All posts by Procurious HQ

IQ, EQ, DQ or SMQ – Which Quotient Leads to Success at Work?

We’ve all sat tests at school, whether exams to achieve qualifications, or internal tests to determine which classes we should be in.

IQ or EQ

These tests, although we didn’t know it at the time, were a way of testing our IQ. However, this is a hugely simplified way of assessing a concept that is inherently complex in nature.

Some people excel academically, while others go on to great things, even although they don’t necessarily have any academic qualifications (think Richard Branson). Whether this is down to IQ, or EQ, no-one can be 100 per cent sure, but it’s worth looking at in more detail.

IQ – How ‘smart’ are you?

For those of you that don’t know, your IQ (intelligence quotient) is derived from a series of standardised tests that designed to determine how ‘intelligent’ you are (or aren’t).

For years, IQ was used by schools and businesses to determine how smart someone was. The first application of the test was delivered in 1905 by Alfred Binet to assess the intelligence of French school children.

In the 1980’s however, it was decided that this examination method was too narrow and wasn’t painting a fair picture of how an individual would perform in real life.

Smart isn’t everything

People had realised that being smart didn’t necessarily mean you’d be good at your job. There are other things to take into account, for example, how you work in a team or group environment. So the EQ (emotional quotient) measure was developed.

This test was designed to evaluate a person’s emotions (a fairly loft ambition), to understand how the person thinks rather than what they know and to determine how they might act in certain situations.

This area of psychology is fascinating, particularly the way that people are scored or compartmentalised in order to predict their performance. Given the response to the recent discussion topic on the Myers-Briggs scale it seems this is quite a widely held view.

Social Media Quotient

More recently, it has been interesting to read about the social media quotient (SMQ), and the role that it might play in an individual’s effectiveness at work. While it is far less developed and tested than EQ and IQ, SMQ is likely to play a critical role in evaluating individual performance at work over the coming years.

Social media is already an important part of our professional lives and it’s relevance is only going to increase. How people understand and interpret this space will impact their effectiveness at work. The good news is that it’s much easier improve your SMQ than it is to improve your IQ or EQ. It really just takes a little bit of effort on your part.

Get to know the different social media tools that are out there, what the best way to apply them professionally is and you’re already off a great start. There is a quiz here that can help to determine your current SMQ and a more rudimentary checklist here.

If this topic interests you, you could consider reading about digital quotient as well. Digital Quotient, was developed by McKinsey as a way to evaluate an organisation’s (rather than a person’s) digital capability, including their areas of strength and weakness. You can find more information on this here.

Good luck developing your SQM! If you need any help, want to organise a workshop, or use Procurious’ brand new social media “PRISM” tool, just get in touch!

Disruption, Scandal and Upheaval – A Week in Procurement

The past week in procurement and supply chain has been a busy one, and so it’s been hard to pin down just one story to kick the new week off. 

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Over the past seven days, a marketing procurement function for a major global brand has been scrapped, Nigeria has been gripped by a massive procurement scandal and global freight and logistics has been hit by global unrest.

So, just in case you missed all of this, we’ve decided to wrap these three of the major stories for a change.

Marketing Procurement – Beginning of the End?

One story that took many people by surprise was the news that PepsiCo had taken the decision to scrap its marketing procurement function. The firm explained the move as a way of remaining “competitive in an environment where cost cutting and value building are paramount”.

The idea that this has been done to reduce costs and increase efficiency might seem a touch strange, as this is often what procurement are tasked with doing. However, the decision by PepsiCo immediately got the procurement world wondering if this would be the first of many.

However, before all of you who work in marketing procurement start dusting off your CVs, it looks unlikely that this is the case. A survey carried out by the Association of National Advertisers (ANA) found that 68 per cent of surveyed members didn’t view PepsiCo’s actions as the start of an industry trend.

However, it does serve to highlight the frequently high tension between the procurement and marketing functions. Procurement’s role as the intermediary between the organisation and the agencies is often seen as one of cost cutting, rather than value adding.

A survey by the ANA earlier this year found that the vast majority of individuals on both sides of the agency/client relationship were unconvinced about the value that procurement added to the process.

The PepsiCo situation may serve as a warning to other marketing procurement teams, but also afford them an opportunity to shift their focus. Instead of a focus on costs, it’s perhaps time for a more strategic approach, forging stronger relationships with agencies, and establishing how to add value on both sides of the aisle.

