Dec 062017
 
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Procurement with Blockchain? Machine Learning? Virtual Reality? Yes…

Learn how emerging technologies are being used in the procurement process.  Blockchain, machine learning and virtual reality will only become more and more entrenched in the procurement process.

 

Blockchain Training Videos.

  • “Buzzwords or the future of supply chain? Internet of Things, Big Data, Industry 4.0, Artificial Intelligence, Blockchain, Augmented Reality, Deep Learning.” ~SupplyChainToday.com
  • “Be a supply chain innovator. Research Internet of Things (IoT); Machine Learning; Deep Learning, Big Data, Blockchain, Drones, Augmented Reality, Artificial Intelligence…” ~EverythingSupplyChain.com
  • “Price is what you pay.  Value is what you get.” ~Warren Buffett
  • “We care about every worker in our worldwide supply chain… What we will not do – and never have done – is stand still or turn a blind eye to problems in our supply chain. On this you have my word. ~Tim Cook, CEO of Apple and Supply Chain Expert. 
  • “Here are a few key supply chain trends you may want to research: Internet of Things (IoT), 3D Pringing, Big Data, Artificial Intelligence (AI) , Deep Learning and Drones.” ~SupplyChainToday.com.
  • “Artificial intelligence will permeate the supply chain in ways we haven’t even thought of.” ~Dave Waters
  • “Blockchain is a key technology in the digital supply chain.” ~EverythingSupplyChain.com.
  • “Information is power, and the gain you get from empowering your associates more than offsets the risk of informing your competitor.”  ~ Sam Walton, made Walmart Logistics a key differentiator.
Oct 272017
 
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Need Procurement Training?  Try these resources.

For Procurement training we included strategic sourcing, negotiations, supplier selection and supplier management.

This video is a basic introduction into procurement.  If you are a procurement professional jump to the procurement training below which is much more advanced.


Procurement Training

Need Training? Big Data, IoT, Blockchain.

 

Procurement Training

“Train your procurement organization well.  This investment can save millions of dollars.”

procurement training

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

strategic sourcing training

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

procurement training

“Price is what you pay.  Value is what you get.” ~Warren Buffett

supply chain

“When you surround an army, leave an outlet free.  Do not press a desperate foe too hard.” ~Sun Tzu

supplier management

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

negotiate jeff bezos

 

 

Oct 252017
 
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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

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.

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?