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Jon Hansen Articles
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What are the 3 biggest challenges faced by supply chain/purchasing professionals today? (Survey Result 15) - Click To Read Article I am interested in learning more about CSR or ES programs being implemented in service sector supply chain. Pete DeBruin, Director - Sourcing Technology, Boston, U.S. Similarity Hueristics, Iterative Methodologies and the Emergence of the Modern Supply Chain - Click To Read Article Some professions, such as software developers, regularly utilize the similarity heuristic. For software developers, the similarity heuristic is utilized when performing debugging tasks. A software bug exhibits a set of symptoms indicating the existence of a problem. In general, similar symptoms are caused by similar types of programming errors. By comparing these symptoms with those of previously corrected software flaws, a developer is able to determine the most probable cause and take an effective course of action. Over time, a developer’s past experiences will allow their use of the similarity heuristic to be highly effective, quickly choosing the debugging approach that will likely reveal the problem’s source. Definition from Wikipedia, the free encyclopedia Measuring Buyer and Seller Performace A PI Q and A - Click To Read Article Member Question: What methods are available to measure purchasing performance for both buyers and sellers? My Response: The challenges associated with quantifying (re measuring) performance extend beyond the mechanisms for capturing the data to include its timely application relative to ongoing real-world decision making. Specifically, is the current methodology capable of incorporating centrally established acquisition guidelines or parameters (i.e. price, quality, delivery performance, terms offered etc.) into front line buying decisions without negatively impacting operational capacity and performance. Profitable Supply Chain? - Click To Read Article How would you market the concept of the Profitable Supply Chain to CFO's? Do you have insights, or hopefully a structured approach/methodology? Yishai, Consultant Israel What are the 3 biggest challenges faced by supply chain/purchasing professionals today? (Survey Result 18) - Click To Read Article There are many factors both internally as well as externally that are affecting supply chain/ procurement practices today. From the growing talent vacuum to the continuing lack of collaboration between Finance, IT and Purchasing relative to corporate initiatives. What in your own experiences and opionions are the top 3 issues that procurement professionals face? Is Ford’s auto-xchange the “Real Deal?” (Survey Response 1) - Click To Read Article In a recent video that was released by The Ford Motor Company, Ford's Vice President and Chief Information Officer, Jim Yost indicated that the company has to "share information in real-time" and therefore can no longer use "the sequential processes” in which there were many “handoffs" and "transfers of information." Yost also emphasized the fact that Ford needs to "integrate much more closely with their customers, supply base and even internally," as well as stressing the importance of making information available to multiple levels of their supply base "simultaneously," thereby eschewing the current "cascade processes that might take days, weeks and even months" to disseminate. To enable you to respond to this question, you can access both the video as well as the corresponding article by contacting the author. Are Multiple Supply Chains Important Survey Response 2 - Click To Read Article A 2006 Report made the following statement: "Designing and operating multiple supply networks to meet the needs of specific market segments--supply chain innovation and the use of multiple supply chains will be important to future revenue and market share growth." Based on your own experience is this an accurate assessment? If yes, why? If no, why? Are Multiple Supply Chains Important (Survey Response 1) - Click To Read Article A 2006 Report made the following statement: "Designing and operating multiple supply networks to meet the needs of specific market segments--supply chain innovation and the use of multiple supply chains will be important to future revenue and market share growth." Based on your own experience is this an accurate assessment? If yes, why? If no, why? Is Ford's auto-xchange the "Real Deal?" (Survey Response 4) - Click To Read Article In a recent video that was released by The Ford Motor Company, Ford's Vice President and Chief Information Officer, Jim Yost indicated that the company has to "share information in real-time" and therefore can no longer use "the sequential processes” in which there were many “handoffs" and "transfers of information." Yost also emphasized the fact that Ford needs to "integrate much more closely with their customers, supply base and even internally," as well as stressing the importance of making information available to multiple levels of their supply base "simultaneously," thereby eschewing the current "cascade processes that might take days, weeks and even months" to disseminate. To enable you to respond to this question, you can access both the video as well as the corresponding article by contacting the author. How does the complexity theory apply to business? (A Brief Dialogue) - Click To Read Article Member Question: Has anyone applied complexity theory to business in a practical way? Asheville, U.S. My Response: The chaos theory and butterfly effect are interesting concepts in terms of the “complexity” of business. Over a number of years and through funding from the Government of Canada’s Scientific Research and Experimental Development (SR&ED) Program I developed a theory called strand commonality. In the area of supply chain practice for example (although the term “chain” is a misnomer in that it implies a sequential architecture instead of the synchronized architecture that represents the dynamic characteristics of different stakeholders within the real-world), one seeks to understand the unique operating attributes of individual stakeholders using an agent-based model. Is Ford's auto-xchange the "Real Deal?" (Survey Response 2) - Click To Read Article In a recent video that was released by The Ford Motor Company, Ford's Vice President and Chief Information Officer, Jim Yost indicated that the company has to "share information in real-time" and therefore can no longer use "the sequential processes” in which there were many “handoffs" and "transfers of information." Yost also emphasized the fact that Ford needs to "integrate much more closely with their customers, supply base and even internally," as well as stressing the importance of making information available to multiple levels of their supply base "simultaneously," thereby eschewing the current "cascade processes that might take days, weeks and even months" to disseminate. To enable you to respond to this question, you can access both the video as well as the corresponding article by contacting the author. Is Ford's