Aug 012017
 
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Supplier Management P&G

P&G has a world class supply chain.  This is a good overview of how P&G manages its supply base.

Supplier management from Ankit

Supply Chain and Procurement Training.

Jul 262017
 
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Procurement Training

Procurement training to help improve your purchasing skills.

Supply Chain and Leadership Information.

Quotes for Procurement Professionals

  • “You must never try to make all the money that’s in a deal. Let the other fellow make some money too, because if you have a reputation for always making all the money, you won’t have many deals.” ~ J. Paul Getty
  • “Victorious warriors win first and then go to war, while defeated warriors go to war first and then seek to win.” ~ Sun Tzu
  • “Treating suppliers like partners is critical to a company’s start-up’s success. As much as possible, figure out how you can work with your suppliers to make their lives better, whether saving them money from their vendors or saving them time with your order. By understanding their business model, you can make orders in an efficient manner, which should lower costs for everyone.” ~ Aaron Schwartz
  • “People will forget what you said, people will forget what you did. But people will never forget how you made them feel.”  ~ Maya Angelou
  • “Checking the results of a decision against its expectations shows executives what their strengths are, where they need to improve, and where they lack knowledge or information.”   ~ Peter Drucker, considered the father of modern management.
  • “Our success has really been based on partnerships from the very beginning.”  ~ Bill Gates, founder of Microsoft.

“You don’t want to negotiate the price of simple things you buy everyday.” ~Jeff Bezos, CEO Amazon.

Procurement Training

“One of the best way so persuade others is by listening to them.” ~Dean Rusk.

Procurement Training

“Strategic sourcing in the simplest terms – leveraging all resources to get the best value for the company.” ~EverythingSupplyChain.com

Strategic Sourcing Training

“A well trained procurement organization can add major dollars to the organization through cost savings.” ~EverythingSupplyChain.com

Procurement Training

Supply Chain Strategic Importance

Jun 242017
 
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Supplier Selection and Certification

Good overview of what goes into supplier selection and certification.

Supply Chain and Leadership Information.

Jun 242017
 
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Outsourcing Advantages and Disadvantages

Advantages to Outsourcing

  • Cost reduction

  • More flexibility with manufacturing and capacity.

  • Lower labor costs

  • Capital does not need to be invested in machinery or plant capacity

  • Not a core competency so outsource it

  • Flexibility

Why People Don’t Outsource

  • Loss of control over the process.  It is imperative to choose the correct outsourcing partner and to form contractual arrangements to ensure appropriate delivery and lead times.

  • Afraid of outsourcing competitive advantage.  IBM outsourced both the microchip (Intel) and the operating system (Microsoft).

  • Partnering with wrong supplier.

  • Costs are not justified

  • Company wants to vertically integrate

  • Does not understand the benefits of outsourcing

Jun 232017
 
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COST MANAGEMENT 

Cost Management – analyzing the costs of purchased goods in order to develop strategies to lower costs while improving supplier relationships.  The following table is from a paper written by Lisa Ellram entitled “A Structured Method for Applying Purchasing Cost Management Tools.”  The article was published by the International Journal of Purchasing and Materials Mangement 11-19.  I highly recommend reading this article.

Questions to be Addressed During Cost Analysis/Overhead Analysis

1.  Which costs are necessary and legitimate?

2.  Are amounts estimated for the necessary cost items reasonable?

3.  Is the overhead allocation to this item potentially subsidizing another item which the organization sells?

4.  Have the correct allocation bases been used?  If not, is it to our benefit to challenge the allocation methods?

5.  Are only those expenses which should be allocated to our purchase so allocated?

6.  Are there allowances for contingencies?  Do these allowances seem legitimate?

7.  Are profits reasonable enough, yet not excessive, to keep the supplier motivated?

ORDERING COST

Order Cost = (Annual Demand * Order Cost)/Order Quantity in Units

PURCHASING COSTS

Purchasing Cost = Annual Demand * Price per unit

TOTAL PURCHASING COST

Total cost = Ordering Cost + Carrying Cost + Purchasing Cost

Jun 232017
 
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Strategic Cost Management

Strategic Cost Management contains supply chain analysis, strategic positioning analysis and cost driver analysis.  By evaluating each of these three and manager will be able to better manage and understand costs.

