Tag Archives: procurement news

Modern Slavery Act Will Force SMEs to Step Up to the Plate

With new changes to the Modern Slavery Act coming into effect as of April 1st, we ask how much progress has been made since 2015?

At Procurious, we know it’s crucial to continue focusing on the issue of modern-day slavery, both with regard to tackling existing cases, and to encourage and applaud organisations who are making real efforts to end the practice world-wide.

Last week, it was reported that the majority of small firms are ignorant of the Modern Slavery Act and the impact that the law changes will have on them.

On the flip side, it was announced that the Building Research Establishment (BRE) are launching a standard to help businesses tackle risks around modern slavery.

As the Telegraph reports, with the modern slavery laws set to change again as of this April, ignorance is no longer an excuse.

Modern Slavery Act 2016

New UK legislation, effective from 1st April 2016, requires all businesses with a turnover of over £36 million to prove they have taken steps to remove slave and child labour from their supply chains.

It is currently estimated that between 21 and 39 million people worldwide are victims of modern slavery. The changes to the Modern Slavery Act 2015 will force big organisations to fully audit their supply chains.  

It is expected that, as larger companies begin to investigate suppliers throughout their supply chain, there will be a trickle down effect to smaller businesses, who will be expected to prove they are slavery-free.

Chris Ross, founder of J&K Ross, spoke with The Telegraph stating, “ultimately, big companies will not deal with firms of any size that they don’t feel safe with.” With this in mind, he has begun voluntarily auditing the supply chain of his safety equipment business, to ensure it is fully compliant.

CIPS have released guidelines to help companies below the £36 million threshold voluntarily comply with the act.

SMEs Unprepared

According to research released by The Chartered Institute of Procurement & Supply (CIPS), almost two thirds of SMEs are unaware of the Modern Slavery Act and the impact it has on them. The CIPS polled 263 SMEs.

Despite the changes only directly targeting larger businesses, it is expected that there will be a knock-on effect on SMEs. It is these smaller businesses that are particularly ignorant of how the amendments to the law this April will affect them.

Whilst acknowledging that smaller companies may not have access to the same resources as large organisations to tackle slavery, the report asserts that a number of simple measures can be put in place. These include the formation of partnerships between larger corporations and smaller SMEs.

David Noble, Group CEO of CIPS, asserted that, “Ultimately, modern slavery is not an issue confined to the supply chains of large multinational corporations. On the contrary, SMEs can often have long and complicated supply chains themselves.”

Despite many SMEs claiming to not have found any evidence of slavery or forced labour within their supply chains, it seems this is largely due to ignorance and lack of action. Of the SMEs surveyed, 67 per cent admitted to having never taken any steps to tackle the issue of forced labour, and 75 per cent said they would not know what to do if modern slavery was found in their supply chains.

New Standard to Assist Business

Nigel McKay, former procurement head at HS2, is launching a standard with the Building Research Establishment (BRE), which will assist businesses in tackling risks around modern slavery and other ethical labour issues within their supply chains.

The standard will cater to companies of all sizes, and be applicable across varying industry sectors for three tiers of companies – those with a turnover under £36 million, between £36 and £500 million, and those with turnovers of more than £500 million.

Shamir Ghumra, Associate Director, Head of Responsible Sourcing in the Centre for Sustainable Products at BRE, said that the organisation, “recognised that there is a need to strengthen some of [the work BRE has previously done in this area], and since then Modern Slavery Act has come out. It’s not just about how to comply with the Act, but looking at ethical labour issues as a whole.”

McKay believes that nowadays within procurement, people are more socially and ethically aware – “a lot of conversations are now around the social and ethical issues of procurement and how much good your pound does, not just how cheap something is.”

McKay is realistic about the scale of what they are trying to achieve, acknowledging that changing a company’s approach to its supply chain can can several years. He claimed that “Not every company will be able to do everything in the first year. It takes three, four or five years, to re-engineer a supply chain.”