auto-xchange the "Real Deal?" (Survey Response 3) - Click To Read Article In a recent video that was released by The Ford Motor Company, Ford's Vice President and Chief Information Officer, Jim Yost indicated that the company has to "share information in real-time" and therefore can no longer use "the sequential processes” in which there were many “handoffs" and "transfers of information." Yost also emphasized the fact that Ford needs to "integrate much more closely with their customers, supply base and even internally," as well as stressing the importance of making information available to multiple levels of their supply base "simultaneously," thereby eschewing the current "cascade processes that might take days, weeks and even months" to disseminate. To enable you to respond to this question, you can access both the video as well as the corresponding article by contacting the author. The Greeining of Procurement (Part 2): It's not easy being Green! - Click To Read Article Are environmental considerations truly the central element of recently emerging green programs, or are they an advantageous, politically correct by-product of an existing strategy that is linked to more “traditional” motives? While the EcoMarkets 2007 Survey adroitly provided us with an unbiased look into the mindset of the purchaser, the attitude (and actions) of vendors requires equal consideration to accurately answer the “motive” question. Recent ISM, CAPS and Kearney Report Perpetuates Dangerous Supply Chain Myths - Click To Read Article While generally interesting, the recent 10 Page Report by ISM, CAPS and Kearney perpetuate a number of the myths that actually fuel the high rate of e-procurement initiative failures. Focusing on what is referred to as the “seven critical supply strategies” for Succeeding in a Dynamic World, I will address each “strategy” over the next seven day period referencing the results of our 15 years (and counting) of research findings and front line experiences. Shared Services Simplified or How Barry Bonds’ Bat Weight Explained GoC Thinking - Click To Read Article I was recently asked to provide a contextual point of reference that would assist the uninitiated public in understanding the reasons why the GoC’s Shared Services program has become such a contentious issue. The Answer was Baseball! Rather than getting into a complicated dissertation of the differences between an agent-based model versus an equation-based model where the prescribed processes reflect and therefore adapt to stakeholder characteristics and objectives, I tried to think of what I would say to one of my sports fanatic friends. And it hit me, the answer is baseball! Dangerous Supply Chain Myths (Part 7) - Click To Read Article Segment 7 – Enabling Technology: The Emergence of the Metaprise Enabling Technology Technology is the key in the supply chain organization of the future. The right technology will enable enterprise-wide supply management, external supply chain visibility, and internal and external collaboration. Further to the Barry Bonds Post . . . - Click To Read Article The response to the Barry Bonds post through both the PI Blog as well as e-mail has been tremendous. Be sure to check out the comments that have been posted (with more to come), as they are indicative of the prevalent attitudes amongst stakeholders in terms of the Government of Canada’s Shared Services strategy. One question that I am often asked is if “concern with the GoC program is solely an issue of access and lost revenue opportunities,” or if there are “broader implications” that elevate the negative pushback from one centered on entitlement. Specifically, are SME complaints tied solely to fears of lost revenue opportunities (which some consider to be self-serving), or is it indicative of a true erosion of “best value” products and services availability. While We Were Sleeping: A Story of Misdirected Efforts in the World of Public Sector Procurement Policy - Click To Read Article It has been one of the more interesting weeks in the world of Government of Canada procurement policy-making. Despite the numerous “outward facing” storylines that can be pursued in terms of GoC activity, the real action (or lack thereof) is actually within the supplier community itself. I am of course referring to the ongoing inability of associations and lobbying groups to respond to government policy outside of the confines of a narrowly defined platform. A platform I would add in which the tempo is being set by the government. Why Six Sigma Initiatives Fail A PI Q and A - Click To Read Article Member Question: What’s the #1 reason Six Sigma initiatives fail? (Maybe Six Sigma needs to be applied to Six Sigma . . . ?) My Response: At a Value Network Summit in 2007 Glenda Turner (a Supply Chain Integrator with Boeing) made the following statement; “Now that I know the value networks methodology, I would not consider doing a Six Sigma, lean or any other kind of project without first doing a VNA to provide the systems context for the initiative.” Are Multiple Supply Chain Networks Important? (A PI Q and A) Track No. 2 - Click To Read Article The following is the second track from the still growing number of responses I have received from readers around the world regarding the question, “Are Multiple Supply Chain Networks Important? My Account - Click To Read Article In Part 1 of this posting, I shared with you information from my recent interview with Bob Sievert (Director, eProcurement Bureau for the Commonwealth of Virginia). As indicated, Bob had contacted me in response to the Ariba posting (The Ariba Interviews: Re-engineering the Future of On-Demand, August 31, 2007) indicating that their experiences would “fit nicely” with that article. Needless to say, it did in that it emphasized a number of key points including the importance of leading with process understanding versus technological capabilities. Public Sector Procurement and the Wal-Mart Effect - Click To Read Article In Part 4 of my Changing Face of Procurement conference series titled Winning Strategies for Vendor Engagement I ask attendees the question; “is your current e-procurement initiative a threat or a benefit to your supply base?” While the answer is of course important, what is of greater significance is whether or not your organization has even considered the impact its current strategy is having on these important external stakeholders. Microsoft Acquires SAP? (A Commentary) - Click To Read Article In her December 3rd posting in Information Week, Mary Hayes Weier reported a rumor in which Microsoft was in the process of moving toward acquiring SAP. The markets as Ms. Weier put it “felt strongly enough about the rumor that they drove up SAP’s stock by nearly 2%.” She went on to say that “there could be something to it,” as Microsoft had originally “looked at acquiring SAP” in June of 2004. Here is the link to the post in its entirety: www.informationweek.com Double Marginalization and the Point of Ideal Price Viability - Click To Read Article Referencing my last post (Double Marginalization and the Decentralized Supply Chain, August 9, 2007) double marginalization “DM” is defined as the “exercise of market power at successive vertical layers in a supply chain.” The problem that arises as a result of DM is tied to an impetus to mark up the product’s price above marginal cost. The sequence of mark-ups “leads to a higher retail price and lower combined profit for the supply chain.” In short, DM drives the paradoxical outcome of higher buy prices with lower sell profits. Technology and the Growing Talent Crunch! - Click To Read Article A debate of reasonable fury has been raging since the Bureau of Labor Statistics released their latest report on procurement sector job growth. The primary point of contention is the BLS’ assertion that the “overall employment for purchasing and supply managers is expected to grow slower than the average for all occupations through the year 2014.” Adding further fuel to the “sky is falling” fire that seems to be the theme of the majority of commentaries written on this issue, is BLS’ position that the “demand for purchasing workers will be eliminated by improving software.” Do you practice "Business @ The Speed of Thought?" - Click To Read Article Member Question: Almost 10 years ago, Bill Gates of Microsoft wrote a book titled "Business @ The Speed of Thought" where he laid out his vision for how organizations should utilize technology to become more responsive, adaptive, agile, etc. Specifically he drew an analogy between an organization's IT infrastructure and living beings Autonomic Nervous System. Now, reading this book over again, I'm struck by a perception that even now most organizations still do not have the level of IT integration that Gates speaks of. So my question(s) to you is this: Does your enterprise / organization have real-time reporting and notification of all important data? What is the Value in your Supply Chain A PI Q and A - Click To Read Article Member Question: What is the difference between Supply Chain and Value Chain? My Response: To begin, the reference to supply or “value” chain is a misnomer in that it implies a sequential architecture. This is a term that is on its way out as an organization’s supply “practice” is actually centered on the synchronization of diverse stakeholders sometimes spanning multiple supply networks. This is an important distinction given the impact that real-world synchronization has on theories such as value chains. That said the concept of the value chain was first introduced by Michael Porter in 1985 in his book, Competitive Advantage: Creating and Sustaining Superior Performance. Is having a website a requirement in the RFQ RFP process today - Click To Read Article Member Question: I have a question, for those actively participating in the RFQ & RFP process today. We had a client request we put up one page of his newly developed site, even though it was in the production phase and not close to finalization. He requested we upload one page, disconnect the links, and post. In further discussion he explained, having a website was part of a RFQ submission requirement. Both concerned are privately held corporations and both in the US. Has this become a standard requirement in the RFQ/RFPprocess? If so, in what cases and industries is it required? My Response: The statement that “having a website was part of RFQ submission requirement,” demonstrates that the “myths” surrounding discredited supply chain practices continue to persist. Are Multiple Supply Chains Important (Survey Response 5) - Click To Read Article A 2006 Report made the following statement: "Designing and operating multiple supply networks to meet the needs of specific market segments--supply chain innovation and the use of multiple supply chains will be important to future revenue and market share growth." Based on your own experience is this an accurate assessment? If yes, why? If no, why? Are Multiple Supply Chains Important (Survey Response 4) - Click To Read Article A 2006 Report made the following statement: "Designing and operating multiple supply networks to meet the needs of specific market segments--supply chain innovation and the use of multiple supply chains will be important to future revenue and market share growth." Based on your own experience is this an accurate assessment? If yes, why? If no, why? A Dichotomy of Perspectives: A Discussion on Forrest Breyfogle’s New Book on Integrated Enterprise Excellence - Click To Read Article Recently, I had the opportunity to exchange ideas on the veracity of the various models that organizations rely upon as the framework for building a successful enterprise. What prompted this open and productive exchange of ideas was a question that was recently posed regarding the merits of Forrest Breyfogle’s latest book on Integrated Enterprise Excellence (or for those of you that have a penchant for acronyms, IEE). In the following paragraphs I will share a few of the more meaningful discussion streams starting with the original question. Who will be the supply chain poster child in 5 to 10 years? - Click To Read Article Member Question: Who will be the supply chain poster child in 5-10 years time? Dell => Walmart=> ? In the 90's it was Dell, in naughties it is Walmart, who is the next in line to emerge as the poster child in 5-10 years time? Where will Walmart be in this context? Improving Supplier Delivery using Lean and Six Sigma - Click To Read Article Member Question: Can anyone share their experience in improving Supplier delivery performance using Lean and Six sigma methodology? What IT Systems Are Critical for a Retail Supply Chain? - Click To Read Article Member Question: Before throwing open its doors for business, what critical IT systems should a retail chain have in place? How long can this process take? What is the quickest way to get up to speed on supply chain management? - Click To Read Article Member Question: What books or other resources can you recommend to a project and product manager who suddenly wants/needs to learn as much as possible about managing supply chains of diverse products? In the past, my role has involved only product development and marketing, not managing the flow of of raw materials from suppliers, managing inventory, delivery and so forth. I'd be grateful for any resource recommendations. Number of SKUs and Business Complexity - Click To Read Article Member Question: I am sure you all agree that more SKUs (finished goods) the company has in its portfolio the more complex (and more expensive) its business becomes. However I wonder how this relationship works exactly? Can anyone recommend formula (or link) that explains (shows impact of) number of SKUs on logistics / supply chain costs (handling, warehousing, transportation), forecast accuracy, level of stocks, etc? Have you read Forrest Breyfogle’s new book on Integrated Enterprise Excellence? Thoughts/comments? - Click To Read Article Member Question: I recently read one of Forrest Breyfogle’s new books in his 4 book-volume series on the Integrated Enterprise Excellence (IEE) System; i.e., "The Integrated Enterprise Excellence System: An Enhanced, Unified Approach to Balanced Scorecards, Strategic Planning, and Business Improvement." The subtitle