Supply Chain Analysis – management of the flow of information and products from earliest supplier to the ultimate consumer.  This also includes the disposal of the product.

Strategic Positioning Analysis – what is the value proposition of the company: cost leadership, innovation, niche, speed, etc.

Cost Driver Analysis – what processes or transactions create costs in the supply chain.  

Cost Analysis:

  •  Can a less expensive material/components be used while maintaining quality?

  • Are the costs reasonable?

  • Is a standard item in the market a suitable substitute?

  • Can the weight of the item be reduced?

  • Can the packaging be redesigned to reduce costs?

  • Are the correct costs being allocated to the project?  

  • Have the correct activity based costing methods been used?

  • Is the product over engineered?  Could a lower quality product be substituted?

  • Are other suppliers making a comparable product?

  • Which costs are necessary?

May 042017
 
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Dr. Marcel Vollmer – Chief Operating Officer – SAP Ariba
Discusses how the digital economy will change procurement

Supply Chain Blogs:

Mar 232017
 
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Negotiation – from Stanford Graduate School of Business

From Youtube: The goal is not to get a deal; the goal is to get a good deal. Four steps to achieving a successful negotiation: assess, prepare, ask, package. Women increase the chance of a success when a proposal is framed in terms of benefits to your counterparts, team, or organization. Three questions to prepare women to enter a negotiation: Why are you asking? How are you asking? For whom are you asking?

Supply Chain Information.

Negotiation supply chain dreams come true

We like to encourage people to do things that will help them meet your goals.  This is a great video to help improve your knowledge.  How is watching this video helping you make your dreams come true tomorrow?

Dec 302016
 
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How to Get a Job in Supply Chain Management

Supply Chain Management is a great place to have a career.

Supply Chain Information.

  • “There comes a time when you ought to start doing what you want. Take a job that you love. You will jump out of bed in the morning. I think you are out of your mind if you keep taking jobs that you don’t like because you think it will look good on your resume. Isn’t that a little like saving up sex for your old age?” ~ Warren Buffet
  • “If it falls your lot to be a street sweeper, go out and sweep streets like Michelangelo painted pictures. Sweep streets like Handel and Beethoven composed music. Sweep streets like Shakespeare wrote poetry. Sweep streets so well that all the hosts of heaven and earth will have to pause and say, here lived a great street sweeper who swept his job well.” ~ Martin Luther King Jr.
  • “A leader’s job is not to do the work for others, it’s to help others figure out how to do it themselves, to get things done, and to succeed beyond what they thought possible.” ~ Simon Sinek
  • “Yes, I’ve made a great deal of dough from my fiction, but I never set a single word down on paper with the thought of being paid for it … I have written because it fulfilled me. Maybe it paid off the mortgage on the house and got the kids through college, but those things were on the side—I did it for the buzz. I did it for the pure joy of the thing. And if you can do it for the joy, you can do it forever.” ~ Stephen King
  • “Never continue in a job you don’t enjoy. If you’re happy in what you’re doing, you’ll like yourself, you’ll have inner peace. And if you have that, along with physical health, you will have had more success than you could possibly have imagined.” ~ Johnny Carson

supply chain management

supply chain management

Oct 072016
 
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Negotiation Skills

Negotiation Skills are essential in procurement and everyday life as well.  When purchasing a house or a car it is very important to have negotiations skills.

Supply Chain and Procurement Training.

Negotiation Quotes

  • My father said: ”You must never try to make all the money that’s in a deal. Let the other fellow make some money too, because if you have a reputation for always making all the money, you won’t have many deals.”  ~ J. Paul Getty
  • “The first principle of contract negotiations is don’t remind them of what you did in the past – tell them what you’re going to do in the future.”  ~ Stan Musial
  • “A sign that negotiations were handled well on both sides is that everybody probably feels a little bit like they didn’t get what they wanted.”  ~ Christopher Lloyd
  • “Let us never negotiate out of fear. But, let us never fear to negotiate.”  ~ John F. Kennedy
  • “The freedom of the city is not negotiable. We cannot negotiate with those who say, “What’s mine is mine and what’s yours is negotiable.”  ~ John F. Kennedy
  • “The fellow who says he’ll meet you halfway usually thinks he’s standing on the dividing line.”  ~ Orlando A. Battista