With the law change effective as of last Friday, it won’t be long until SMEs feel the pressure to take action and start voluntarily assessing their supply chains.

We’ve been keeping up with other procurement news around the world, and have picked out the top headlines for you this week…

Ghana Approves Procurement Bill

  • The Public Procurement Amendment Bill 2015 has been passed by the Ghana’s parliament.
  • The bill will introduce a sustainable public procurement framework for contracting and electronic procurement, and will also bring about a more transparent and accountable procurement system.
  • The 2003 Public Procurement Act has been amended to improve public financial management, and now needs to be signed by Ghana President, John Dramani Mahama, to bring it into force.
  • 2003’s Public Procurement Act “exposed some administrative bottlenecks, delays and imbalances in the procurement structure,” the government statement added.

Read more at Supply Management

Brambles’ Sustainability Goals

  • Brambles, a global supply chain logistics company operating primarily through the CHEP and IFCO brands, has announced its Sustainability Goals for 2020.
  • The company’s goals focus on the most material aspects of the Group’s operations and are closely aligned with the United Nations’ Sustainable Development Goals (SDGs).
  • Tom Gorman, Brambles’ CEO said “Brambles has made significant progress in delivering continual improvement through our sustainability objectives over the past five years.”
  • You can view the full details of the company’s 2020 goals here.

Read more at Supply Chain 24/7

Manufacturers Trying to Forge Disruptive Supply Relationships

  • Manufacturers operating in high-value sectors, such as the aerospace and automotive industries, are going all out to forge relationships with businesses in other sectors in order to secure a clear, competitive advantage.
  • These businesses are demonstrating how a bit of lateral thinking and a clear sense of what end users want can create some unlikely and yet productive partnerships.
  • It is now business critical to establish supply partnerships that will enable them to work together to innovate new products and services and bring them to market more quickly.
  • Of course, there are significant risks attached to such supplier collaboration relationships, which some businesses may be reluctant to establish.

Read more at Supply Chain Digital

World Bank Report on East Asian Cites

  • East Asian cities could create more than 7m new jobs each year if they boosted infrastructure and improved skills and the regulatory environment, claims a new World Bank report.
  • The report looks at how the world’s successful cities have achieved their growth. It found cities did best by perfecting existing skills rather than completely overhauling themselves.
  • East Asian cities have grown faster than anywhere else in the world in recent years and are likely to keep expanding.
  • The report said linking infrastructure investments with private sector needs, zeroing in on the skills gaps, and making sure private and public sector industries supported each other were all factors which led to cities becoming more competitive.

Read more at Supply Management

What Can National Apprenticeship Week Do for the UK Economy?

Last week was National Apprenticeship Week in the UK. The National Apprenticeship Service uses the week to raise awareness of the fantastic benefits apprenticeships can offer to business, employees and the wider economy.

Robert Kneschke/Shutterstock.com

It’s great to see UK businesses embracing National Apprenticeship week. Despite the popularity of apprenticeships waning in recent years, the National Apprenticeship Service (NAS) are committed to providing opportunities and relevant training for businesses and employees. The most obvious positive is that more jobs are created for those who wish to have training and gain skills and experience within different industries.

The UK isn’t the only place to be positively addressing employment issues this week as New Zealand celebrated an end to zero-hour contracts.

On the flip side, it was revealed that Nigeria have the onerous task of needing to find 40-50 million new jobs to cater to their growing economy.

National Apprenticeship Week

Apprenticeships can provide so many opportunities to different stakeholders including work opportunities and training to employees and employers. National Apprenticeship Week seeks to change the common misconceptions about apprenticeships consisting of low-skilled and badly paid roles and being non-advantageous to employers. The reality is quite the opposite with 1,500  different jobs available across 170 industries.

Unfortunately, many companies don’t realise all of the advantages they can reap from implementing an apprenticeship scheme. For example, as of April 2016, businesses will not have to pay National Insurance for apprentices under 25 years of age.