Nigeria Hit by Arms Procurement Scandal

Early last week, the news broke of the outcome of a major procurement fraud investigation in Nigeria, implicating some of the country’s former leaders and senior figures.

Based on the investigation, Nigerian President Muhammadu Buhari ordered the arrest of Sambo Dasuki, the country’s former National Security Advisor, who has been implicated in the fraud scandal, thought to be worth in the region of $2 billion.

It has been alleged that Dasuki awarded over $2 billion worth of “phantom” contracts for vehicles, weapons and munitions, which were to be used in Nigeria’s on going fight against terrorist group, Boko Harem.

An additional sum of $142.6m was also allegedly transferred to a company with accounts in the USA, UK and West Africa, without contracts being in place, and without any goods or services being supplied.

Mr Dasuki has claimed that all due process and military procurement regulations were followed in all transactions, and indicated that, given the value of the contracts, they could only have been approved by Nigeria’s former President, Goodluck Jonathan.

Former President Jonathan has also denied any involvement, and, when questioned at an event in Washington, D.C. last week, was quoted as querying whether the contracts ever existed. Keep an eye on the Procurious news for more on this in the coming weeks.

Global Unrest Disrupting Supply Chains

Events in the past week in Paris and Lebanon, as well as the on going influx of migrants into Europe, has freight and logistics organisations counting the cost of disrupted supply chains.

In their most recent Security Risk Index, US-based supply chain consultants BSI have highlighted border closures and slower than normal freight clearances as two of the major issues in Europe.

Delays at Calais costing UK shippers an estimated $1.2 million per day, plus losses from contaminated food and pharmaceutical products, have industry experts stating that that further disruptions could mean job losses across the continent.

Supply chain issues are not limited to Europe either. In China, thieves have been targeting moving trucks and removing goods from them on the road, while in South Africa, truck hijackings have increased by 29.1 per cent over 2014.

CIPS have also argued that increasingly global supply chains has increased complexity and that disruptions could have a damaging impact for the end customers.

Increasing risk in the supply chain is the topic of a webinar that Procurious founder Tania Seary is taking part in next week. Risk analysis in procurement is a key skill, particularly in light of current disruptions to supply chains.

Get all the information on the webinar and register here.

We’ve also kept an eye on other breaking news over the weekend and here are some of the key headlines to share over a morning cup of coffee.

UK Government Boosts Defence Spend

  • UK Prime Minister, David Cameron, will announce an additional £12 billion investment in equipment spend this week
  • As part of the Government’s National Security Strategy and Strategic Defence and Security Review (SDSR), Mr Cameron will outline the UK’s strategy for the coming decade
  • This includes a new fleet of maritime patrol aircraft and two new rapid-reaction “strike brigades” to add to existing capabilities
  • The news is good for American firm Boeing, who won an industry bidding war to provide nine aircraft to the UK RAF

Read more at The Belfast Telegraph

Google Glass Used in Heart Surgery

  • A team of cardiologists from the Institute of Cardiology, Warsaw, used the new generation Google Glass as part of a heart surgery procedure
  • The doctors used the device to help control and restore the blood flow in a blocked artery in a 49-year-old male patient
  • The Glass enabled the doctors to visualise the operation, as well as control the images with voice control, allowing them both hands free to operate
  • It is hoped that more wearable technology will now be adapted for use in the medical industry

Read more at Market Business News

BBC Announce Women of 2015 List

  • The BBC’s 100 Women season has returned, and the corporation has chosen its list of inspirational women for 2015
  • The list this year focuses on “octogenarians sharing life lessons; ‘good girl’ film-makers discussing expectations; nursing; five high-profile women; and ’30 under 30′ entrepreneurs”
  • The list highlights women from around the world who have given a positive inspiration to others with their actions over the past 12 months

See who made the list at BBC News

US Government Faces Criticism Over IT Outsourcing Spend

A recent report has highlighted a lack of management on US Government IT spend.

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IT services outsourcing cost the US government $30 billion USD in 2013. However according to a recent report released by the Government Accounting Office (GAO), the lion’s share of this spend was not adequately managed.