to this book describes what is covered in varying details in the other three volumes. My sense is that Breyfogle has pushed his (and our) thinking to the next level and addressed issues that many of us struggle with regarding Continuous Improvement efforts. His “Integrated Enterprise” thinking makes sense to me, what are your thoughts or feedback? Are Multiple Supply Chains Important (Survey Response 7) - Click To Read Article A 2006 Report made the following statement: "Designing and operating multiple supply networks to meet the needs of specific market segments--supply chain innovation and the use of multiple supply chains will be important to future revenue and market share growth." Based on your own experience is this an accurate assessment? If yes, why? If no, why? When outsourcing warehouse and distribution gets too inefficient and expensive what is the solution? - Click To Read Article Member Question: When outsourcing warehouse and distribution gets too inefficient and expensive what is the solution? Rodrigo, Logistics Head Argentina What are the benefits of being the guest speaker at a business networking event? - Click To Read Article Member Question: If I was looking to persuade someone to give a talk at my networking meeting how would I sell the idea to him/her? What's in it for them? I would love to hear from those of you who have had experience and benefits from presenting. Tracey, Success Coaching and Training Services What percentage of people that visit a site click through to purchase? - Click To Read Article Member Question: How can a start up company predict the percentage of visitors that will click through to purchase? Does that percentage change when it gets to a certain threshold? Does it go up or down? Is there any way you can estimate over a year's time what the eye ball count will be? Allen, Marketing and Public Relations Toledo, U.S. Are Multiple Supply Chains Important (Survey Response 8) - Click To Read Article A 2006 Report made the following statement: "Designing and operating multiple supply networks to meet the needs of specific market segments--supply chain innovation and the use of multiple supply chains will be important to future revenue and market share growth." Based on your own experience is this an accurate assessment? If yes, why? If no, why? How do you motivate people to accept and work with the company's new ERP - Click To Read Article Member Question: How to motivate people to accept and work with a newly implemented ERP system? How to overcome resistance and change the employees mindset? Question Submitted By: Kai-Uwe Sielaff Sales&Marketing Professional / Senior Commercial Management [LION] (Kai-Uwe.Sielaff@email.de) Viet Nam Member Question Regarding Ariba Experience - Click To Read Article Member Question: Does anyone have any experience with a company called Ariba and their ability to do spend analysis for a procurement group? Question Submitted By: Patrick Program Manager United States Development of SAAS Based Applications - Click To Read Article Member Question: Many research firm has predicted SAAS is going to become a next level Application Development. 1.How can i convert a existing applications into SAAS based Apps. 2.What are requirements need to develop a SAAS based Applications. Question Submitted By: Rajasekar Nonburaj Business Intelligence Consultant India Is Ford's auto-xchange the "Real Deal?" (Survey Response 5) - Click To Read Article In a recent video that was released by The Ford Motor Company, Ford's Vice President and Chief Information Officer, Jim Yost indicated that the company has to "share information in real-time" and therefore can no longer use "the sequential processes” in which there were many “handoffs" and "transfers of information." Yost also emphasized the fact that Ford needs to "integrate much more closely with their customers, supply base and even internally," as well as stressing the importance of making information available to multiple levels of their supply base "simultaneously," thereby eschewing the current "cascade processes that might take days, weeks and even months" to disseminate. To enable you to respond to this question, you can access both the video as well as the corresponding article by contacting the author. Is Ford's auto-xchange the "Real Deal?" (Survey Response 6) - Click To Read Article In a recent video that was released by The Ford Motor Company, Ford's Vice President and Chief Information Officer, Jim Yost indicated that the company has to "share information in real-time" and therefore can no longer use "the sequential processes” in which there were many “handoffs" and "transfers of information." Yost also emphasized the fact that Ford needs to "integrate much more closely with their customers, supply base and even internally," as well as stressing the importance of making information available to multiple levels of their supply base "simultaneously," thereby eschewing the current "cascade processes that might take days, weeks and even months" to disseminate. To enable you to respond to this question, you can access both the video as well as the corresponding article by contacting the author. What is a reasonable cost model for providing a 3PL warehouse management service (Survey Result 1) - Click To Read Article What is a reasonable cost model for providing a 3PL warehouse management service and how would it best be structured to hit the key points with both the logostics and finance executives? What are the 3 biggest challenges faced by supply chainpurchasing professionals today? (Survey Result 2) - Click To Read Article There are many factors both internally as well as externally that are affecting supply chain/ procurement practices today. From the growing talent vacuum to the continuing lack of collaboration between Finance, IT and Purchasing relative to corporate initiatives. What in your own experiences and opionions are the top 3 issues that procurement professionals face? What are the 3 biggest challenges faced by supply chain/purchasing professionals today? (Survey Result 3) - Click To Read Article There are many factors both internally as well as externally that are affecting supply chain/ procurement practices today. From the growing talent vacuum to the continuing lack of collaboration between Finance, IT and Purchasing relative to corporate initiatives. What in your own experiences and opionions are the top 3 issues that procurement professionals face? What are the 3 biggest challenges faced by supply chain/purchasing professionals today? (Survey Result 8) - Click To Read Article There are many factors both internally as well as externally that are affecting supply chain/ procurement practices today. From the growing talent vacuum to the continuing lack of collaboration between Finance, IT and Purchasing relative to corporate initiatives. What in your own experiences and opionions are the top 3 issues that procurement professionals face? What are the 3 biggest challenges faced by supply chain/purchasing professionals today? (Survey Result 10) - Click To Read Article There are many factors both internally as well as externally that are