Whilst many businesses, including CIPS, already have schemes in place, National Apprenticeship Week raises awareness to those that don’t and organisations like the NAS can help to put these in place and expand existing schemes.

The UK Government have committed to improving the apprenticeship system by creating three million new apprenticeships by 2020. The UK, and other nations, should be taking a leaf out of Germany’s book, where apprenticeships are integral to the education system.

Germany has implemented a dual system whereby apprenticeships combine theoretical training with hand-on practical experience in the workplace funded by employers. They also have a highly effective assessment process for candidate selection.

It would be fantastic to see the UK succeed in emulating Germany’s apprenticeship system. National Apprenticeship Week seems like a good place to start.

Zero Hour Contracts in New Zealand

Zero-hour contracts have sparked controversy in recent years and many have campaigned to put an end to them. Those against the contracts claim that they are unfair, exploitative, and only benefit an employer, who can avoid paying for things like annual leave and leave and sick days.

Some, however, would attest to the benefits of the zero-hour contract, arguing that it allows flexibility and minimum commitment. They can certainly come in use to those solely seeking part time work, such as students who might benefit from having weeks at a time with no work hours.

New Zealand has clamped down on the contracts this week as their parliament unanimously voted to abolish them. Having initially sought to only moderate the contracts, the country have now officially banned them altogether.

The Unite trade union, which has named and shamed fast food employers as users of zero-hour contracts, has strongly welcomed the move having campaigned for this result since 2003.

It will now be obligatory for all employers in New Zealand to contract employees with at least some guaranteed hours.

Nigerian Job Shortage

This week, the World Bank released a report which states Nigeria needs to create between 40 and 50 million jobs to sustain their rapidly growing population.

The report, which explains how only a tiny proportion of the country’s population is currently benefiting from high growth emphasised the importance of implementing more relevant technical and vocational education and training.  As ever, it is the women who are most affected by job shortages as there few job options for them.  

It will also be crucial to raise the productivity of agriculture by increasing access to markets, inputs, credit, and technology.

At the moment, a North-South divide is emerging because the northern regions have more difficulty accessing education and employment.

Kathleen Beegle, world bank lead economist said “Nigeria is facing a real challenge when it comes to creating enough good jobs for the many new entrants to the job market.”

We’ve been keeping up to date with all of the procurement news this week. Here’s what has been going on…

Supply Chain Salaries in UAE

  • According to a report by recruiter Morgan McKinley, supply chain professionals are likely to see salaries rise by 4 to 6 per cent in 2016.
  • This is due to increased investment in manufacturing capability in the Gulf region and, with it, the rising prominence of the region’s supply chain professionals.
  • In the UAE and Saudi Arabia, for example, warehouse and distribution managers are in particularly high demand, as there has been strong growth in manufacturing and distribution.
  • According to the report, the outlook for salaries beyond mid-2016 is heavily dependent on oil prices.

Read More at Supply Management

Wildlife Trading

  • Some 40 companies across shipping, airline and transport industries – members of the United for Wildlife Transport Taskforce – signed an agreement at Buckingham Palace on Tuesday which aims to block transportation routes for the illegal wildlife trade.
  • The move could mark a significant milestone in preventing the illegal wildlife trading industry, which according to United For Wildlife is valued at up to $20 billion per year.
  • The initiative also has the backing of key global lobbies such as the WWF.
  • Prince William, who is backing the initiative, said “We have faced up to the fact that if current trends continue the last wild African elephants and rhinos will be killed before my daughter Charlotte’s 25th birthday.”

Read More at Supply Management

UPS Alternative Fuel Investment

  • UPS has announced plans to build an additional 12 compressed natural gas (CNG) fueling stations and add 380 new CNG tractors to its growing alternative fuel and advanced technology fleet.
  • The company is working to meet its goal of logging one billion miles with its alternative fuel and advanced technology fleet by the end of 2017.
  • They plan to use a Rolling Laboratory approach to determine the right alternative fuel solutions to meet the unique needs of route-specific driving environments.
  • UPS was one of the initial 13 leading companies to take the Obama Administration’s American Business Act on Climate Pledge, committing to reduce greenhouse gas emission intensity 20 percent by 2020.