The GAO’s report highlights that while leading private firms ‘manage’ up to 90 per cent of their IT services spend, the government agencies analysed manage only a fraction of this number.

The departments in question – the Department of Defense (DoD), the Department of Homeland Security (DHS), and the National Aeronautics and Space Administration (NASA) – accounted for more than half of reported federal third-party IT services spending in 2013.

Also highlighted in the report were the branches of the US Armed Forces and the percentage of their spend that was “strategically managed”, revealing some worrying figures:

  • US Navy – 10 per cent of $3.3 billion
  • US Air Force – 17 per cent of $1.4 million
  • US Army – 27 per cent of $3.5 billion

Duplicated Contracts

The report went on to suggest that, despite recent improvements in the procurement process, including appointing individuals to identify and action strategic sourcing opportunities, the departments’ IT sourcing was still being carried out using “potentially duplicative contracts“.

These practices served to reduce the power that the departments, and the Government, could wield in sourcing activities. In addition, the report found that the departments could save as much as 15 per cent on their IT spend every year, if they were to take a more strategic approach to the way they purchase these services, similar to the approach of leading organisations.

Commenting on the report’s findings Phil Fersht, CEO of outsourcing analyst firm HfS Research stated; “This data just reinforces how alarmingly poorly run U.S. government agencies are with their IT spend.”

Fersht went on to say, “Why only a fraction of external IT service spending is actually managed via an established contracting model in this day and age is baffling—and indicates a huge amount of unnecessary wastage of taxpayer dollars. Also remember that external IT spend is only a fraction of total IT spend. In some cases, the total spend per agency could amount to two or three times the external IT spend.”

A number of government-wide efforts have been kicked off to streamline the inefficiencies pointed out in this report to ensure the government receives better value from its IT contracts.

Want to Know Where Your Clothes Came From? There’s an App for That!

A new app, developed in Australia, hopes to give consumers the information they want on the supply chains producing their clothing.

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We’ve covered ethical fashion in great detail on Procurious in the past. Most of our coverage has focussed on the public’s desire for cheap, rapidly produced garments or ‘fast fashion’ as its been dubbed.

This business model has had a huge impact on the supply chains of leading retailers, as they push to make the latest fashions available quicker and for a lower price. Many have resorted to shifting production to the developing world in a bid to reap the benefits of low cost production as a means to keep price down and maintain margins.

As these practice have become public, many firms have been accused of scrimping on safety and ignoring labour and environmental concerns in the their supply chains, and have faced harsh criticism as a result.

The Turning Tide

While this fast fashion business model has dictated the retail garment industry for the best part of a decade now, it appears that the tide is starting to turn. Many consumers are now prioritising the ethical footprint of their purchasing, just as much as cost and style.

Companies like Patagonia (who we’ve written about before) and KowTow have started appealing directly to consumers’ better judgement by creating a business model that focuses on sustainability first.

Even H&M, long condemned for its questionable supply chain practices has released a ‘conscious collection’ of sustainably produced garments. However, many have accused the firm of ‘green washing’ as, although it is producing a small amount of clothing sustainably, the vast majority of the company’s range still follows the fast fashion model.

There’s an App for That

Regardless of motive, this shift in consumer psyche has spawned a new app called ‘Good On You’. Developed in Australia, the app gives shoppers the ability to understand the ethical impact of the clothes they are buying, directly through their smart phone.

The app analyses clothing ranges based on the three broad categories – environmental, labour and treatment of animals – before creating a final rank for that brand.

‘Good On You’ doesn’t currently carry out its own auditing, instead analysing firms’ current accreditations from organisations like Fair Trade, Ethical Clothing Australia and other non-governmental organisations.

The app aims to inform customers of brands’ practices and supply chains, and call out firms using sustainability as a marketing tool, particularly when they don’t have credentials to back it up.

Speaking on the opaque nature of sustainability marketing and supply chains, Co-Founder at ‘Good on You’, Gordon Renouf said; “We want brands to say exactly what they’re doing, to be transparent about the supply chains, to show where their factories are so other stakeholders and unions can check on them.”

Find out more about the company’s aim here and download the app before you next go shopping!

Can Re-Shoring Explain China’s Faltering Economy?

China’s economic slowdown is starting to send reverberations across global markets.

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While it’s too soon to panic about Chinese growth figures, the engine behind the world’s economic growth for the last decade or so does seem to be spluttering a little, and this is a worrying sign for some market sectors.

