The Key Benefits from Sourcing Optimization

In the final installment in a three part series, we explore what the key benefits of sourcing optimization are. The first post appears here: Sourcing Optimization – A Definition , with the second post appearing on this page: Why Sourcing Optimization is Finally Taking Off? So what are the key benefits of Sourcing Optimization? Sourcing optimization starts from a strategic … Read More

Why Sourcing Optimization is Finally Beginning to Take off?

In the second in a three part series, Alan Gleeson explores what sourcing optimization is and explains some reasons for its growing popularity? Read Part 1 here – Sourcing Optimization – A Definition. The Building Blocks for Sourcing Optimization Ensuring demand is broken down into small granular lots is a key element in the market-informed sourcing component. There are a … Read More

Sourcing Optimization I A Definition I Part 1

A recent post by Peter Smith of SpendMatters UK asked why don’t we hear more noise in the procurement world about Market Informed Sourcing? One reason Peter cited for the ‘lack of noise’ was that: “It still isn’t something that is widely talked about in procurement circles – most procurement people still couldn’t tell you, I suspect, what it is all … Read More

Why Auctions are Trumping Negotiation when it comes to Strategic Sourcing

The art of negotiation has existed for millennia. In more recent years it has evolved into a number of techniques used by the respective contracting parties, as they endeavour to have full clarity; re the range of possible outcomes, and their walk-away positions/ best alternative to a negotiated agreement. As with poker, negotiating strategies can sometimes involve feigning a position … Read More

Why Driving Innovation has Become Procurement’s Top Priority

The research paper from Patrick Connaughton and Christopher S. Sawchuk ‘The CPO Agenda: Procurement’s Key Issues in 2014’* gives a good insight into the shift in focus among CPOs towards increasingly embracing a more innovative approach to procurement. In the paper, the authors describe how innovation-based growth has become increasingly important, particularly in the context of a business environment that continues … Read More

Key Trends in Procurement

Carlos Alvarenga of Ernst & Young recently wrote a piece for Procurement Leaders outlining his vision of what procurement will look like in 2025 in the first installment of a series of posts. In this article we lay out our predictions for how strategic thinking will change as we move towards 2020, and how sourcing will unleash much greater efficiencies … Read More

Lessons for Procurement Professionals from the Lean Startup

Large enterprises need to adapt more quickly to a faster paced world. We believe that one way to achieve this is to embrace tactics employed by startups that face similar levels of uncertainty, with the Lean Startup approach representing an excellent test bed. The Lean Startup methodology is an approach to building businesses that has transformed how startups are perceived. … Read More

Resolving the SME Public Procurement Conundrum

It was interesting to listen to Sara Murray from Buddi on BBC 4’s flagship Today programme this morning (March 14th). Ms Murray described some of the difficulties she had in a recent procurement engagement with the MOJ. She was particularly critical of the risk aversion of the procurement professionals she was dealing with in terms of their willingness to procure … Read More

How Market Design Can Help Drive Savings in Procurement

The concept of market design has received increased attention in recent years, primarily due to Alvin Roth winning a Nobel prize in Economics in 2012 for research in this area. Since then it’s application is gradually beginning to appear in a raft of different contexts. As this article by Alan Gleeson describes, the exciting news for those in procurement, is … Read More