Read more at Supply Chain 247

Why Food Procurement Can Help Climate Change

  • Estimates suggest that food and drink production and distribution contributes 20 per cent of UK carbon emissions every year and is the leading cause of deforestation, land use change and biodiversity loss.
  • It also accounts for 70 per cent of all human water use and is a major source of water pollution
  • The UK Government recognises that procurement can have a considerable impact on the environment. As a result it has introduced the Government Buying Standards.
  • The standards include a set of minimum mandatory standards for inclusion in tenders and contract performance conditions, and apply to all aspects of Government procurement, which of course includes food and catering services.

Read more at Public Health Matters

Why We’re Embracing e-Procurement in 2016

While e-Procurement has been around for a number of years, it seems to have made significant strides in a number of areas recently.

You might have seen that the Procurious team attended the eWorld Procurement & Supply Conference in London last week. This bi-annual event is the leader for procurement innovation and it was great to be a part of. We’ll be sharing some more content about our experiences there soon.

However, it has been interesting to note that the subjects of e-procurement and technology have turned out to be hot topics all-round in the procurement and supply news over the last seven days.

The Ukraine has introduced e-procurement to help fight corruption; Verian, a software solutions company, has announced the release of its e-procurement solution; and a report by Webexpenses has claimed that UK workers are hindered by outdated technology.

Ukraine Introduces e-procurement

Ukraine are launching a new electronic public procurement system this April which will make procurement in Ukraine more transparent and save money.

The system, called ProZorro, will be mandatory for all public procurement tenders. To date, 15 per cent of public sector buyers, approximately 3000 of them, have signed up voluntarily to ProZorro, as well as 10,000 potential suppliers.

Arseniy Yatsenyuk, Ukrainian Prime Minister, said in January that public procurement had been a source of corruption, something ProZorro will prevent. The system will also reduce government spending and lower prices.

Verian Aim to Raise User Engagement

Verian, a US-based cloud spend management and P2P solutions provider, recently announced the release of its winter e-procurement solution, aimed at helping to change user behaviours to gain the benefits of e-procurement such as greater efficiencies and cutting cost.

Businesses will be provided with a configurable solution that allows users to track performance metrics and top performers. It will be possible to see a visual representation of the impact of a user’s individual behaviour on the success of the organisation.

Heidi Murphy, Director of Procurement, YMCA of the Greater Twin Cities commented that, “We wanted these metrics to show users how they were personally impacting the process, and create a common ground for communicating with them on something other than policy adherence.”

Verian are hoping that the latest updates to its software will help with user engagement, long believed to be one of the main barriers to successful e-procurement implementation.

UK Held Back by Outdated Tech

A recent survey on workplace technology has revealed that 85 per cent of UK office workers believe their company’s technology is not up to scratch.

The survey, conducted by Webexpenses, a cloud-based expense management provider, also revealed that the workers believed that if this situation were to change, work would be completed more efficiently.

Over a quarter (26 per cent) of participants specified that it was the IT systems which they felt needed improvement, while 41 per cent thought that the process of managing teams and internal communications could be easily enhanced with better technology.

The report ultimately reinforces how crucial it is for businesses to engage with the latest technologies. Don’t get left behind!

As always, we’ve been on the lookout for more of this week’s top procurement news stories.

Foot and Mouth Disease

  • The US has calculated that an outbreak of foot and mouth disease could cost the livestock industry in excess of USD$188 billion.
  • The Livestock and Foreign Agriculture Subcommittee met to discuss how prepared the US are to handle such an outbreak and determined that there was an alarming gap.
  • Michael Conaway, Agriculture Committee chairman and Republican Congressman, said, “It is essential we have all of the plans and infrastructure in place so we can be suitably prepared against intentional or unintentional introduction of plant or animal pests and disease”.
  • The hearing formed part of a series by the committee highlighting the importance of agriculture to national security.

