While there may be some early signs that the global economic recovery has begun, we’re not out of the woods just yet. The “Great Recession” has fundamentally changed the way businesses organize and measure success. and recalibrated supply markets, introducing new cost and operational risks that businesses cannot overlook. It has also created new state of normal for business — one in which supply volatility, capacity constraints, and global uncertainty will be commonplace and must be carefully managed.
The concept is now beginning to enter the broader public dialog. Recently, there have been multiple references to the New Normal in both the mainstream and business media:
European Spend Management professionals have been learning to cope with (and succeed in) the New Normal for some time. Examples are numerous:
To prosper in the New Normal with its reduced resources, increased reliance on partners, and lower tolerance for error, organizations need to be able to more rapidly respond to changing situations without the typical lead times and permanent investments. They will do this through on-demand access to the capabilities, technology and community they need to serve their customers that can scale with their needs.
Agility is the key to surviving the current downturn and thriving in the post-recession European business landscape.
Ted Kondis is Vice President of Services for Ariba’s European operations.
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November 23rd, 2009 | Posted in EMEA, LCCS and trade, On Demand/SaaS, Supply Management, recession, supply market dynamics, supply risk
The recent economic turmoil not only forced many small and large companies in the private sector to rethink their cost management strategies, but also prompted governmental bodies and not-for profits to emphasize agility and be more efficient. With fewer tax dollars collected in the past year, governmental agencies – particularly those at the state and local level – have been hard pressed to “do more with less.” With this backdrop, it not surprising for public sectors to follow the lead of private companies in using advanced Sourcing and purchasing technologies hitherto available only to large organizations to drive down cost and improve efficiency.
For example, eGov Monitor recently published a case study on the Leeds Council Housing Organization, which leveraged On-Demand sourcing technology (full disclosure: it’s Ariba’s solution) to identify opportunities, save money and improve performance.
With the On-Demand deployment model, companies pay predictable fees to gets the results of efficient strategic sourcing and competitive bidding without worrying about managing software and hardware or stretching their already slim IT staffs to manage the technology infrastructure.
As taxpayers we would love our tax dollars used more efficiently and see more public sector and governmental agencies use the power of these new Procurement delivery platforms to achieve significant savings that can then be put to work in other areas. And the added intangible is that it also makes the Sourcing process more transparent.
Sundar Kamakshisundaram is a Senior Solutions Marketing Manager for Ariba, a global provider of spend and supply risk management solutions.
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October 15th, 2009 | Posted in Best Practices, Case Study, EMEA, On Demand/SaaS, Sourcing
I had the privilege of recording a podcast series with Geraint John, editor-in-chief of CPO Agenda, last week. In Part #1 – The Global Economy: Is anyone benefiting? - we discussed the who is to blame for the current crisis and potential “winners & losers” in Europe. Coming hot off the heels of the G-20 [...]
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April 14th, 2009 | Posted in EMEA, LCCS and trade, Outsourcing, Procurement, Sourcing, Supply Management, nearshoring, podcast, recession, supply market dynamics, supply risk
As the G-20 Summit officially kicks off today under a typical layer of London fog (comprised of economic storm clouds and tear gas), the topic of protectionist policies are certain to dominate trade discussions. Although I suspect many of the assembled leaders are truly “free traders” caught up in populist political pressure to protect jobs [...]
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April 2nd, 2009 | Posted in EMEA, LCCS and trade, Sourcing, Supplier Management, Supply Management, commodities, metals, regulations, steel, supply market dynamics, supply risk
In response to protectionist populism, the recently passed US economic stimulus bill included a controversial “Buy American” Clause. The rule, which was watered down from its original language, requires that all Steel, Iron, and “Manufactured Goods” used for stimulus backed “public works” projects be produced in America unless:
Quality or quantity from US suppliers is insufficient
Cost [...]
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March 27th, 2009 | Posted in EMEA, LCCS and trade, Procurement, Sourcing, Supplier Management, Supply Management, commodities, metals, regulations, supply market dynamics, supply risk
We’ve spent a great deal of time discussing the plight of auto suppliers and manufacturers, as well as the potential impact of US Treasury actions aimed at this struggling industry. Of course, this has been a very supply side focused look at the challenges and potential solutions. But as any high school economics student can [...]
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March 18th, 2009 | Posted in EMEA, Spend Analysis, Supplier Management, Supply Management, automotive sector, recession, regulations, supply chain finance, supply market dynamics, supply risk
Since Lady Thatcher exited the British political scene in the eighties, unions in the United Kingdom have not been the fiercest to organize demonstrations. So why have thousands oil and power plant workers across the United Kingdom staged strikes over the last 5 days?
Crowds have been demonstrating all over Europe in the recent weeks. The [...]
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February 3rd, 2009 | Posted in Best Practices, EMEA, LCCS and trade, Outsourcing, Procurement, Services Procurement, Skills Rectruitment and Development, Sourcing, Supplier Management, Supply Management, oil/energy, regulations, supply market dynamics, supply risk
