We recently conducted our annual Spend Management Priorities and Challenges survey, where over 225 companies weighed in on their approaches to maximize savings and profits and mitigate risk in today’s struggling economy. The objective is to understand what companies are doing today to maximize savings and impact profits NOW and also what separates the cream of the crop from those struggling to survive. The results clearly show that the global recession and risky business environment have pushed procurement to the forefront in many companies - from a cost savings and risk reduction standpoint - and that companies are paying attention to spend management now more than ever.
The full report is available (download it here) and I’ll be blogging about some of the key findings here over the coming weeks. Today, we’ll tackle the highest ranked priorities from the survey.
So, what were the top priorities:
Identifying savings opportunities faster is the # 1 focus for most companies
Email Forward & BookmarksClose this WindowBookmark and Share This Page Save to Browser FavoritesAskbackflipblinklistBlogBookmarkBloglinesBlogMarksBlogsvineBUMPzee!CiteULikeco.mmentsConnoteadel.icio.usDotNetKicksDiggdiigodropjack.comdzoneFacebookFarkFavesFeed Me LinksFriendsitefolkd.comFurlGoogleHuggJeqqKaboodlelinkaGoGoLinksMarkerMa.gnoliaMister WongMixxMySpaceMyWebNetvouzNewsvinePlugIMpopcurrentPropellerRedditRojoSegnaloShoutwireSimpysk*rtSlashdotSphereSphinnSpurl.netSquidooStumbleUponTechnoratiThisNextWebrideWindows LiveYahoo!Email This to a FriendCopy HTML: If you like this then please subscribe to the RSS Feed.Powered by Bookmarkify™ More »
We recently stirred up some interesting debate over risks and legal contracts, specifically regarding balancing risk and whether or not companies are actually protecting against the right kind of risk (or introducing risk and losing opportunities in the process). But we truly touched a nerve with a post quoting a presentation where a procurement leader at a large corporation suggested starting with a supplier’s paper rather than their own for some types of purchases. Given the emotions and indeed risks around the topic of legal contracts, I found an anecdote by Tim Cummins during a roundtable at the Ariba LIVE event in London a few weeks ago to be very thought provoking.
Tim, the President and CEO of the International Association for Contract & Commercial Management (IACCM), told the story of an IACCM member company that decided to do an experiment with their buy and sell side contracts. They had their in-house legal teams do a blind review (the company name was concealed) of their own contracts to look for misplaced priorities and potential exposure. Their sell side legal team looked at their own company’s buy side contracts and vice-versa for the buy side team, who reviewed the sell side team’s paper. To quote Tim on the findings:
Email Forward & BookmarksClose this WindowBookmark and Share This Page Save to Browser FavoritesAskbackflipblinklistBlogBookmarkBloglinesBlogMarksBlogsvineBUMPzee!CiteULikeco.mmentsConnoteadel.icio.usDotNetKicksDiggdiigodropjack.comdzoneFacebookFarkFavesFeed Me LinksFriendsitefolkd.comFurlGoogleHuggJeqqKaboodlelinkaGoGoLinksMarkerMa.gnoliaMister WongMixxMySpaceMyWebNetvouzNewsvinePlugIMpopcurrentPropellerRedditRojoSegnaloShoutwireSimpysk*rtSlashdotSphereSphinnSpurl.netSquidooStumbleUponTechnoratiThisNextWebrideWindows LiveYahoo!Email This to a FriendCopy HTML: If you like this then please subscribe to the RSS Feed.Powered by Bookmarkify™ More »
In Part 1, we covered critical steps in the risk assessment process and guidelines for contingency planning. So now let’s move on to the ongoing, day-to-day process and approach that will help reduce risk AND prepare you for the inevitable challenges that arise in a global supply chain.
Manage your Suppliers. Managing a global supply base can be challenging. Many companies have large numbers of suppliers to contend with. Their data is fragmented and spread across multiple systems. And goals, metrics and measurements are inconsistent - if they exist at all. But there are steps that you can take to overcome these obstacles.
