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Claim Your 60 Seconds of Fame: What’s Your Big Idea In 2017?

Looking for a way to build your personal brand and market yourself as a global procurement superstar? Here’s your chance to share your Big Idea with over 19,000 colleagues on Procurious! Get ready to launch your reputation as an influencer and help shape the global conversation for 2017.    

The Big Ideas Summit 2017 in London takes place on 23rd February. Register as a digital delegate here

Put yourself in the frame

In the lead-up to the world’s most innovative procurement event, we’re putting out the call for members of the Procurious community – that’s YOU – to share your Big Ideas via a 60-second video.

Why? Because we’re flexing our 19,000-strong community muscle to crowdsource innovation directly from our members! By sharing Big Ideas, we’ll break down competitive barriers, learn from colleagues with unique insights into procurement, and come away energised by a rush of new concepts that will launch the profession into new and exciting territory.

Amplifying your Big Idea is not only important for the profession, but it’s very good for your career. Although it’s not quite Hollywood, putting your video up in lights on Procurious offers an unprecedented chance to grow your profile as a thought-leader and a true influencer in procurement.

Join an all-star line up 

At the Big Ideas Summit 2016, we asked the thought-leaders gathered in the room to record their Big Ideas live on camera for the world to see. The result? We now have a remarkable library of Big Ideas available to all members under the Procurious Learning tab. The quality of ideas was amazing, and the range of viewpoints was even more so. From Guardian Journalist Lucy Siegle talking about fast fashion…

To RBS CPO, Laura Faulkner, on why procurement needs to focus on people…

… the scope for fresh, innovative ideas is unlimited! But Big Ideas videos aren’t just for the superstars appearing at the Summit itself – it’s over to you to help build on this groundswell by creating a 60 second video that will make YOUR mark on the profession.

Who can contribute?

Anyone and everybody! Whether you work in indirect or direct procurement, whether your focus is manufacturing, technology or logistics, whether you’re a CPO or a student – your ideas deserve to be shared. That’s because every procurement professional possesses unique insights based on differences in personal background, role, industry, and business type.

It’s super easy to create a 60-second video via your computer, phone or YouTube. You’ll find our recommendations on the best ways to create and share your video with Procurious at the end of this article.

Need more inspiration? Check out this 2016 Big Idea video from one of our community members (and competition winner), Kelly Barner:

How to submit your Big Idea

It doesn’t matter whether you film your Big Idea on your phone, tablet, laptop or PC- we’re not picky! But, to help you out, we’ve put together a list of some of our recommended methods for reaching out to us. Once you’ve completed your film, you can reach us by email ([email protected]) or on Twitter (@procurious_).

Youtube

Alternatively, if you have always dreamed of being an Internet star, YouTube might be the tool for you.

  • Head over to https://www.youtube.com/uploadand either select a readymade video to upload, or hit ‘Webcam capture’ to film your piece on the spot.
  • Select ‘Start recording’ to get the camera rolling (remembering to tick ‘Allow’ should you be prompted by YouTube’s Privacy Settings)
  • When done press ‘Stop recording’ followed by ‘Continue’.

Don’t be daunted by filling-out the ‘Basic info’ – all that’s required is a title, short description, and some tags. For your title we’d suggest using something along the lines of: My Big Idea is… [insert here]

In order to make your video easy to find, we’d recommend using the #BigIdeas2017 and Procurious tags – but feel free to add more!

Click ‘Publish’ when you’re happy and remember to send us the YouTube URL when it’s live.

Email and phone

Want to submit your video using a good old-fashioned email? We’ll accept that too! Did we mention we’re not picky?

Attach your video to an email with the subject line ‘My Big Idea Video’ and send to [email protected].

If you’re using an iPhone or iPad you can also record your video using iMessage. Android and Windows Phone users can choose to use Skype (Windows Phone has Skype already built-in)

We look forward to sharing your videos with our Procurious community of 19,000+ members! Happy shooting, and be sure to register as a Big Ideas Summit digital delegate so you can catch the wave of Big Ideas in 2017.

What’s It All About? The Big Ideas Summit 2017 FAQs

From Mumbai to Melbourne; and Paris to Poughkeepsie, you can take part in the world’s largest procurement event – free.

ESB Professional/Shutterstock.com

Register as an online delegate for The Big Ideas Summit in London here.

Last week, we announced that the Big Ideas Summit 2017 is going global with events in London, Sydney, Chicago, Dubai and Singapore. If you’re interested in getting involved but still not entirely sure what’s going on, look no further! We’ve compiled a list of our most frequently asked questions to get you fully up to speed!

What is it?

The Big Ideas Summit is a unique online event uniting procurement and supply chain professionals from around the globe to drive innovation and inspire change.   

When is it?

We kick off the global tour in London on 23 February 2017. But a lively conversation has already begun on Procurious! Expect to see most of the action between 09.00 – 17.00 (GMT) as we share video insights, quotes, photos and summary articles direct from London.

If you can’t join the action live, not to worry.  The thought-provoking discussions and debate will continue long after, and we’ll be sharing video footage of all our Influencers Big Ideas throughout February and March on Procurious. 