Just what is causing this slowdown?

Many are attributing a slowdown in Chinese manufacturing levels as a key driver for the nation’s economic downturn. The numbers seem to back this up. The Chinese Purchasing Managers Index (PMI), a metric that measures economic activity based on the activity of procurement departments (learn more about this indicator here), hit a two-year low in July 2015, following a fifth consecutive month of contraction.

The significant drop in the PMI is usually in line with a decrease or slowdown of manufacturing in a country. A potential cause for this slowdown could be a preference from firms in the west to move operations away from China.

There seems to be two main drivers for this behaviour. The first is that ‘low-cost China’ isn’t so low cost any more. The second is an increasing preference for ‘re-shoring’ or ‘near shoring’.

When Low Cost Isn’t Low Cost

Firms that moved their operations to China between 10 and 20 years ago are finding that labour rates for Chinese workers are far more expensive than they once were. This is removing one of key motivators for both relocating operations to China in the first place, as well as maintaining these operations now.

It’s estimated that Chinese incomes are increasing by as much as 20 per cent year-on-year, a rate much higher than most of the rest of the world. Many foreign firms are now looking to other developing markets in Asia and Latin America, in order to take advantage of lower cost bases.

Reassurance in ‘Re-shoring’

The other practice driving a move away from Chinese manufacturing is ‘re-shoring’ or ‘near shoring’. This involves firms moving previously outsourced operations much closer to home.

David Simchi-Levi, a professor of engineering at MIT, suggests that this may be a key factor in China’s manufacturing slow down. He highlights a study carried out by MIT in 2012 that suggest 15.3 per cent of US firms were ‘definitely’ planning to move operations back closer to home and that 33.6 per cent of firms were ‘considering’ similar action.

To highlight acceleration in this area, Simchi-Levi points to a more recent study by AlixPartners that shows 32 per cent of firms are already re-shoring and 48 per cent of firms are in the process of doing so within the next three years.

Closer to Home

It seems that as Chinese wages continue to climb, organisations have less of a stomach for the other issues that have accompanied Chinese based production, such as questionable safety records, long lead times and high transportation costs in favour of options that are closer to home.

While a large number of firms have to ability to move production very quickly, clothing producers being one clear example, China has been able to build a significant domestic technology and hi-spec manufacturing industry that will mean firms with more technical specifications may find it harder to move away from their traditional Chinese production centres.

It will be interesting to see if the move from traditional manufacturing to a more technology-based economy will help to arrest the economic slowdown, and re-affirm China’s place as a powerhouse economy.

Is Trouble Brewing for Apple Following Supply Chain Order Reduction?

A recent report from Credit Suisse has suggested that Apple’s Asian supply chain is weakening following a reduction in orders. Is the tech giant struggling? Or is it just standard market forces at work?

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According to the report, Apple has reduced orders by up to 10 per cent, with this figure expected to grow to 20 per cent in the first quarter of 2016. As a result of this, Credit Suisse has downgraded its sales estimates for the iPhone 6S from 242 million units, to 222 million units.

While this might not seem like a major decrease, the period covered runs through Thanksgiving, Black Friday, Cyber Monday and Christmas, which would be a big story for any organisation, let alone one that has dominated the technology scene for over a decade.

What’s more, the company’s share price fell 2.5 per cent on the back of the announcement, which came just 24 hours before the launch of the iPad Pro.

Knock-on Effect in Asia

Lower orders in the Asian supply chain, where Apple has traditionally done a decent proportion of its manufacturing, will inevitably have a knock-on effect on the organisations in the region.

Organisations such as San Disk Corp., AAC Technologies (Hong Kong), Largan Precision (Taiwan) and Texas Instruments, all of which have exposure to Apple’s Asian supply chain, also saw their shares fall following the announcement.

An on-going decrease in orders across the supply chain could lead to a much wider impact, particularly if concerns about falling sales of the iPhone become a reality. However, many experts have said that the situation is not as bad as it seems.

Reasons to be Positive

Tim Cook, the Apple CEO, remains confident and has been quoted as saying that Apple is still receiving strong demand for the iPhone 6S from China. Other reports have suggested that the appetite for the 6S may be on the wane due to rumours of a new and improved iPhone 7 being released next year.