Email Forward & BookmarksClose this WindowBookmark and Share This Page Save to Browser FavoritesAskbackflipblinklistBlogBookmarkBloglinesBlogMarksBlogsvineBUMPzee!CiteULikeco.mmentsConnoteadel.icio.usDotNetKicksDiggdiigodropjack.comdzoneFacebookFarkFavesFeed Me LinksFriendsitefolkd.comFurlGoogleHuggJeqqKaboodlelinkaGoGoLinksMarkerMa.gnoliaMister WongMixxMySpaceMyWebNetvouzNewsvinePlugIMpopcurrentPropellerRedditRojoSegnaloShoutwireSimpysk*rtSlashdotSphereSphinnSpurl.netSquidooStumbleUponTechnoratiThisNextWebrideWindows LiveYahoo!Email This to a FriendCopy HTML: If you like this then please subscribe to the RSS Feed.Powered by Bookmarkify™ More »
I hate to add yet another risk to the long list you are already monitoring, but as Hurricane Andres reminded us this week (albeit quietly in the Pacific rather than in the Atlantic), hurricane season is upon us. The good news is, the ‘09 hurricane season is expected to be at or below average. But even with a relatively low 48% chance of a major storm making landfall on the US coastline, there’s still a considerable risk of transportation and/or supply chain disruptions for many companies. And of course, a storm impacting oil rigs or refineries in the Gulf impacts every business from a fuel perspective.
Last fall my colleague, transportation category manager Rachel Rutkoski, provided some excellent advice for companies looking to reduce the risks brought on by these powerful seasonal storms (or any natural disaster disruption).
Email Forward & BookmarksClose this WindowBookmark and Share This Page Save to Browser FavoritesAskbackflipblinklistBlogBookmarkBloglinesBlogMarksBlogsvineBUMPzee!CiteULikeco.mmentsConnoteadel.icio.usDotNetKicksDiggdiigodropjack.comdzoneFacebookFarkFavesFeed Me LinksFriendsitefolkd.comFurlGoogleHuggJeqqKaboodlelinkaGoGoLinksMarkerMa.gnoliaMister WongMixxMySpaceMyWebNetvouzNewsvinePlugIMpopcurrentPropellerRedditRojoSegnaloShoutwireSimpysk*rtSlashdotSphereSphinnSpurl.netSquidooStumbleUponTechnoratiThisNextWebrideWindows LiveYahoo!Email This to a FriendCopy HTML: If you like this then please subscribe to the RSS Feed.Powered by Bookmarkify™ More »
In the current market, it isn’t a question of if your suppliers may be at risk of failing. It’s a matter of which suppliers will fail and when? We all know the risks posed by the recession - bankruptcies are up (+75% in ‘08 & projected rise of 35% in ‘09), credit is hard to come by, and consumer/business spending is extremely soft. Couple that with risk management challenges - fragmented supply base with varying degree of supplier capability, currency and commodity volatility and intricate pricing and discounting structures - and you can see why many companies are struggling with where and how to start a true risk management strategy.
Since companies can’t afford a major supply chain interruption at a time when they’re already struggling with the recession, what concrete steps must be taken to reduce global supply risk?
Assess the Situation. In order to effectively manage supply risk, you must first understand your exposure. To get an accurate picture requires action on a number of fronts, including:
Email Forward & BookmarksClose this WindowBookmark and Share This Page Save to Browser FavoritesAskbackflipblinklistBlogBookmarkBloglinesBlogMarksBlogsvineBUMPzee!CiteULikeco.mmentsConnoteadel.icio.usDotNetKicksDiggdiigodropjack.comdzoneFacebookFarkFavesFeed Me LinksFriendsitefolkd.comFurlGoogleHuggJeqqKaboodlelinkaGoGoLinksMarkerMa.gnoliaMister WongMixxMySpaceMyWebNetvouzNewsvinePlugIMpopcurrentPropellerRedditRojoSegnaloShoutwireSimpysk*rtSlashdotSphereSphinnSpurl.netSquidooStumbleUponTechnoratiThisNextWebrideWindows LiveYahoo!Email This to a FriendCopy HTML: If you like this then please subscribe to the RSS Feed.Powered by Bookmarkify™ More »
Loading ...