Where is it?

First stop, London! Although our Top Influencers will be meeting in Soho, due to its digital nature Procurious members across the world can get involved from the comfort of their office, armchair or even from the beach!

Procurious members can also use our iOS App to follow the action. It’s available in the Apple iTunes store and is free to download. 

How can I join in?

You’ll need to be a registered member of Procurious – join here for free if you haven’t already. Then simply access the Big Ideas Summit Group to soak-up thoughtful opinions, participate in insightful discussion, connect with our Influencers, access exclusive podcasts and interviews and share your own Big Ideas with the Procurious community.

We’ll also be live tweeting throughout the day, so make sure you’re following @procurious_ to share and respond to our tweets using the hashtag #bigideas2017.

Do I have to be a member of Procurious?

Yes. Participation as a Digital Delegate is free and open to all members of Procurious. By joining Procurious, you will not only have access to all the exclusive Big Ideas Summit content, but you will join a community of 19,000 like-minded procurement peers and gain access to all Procurious’ free resources, including being able to:

  • Upskill on the move with 80+ eLearning modules
  • Get your procurement questions answered by experts
  • Find out about relevant professional events around the globe
  • Become a digital delegate in the global think-tank, Big Ideas Summit 2017

Will Big Ideas be live-streamed?

Procurious boasts a global audience of 19,000+ procurement professionals, from more than 140 countries. If we were to cater to all of these time zones, it would be a tough job – so rather than live-streaming (and keeping you awake at awkward hours), we’ll share exclusive video and podcast interviews with Digital Delegates.

We will be using Periscope to live stream short videos from the day, but these videos – and all the Big Ideas videos  and podcast interviews – will be made available to you in the days that follow exclusively on Procurious.

I’m on the fence – why should I take part?

Here are five compelling reasons to join your fellow Procurians and stake your claim to the wealth of knowledge on offer:

  1. An audience with 50 of the world’s top procurement influencers
  2. Get your questions answered by world-class experts
  3. Make powerful new contacts around the globe
  4. Share your own Big Idea and make your voice heard
  5. Access exclusive content & learnings 

Who are the ‘Top Influencers’?

The term ‘influencers’ refers to the our 50 face-to-face delegates who attend in each city respectively: London, Sydney, Chicago, Dubai and Singapore.

Our experts span the worlds of procurement, technology, social media, journalism, social media, economics and academia.

Who are the sponsors and media partners?

The Big Ideas Summit is made possible by our partners IBMISMThe Hackett Group, and GEP

I’ve got a Big Idea of my own…

Great to hear! You can Tweet us your Big Ideas @procurious_ remembering to use the hashtag #BigIdeas2017.

Leave your Big Idea on Facebook – you can find us at www.facebook.com/procurious .

And of course you can tell the Procurious community all about it by joining the Big Ideas Group page and posting it to the community feed. 

Who is behind Procurious?

You can read all about us in Our Story.

 Join the conversation and register as a digital delegate for Big Ideas 2017 in London.

Keen on the Internet of Things? Beware of IoT Botnet Zombie Attacks!

Everyone’s talking about the Internet of Things and all of the exciting things it can do for us! But just how much have we considered the possible security risks? 

What’s All the IoT Fuss About?

CPOs are becoming ever keener on enhancing hyper-connectivity within their organisations using the Internet of Things. This is unsurprising given the potential opportunities for procurement teams; warehouses that can tell you what parts you’re running out of and reorder them for you, more efficient processes and the chance to revolutionise how they manage supply chains.

Of course, it’s not just businesses that will benefit from IoT. Early adopters are already using IoT in their homes with smart fridges, smart toasters and smart collars for their pets. Experts predict that by 2020, more than half of new organisations will run on IoT.

Given all of these benefits, you might well ask what’s not to love? Well, judging by recent events, it might be prudent for us all to exercise a little more caution as far as IoT is concerned. As it stands, the process is wide open to cyberattacks.

Botnet Zombie Attacks

Individual devices pose almost no threat to any computer or data centre but what happens if millions of them were taken over at once? IoT devices are likely to have weaker security (research suggests that default usernames and passwords for devices are rarely changed), which makes them an easy target. Hackers will pre-program their malware with the most commonly used default passwords in order to hack multiple devices.

Back in October, an IoT botnet, Mirai, attacked a number of the internet’s websites including Spotify, Netflix and PayPal. The botnet works by consistently searching for accessible IoT devices protected by default passwords. Once these have been identified, the malware turns them into remotely controlled bots and is able to use them for large-scale network attacks – think robot zombie army!

This week, computer security journalist Brian Krebs posted an article on his blog, Krebs on Security, revealing the identity of Mirai author to be Paras Jha, owner of a DDoS mitigation service company ProTraf Solutions and a student of Rutgers University. Whilst Mirai has only been used mischievously so far, to shut down certain sites, the actions have brought to question what damage could be inflicted by real cybercriminals.

The Worst Case Scenario

Whilst the Mirai October attacks were relatively harmless and only resulted in some websites crashing, some tech commentators are regarding it as a test-run. It’s concerning that the next botnet attack could be aimed at data theft or physical asset disruption.