Read more at Supply Management

Australia to Boost Defence Procurement

  • Australia is to increase spending on defence by AUD$29.9 billion over the next decade, including funding to help SMEs access global supply chain markets.
  • The Department of Defence has published its 2016 Defence White Paper outlining strategic defence priorities and challenges up until 2035.
  • The investment plans include: a continuous naval shipbuilding programme, starting with nine future frigates and 12 offshore patrol vessels and 12 submarines.
  • The government is also creating a new Centre for Defence Industry Capability and a new approach to defence innovation. 

Read more at Supply Management

Apple’s Supply Chain Recovery

  • J.P. Morgan analysts tracking the Apple supply chain issued a note to investors this week, revealing that build projections for the coming months are better than had been anticipated.
  • Having initially forecasted iPhone sales to drop up to 15 per cent quarter over quarter, units are expected to be flat between March and June, at about 45 million units for each.
  • Their visits with the supply chain suggest a build rate of 2 million units for the new 4-inch “iPhone SE” this quarter, growing to 4 million in the June quarter.
  • The  “iPhone 7” update is expected to arrive later this year.

Read more at Supply chain 24/7

India Expands e-Waste Recycling Company

  • Attero, an Indian company based outside New Delhi, has patented a technology which extracts gold and other precious metals from electronic waste.
  • The company collects one million pounds in weight of mobile phones and computers per month in India and resells the precious metals it extracts back to the electronics industry.
  • Attero has won the backing of US investors such as the International Finance Corporation and Draper Fisher Jurvetson to help it expand into the US.
  • It is much cheaper to install Attero’s urban mining centres than the European counterparts and the centres take up less space.

Read more at Supply Management

Denmark’s Out-of-Date Food

  • The first supermarket in Denmark called Wefood selling food beyond its “best before” date has opened to help cut the 700,000 tonnes of food waste produced by the country each year.
  • The food is still safe to eat but would be considered waste by supermarkets because it has passed its “best before” date, has damaged packaging, is labelled incorrectly or too much has been produced.
  • The Danish minister for food and the environment, Eva Kjer Hansen said “A supermarket like Wefood makes so much sense and is an important step in the battle to combat food waste.
  • Similar stores across the country are planned if the first is a success.

Read more at Supply Management

It Takes a Perfect Procurement Programme to Cut Costs

How would you define perfect procurement? We’ve spoken a great deal recently about how saving money or getting the best deal is no longer the be all and end all in procurement.

Perfect Procurement

Customers demand and expect a more transparent, more ethical, and more sustainable supply chain. This ultimately means that procurement priorities vary globally, and across companies. This week, however, we are singing the praises of some perfect procurement strategising which has led to some serious savings.

The Aircraft Carrier Alliance announced savings of $139 dollars on the UK’s two new aircraft carriers, South Africa plans to reform public procurement to save R25 billion, and Australia’s fifteen-year-long infrastructure plan aims to to save the average Australian household $3,000 a year by 2040.

And, under the pressure of a slow economy,  sources have suggested that Russia plans to cut defence procurement by 5 per cent this year.

The Aircraft Carrier Alliance

The Aircraft carrier Alliance (ACA) have just announced savings of £139 million on the construction of two new aircraft carriers at the CIPS Supply Management ‘Best in Procurement‘ event in Manchester. Having initially been tasked with saving £86 million, the ACA significantly exceeded this thanks to their implementation of an effective procurement programme with PwC.

PwC supported a savings delivery team using their procurement cost savings methodology following a five week assessment phase and prioritising of opportunities to cut costs. Currently, savings have come from 67 areas but there are still three years to go on the project.

