Procure IQ

A recent article in the McKinsey Quarterly, that summarized some of their global survey results, tackled the five forces reshaping the global economy as executives are still grappling with how to seize the opportunities of an interlinked world economy. It provides some good information and insight, but leaves one with as many questions as it provides answers. This post will summarize the five reshaping forces and the next post will attempt to shed some light in the directions the answers may lie. The following are the forces that were identified: …

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A recent article over in Inside Supply Management is shining a new light on asset reinvestment by pointing out that many companies can save as much as 44% of sale proceeds if they use like-kind exchange (LKE) or “1031″ exchange to defer capital gains tax on sold assets when the sale is being used to generate cash to buy new, similar, assets to replace deprecated supply chain assets. If you plan reinvest the the funds from the same of an asset in a similar or like-kind asset within the IRS established timelines to identify and purchase the replacement …

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In this post, I’m going to discuss highlights from the CPO Executive Debate on the price of flexible supply chains and focus on why you have to be eternally vigilant. Getting straight to the point, in response to how does emergence from the recession affect supply chain flexibility, Andrew Vaughan noted that there is a dynamism in the whole supply chain piece and therefore you have got to keep reviewing it constantly. Raw material shortages can bring an end to a product’s life, earthquakes can take out factories, and bankruptcies can take out suppliers literally overnight. One day …

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In this post, I’m going to discuss highlights from the CPO Executive Debate on the price of flexible supply chains and focus on why you have to include the supply base. The reality is that, no matter how much you try, only so much innovation and flexibility is going to originate from within your four walls. Most of the innovation, should you be ready to accept it, is going to come from your partners, and your supply base in particular. Furthermore, an A+ supply base can revolutionize the way you do business and significantly increase your profit …

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In this post, I’m going to discuss highlights from the CPO Executive Debate on the price of flexible supply chains and focus on why you have to focus on the end consumer. Although Supply Management doesn’t typically deal with the end customer, one of the ultimate keys to success is a fanatical focus on the end customer. In a successful organization, everything you source is sourced to add value to the products and services you offer the end customer. Everything. No exceptions. Legal spend? Services to protect your IP and ensure you can offer …

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In this post, I’m going to discuss highlights from the CPO Executive Debate on the price of flexible supply chains and focus on why you have to take a strategic focus. In response to whether a CPO would be prepared to be more fluid on quality or on price in order to get that flexibility, Colin Davis said that their organization’s primary goal is going all the way back to the sourcing decision and making sure that they have got everything absolutely aligned to business drivers with the initial contracts and also in the relationship going forward. In …

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In this series of posts, I’m going to discuss highlights from the CPO Executive Debate on the price of flexible supply chains and focus on not only why you need flexibility in your supply chain, but what you have to do to get it. In response to how do you balance flexibility with cost and quality considerations and can you measure whether you are striking that balance, Michael Walsh said that beyond knowing that it will be cold at some point in the year and it will be warm at some point in the summer, it is hard to …

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The scientific definition of calibration is to check, adjust, or standardize a measuring instrument, usually by comparing it with an accepted model. In a lab, instruments must be calibrated regularly if they are to yield accurate measurements. The same holds true for supply chains. Regardless of how much effort is put into supply chain plans, systems or measurements, the plans, systems and measurements will have to be calibrated from time to time to keep them running smoothly. But when should you calibrate? A recent article in Design News had some good tips on when to …

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… and its effects that can be very detrimental to your inventory levels, associated costs, and overall supply chain revenue, don’t do any of the following: Second Guess the System and Overcorrect This typically happens when a buyer orders early, thinks he needs more “just in case” inventory, or believes that the system has under-estimated inventory requirements. When this happens at each stage of the supply chain, the original order requirements end up increasing significantly. For example, if a buyer at a retail store …

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A recent article in the Harvard Business Review’s spotlight on innovation on how open innovation can help you cope in lean times is just as appropriate to supply chain organizations as it is to R&D organizations. In a nutshell open innovation will help you move innovation from the inside out to get the greatest value from your initiatives. Specifically, it will help you: Become a Customer of Your Projects For example, if you require an important capability that you can neither afford to develop …

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