affecting supply chain/ procurement practices today. From the growing talent vacuum to the continuing lack of collaboration between Finance, IT and Purchasing relative to corporate initiatives. What in your own experiences and opionions are the top 3 issues that procurement professionals face? What are the 3 biggest challenges faced by supply chain/purchasing professionals today? (Survey Result 11) - Click To Read Article There are many factors both internally as well as externally that are affecting supply chain/ procurement practices today. From the growing talent vacuum to the continuing lack of collaboration between Finance, IT and Purchasing relative to corporate initiatives. What in your own experiences and opionions are the top 3 issues that procurement professionals face? What are the 3 biggest challenges faced by supply chain/purchasing professionals today? (Survey Result 12) - Click To Read Article There are many factors both internally as well as externally that are affecting supply chain/ procurement practices today. From the growing talent vacuum to the continuing lack of collaboration between Finance, IT and Purchasing relative to corporate initiatives. What in your own experiences and opionions are the top 3 issues that procurement professionals face? What are the 3 biggest challenges faced by supply chain/purchasing professionals today? (Survey Result 14) - Click To Read Article There are many factors both internally as well as externally that are affecting supply chain/ procurement practices today. From the growing talent vacuum to the continuing lack of collaboration between Finance, IT and Purchasing relative to corporate initiatives. What in your own experiences and opionions are the top 3 issues that procurement professionals face? What are the 3 biggest challenges faced by supply chain/purchasing professionals today? (Survey Result 16) - Click To Read Article There are many factors both internally as well as externally that are affecting supply chain/ procurement practices today. From the growing talent vacuum to the continuing lack of collaboration between Finance, IT and Purchasing relative to corporate initiatives. What in your own experiences and opionions are the top 3 issues that procurement professionals face? Are Multiple Supply Chains Important (Survey Response 6) - Click To Read Article A 2006 Report made the following statement: "Designing and operating multiple supply networks to meet the needs of specific market segments--supply chain innovation and the use of multiple supply chains will be important to future revenue and market share growth." Based on your own experience is this an accurate assessment? If yes, why? If no, why? What are the 3 biggest challenges faced by supply chain/purchasing professionals today? (Survey Result 20) - Click To Read Article There are many factors both internally as well as externally that are affecting supply chain/ procurement practices today. From the growing talent vacuum to the continuing lack of collaboration between Finance, IT and Purchasing relative to corporate initiatives. What in your own experiences and opionions are the top 3 issues that procurement professionals face? If your company has a supply chain project, who are the top 5 companies you would call? - Click To Read Article If your company has a supply chain project involving network analysis, implementing new technologies in a warehouse or strategically planning growth for the next five years, who are the top five companies you would call to help you with this and why? Drew, Director at Forte Consultants, Cincinnati, U.S. Is the Government of Canada's Shared Services Strategy a Threat to Small Business (Survey Result 2) - Click To Read Article Many key stakeholders both within and external to the Government of Canada (GoC) see a shared services strategy as a threat to the Small-Medium Enterprise community? Do you believe that the current GoC shared services is a threat? If yes, why? If no, why? Dangerous Supply Chain Myths (Part 3) - Click To Read Article Segment 3 – Multiple Supply Chain Networks: An Issue of Timing versus Concept Validity? Multiple Supply Networks The tail of the supply chain needs to be tailored to each developing market and this will require domestic partners to help execute fulfillment and delivery. In addition, good risk mitigation requires flexibility and diversity in your supply chain and supporting networks. Reader Question: Is a strong small business sector important to the stability and growth of a nation’s economy? - Click To Read Article In a word yes! And the critical role that public sector (government) policy plays in terms of being the primary link between successful domestic engagement and effective international cluster development cannot be underestimated. Dangerous Supply Chain Myths (Part 5) - Click To Read Article Segment 5 – Talent Attraction & Retention: An Exercise in Platitudes? Talent Attraction & Retention A supply chain is not an abstract network driven by processes and machines, but a real network driven by people. Good supply chains run on good people. Supply Chain Success will be impossible without the right talent, which is becoming rarer every day thanks to the global talent war. Any organization that does not have a good process in place to identify necessary skills, evaluate organizational gaps, and identify, recruit, develop, and maintain talent is doomed to become a second class citizen in the emerging international marketplace. Are There Differences Between B2B and B2C Transactions in Terms of Customer Satisfaction (A PI Q&A) - Click To Read Article Reader Question: Which components determine customer (dis)satisfaction in a B2B and B2C environment, and what are the greatest differences between these two environments concerning customer (dis)satisfaction? My Response: This is an extremely broad question as there are numerous elements that contribute to customer satisfaction. Given that we are discussing an electronic transaction, in which automation is a core element, the key to automating any process is to “free the data from the document.” According to Bankers Online (www.bankersonline.com true electronic transactions (including approvals) are 75% less expensive than a paper-based process. Supply Chain Confidence A PI Q and A - Click To Read Article The following is an interesting question I received from a Master of Science (M.Sc.) Business Technologies student who is working on her thesis “Measuring Confidence in Supply Chain Management System: An empirical approach.” Reader Question: My name is Diana Esparza, M.Sc. Electronic Business Technologies full time student at the University of Ottawa. Currently, I am working on my thesis proposal “Measuring Confidence in Supply Chain Management System: An empirical approach”. Are Multiple Supply Chain Networks Important? (A PI Q and A) - Click To Read Article I recently posed a question on the importance of Multiple Supply Chain Networks which, within a matter of several hours, elicited 14 responses from around the world. And while the majority of respondents felt that the findings from an ISM, CAPS and AT Kearney 2006 report were not indicative of general market sentiments, it nonetheless has proven to be an issue that is of considerable interest to supply chain professionals and academics. As a result, over the next week I will share the answers as well as corresponding discussion tracks starting today with the response from a Senior Director Supply Chain Operations in the Apparel & Fashion Industry in the United States. Are Multiple Supply Chain Networks Important A PI Q and A Track No 3 - Click To Read Article The following is the third track in the Q&A series which posed the question, “Are Multiple Supply Chain Networks Important?” Given the continuing strong reader response, the series will be extended for the balance of this week. How leadership repeatedly under-mines their most valuable procurement asset - Click To Read Article At a recent conference in which my Dangerous Supply Chain Myths seminar was introduced to a new audience, I was related a story that was both compelling and disconcerting. Compelling in that it clearly demonstrated a lack of stakeholder collaboration, disconcerting in that it is an occurrence that is played over and over again within public and private sector organizations throughout North America. Yes Virginia Revisited Why some eprocurement initiatives succeed and others dont - Click To Read Article In a recent post that appeared in my Procurement Insights Blog titled The Ariba Interviews: Re-engineering the Future of On-Demand, I reviewed a series of interviews I had with a senior executive from Ariba as well as members from the company’s PR firm. Of the considerable feedback I received as a result of the posting the most interesting (and insightful) comments came from the Commonwealth of Virginia. The FOSS(ilization) of the supply chain: The risks of a strategy centered on Free and Open Source Software - Click To Read Article I recently reviewed (actually browsed as there were only10 PowerPoint slides in total) a Government of Canada presentation to attendees of the September 2006 CIO Summit in Ottawa. Titled “IM/IT Government in Canada . . . Open to Business” the presentation emphasized the fact that “change is the only constant.” Referencing a transformation agenda which highlighted a variety of important areas including internal services such as finance, human resources and procurement, the case for open standards was offered as the best possible way to manage this ongoing evolution. More specifically, the concept of Free and Open Source Software (FOSS) as a viable solution was introduced. The Ariba Interviews: Re-engineering the Future of On-Demand? - Click To Read Article Earlier this month I was contacted by Ariba’s PR firm indicating that they wanted to schedule an interview between myself and a senior executive from the company. The purpose for the interview was to discuss Ariba’s latest contract win in the Healthcare sector. For those of you who may not already be aware, Horizon Blue Cross Blue Shield of New Jersey will be, and I quote “leveraging Ariba’s on-demand Procure-to-Pay offering to drive savings, efficiencies and competitive advantage.” (Note: here is a link to the actual press release; www.ariba.com Double Marginalization and the Decentralized Supply Chain - Click To Read Article Double marginalization is defined as the “exercise of market power at successive vertical layers in a supply chain.” Dating back to Lerner (1934) the problem that arises as a result of double marginalization is tied to an impetus to mark up the product’s price above marginal cost. According to a 2005 Caltech paper (Vertical Integration of Successive Monopolists: A Classroom Experiment) the sequence of mark-ups “leads to a higher retail price and lower combined profit for the supply chain than would arise if the firms were vertically integrated.” How not to abandon your e-procurement initiative - Click To Read Article MARK HENRICKS' ARTICLE "Flaw and Order" (Entrepreneur Magazine, September 2004) referenced a behavioral economics study that identified the eight hidden strategy flaws frequently championed by corporate decisionmakers. The sunk-cost effect - based on the premise of throwing good money after bad - and the herding instinct are the two that seem to relate specifically to the challenges associated with e-procurement initiatives. Are Multiple Supply Chains Important Survey Response 3 - Click To Read Article A 2006 Report made the following statement: "Designing and operating multiple supply networks to meet the needs of specific market segments--supply chain innovation and the use of multiple supply chains will be important to future revenue and market share growth." Based on your own experience is this an accurate assessment? If yes, why? If no, why? Strategic Sourcing Practices in Higher Education - Click To Read Article Defining Strategic Sourcing Strategic sourcing is the process of leveraging buying power, reducing the number of suppliers, verifying vendor compliance to negotiated agreements, and reducing the number of procurement transactions and cycle times. The idea is that, in evaluating opportunities to outsource, organizations can drive down unit costs and purchase commodities at the lowest possible cost of ownership. Rethinking Processes: Reducing Costs and Maximizing Resources in Education Strategic Sourcing Report by The Center for Digital Education, 2004 The Number 1 Question Can A Consultant Really Make a Difference - Click To Read Article Over the past few weeks I have received a spate of questions asking (although some readers have already formed an opinion), what role does an outside consultant really play in an organization? Specifically, what do they do and how can they help me? This is one of those rare instances when I wear the hats of an unbiased and neutral writer as well as a consultant (I write and teach accredited courses for associations such as Purchasing Management Association of Canada or PMAC). While I cannot speak for others, over the next few paragraphs I will attempt to provide you with some additional insight into how I approach my work. Hopefully this will at least begin to paint a clearer pricture and perhaps establish a framework for evaluating your current consulting arrangements to enable you to get more from existing relationships. Has anyone applied complexity theory to business in a practical way? - Click To Read Article Member Question: Has anyone applied complexity theory to business in a practical way? David, Instructional Designer, Performance Technologist and Project Manager What are the most commom metrics used for Supply Chain? - Click To Read Article Member Question: What are the most commom metrics used for Supply Chain? Francisco, Logistics and Supply Chain Professional Argentina What kinds of information and technology is used in Supply Chain communication? - Click To Read Article Network Member Question: What kinds of information is being sent across companies in a Supply Chain? And what technology is helping you with that? I have been reading more about SCM lately, and I was wondering what kinds of information is being sent across companies? Is it all numbers and values ? Or unstructured data as well ? And how is technology helping you to do this ? Do you share a specific platform across these companies? Or does every company has its own, and is this connected to one another ? Which software enables you to do so ? Question Submitted By: Marijn Somers Functional Analyst/Project Leader Belgium What is a reasonable cost model for providing a 3PL warehouse management service (Survey Result 2) - Click To Read Article What is a reasonable cost model for providing a 3PL warehouse management service and how would it best be structured to hit the key points with both the logostics and finance executives? What is a reasonable cost model for providing a 3PL warehouse management service (Survey Result 3) - Click To Read Article What is a reasonable cost model for providing a 3PL warehouse management service and how would it best be structured to hit the key points with both the logostics and finance executives? What are the 3 biggest challenges faced by supply chain/purchasing professionals today? (Survey Result 1) - Click To Read Article There are many factors both internally as well as externally that are affecting supply chain/ procurement practices today. From the growing talent vacuum to the continuing lack of collaboration between Finance, IT and Purchasing relative to corporate initiatives. What in your own experiences and opionions are the top 3 issues that procurement professionals face? What are the 3 biggest challenges faced by supply chain/purchasing professionals today? (Survey Result 5) - Click To Read Article There are many factors both internally as well as externally that are affecting supply chain/ procurement practices today. From the growing talent vacuum to the continuing lack of collaboration between Finance, IT and Purchasing relative to corporate initiatives. What in your own experiences and opionions are the top 3 issues that procurement professionals face? What are the 3 biggest challenges faced by supply chain/purchasing professionals today? (Survey Result 6) - Click To Read Article There are many factors both internally as well as externally that are affecting supply chain/ procurement practices today. From the growing talent vacuum to the continuing lack of collaboration between Finance, IT and Purchasing relative to corporate initiatives. What in your own experiences and opionions are the top 3 issues that procurement professionals face? What are the 3 biggest challenges faced by supply chain/purchasing professionals today? (Survey Result 9) - Click To Read Article There are many factors both internally as well as externally that are affecting supply chain/ procurement practices today. From the growing talent vacuum to the continuing lack of collaboration between Finance, IT and Purchasing relative to corporate initiatives. What in your own experiences and opionions are the top 3 issues that procurement professionals face? What are the 3 biggest challenges faced by supply chain/purchasing professionals today? (Survey Result 13) - Click To Read Article There are many factors both internally as well as externally that are affecting supply chain/ procurement practices today. From the growing talent vacuum to the continuing lack of collaboration between Finance, IT and Purchasing relative to corporate initiatives. What in your own experiences and opionions are the top 3 issues that procurement professionals face? What are the 3 biggest challenges faced by supply chain/purchasing professionals today? (Survey Result 19) - Click To Read Article There are many factors both internally as well as externally that are affecting supply chain/ procurement practices today. From the growing talent vacuum to the continuing lack of collaboration between Finance, IT and Purchasing relative to corporate initiatives. What in your own experiences and opionions are the top 3 issues that procurement professionals face? Dangerous Supply Chain Myths (Part 6) - Click To Read Article Segment 6 – Enablement of the Supply Management Organization: Balancing Capability with Control Enablement of the Supply Management Organization Although center-led organizations will continue to dominate for the next decade, as global operations become more complex, hybrid center-led models will begin to emerge to maximize value based upon the right mix of responsiveness and centralized control. Successful organizations will need to adopt and utilize appropriate supply chain technologies that integrate functional management and track appropriate metrics. The Greening of Procurement (Part 1) - Click To Read Article In my extensive travels to exotic locales (alright Calgary may not be exotic but it is certainly a great place to visit), purchasing professionals who have attended one of my conferences have rarely if ever broached the subject of environmentally friendly (re green) procurement practice. Burdened by the more pressing challenges associated with unnecessarily complex initiatives that are behind schedule and over budget, one can certainly understand the reasons for the paucity of inquiries. Public Sector Procurement Practice and the Principles of External Economies, Clustering and the Global Value Chain - Click To Read Article Can the public sector effectively apply the principles of External Economies to its procurement practice? “External economies of scale (ES) occur outside of a firm, within an industry. Thus, when an industry’s scope of operations expands due to, for example, the creation of a better transportation network, resulting in a subsequent decrease in costs for a company working within that industry, external economies of scale are said to have been achieved. With external ES, all firms within the industry will benefit.” (What Are Economies of Scale? By Reem Heakal, January 2003) Cluster Development and the CAC (PWGSC): Facilitator or Competitor? - Click To Read Article The original intent of my research for this posting was to determine how the global reach of Consulting and Audit Canada (now called Government Consulting Services under the PWGSC banner) could be used as a vehicle to develop strong domestic clusters that could then be leveraged to deliver products and services internationally. Reader Response to SMEs Once Again Voice Concerns Over GoC Shared Services Strategy - Click To Read Article Reader Comment And the second point is - is this a boondoggle in the making? My understanding is that departments are not falling over themselves to buy in to this initiative. But they have to subscribe, at least on paper, if they want funding from Treasury Board. I suspect many departments are paying lip service, waiting to see how it will all unfurl. Does anyone have a good knowledge of what the real situation is? The Bands of Public Sector Supplier Engagement - Click To Read Article “To really leverage vendor partnerships, solution providers need an in. For the public sector, that entre has to go beyond the program to the individual behind it who understands the market nuances and challenges that can hold partners back.” From the article 25 Public-Sector Channel Leaders (ChannelWeb Network, March 19, 2007) In one simple statement within the confines of a single article there has never been a better or more succinct explanation of what plagues public sector procurement practice today. Especially in the area of supplier development and engagement! Dangerous Supply Chain Myths (Part 4) - Click To Read Article Segment 4 – Internal & External Collaboration: A Desire versus Skill! Internal & External Collaboration In order to extract the significant gains that collaboration can bring, companies will need to enable best-practice multi-lateral collaboration between supply partners, achieve integrated product development, and employ “customer of choice” positioning. How can I promote kanban procurement practices? - Click To Read Article Member Question: How can I promote kanban procurement practices to single-source suppliers who have no incentive to increase their inventory (raw, WIP or FGDs)? Julian, Supply Chain Manager Houston The Value of the Certification Process A PI Q and A - Click To Read Article The following is an interesting question that was submitted by an eSourcing and SCM Professional regarding the relevancy of the certification programs offered through a number of associations. Reader Question: In SCM, what is the relevance of certifications like APICS-CSCP? Raheel Ahmad eSourcing & SCM Professional India My Response: I actually just returned from a speaking engagement at the APICS Houston 6 Packed conference. While I both write and teach accredited courses for organizations such as the Purchasing Management Association of Canada (PMAC), this was my first event with APICS. Can present day PWGSC woes be traced back to a 1995 article on the General Services Administration in the US - Click To Read Article “Of all the agencies and departments that have been discussed for privatization this year, the GSA would be one of the easiest to privatize. Its many services are available from the private sector, whose more successful firms offer a blueprint for how a privatized GSA could survive and thrive in a competitive environment. Moreover, because of the routine and commercial nature of most of its operations, as well as the performance benchmarks provided by its private sector counterparts, GSA is amenable to forms of privatization that allows for substantial and active participation by the existing federal workforce. Dr. Ronald D. Utt, Ph.D. Privatize the General Services Administration Through an Employee Buyout May 26, 1995 - The Heritage Foundation Yes Virginia! There is more to e-procurement than software! (Part 1) - Click To Read Article My recent post on the series of interviews I had with Ariba garnered considerable interest and feedback. By far the most interesting (and insightful) comments came from the Commonwealth of Virginia. What was compelling about the Virginia response was their willingness to provide a perspective from what they referred to as the “other side of the fence.” What was refreshing is that the subsequent interview revealed an extremely capable group of people whose passion for procurement was only rivaled by their commitment to a vision. A vision that was centered on gaining a thorough understanding of the processes that defined the Commonwealth’s procurement practice as well as the unique requirements of a diverse group of internal and external stakeholders. Supplemental Material Double Marginalization and the Point of Ideal Price Viability - Click To Read Article I have received a number of e-mails regarding my August 10th posting (Double Marginalization and the Point of Ideal Price Viability) requesting clarification of my theory. In line with the old saying that a “picture is worth a thousand words,” the following graph will hopefully illustrate the basis for my conclusions. (NOTE: due to space limitations I am not able to incorporate the actual graph into this posting. To obtain a copy of the graph send me an e-mail at jhansen@procureinsights.com with “Graph” in the subject line.) Technology's Diminishing Role in an Emerging Process-Driven World (Part 1) - Click To Read Article Organizations that already have a technology driven program in place or have just recently implemented one still surprise me with their significant interest in the dramatic changes in procurement methodologies and practices. But rather than focusing learning on new and emerging technologies, today's procurement professionals seek insights into the actual processes that drive their enterprises. The impetus behind this change is largely the result of the fallout from the consistently high level of e-procurement initiative failures. Industry studies for the period 2001-2005 indicate 75-85 percent of all programs fail to achieve the promised results. The Greening of Procurement: How Social Consciousness is Re-Shaping Procurement Practices - Click To Read Article Cannibals With Forks? “In our rapidly evolving capitalist economies, where it is in the natural order of things for corporations to devour competing corporations, for industries to carve up and digest other industries, one emerging form of capitalism with a fork – sustainable capitalism – would certainly constitute real progress.” From Cannibals With Forks – The Triple Bottom Line of 21st Century Business John Elkington Capstone Publishing Limited, Oxford, 1997 Is the Government of Canada's Shared Services Strategy a Threat to Small Business (Survey Result 3) - Click To Read Article Many key stakeholders both within and external to the Government of Canada (GoC) see a shared services strategy as a threat to the Small-Medium Enterprise community? Do you believe that the current GoC shared services is a threat? IT Technologies: Extinction in 5 to 10 Years? - Click To Read Article Member Question: 1) Which IT technologies are going to stay in market for next 5-10 years and why? 2)Which IT technologies will be extinct in 5-10 years and why? I know, its difficult to predict what happen in ever changing IT field, but just wanna know what other people think about this issue. Naveen, Ifrastructure Specialist & Solutions Architect CHicago, U.S. In every Meeting/Gathering/Social events there are one or two people who stand out and automatically assume the mantle of a leader? What differentiates them from the rest? - Click To Read Article Member Question: In a gathering or meeting there are some people who stand apart and guide,Lead the way for others during any occasion.It may be a fun occasion or a serious one,but they are always there for people to look upto. What makes them different form the rest? Does offshoring mean developed countries are losing technical jobs to developing countries? - Click To Read Article Member Question? Most of software solutions providing companies in US & UK are well experienced with explicit and undaunted gains of offshore software development outsourcing and thats why outsourcing comes as no surprise to anyone now. Then why are software companies in developed countries giving second thought to outsourcing to developing countries like India, Pakistan, Vietnam & others? Reasons why you Outsource: a) Outsourcing can help you share risk b) Outsourcing can help accommodate peak loads c) Outsourcing can help develop your internal staff d) