention of no-bid contracts in an earlier debate, I've been curious as to how John McCain and Barack Obama will improve the purchasing practices of the Federal Government.

I've linked around through their Web sites and have done some Google searches to see what I could find. There is so much information on their sites, I admit that my research is not comprehensive. Their sites are the proverbial haystacks and by no means am I suggesting that I have found all of the needles.

Information about government purchasing improvements was easier to find on one candidate's site than the others. That doesn't mean that his plan is better, just that the information was easier to find.

I by no means am attempting to influence anyone's vote - I encourage everyone to make up their own minds after considering all of the issues. I'm not 100% sure who I am voting for yet and government purchasing improvement is not the biggest issue I am considering.

If you know of other government purchasing material on either of the candidates' sites, please include it in the comments section of this blog. I'd love if all of the issues could be documented here, not limited by my personal (in)ability to find it.

Having gotten those disclaimers out the of the way, here is what I found:

From johnmccain.com under Issues > Economic Plan > Cheap and Clean Energy: "Government Purchasing: John McCain will make greening the federal government a priority of his administration. The federal government is the largest electricity consumer on earth and occupies 3.3 billion square feet of space worldwide. It provides an enormous opportunity to lead by example. By applying a higher efficiency standard to new buildings leased or purchased and retrofitting existing buildings, we can save taxpayers money in energy costs, and move the construction market in the direction of green technology."

From barackobama.com under Issues > Blueprint for Change, page 17: "Make Government More Effective: Obama and Biden will work to make government more efficient from top to bottom. They will cut wasteful and ineffective programs, create more professional oversight of contracts and programs and slash earmarks." and "Wasteful Spending is Out of Control: The current administration has abused its power by handing out contracts without competition to its politically connected friends and supporters. These abuses cost taxpayers billions of dollars each year."

From barackobama.com under Issues > Blueprint for Change, page 18: "Create a Public 'Contracts and Influence' Database: As president, Obama will create a 'contracts and influence' database that will disclose how much federal contractors spend on lobbying, and what contracts they are getting and how well they complete them."

From barackobama.com under Issues > Blueprint for Change, page 20: "Reform Federal Contracting: Obama and Biden will reform federal contracting and reduce the number of contractors, saving $40 billion a year. They will crack down on no-bid contracts and hire more contract managers and improve training to enable federal agencies to avoid wasteful contracts. Obama and Biden will prohibit contractors who are delinquent on their federal taxes from getting contracts for government work."

From barackobama.com under Issues > Blueprint for Change, page 42: "Make Government Spending More Accountable and Efficient: Obama and Biden will ensure that federal contracts over $25,000 are competitively bid. Obama and Biden will also increase the efficiency of government programs through better use of technology, stronger management that demands accountability and by leveraging the governments high-volume purchasing power to get lower prices."

One additional noteworthy item - In recent times, John McCain challenged a US Air Force tanker contract that apparently was awarded to Boeing without competition. McCain's challenge against what many considered "corrupt government procurement" resulted in the award given to a competing group, a savings of over $6 billion, and guilty pleas from both the government and contractor sides.

Make of it all what you will...

To Your Career,
Charles Dominick, SPSM
President & Chief Procurement Officer
Next Level Purchasing, Inc.
Struggling To Have A Rewarding Purchasing Career?
Earn Your SPSM® Certification Online At
http://www.NextLevelPurchasing.com

Friday, October 17, 2008

Are Your Payment Practices Killing The Economy?

Earlier this week, I posted about the affect of the global credit crisis on the supply chain. I wrote: "According to the news, at least, many companies rely on lines of credit to meet operating expenses. I wish I knew what percentage of businesses fall into this category...Are there a significant number of suppliers that would go out of business without that credit lifeline?"

At the time, I was feeling that if a company has to rely on credit to sustain itself, maybe it shouldn't be in business. And I still feel that a well-managed company generally should have enough of its own cash to meet short-term needs and not try to live beyond its means.

But I had a meeting last night with several executives from the local chamber of commerce and one of its committees. Our discussions naturally turned to the economy. So I brought up the question about whether there are a lot of companies that rely on credit.

To my surprise, one of the execs who owns her own company said that her company does rely on credit to meet payroll and operating expenses. She said that they have to because their customers - mostly government agencies - often are six months late with their payments and the situation is getting worse as many government agencies are near financial insolvency (according to her observations).

So, yes, the availability of credit is hurting the economy. But so are slow paying customers. Are you, as a buyer, a slow paying customer?

If so, you could be hurting the economy and killing your suppliers.

Are there some suppliers that you can't afford to kill?

If so, you may want to make sure they are the ones who get paid a little sooner than others. Don't leave it to Finance or Accounts Payable to make those decisions.

To Your Career,
Charles Dominick, SPSM
President & Chief Procurement Officer
Next Level Purchasing, Inc.
Struggling To Have A Rewarding Purchasing Career?
Earn Your SPSM® Certification Online At
http://www.NextLevelPurchasing.com

Wednesday, October 15, 2008

Whitepaper Wednesday - Procurement Outsourcing

Welcome back to another installment of Whitepaper Wednesday here on the Purchasing Certification Blog.

In researching today's installment, I learned something that I found odd: UPS has a supply chain consulting operation. Yep - the package delivery folks. I would imagine that it would be tough to build a good supply chain consulting brand when you're best known for driving big brown trucks and carrying heavy packages, but time will tell.

Anyway, on the UPS Supply Chain Solutions Web page, I found several whitepapers. Frankly, most were not very good. But there was one entitled "Indirect Procurement Outsourcing - How, Why, and When" that I thought was pretty decent. So that is what I'll cover today.

The whitepaper is quick to point out that not all procurement outsourcing providers are created equal. It says: "The procurement outsourcing marketplace is a confusing environment. The good news for companies interested in outsourcing their procurement processes is that - there are plenty of companies willing to take on the work. The bad news for companies is - there are so many companies with different skills and offerings in the marketplace that selecting the right provider is a real challenge."

The whitepaper classifies procurement outsourcing providers into three categories:
  1. Transaction focused processors
  2. Category specialists
  3. Comprehensive service providers

The whitepaper lists several criteria on which an organization should evaluate procurement outsourcing providers:

  • Expertise
  • Technology
  • Services
  • Supplier network
  • Savings
  • References

The whitepaper ends with a couple of testimonials that tout a good experience with ICG Commerce. Because the only two testimonials focused on the same procurement outsourcing provider, one has to question the objectivity of UPS in this paper.

You can decide for yourself by accessing the whitepaper here.

If you're interested in more reading on the topic of procurement outsourcing, you may want to check out this case study from the current issue of Supply & Demand Chain Executive. If you're a procurement outsourcing firm seeking to gain a competitive advantage, click here to learn about training for BPO's.

To Your Career,
Charles Dominick, SPSM
President & Chief Procurement Officer
Next Level Purchasing, Inc.
Struggling To Have A Rewarding Purchasing Career?
Earn Your SPSM® Certification Online At
http://www.NextLevelPurchasing.com

Tuesday, October 14, 2008

Supplier Financial Risk & Purchasing/AP Collaboration

I hope that you have enjoyed the article "Assess Supplier Financial Risk Now!"

Certainly the global credit crunch has caused a lot of concern about the viability of supply chains. According to the news, at least, many companies rely on lines of credit to meet operating expenses.

I wish I knew what percentage of businesses fall into this category. I know that we don't. Are there a significant number of suppliers that would go out of business without that credit lifeline? It's a scary question.

I think that, if nothing else, the payment stream within the supply chain is going to be unsettled for some time. Because if businesses rely on lines of credit and no longer have access to those lines, then they won't pay their invoices in anything close to a timely manner. And if their suppliers aren't getting paid, they will likely have to stretch out their payments to their suppliers. And their suppliers...you get the picture.

The concern I have with this likely cascade is the risk that Purchasing, Finance, and Accounts Payable won't be on the same page. OK, so Finance mandates that invoice payments will be made in 60 days rather than 45. That is a decision that should not be made without Purchasing's involvement.

What if this unilateral extension of payment terms ticks off a strategic supplier who gives priority to another customer? Continuity of supply of a strategic good or service could be disrupted for you.

So if your organization is forced to let accounts payable build up a bit in order to survive, make sure it is done carefully and give priority to paying those suppliers that you can't afford to tick off.

To Your Career,
Charles Dominick, SPSM
President & Chief Procurement Officer
Next Level Purchasing, Inc.
Struggling To Have A Rewarding Purchasing Career?
Earn Your SPSM® Certification Online At
http://www.NextLevelPurchasing.com

Friday, October 10, 2008

Calculating Inventory Carrying Costs

Inventory carrying costs drive decisions such as order quantity, order timing, and so forth. Most experts agree that inventory carrying costs are between 18 and 35% of the inventory's value. But how is that percentage calculated? This vlog answers that question.



To Your Career,
Charles Dominick, SPSM
President & Chief Procurement Officer
Next Level Purchasing, Inc.
Struggling To Have A Rewarding Purchasing Career?
Earn Your SPSM® Certification Online At
http://www.NextLevelPurchasing.com

Thursday, October 09, 2008

eProcurement for Free?

I recently received a press release from Bellwether Software indicating that they are offering a trial of their SaaS eProcurement product for free. I'd love to know if any of you take up this offer and what your experience is like. Here's the press release:

October 1, 2008
Press Release
Louisville, KY

Bellwether Software
www.bellwethercorp.com

Bellwether Software says, “Try Purchasing Management eXtra free for 30 days!”

Bellwether Software’s President and Chief Operating Officer, Sundeep (Sunny) Dronawat announced today that Bellwether Software will begin offering a no-obligation opportunity to try out its web-based purchasing software, Purchasing Management eXtra, ePMX. Dronawat said, “We want people to just try the product. ePMX offers tremendous functionality for such a reasonably priced product. We want people to see that for themselves by trying ePMX free for 30 days. All they need to do is call us or visit our web site, and we will provide them with the codes for access to ePMX. We are offering this as a SaaS (Software as a Service) delivery model, so there is really no set up or anything that is required from the user.”
For more information, contact Sunny Dronawat at 502-426-5463 or at sunny@bellwethercorp.com.

Disclosure: Bellwether is a sponsor of the Purchasing Certification Blog.

To Your Career,
Charles Dominick, SPSM
President & Chief Procurement Officer
Next Level Purchasing, Inc.
Struggling To Have A Rewarding Purchasing Career?
Earn Your SPSM® Certification Online At
http://www.NextLevelPurchasing.com


Wednesday, October 08, 2008

Whitepaper Wednesday - Profit Growth Through Procurement

Welcome to another installment of Whitepaper Wednesday on the Purchasing Certification Blog. Today's installment will focus on a whitepaper from SAP called "Enabling Profitable Growth Through Procurement: Transforming The Sourcing & Procurement Organization."

At first, I didn't think I was going to be able to extract much noteworthy from this whitepaper. It started with the typical high-level, fundamental stuff about procurement contributing to competitive advantage and how much harder it is to get Sales to contribute the same degree of profit impact as Procurement.

But, just as I was going to give up on the paper, it talked about four "best practices that leading organizations implement" to "manage total costs and negotiate better contracts." Three of those best practices were not surprising. The other was one that is not commonly mentioned but, as I discussed in my recent podcast with Supply & Demand Chain Executive, very important and underrated - "Focus on Employees." Before I share some quotes about that best practice, I'll list all four from the whitepaper:
  • Align the sourcing and procurement organizational model to meet business needs
  • Manage spend and suppliers strategically
  • Focus on employees
  • Implement cutting-edge technology

Here's an excerpt that I found particularly interesting:

"After acquiring the right people, top-performing organizations train and nurture their employees, offering educational and certificate programs to enhance their skills...almost 62% of sourcing and procurement employees [in leading organizations] had formal training in negotiations, compared to 45% for other companies."

Sixty-two percent seems a bit low. That means that over 1/3 of the people negotiating procurement contracts aren't even trained!

I could rant on that for days, but let me get back to the whitepaper...

I'm very happy to see that I am not the only one out there shouting the mantra that "people matter for procurement success!" I was actually a little surprised that a software company wrote this too as most software providers present their solutions as the panacea for all procurement ills.

The whitepaper continued on with some interesting research results, including "the average company has centralized about 69% of its sourcing and procurement functions" (hopefully that doesn't mean PO cutting) and "the study found that companies implementing a category-aligned organizational approach were more efficient in terms of full-time equivalents per billion in spend."

You can download the whitepaper here.

To Your Career,
Charles Dominick, SPSM
President & Chief Procurement Officer
Next Level Purchasing, Inc.
Struggling To Have A Rewarding Purchasing Career?
Earn Your SPSM® Certification Online At
http://www.NextLevelPurchasing.com

Monday, October 06, 2008

Struggling To Manage Commodities Prices? Don't Miss This Article & Podcast!

I hope that you have enjoyed the article "Commodities Prices: Managing The Insanity."

This article was based upon an interview I conducted with Ariba's Mike Petro. I had become inspired to interview Mike after he wrote this profound statement on Supply Excellence: “The days of holding annual negotiations to set fixed price direct material contracts are over.”

While the article neatly summarized the fundamental stuff you need to consider in this paradigm-shifting time, the accompanying podcast really took a deep dive into the more challenging issues of commodity management in 2008 and the immediate future. Mike and I explored questions such as:
  • Are suppliers using inflation news to sneak in unwarranted price increases?
  • With adjustable prices, how can purchasing and supply management departments continue to contribute to the forecasts that are so strategically important in many organizations?
  • How should volatile commodities prices influence your inventory strategy?
  • Once buyers and suppliers agree on a price adjustment provision, is that the end of friction or does that mean that new misunderstandings will arise?
  • Will contracts with monthly price adjustment clauses change how strategic sourcing is done or even obliterate it from common practice?
  • How can a purchasing and supply management department communicate its value when prices are going up year after year?

If you are struggling with managing the volatile commodities prices, listening to the podcast will be 40 minutes well spent. And, yes, it's FREE.

Click here to visit the Purchasing & Supply Management Podcast Series page.

To Your Career,
Charles Dominick, SPSM
President & Chief Procurement Officer
Next Level Purchasing, Inc.
Struggling To Have A Rewarding Purchasing Career?
Earn Your SPSM® Certification Online At
http://www.NextLevelPurchasing.com


Thursday, October 02, 2008

Forget Google - Try PurchSearch!

This week, we released a new search engine designed specifically to help purchasing and supply management professionals save time, avoid frustration, and improve the quality of their research. This search engine is called PurchSearch and can be found at http://www.purchsearch.com/.

So why is there a need for a new search engine? What's wrong with Google?

Well, of course, Google is a great search engine. But it indexes tens of millions of Web sites. And the vast majority of those are not purchasing and supply management-related.

So doing purchasing and supply management research with Google can lead one to have to sift through tons of irrelevant search results. And who has time for that?

PurchSearch indexes only personally-reviewed, authoratative sites from trade publicatons, educational organizations, and the best blogs. In addition, PurchSearch indexes the best purchasing department Web sites so you can benchmark with organizations such as Home Depot, University of Pennsylvania, and many more.

So the next time you want to look something up, try PurchSearch for a more relevant research experience. And spread the word!

Here's a quick video to demonstrate the power of PurchSearch.



To Your Career,
Charles Dominick, SPSM
President & Chief Procurement Officer
Next Level Purchasing, Inc.
Struggling To Have A Rewarding Purchasing Career?
Earn Your SPSM® Certification Online At
http://www.NextLevelPurchasing.com

Wednesday, October 01, 2008

Whitepaper Wednesday - Environmental Responsibility

Welcome back to another installment of Whitepaper Wednesday on the Purchasing Certification Blog.

Today, I'm linking you to a whitepaper entitled "Spend Management for Environmental and Social Responsibility" from Ariba.

This whitepaper shares a top ten list of activities for getting started with environmental responsible procurement. While it is short, there is power in some of the recommendations and insights, such as:

  • "Empower a single person to oversee activities, provide resources, and focus. No initiative succeeds if it's someones 'part-time job.'"
  • "Green is not a new process. Instead, it's the ultimate example of a non-price variable in selecting/evaluating your suppliers."
  • "Do the 'Easy Stuff' first. Don't start with a full carbon footprint exercise or overhauling your entire supply chain."

You can download the whitepaper at http://www.ariba.com/resourcelibrary/views/resource_library_asset_brief.cfm?asset_id=457 (free registration required).

Do you know about a whitepaper that would be of value to procurement professionals? Let me know by dropping me a line at cdominick [at] nextlevelpurchasing [dot] com. I can't promise that I'll write about it, but I appreciate all recommendations.

To Your Career,
Charles Dominick, SPSM
President & Chief Procurement Officer
Next Level Purchasing, Inc.
Struggling To Have A Rewarding Purchasing Career?
Earn Your SPSM® Certification Online At
http://www.NextLevelPurchasing.com

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