Ross Elliott, director at PwC said “We had a very robust process, but you have got to take your shareholders with you. As a result [of this project], we have got an organisation that looks for savings and is more cost aware.”

The ACA won 2015’s  Best Procurement Consultancy Project of the Year at the 2015 CIPS Supply Management Awards. The 2016 awards will be announced in April.

South Africa’s Public Procurement Plan

The South African Government is holding talks with suppliers, with the hope of reducing prices and renegotiating contracts for banking services, ICT infrastructure, health technology and learner support materials.

The reforms to public purchasing processes should save the Government R25 billion, out of an annual procurement spend of R500 billion.

South African Minister of Finance, Pravin Gordhan, stated, “It is clear that we can achieve considerable savings to the government, while also ensuring that procurement processes are streamlined and service providers are paid on time.”

Australia’s Procurement Plan

Australia has launched its very first fifteen year infrastructure plan in which procurement has a key part to play.

A report from Infrastructure Australia has detailed a number of reforms to infrastructure to be undertaken by 2040. Among the procurement responsibilities is a suggested increase in competitive tendering.

The report cites how Sweden has increased competitive tendering in public procurement, leading to lower subsidies and 20 per cent cost savings, and calls for the same approach in Australia.

In addition to this, infrastructure projects should take account of the government’s Indigenous Procurement Policy which will “contribute to growing indigenous businesses and increasing employment through remote infrastructure procurements.”

Throughout the plan, whole-of-life costs will be accounted for in procurement when new infrastructure projects are commissioned, including future maintenance costs as well as initial capital expenditure. It is estimated that the plan will save the average Australian household AUD $3,000 by 2040.

Defence Procurement Cuts in Russia

Sources have suggested that the Russian government might be pushed to make a 5 per cent cut in defence procurement spending this year. Despite President Vladimir Putin making military growth a national priority, it seems that the slowing economy could put a halt to his plans.

Russia has entered into its second year of recession as oil prices continue to decline.  Four official sources have said that the cut proposals are to be put forward for discussion at a cabinet meeting.

The finance ministry have argued that Russia can no longer afford a multi-billion-dollar revamp of the armed forces, so will consider the realisation of this plan to be a significant victory.

In today’s current climate saving money is definitely the aim of the game. Perfect procurement might not be possible all the time. But, as proven by this week’s news, a methodical and meticulous procurement plan can make all the difference and ensure money is saved in the right places without compromising quality or ethics.

We’ve scoured the net to keep you updated with some more top procurement news stories from the past week.

Procurement Plans at the zoo

  • Hyderabad zoo animals are soon to find new partners thanks to the biggest procurement plan the state has ever seen.
  • The Central Zoo Authority accepted proposals put forward by the state forest department which permits animal exchange as well as procurement of them.
  • The Nehru Zoological Park (NZP) will soon be procuring a whole host of new animals to complement its existing residents including a pair of barking deer, an Otter, a hyena and an Indian wolf.
  • The NZP’S assistant director said “With the upcoming exchange and procurement, most of the single animals will be complemented with partners.”

Read more at New Indian Express

Deliv Partners with UPS

  • Same-day delivery startup Deliv Inc. is getting a funding boost from an unlikely source: United Parcel Service Inc.
  • As more and more commerce moves online, retailers must match the next-day and even same-day delivery speeds made commonplace by Amazon.
  • Surveys indicate that just by having the option of same-day delivery increases purchase conversion during the checkout process by 20-30 per cent.
  • Deliv, which offers enterprise-grade integrations into point of sale, has completed a $28 million Series B round of funding, adding a key strategic partner and investor in UPS. The company looks set to be the platform that powers this new on-demand future.

Read more at Supply Chain 247

Jacobs’ Procurement Pilot

  • California-based technical services provider Jacobs Engineering Group (Jacobs) has confirmed it is fronting a procurement programme in Australia
  • The programme features a new contracting model designed to enhance efficiencies in military acquisitions.
  • The model is centred on tasking original equipment manufacturers with overseeing project management activities from the funding approval stage through to programme closure.

Read more at Janes

Procurement to help ex-offenders

  • Procure Plus has been awarded a five-year contract to help ex-offenders access employment and training.
  • The not-for-profit organisation, which buys goods and services for several housing associations in the North West of England, will place 24 ex-offenders into employment, apprenticeships or training with contractors in its supply chain every year.
  • Ann-Marie English, senior regeneration manager at Procure Plus, said: “What’s different about our approach [to helping ex-offenders] is a focus on the long term, via sustained career opportunities and support.”

Read more at Supply Management

Bite-size procurement takeaways for the time-poor

Gordon Donovan provides his insights into procurement-related articles and news stories.

I am a principal consultant with The Faculty a management consultancy specialising in procurement. I have been involved with the profession for 25 years as a practitioner, consultant, trainer and coach. I am passionate about procurement, and am one of the few that made a conscious choice to go into procurement. It was a choice made when I witnessed my father (who was a sales manager for many years) dealing with buyers –  and I thought I’d much rather be on the other end of that conversation. In later years it made for some very interesting dinner conversations…

Gordon Donovan on procurement

In this blog series I will trawl the news and provide you with my personal procurement take-aways.

First up is an article I found on LinkedIn on why the supplier selection process is dying [read it here]. It is written for selecting marketing or creative agencies, but I think its just as relevant for selection of any strategic supplier of goods and services.

To summarise it suggests that the “traditional way” of selecting (RFI, Shortlist, RFT, Shortlist, Presentation/trial, Award) isn’t working and fails to find a supplier that’s best suited for the organisation about 50 per cent of the time.

This reminds me of an article written some time ago which stated that 80 per cent of the things we buy are from distorted supply markets, yet 80 per cent of the tools we use are for competitive markets.

Don’t get me wrong, I think that RFT/P/Q are great tools, but we should use them where they are the most effective, or at least do some groundwork to ensure that they are effective when we use them. They rely on competition (or the illusion of competition) to be successful. The worry for me is that ignore can be bliss; we don’t really know when we don’t get the value unless our preparation is good enough.

Talking about preparation brings me to the second article that caught my eye. This is for a podcast I subscribe to by AT Kearney (yes it’s a procurement podcast, don’t judge me!)

Download ‘Wave of the Future’ from iTunes

This episode is all about why Googling isn’t enough. It hits a nerve with me as I hear a lot of my workshop delegates chime “well we will just Google it”.

The podcast says that while Google has made things quicker and simpler, it doesn’t give you the breadth or depth of information that you really need to fully understand supply markets.

According to ATK, 60 per cent of information is in commercial online databases. Some tips provided within include:

  • Use the advanced search feature rather than the vanilla search. Click the cog icon to select this mode.
  • Disable the personal settings. As a default it will look at your previous searches and location and customise the results – especially useful if you’re trying to source a supplier from overseas.
  • Compliment with other more traditional methods (such as interviewing subject matter experts.
  • When reviewing a web site think about who wrote it, for whom and why.

Finally, I came across an interesting article from Mckinsey about different sourcing strategies.

It’s not ground-breaking but contains some interesting insights.

My main takeaways are:

  • The vast majority of onshoring initiatives were in manufacturing.
  • A two-thirds decline in the US price of natural gas since 2008 is attracting some manufacturing industries that use gas as direct fuel or feedstock.
  • Strategic offshoring of IT and business processes retains the promise of reducing costs, hedging production risk, and increasing access to talent by employing a network of offshoring locations.
  • American International Group (AIG), is moving ahead with the creation of nearshore centres in multiple regions.
  • Many companies are discovering that sourcing decisions cannot simply be made based on the notion that ‘noncore’ business activities can be offshored.

I trust that you find these articles and insights useful, and if you wanted to discuss please feel free to contact me via Procurious, join my network, or follow me on Twitter @gdonovan1971