Last month, I made the case for sourcing steel (and other direct materials) based on sagging demand and excess capacity. Since then, the data we’re seeing indicates the drops in production, employment and demand are worse than expected:
US Steel Mill Capacity utilization was 36.3% for the week ending 1/3, versus a value of 88.7% for […]
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Last week, Mike Petro outlined the opportunities presented by direct materials. On a similar note today, regular Supply Excellence contributor Rachel Rutkoski explains buyer’s market conditions for indirect spend and identifies several hot categories, including:
Labor - Rising unemployment means “buyers should evaluate any category where labor is a main cost component.” There is a glut […]
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Metals Category Manager Mike Petro makes the case for why “right now is the time to source direct materials”…
If you’d like a closer look at the facts and figures Mike cited - as well as information on other categories that provide immediate strategic opportunities - you can find them in the mid-quarter SupplyWatch update here. […]
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In times of uncertainty and rapid change, whether in sales, operations or spend management, fortune favors those who are positioned to confidently take decisive action and efficiently execute decisions.
For Spend Management organizations, spend data is the currency that allows us decide with confidence and move quickly to implement changes to our supply base. Time […]
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News this week that Tesco is looking to double its payment terms with suppliers to 60 days should certain raise some eyebrows within (and beyond) cash-strapped food service and retail sectors. Yet, hopefully, it will not cultivate a cult of imitators.
While cash is certainly king in today’s economy, this is not the time to withhold […]
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Last week, I posted on best practices for category assessment. While that advice should walk you through executing on categories where there are savings opportunities, I think it’s a good idea to take a step back and look at exactly how you should identify those categories. After all, it’s not as though the decision […]
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Dropping commodity prices have buyers salivating at the prospect of saving some money, especially in the face of top line stagnation. But where do you start? What categories are ripe for the picking vs others that are either a lower priority or best left alone?
Ultimately the goal is build a prioritized sourcing pipeline that meets […]
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Deloitte’s Ryan Flynn recently previewed the ICE (Immigration & Customs Enforcement) webinar and their Wal-Mart case study. As you likely recall, Wal-Mart received a very public PR black-eye a few years ago when some of their subcontracted cleaning crews turned out to be comprised of undocumented workers. The media hung the company out to dry […]
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Few would deny that spend management has taken hold and earned it’s place at the table in the C-Suite of large companies. But in the mid-market (<$2 billion in annual revenues), adoption of the principals and tools of the “big companies” has been slower to take hold. In fact, we recently conducted a survey of […]
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Last week, I posted an analysis of Accenture’s recent SRM report. Now,
Manufacturing Business Technology has a detailed take on the study as well. Tim “sound-bite” Minahan and Mickey North Rizza are quoted extensively. In the article, Tim refers to a new law of “diminishing returns” in procurement. “You can only take so much out […]
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