Another US-based investment firm, FBR, also disagreed with Credit Suisse’s announcement, arguing that it was expecting to see “a very strong December quarter/holiday quarter on healthy iPhone 6s demand and legacy iPhone 6 shipments.”

That, combined with a number of new products that Apple has lined up to released during 2016, including a new streaming service and a peer-to-peer payment service, keep the organisation in a very healthy position.

Customer Loyalty

The other thing that stands Apple in good stead going forward is its fiercely loyal customer base. While sales of the iPhone were inevitably going to plateau and then tail off, Apple retains its users through the high-specification of its products.

Apple has also developed its “Apple iPhone Upgrade Program”, which allows consumers to buy phones directly from Apple on a two-year instalment plan, then upgrade after a year or extend the terms for a further 12 months. It is anticipated that the results of this service will show in September 2016, plus drive long-term sales.

Good or bad over the next 6-12 months, Apple is here to stay. It takes a brave investor to back against them, particularly as the company has a reputation for pulling innovative products out of the bag when required.

However, not even Apple are immune to a volatile market and changing trends, so it will be interesting to see if the predictions pan out, and how Apple will react if and when that happens.

What do you think about Apple’s situation? Is it something to be worried about or a flash in the pan? Let us know your thought

Have you got what it takes to join Procurious HQ? Digital Marketing & Social Media Specialist Opportunity Available

Procurious has an exciting opening in our small but exceptional team for a Digital Marketing and Social Media rising star!

Are you who we're looking for?

This is a new role supporting the General Manager and the Content & Social Media Manager to cleverly propagate and amplify our niche content to build global awareness about our brand and attract new members.

Procurious is looking for a candidate with 2-4 years quality Digital experience, with a strong understanding of social media platforms. The candidate will have excellent communications and client management skills, along with a desire to start a career in the exciting start-up business world.

The candidate should also bring strong writing and project management skills, and have some experience in event management.

We will expect you to jump in at the deep end, and as such you must have a confident and capable personality.

Candidates without digital marketing knowledge will not be considered.

This is an excellent opportunity for an energetic, aspiring candidate to work in a unique start-up environment, taking part in exciting projects over the coming years.

The position is based in London

To apply:

  1. CV: Please send a copy of your CV to Procurious HQ at [email protected] marked: ‘Attention: Digital Marketing & Social Media Specialist Role
  1. Procurious Video: Along with your CV, all applicants should submit a brief (no more than 3 minutes) video about why you want the job; Why you want to work for Procurious; and why you qualify. We will be looking for knowledge of digital marketing, communications abilities and creativity.

You can find out more about Procurious at www.procurious.com or for more information about this role, please see below for a job description or please contact us with any questions at [email protected]

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Job Description: Digital Marketing & Social Media Specialist

Responsibilities: 

The Digital Marketing & Social Media Specialist will be responsible for supporting the execution of all marketing and communication activities.

This position will interact with Procurious’ third-party suppliers of PR services, sponsorship partners, and with internal stakeholders to develop and deliver the tactical digital marketing plan for Procurious.

Your first task will be arranging and promoting The Big Ideas Summit and other events from start to finish, and supporting the implementation of social media marketing plans.

Digital Marketing & Events
You will:

  • Develop and drive digital marketing initiatives that align with Procurious’ growth objectives, with an initial focus on developing and deploying all pre- and post-Big Ideas Summit event promotional activities across social media platforms and using web-based e-marketing software and social media marketing plans
  • Design and test digital marketing tactics to increase brand awareness and member conversions to Procurious
  • Act as the first point of contact for The Big Ideas Summit and other event guests, speakers and sponsors.
  • Administer and coordinate all logistics and resources associated with The Big Ideas Summit and other events, including all booth hardware, badge registrations, furniture and plasma screen hire, as well as any other on-site services.
  • Manage all external event opportunities and speaking requests received, filter these requests and re-direct them to the relevant individuals within the company.
  • Maintain accurate administrative records in SalesForce.
  • Foster and grow relationships with media and influencers
  • Foster and grow relationships with Procurious community and our partner PR agency

Social Media 

You will:

  • Contribute to and support implementation of Content & Social Media strategy, including:
    • Scheduling and publishing content to Procurious;
    • Writing blog articles and marketing copy;
    • Maintain WordPress associated sites (e.g. bigideassummit.com)
  • Spend time building your own social media presence across Procurious’ main channels to drive engagement with influencers
  • Deliver weekly social media and digital marketing reporting to assist allocation of budget and resources.
  • Liaise with writers and contributors on statistics for guest content on the Procurious blog
  • Help grow and maintain Procurious’ presence across its owned social media accounts through the sharing of written and video content from the Procurious website, as well as the Big Ideas Summit

Key Skills

  • Excellent working knowledge of digital marketing and social media platforms
  • End to end project management skills
  • Fantastic communication and client management
  • Creative – an eye for design/layout and a flair for copy
  • Excellent written English skills
  • Great attention to detail

Personal Specification

  • 2-4 years’ experience, working in a similar digital marketing and event management role. A combination of the two skills would be highly valued.
  • Be flexible and have proven ability to work with limited supervision
  • Excellent organisational and project management skills, able to juggle multiple tasks within challenging deadlines against fixed budgets
  • Energetic, flexible, enthusiastic and self-motivated individual.
  • Adherence to Procurious’ values.

Social Media – Breaking News and Misinformation

Social media was awash this weekend with information, news and an overwhelming outpouring of sympathy in the wake of the atrocities in Paris on Friday night.
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The Procurious team would like to take this opportunity to offer our most sincere condolences and sympathies to people of Paris, and all those affected by this horrendous act of terrorism. We would also offer the same sympathies to the people of Beirut, Syria, Iraq and Egypt, who have all suffered similar attacks in recent days and weeks.

Social media has changed how the world sees events such as the ones in Paris. Breaking news, information and pictures all appear on the Internet during the events, with people uploading their first-hand accounts on the ground.

But, while social media can be a force for good, and a fantastic tool to help victims and their families, there is also a darker side, with misinformation, vitriol and rhetoric all spread in equal measure, often taking the focus away from the real story.

The Good

As the attacks in Paris unfolded on Friday night, many people turned to their phones to get an understanding of what was going on. With the news cycles taking time to unfold, social media was able to fill that gap with the headlines as they broke.

As well as providing access to the breaking news, social media accounts were being used to communicate with families and friends, to let others know that people were safe. Facebook immediately launched its “I’m Safe” button, which was first used during the Nepalese earthquake earlier this year, allowing a simple way to notify hundreds of people at once.

Not for the first time, a Twitter hashtag trended in the wake of the attacks. The #porteouverte hashtag offered a place to stay for those affected by the events, similar to the #illridewithyou hashtag, which trended in December last year following terror attacks in Sydney.

A sign of sympathy, a sign of solidarity, showcasing all the good that social media can accomplish in these situations.

The Bad

For all the good that social media can do, there is a dark side to the power that is wielded by its users. Giving everyone a voice allows for the support and sympathy, but also gives a voice to misinformation and ignorance.

For the most part, the misinformed stories that appear in the aftermath of such events are not malicious. A small story or throwaway quote can be exaggerated out of all proportion, taking on a ring of ‘truth’ as it spreads across social media.

Stories of the Eiffel Tower lights being turned off as a mark of respect (the lights are always turned off at a certain time of night) and of fires at the Calais refugee camp due to an act of retaliation (the cause is still unknown, but pictures were from a fire in November), are just some of the ‘facts’ that grew legs thanks to the virality of social media.

Where the misinformation is malicious, it can lead to hatred and prejudice being spread, and innocent people being targeted as a result. Already there have been arrests in the UK as a result of social media posts over the weekend.

Unifying Force

The power for good of social media outweighs the power for bad in most cases. The volume of news and information we all have access to means we can be better informed and more up to date on all the breaking stories. It would be a shame to see a tool that has the potential for being a conduit for social good be lost to the many, as a result of the actions of the few.

We have the responsibility to use this wealth of information appropriately, and keep our posts factual, especially when it comes to breaking news and events like Friday night (please still have your own opinions – this is part of the beauty of social media too!).

Let’s ensure that we use social media as a unifying force across the world, share quality information (and the occasional cat video…), shine a light in dark corners and allow us to create a global community. Are you in?