As Krebs stated in his blog “These weapons can be wielded by anyone – with any motivation – who’s willing to expend a modicum of time and effort to learn the basic principles of its operation.” Someone with a grievance against a particular website could easily have it taken offline or simply employ a hacker to do it for them.

It’s especially concerning to imagine the consequences of IoT devices being hacked within critical or high security areas such as hospitals, banking, government, transport etc. Time will tell if we are able to secure IoT before we are subject to further, and perhaps more significant, botnet attacks.

What Can Be Done?

How can individuals and organisations improve their IoT security and prevent cyber attacks? We’ve put together a quick checklist to help you strengthen your security.

  • Use strong login passwords for all your devices and strong Wi-Fi passwords. A strong password contains upper and lower case letters, numbers and symbols.
  • Make sure all the software you use is fully updates – this can fix security flaws.
  • Don’t open mysterious email links or attachments – if you weren’t expecting it, don’t open it!
  • Never reveal card information.
  • Don’t trust anyone who calls you to discuss your computer or devices – hang up the phone.

What do you think about the IoT security risks? Should CPOs halt their investments and wait for the cybersecurity to catch up with the technology? Let us know in the comments below.

Here’s what else has been going on in the world of procurement this week…

Trump Kills TPP

  • President Trump upended America’s bipartisan trade policy on Monday as he formally abandoned the ambitious, 12-nation Trans-Pacific Partnership.
  • In doing so, he demonstrated that he would not follow old rules, effectively discarding longstanding Republican orthodoxy that expanding global trade was good for the world and America.
  • Although the Trans-Pacific Partnership had not been approved by Congress, Mr. Trump’s decision to withdraw carries broad geopolitical implications in a fast-growing region.
  • Trump said American workers would be protected against competition from low-wage countries like Vietnam and Malaysia, also parties to the deal.

Read More on New York Times

Wal-Mart Cuts 1,000 HQ Jobs

  • Wal-Mart Stores began a round of some 1,000 layoffs at its corporate headquarters, with most cuts targeting the retailer’s supply chain operations.
  • The shakeups, which have been expected, suggest that Wal-Mart is willing to undo much of the work in its existing e-commerce operations in favour of Jet’s signature pricing and fulfilment algorithms, which reward shoppers in real time with savings on items purchased and shipped together.
  • The dent in its supply chain ranks could undermine one of Wal-Mart’s core strengths: its highly efficient brick-and-mortar-based distribution system.

Read More on Retail Dive

Samsung’s Exploding Galaxy Note7 Blamed on Battery Suppliers

  • Approximately 2.5 million phones have been recalled by Samsung due to explosive defects of the Galaxy Note since September 2016.
  • Recalls happen all the time, but while the Samsung case rose to infamy due to its flammable and potentially injurious nature, the revelation that Samsung’s primary and backup suppliers independently produced a faulty phone component is equally remarkable.
  • What was a supply chain problem was resolved by an operations solution in this particular case. However, batteries will be subject to more strict quality controls to avoid future issues.
  • Previous analyses also have suggested Samsung’s rush to production — both before and after the first recall — may have also impacted the finished good’s quality.

Read More on Supply Chain Dive

Procurement Salaries On The UP In 2017

  • Procurement professionals can expect to see pay rises averaging 10% in 2017, according to a salary survey
  • However, contractors will get the biggest rises – 15% – while permanent staff can expect to get 4%
  • Sam Walters, associate director at Robert Walters, said: “Across all levels of seniority we have seen demand grow for high quality procurement professionals over the past year, with those with IT procurement experience being particularly highly sought after

Read more at Supply Management

Technology Is The Answer. But What’s The Question?

Companies everywhere are super-keen to invest in technology and an eye-watering $3.49 trillion will be made available in 2017 for this purpose – but how can CPOs and IT buyers ensure they make the right decisions? 

StepanPopov/Shutterstock.com

If you ask any CPO what their main priorities are for the next five years, you’re almost guaranteed to receive an answer involving technology. Spend for software and IT services is rising at a dramatic rate, and is expected to increase by an incredible 29% in 2017 to $3.49 trillion in the U.S. alone.

The urgency for harnessing cutting-edge technology is understood, and the good news is that business are making the money available. But how do you make sure you’re investing in the right tools?

Here’s the secret: you need to make sure you’re asking the right questions

Supply management professionals will gather in Washington, D.C. on March 22-24 for ISM Tech 2017, where they will gain access to the knowledge required to make intelligent technology investment decisions for the unique needs of their organisations. IT procurement experts will reveal new possibilities and cost-saving efficiencies in areas including advanced analytics, manufacturing 4.0, the role of robotics, going digital and utilising augmented reality.

Keynote speakers include Rick Smith, CEO of Fast Radius, who will be presenting on “Our 3D-printed future”, while Silicon Valley Entrepreneur and bestselling author Martin Ford will deliver a keynote titled “How data is driving the transportation revolution”. Other big names include Abtin Hamidi, Co-Founder and Executive Vice President of Cargo Chief; Amanda Prochaska, Vice President Procurement Program Management Office, MGM Resorts International; and Tom Martin, Director of Learning Solutions at ISM.

What questions will Tech 2017 help you to answer?

  • How can robotics streamline my business processes?
  • What’s the best way to use the Internet of Things (IoT) in the supply chain?
  • How can my organisation use technology innovations to capture digital customers?
  • How can I leverage analytics to align planning with demand?
  • How should I mitigate technology-related risks?
  • What capabilities will my team require to keep up with technological advancements?

As with every ISM Event, Tech 2017 is all about the networking. Attendees will have the opportunity to meet scores of innovative suppliers and exchange ideas with representatives from top providers in the field, strategizing with experts on their technology needs to identify new ways to tackle existing challenges and future growth opportunities.

This is one event where just about any conversation taking place in the Exhibition Hall is likely to make fascinating eavesdropping. Instead of the usual procurement “chatter” around traditional practices such as sourcing, contracts and requisition-to-pay, attendees will discuss cutting-edge concepts like cognitive analytics, 3D printing, digital reporting, artificial intelligence and machine learning.

As you network, keep in mind that IT procurement experts have been tipped to be the CPOs of the future. According to Procurious founder Tania Seary, the profession is now looking to this highly-skilled group for leadership, and IT experts are on the fast-track to leadership due to five key advantages:

  1. IT experts already control an important chunk of their organisations’ strategic spend.
  2. Soon everything we buy will include an element of technology.
  3. IT procurement experts know how to drive change.
  4. They are innovation scouts.
  5. They understand cyber security.

Don’t miss out – ISM Tech 2017 will take place at the Gaylord National Resort and Convention Center, Washnigton D.C. from March 22-24, 2017.

Fasten Your Seatbelts: You’re Going Global!

The Big Ideas Summit, powered by Procurious, is embarking on a world tour. And you’re all invited! 

Register as an online delegate for The Big Ideas Summit in London here.

Fasten your seatbelt, fold away your tray table and return your seat to the upright position – we’re taking you and your procurement career on an epic journey!

Funding might be tight and you can’t even remember the last time you had a spare second to give to your career development but, in 2017, everything changes!

Procurious will be bringing you the best in procurement thinking from our events around the world. And the best news? You’ll be able to access all of the content for free and at your leisure; whether it’s from your desk, on the go or in the comfort of your own home.

19,000 Procurious Members On Tour

For the past two years, Procurious has hosted The Big Ideas Summit, the world’s first digitally-led procurement event, in London.

The event has earned a global reputation as the most innovative leadership event for the procurement profession and 2017 promises to be just as exciting and thought provoking as we officially go global!

This year, we’ll be taking you around the globe with events taking place in London, Singapore, Sydney, Chicago and Dubai.

Wherever you are in the world you can fully participate for free by registering for each individual event as a digital delegate. You’ll be joining a community of 19,000+ procurement professionals, from 140+ countries, on Procurious to connect, learn, discuss and innovate together.

What is the Big Ideas Summit?

The Big Ideas Summit is an interactive, online event where up to 50 senior executives, industry thought-leaders and CPOs come together to connect with digital delegates from across the globe via our social media platform to discuss and test strategies and solutions for real world change.

2017 looks set to be a huge year for procurement thanks to rapid technology developments including advancements in cognitive tech and Industry 4.0. Surely there’s no better time to expand The Big Ideas Summit by sourcing ideas from top thought leaders not just in London, but around the world.

The procurement function must adapt and evolve to accommodate these technology changes and be ready to embrace what we’re calling Procurement 4.0. The question is: Are We There Yet?

The Flights Are Booked! Where Are We Going?

The Big Ideas Summit, London – 23rd February 2017 

Procurement 4.0: Are We There Yet?

We’ve got a jam packed agenda lined up for the primary event of the year. Our speakers will include:

  • John Macfarlane: Chairman, Barclay’s PLC
  • Linda Yueh: Fellow in economics, Oxford University,  Adjunct Professor of Economics at London Business School
  • James Bannerman: Creative Change Agent, Author of Genius
  • Mark Stevenson: Futurist, Author of An Optimist’s Tour of the Future

Nexus, Singapore – 30th March 2017

Navigating Procurement’s interface between cost and risk. Singapore’s NEXUS event will focus on managing the critical interface between growth and cost.

Pivot, Sydney – 17- 18th May 2017

Asia-Pacific CPO forum. Disrupting a decade of Big Ideas in Procurement.

Scrum, Chicago – 28th September 2017

A Procurement & Supply Chain Technology Sprint. Chicago’s SCRUM TM event will focus on the way technology is disrupting the workforce and reimagining how procurement value is delivered.

Reboot, Dubai – 23rd November 2017

Designing the Procurement 4.0 Workforce. Dubai’s REBOOT will focus on the talent and people implications of disruption created by Industry 4.0.

Buckle Up, We’re Ready For Take Off! 

The Big Ideas Global Event Series 2017 promises to light up social media, sparking vigorous discussions and crowd-sourcing ideas for the future of the profession but we can’t do it without you! We need your intput your questions and, of course, your big ideas for procurement.

By Registering As A Digital Delegates You Can…

  • Gain access to insightful discussions via our Big Ideas Summit 2017 groups
  • Connect with our influencers and ask questions live on the day of the events
  • Share big ideas for procurement with the Procurious community
  • Follow the day’s events live via our social media channels
  • Access video content from our speakers and attendees on the day and post-event

Who needs a workplace mentor when you can take your pick from the most exciting procurement influencers that the world has to offer?

You can now register free of charge as a digital delegate for our London event! What are you waiting for? Grab your passport and let’s go!

Meet The New General Secretary of Globalisation

Chinese President Xi Jinping claims world leadership for globalisation while the U.S. moves towards protectionism.

Chinese President Xi Jinping used his address at the World Economic Forum in Switzerland last week to defend globalisation and criticise the rise of protectionism in Western economies.

The speech is the latest in a series of appearances on the world stage where Xi has sought to support the existing economic order that has fuelled decades of unprecedented growth in China. Similar appearances include Xi’s address to the United Nations in 2015, hosting the G20 Summit in 2016 and his speech at the Asia-Pacific Economic Cooperation Summit in Peru in November last year.

De facto Chinese leadership?

With the Trans-Pacific Partnership scheduled for the chopping block when President Obama steps down, Xi now has the opportunity to shape global economic systems to China’s benefit and step into an apparent vacuum for worldwide economic leadership, particularly where free trade and globalisation are concerned. In many ways, the world is now witnessing the situation Obama sought to avoid with his “Pivot to Asia”, designed to maintain American influence in the East.

In a commentary following Xi’s speech, the China Daily referred to the country as now being “the one major power with a global outlook”. “Ready or not, China has become the de facto world leader seeking to maintain an open global economy and battle climate change. In effect, President Xi has become the general secretary of globalisation.”

Xi’s Defence of Globalisation

“There is no point in blaming economic globalisation for the world’s problems because that is simply not the case,” Xi said. “And that will not help to solve the problems.” The problems Xi is referring to are those often referenced by Western populists across the U.S. and Europe, including growing wealth gaps and domestic unemployment related to offshoring. Xi’s speech touched on some of the deeper causes of sluggish world growth, looking to reinforce confidence in global development.

“Protectionism is like locking yourself in a dark room, which would seem to escape wind and rain, but also block out the sunshine,” Xi told the Forum. “No one is a winner in a trade war.” Xi announced that China has no intention to devalue its currency to boost competitiveness, despite ongoing criticism on this point from the new U.S. President.

Can globalisation function without the U.S.?

Despite the nation’s ongoing economic slowdown, the World Economic Forum estimates that China accounted for almost 39% of global growth last year. President Trump’s protectionist tariffs, along with his retreat from trade deals and climate pacts are likely to slow growth further. A similar level of concern is building in India, where the $150 billion outsourcing industry is under threat.

As WorldPost Editor-in-chief Nathan Gardel writes, “The optimal arrangement for making globalisation work is for the U.S. and China to join together as “indispensable partners” based on a convergence of interests to create a world order that works for all. If the world’s two largest economies, though from distinct civilizational spheres, don’t buy in, it won’t work for anyone.”

Read more Huffington Post 

 In other procurement  news…

Britain to purchase 60 trains for HS2

  • Procurement of a fleet of up to 60 High Speed 2 (HS2) trains was officially launched on Friday by Britain’s state secretary for transport.
  • HS2 is a planned high-speed railway in the United Kingdom linking London, Birmingham, the East Midlands, Leeds, Sheffield and Manchester. It would be the second high-speed rail line in Britain, after HS1 which connects London to the Channel Tunnel.
  • The contract has an estimated value of £2.75bn and is due to be awarded by the end of 2019. The overall projected project cost of HS2 is £56bn.

Read more at the Birmingham Mail

GM announces $1 billion investment in U.S. based manufacturing plants

  • GM will invest $1 billion in its existing manufacturing plants, creating or retaining nearly 7,000 domestic jobs.
  • The announcement comes after President Trump criticised GM and other automakers for building vehicles in Mexico and shipping them to the U.S., including a Tweet threatening to tax GM for importing the Chevrolet Cruze.
  • GM’s targeted areas of growth include its subsidiary, GM Financial, and advanced technology divisions.

Read more at Investopedia 

Meals on Robot Wheels

  • Autonomous robot manufacturer Starship Technologies has signed deals with meal delivery companies Postmates and DoorDash to deliver lunches in Washington and San Francisco, beginning in February.
  • The robots are able to autonomously navigate sidewalks and traffic conditions, while customers track their progress via an app as they make the delivery.
  • Each robot weighs approximately 18 kg and can carry three filled shopping bags, while travelling at speeds of 6.5 kilometres per hour.

Read more at CIO 

Colin Powell To Complete Stellar Keynote Line-Up At ISM2017

The fact that the Institute for Supply Management can attract keynote speakers of this calibre offers proof that the profession truly has come of age.  

ISM has announced that the former U.S. Secretary of State, General Colin Powell, will join former UK Prime Minister David Cameron to deliver a keynote at the year’s biggest conference in Supply Management, ISM2017.

General Powell will inspire and motivate ISM2017 attendees with stories of leadership under fire – and how to deliver complex supply systems when facing immovable deadlines.

As former Chairman of the Joint Chiefs of Staff, Powell assembled a multibillion dollar supply chain involving 42 nations during Operation Desert Storm in the Persian Gulf. Powell and his team pulled together millions of coordinated supplies: military goods, machinery, food, weaponry, and critical spare parts.

“As Secretary of State, General Powell used the power of diplomacy to build trust and create alliances, while also having the grit and experience forged by his military career in delivering results when it matters most,” said Tom Derry, ISM CEO. “Powell’s insight will be critical to ISM members and other purchasing and supply chain professionals as they focus on the challenges of working in a tough, ever-changing global economy.”

David Cameron, former Prime Minister of the United Kingdom, who stepped down from the position in 2016 in the wake of the Brexit decision, will also keynote ISM2017 conference attendees about his experience navigating geopolitical and public policy issues and their impact on the global supply chain. He will address a range of events in Europe and worldwide, and what they could mean to supply managers everywhere.

Powell and Cameron’s keynotes share a theme that will resonate with supply managers everywhere – how to deliver effective short-term solutions – and leadership during a time of crisis. The inclusion of two political veterans is particularly apt in 2017 as Europe continues to adjust to the effects of Brexit and the U.S. recovers from one the most divisive presidential races in recent memory.

Registrations are now open for ISM2017, which will be held May 21–24, 2017, at the Disney Coronado Springs Resort in Orlando, Florida.

Focused on “Critical Insights, Powerful Results,” the event expects to draw more than 3,000 attendees from around the world. ISM 2017 features keynotes, learning tracks, and sessions about leading in times of stress. More than 75 interactive sessions will be part of six learning tracks at ISM2017, and executives from firms such as Google, Toyota, Pfizer, Direct Energy, Zimmer Biomet and others will present.

Find out more about ISM2017

What Would You Do If The President-Elect Criticised Your Supply Chain?

Major US organisations are starting to rethink their manufacturing strategies for fear of being labelled “un-American” by the President-Elect. 

Every US-based supply manager with outsourced supply chains should follow Donald Trump on Twitter. Why? Because for major companies with overseas manufacturing operations, there’s every chance that the President-Elect will label your organisation “un-American”.

Since November 2016, Trump has criticised companies including Ford, Toyota, GM, United Tech and, more recently, pharmaceutical organisations including Johnson & Johnson, Pfizer and Bristol-Myers for moving U.S. jobs abroad. His focus appears to be on companies outsourcing to Mexico and China, where historically low-cost labour enables organisations to manufacture their products at a competitive level.

Companies changing plans

According to a report from Reuters, boards of a number of U.S. companies that manufacture overseas have directed their public relations teams to plan a response in case the President-Elect singles them out on Twitter.

Similarly, some companies are reportedly re-thinking mergers and other moves that would involve outsourcing to China for fear of being cast as “anti-American” by the President-Elect. Ford has backed away from plans to build a $1.6 billion plant in Mexico, while United Tech has announced plans to keep half of the 2,100 jobs it was shifting over the border. Reports have also emerged of dozens of major organisations contacting government relations and PR advisors to assess if they have any “red flags” that would draw Trump’s attention and lead to a damaging Tweet being sent.

New risk metric: weighing national interest

According to the Reuters report, “corporate leaders can no longer focus only on maximising shareholder value; they must now also weigh national interest.” Essentially, being labelled as un-American has become a new risk metric that needs to be weighed against the cost benefits of overseas manufacturing.

Trump’s aggressive rhetoric against China may also lead to a reduction of outsourcing to the manufacturing powerhouse as the relationship between the two countries is expected to decline. Trump has also flagged high tariffs as another way in which he plans to move manufacturing jobs from China back to the U.S.

The effects of a Trump Tweet cannot be downplayed. Lockheed Martin lost $4 billion in value as share prices feel immediately after Trump criticised the organisation on Twitter, while Toyota saw $1.2 billion in value wiped in five minutes following a similar Tweet. Developers have even created an App to alert investors to Trump’s market-moving Tweets. This week, the nine biggest pharmaceutical companies that use manufacturing plants in Europe, Asia and Africa lost roughly $24.6 billion in 20 minutes during a news conference in which Trump singled out the industry.

Alongside potential losses in share value, coming under fire from the soon-to-be President puts organisations at risk of brand damage and consumer boycotts.

It is unclear whether Trump will continue to use Twitter to drive his “Made in America” agenda, or use more traditional tools to affect change such as policies and import tariffs.

What do you think about “Made in America”? Are organisations right to be wary of a tweet from Trump?  Let us know in the comments below. 

We’ve kept one eye on the news headlines from around the world this week…

Proliferation of “non-human workers” accelerates

  • Amazon reportedly placed 15,000 robots across 20 fulfillment centres in 2016, increasing its machine workforce by 50%.
  • Similarly, iPhone manufacturer Foxconn has replaced 60,000 Chinese employees with robots, while Wal-Mart is automating up to 7000 jobs, including roles in the accounting and invoicing departments.
  • In the U.S. alone, up to five million jobs are expected to be replaced by robots by 2020.

Read more at Supply Chain Dive 

Blood supply chain faces an uncertain future

  • Due to changes in medical practices, hospital demand for blood has been dropping steadily for the past decade.
  • The strong supply and weak demand for blood has led to a 10 percent drop in the cost of a unit of red blood cells in the US, with overall revenue for the blood banking industry dropping to US$1.5 billion per year in 2014, down from $5 billion in 2008.
  • S. blood banks are expected to lose 12,000 jobs in the next few years, or roughly a quarter of its workforce.

Read more at  The Conversation

 

Flying Warehouses & Fashion Buyouts – Amazon Dominates Headlines

No sooner had 2017 started than Amazon appeared in the news in a big way. From flying warehouses, to buyouts of fashion chains, no-one dominates the headlines quite like the online giant.

flying warehouse

Disruption. It was a buzzword of 2016, and even if the word is falling out of favour, the activity looks set to continue this year. And the company at the forefront (again) of this disruption is Amazon.

The online giant has proven time and again it’s not content to rest on it laurels. So when the company appeared across the news headlines for a variety of reasons, you might not have been surprised. However, when you consider the headlines it was making, you might think again.

Flying Warehouses – The New Reality

Many companies will consider the cost of new facilities to meet demand trends in their strategies. Amazon, however, appear to have bypassed the real estate question with their proposed flying warehouse.

The company submitted patents late in 2016 for these warehouses, which would be serviced by a fleet of drones. The purpose of the “airborne fulfilment centre” would be to visit spectator-heavy events (think music festivals, sports events) where they could sell in-demand goods.

Analytics firm, CB Insights, were responsible for finding the flying warehouse patent, originally filed in 2014.  Additional patents serve to outline other plans in line with the warehouses too. These include a fleet of shuttles to keep warehouses stocked, the creation of an interconnected network of drones, as well as docking stations for drones to allow them to be picked up by the shuttles.

A diagram from Amazon’s patent (image courtesy of South China Morning Post)

The idea might sound a touch fantastical, but there are serious potential benefits that Amazon could realise. Not only would it save Amazon money in building warehouses, but it would also save on energy costs. Drones would be able to glide down to deliveries before being picked up.

Add to this using the airships as flying billboards, and Amazon could sell advertising space above some of the world’s biggest events.

This could represent a huge step change in the retail environment, with Amazon at the forefront. And you wouldn’t bet against them making it a reality. After all, it wasn’t long ago they completed the first drone delivery – something people dismissed when the idea was first proposed.

The Fastest Fashion of All?

It’s not just logistics and warehousing that Amazon are interested in disrupting either. There are strong rumours in the USA that Amazon are set to purchase American Apparel out of bankruptcy.

The clothing retailer went into bankruptcy in November for a second time. Now, with bids submitted late last week, it is suggested that Amazon might come out victorious. The move would fall in line with Amazon’s strategy to add to it’s nascent fashion arm.

The buyout would help to protect 4,500 jobs in America, and allow them to access American Apparel’s 100 plus stores across the country. It could also give Amazon a political boost following heavy criticism of its practices from President-elect Donald Trump.

Throughout his Presidential campaign, Trump criticised Amazon (amongst others) over its tax payments and business model. However, by purchasing American Apparel and maintaining its ‘Made in America’ promise, it’s thought that it may help smooth tensions between the company and the future President.

Technology Trends

Finally, Amazon has also been making headlines in the technology world. Even without attending the CES gadget show in Las Vegas, Amazon is making its presence felt.

Not only is Amazon’s ‘Alexa‘ AI assistant gaining in popularity, it’s also the chosen system for many other companies. Prominent companies, including Ford, LG, and Lenovo have all opted for Alexa as the AI interface in some of their products.

Increasing number of products are integrating voice commands, and Amazon’s decision to release an Alexa developer kit last year appear to be paying off. The company is seen as the early mover in this space, and looks set to continue its dominance over its rivals.

Even if there is still potential for glitches in the system delivering unwelcome surprises!

Do you think Amazon will make its flying warehouses a reality? Is this the next step in retail? Let us know in the comments below.

With the new year flying past, we’ve saved you some time by searching out this week’s top headlines…

Tesla’s Gigafactory Begins Mass Production of Battery Cells

  • In partnership with Panasonic, Tesla has begun producing lithium-ion battery cells for energy storage products and the Model 3 vehicle.
  • The Gigafactory is being built in phases, with manufacturing beginning inside finished sections. It is expected to be the largest building in the world when completed.
  • The current structure is only 30 per cent complete, yet houses 4.9 million square feet of operational space.
  • Tesla anticipates cost reductions through increasing automation, process design, locating most manufacturing processes under one roof and economies of scale.  

Read more on the Tesla website

Trump “Personally Involved” in Procurement Decisions

  • An analysis of Donald Trump’s campaign promises and policies has revealed that he is unlikely to make significant changes to U.S. Defence procurement policy.
  • However, he will seek to be personally involved in the negotiation of major acquisitions.
  • The President-elect tweeted about cost overruns of the Lockheed Martin F-35 fighter jet, and encouraged Boeing to compete with its F-18 Super Hornet.
  • Trump’s focus appears to be on technology that is immediately available rather than future research and development, and leans towards Airforce and Navy investment rather than Army.

Read more at Defense News 

Top Supply Chain Universities Ranked in U.S.

  • SCM World has released the results of a survey ranking the top institutions for Supply Chain courses in the U.S.
  • Practitioners were asked to list their top three institutions that are “markers of supply chain talent”,
  • The top five places went to: Michigan State University; Western Michigan University; Massachusetts Institute of Technology; Penn State University; and Arizona State University.
  • Connection to industry, through practical education and internships, was also flagged as an important factor in the results.

Read more at Forbes

Apple Removes New York Times from App Store

  • Apple has removed the New York Times App from its Chinese app store, in compliance with a request from the Chinese Government.
  • The Chinese Government began blocking the NYT website after a series of articles on then Prime Minister, Wen Jiabao, in 2012.
  • An Apple spokesperson stated the reason for the removal was “that the app is in violation of local regulations”.
  • Both Apple and Chinese authorities declined to comment on what regulations had been violated, or if the app would reappear in the future.

Read more at the New York Times

Trade War Against China? A Supply Chain Perspective

Comments made by President-elect Trump last year sparked talk of a trade war with China. But what impact will this have on supply chains?

This article was originally published on My Purchasing Center.

The Chinese government recently raised a “tit for tat” challenge to new U.S. President-Elect Donald J. Trump over a potential trade war against China, in an editorial published on China’s international state news outlet Global Times.

The op-ed states that “[a] batch of Boeing orders will be replaced by Airbus. U.S. auto and iPhone sales in China will suffer a setback, and U.S. soybean and maize imports will be halted…” if Trump decides to impose a proposed 45 per cent trade tariff.

A Special Trade Relationship

To overstate the significance of the U.S.-China trade partnership is quite difficult.

In 2015, they accounted for $659.4 billion in bilateral trade, of which $161.6 billion were Chinese imports of U.S.-produced goods. As the largest, and yet still one of the fastest-growing consumer markets in the world, China is vital to the strength and prosperity of America’s export economy.

Most notably, of the American-made products included in the Global Times statement, agricultural products ($20 billion), aircraft ($15 billion), and vehicles ($11 billion) are amongst the highest value U.S. export categories. They are therefore critical to the success of American companies operating in these industries.

From China’s perspective, it is no longer the emerging market economy of decades past. It can instead rely on its own considerable production capabilities, rather than sit by the wayside as the U.S. attempts to push a trade agenda through its considerable economic muscle.

iPhone Impact

Amongst the multi-billion-dollar trade categories, the iPhone may seem like a curious inclusion. However, despite FY2016 sales of nearly $50 billion in China market, Apple’s Chinese revenues are still projected to grow.

Beyond the obvious consequences of an iPhone sales freeze, or a 45 per cent trade tariff on Apple’s top line, there are also significant economic implications behind China’s statement from a supply chain perspective. In particular, from the viewpoint of a procurement specialist.

As the most valuable company in the world, Apple’s tremendous growth in recent years has primarily been driven by sales of the iPhone. The device made up over 63 per cent of Apple’s FY 2016 revenues.

Analyst estimates of the iPhone’s profit margins have put it at over 70 per cent of retail value. This makes it by far the most lucrative amongst Apple’s products, and likely across the spectrum of consumer technology products.

According to a recent report by BMO Capital Markets, the iPhone took an astonishing 103.6 per cent of smartphone industry profits in Q3 2016. What enables the iPhone to reap such staggering margins is largely due to Apple’s global supply chain. It entails near end-to-end cost minimisation, and an integrated procurement strategy from its hundreds-strong global supplier network.

Value Chain Activities

Apple’s value chain, from its inbound logistics and manufacturing through outbound logistics and marketing, all go through China in one way or another. Procurement plays a central role in providing each activity with the necessary resources to operate efficiently and at low cost.

A proposed 45 per cent Chinese trade tariff would fundamentally alter how, and from where, Apple procures the majority of these resources. It would also significantly drive up costs and logistical complexities throughout the whole of its global supply chain.

It is important to note that very few companies possess the in-depth supply chain practices of Apple. Therefore, integrating a centralised procurement structure into such companies’ supply chains becomes even more critical.

The prevalence of global supplier and distribution networks, like Apple’s, across modern manufacturing companies relays the important role of procurement specialists in the development of integrated strategies. These strategies must not only generate value, but also mitigate the multitude of risks associated with maintaining international supply chains.

In the event of significant geo-political and economic shocks, such as a potential U.S.-China trade war, procurement can work closely with companies to ensure manufacturing processes are harmed as little as possible.

This means that across affected countries, companies can rest assured that their sourcing, manufacturing, distribution and sales activities can be substituted quickly and cost-effectively through alternative sources, while maintaining similar levels of cost and operational efficiency.

Ultimately, no one can say for sure whether President-elect Trump will initiate a trade war with China. Or to what extent Apple and companies like it will be affected. However, companies with an established supply chain and sound procurement practices can sleep in comfort knowing that they will be prepared to face similar challenges that may come their way.