Here are some of the top procurement and supply chain headlines this week…

PepsiCo Scraps Marketing Procurement Function

  • PepsiCo has scrapped its marketing procurement function, handing procurement responsibilities to its brand teams
  • The move has been claimed as necessary in order for the company to remain competitive in “an environment where cost cutting and value building are paramount”.
  • With procurement now sitting with the brand teams, the company believes that discussions with agencies will have a more strategic slant, rather than being about cost cutting
  • The move will also help PepsiCo rid itself of the tension that existed between the two functions, while creating a leaner organisation

Read more at The Drum

Indian Supply Chain Firm Makes UK European Hub

  • TVS Supply Chain Solutions has announced its UK arm, TVS Logistics, is to become a regional hub for the business in Europe
  • The move is expected to create up to 100 new jobs at a newly built warehouse and call centre in Barnsley, and up to 500 more over the next 5 years
  • R Dinesh, managing director of TVS Logistics, said: “The UK is a highly successful investment destination for TVS Logistics. TVS will continue to make further investments in the UK and will make it the gateway for future growth and expansion for its business in Europe. ”
  • The announcement comes as Indian Prime Minister, Narendra Modi, visits the UK to discuss trade and investment deals worth up to £10 billion

Read more at Supply Management

Alibaba Sees Record ‘Singles’ Day’ Sales

  • Alibaba, the Chinese e-commerce website, has seen record sales for its ‘Singles’ Day’ promotion on the 11th of November
  • The platform boasted sales of 91.2 billion yuan ($14.3 billion), a figure that was up by 20 per cent on 2014’s total, and making the day larger than Black Friday and Cyber Monday combined
  • It was estimated that 68 per cent of the total transaction value were orders placed on mobile devices
  • Speaking at the end of Singles’ Day this year, Alibaba founder, Jack Ma, estimated that future events would see growth of up to 50 per cent

Read more at Supply Chain Digital

Open Procurement for Trans-Pacific Partnership (TPP)

  • The nations involved with the newly-signed Trans-Pacific Partnership (TPP) have agreed to opening their procurement contracts as part of the agreement
  • The deal will require its signatories to provide suppliers in other member nations with equal treatment in procurement processes
  • Public agencies will also have to publish tender notices which must include the description, conditions of participation, and selection criteria
  • Organisations will not be allowed to exclude suppliers purely on the basis of them not having won business in that country before

Read more at Supply Management

Mergers on the Horizon for Shipping Industry

A crippling slowdown in the international shipping sector is causing many industry leaders to rethink their strategy, and it appears that mergers are on the agenda.

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Last weekend the Singapore based Neptune Orient Lines announced that it was in ‘preliminary’ talks with both A.P. Moller Maersk of Denmark, and CMA CGM SA, based in Marseille, France over a potential merger.

When asked about the talks, the company was quoted as saying it “has a duty to assess all options to maximise shareholder value and improve its competitiveness.”

Mergers are afoot

These discussions are not the first movements toward consolidation of the shipping industry, a market sector that has been traditionally stagnant and unresponsive to cyclical market fluctuations.

Last year, German shipper Hapag Lloyd merged with its Chilean counterpart Compania Sud America de Vapores. Industry analysts have kept a close eye on the merger, with its outcome likely to have some bearing over the Neptune Orient Lines sale.

Oversupply of Capacity

The consolidation of the international shipping this thought to be driven by a vast oversupply of capacity in the market, coupled with decreasing freight rates.

The industry has traditionally avoided this sort of merger talk, as many firms (including Neptune Orient Lines) are owned by sovereign wealth funds or private organisations, which have been financially stable enough to take a long term position on the market and ride out these cyclical blips. However, it seems the market is due some correction with some industry observers suggesting it is over supplied by as much as 30 per cent.

Decreasing Competition?

Further consolidation in the industry is anticipated in China, with the country’s state-owned Cosco Group and the China Shipping Group Co. in discussions about combining their shipping operations.

The move has been ordered by the Chinese Government, who are looking to consolidate state-owned operations. Between the two organisations there was a total of $911 million in operating losses (EBIT) from container operations in the previous five years, as well as a significant drop in market share.

However, many experts are concerned about the knock-on effect of this merger across the industry in Asia, as it could precede further mergers and alliances in the region, ultimately damaging competition.

Stay tuned to Procurious for news and updates on these mergers, as well as to keep abreast of future changes in the shipping industry.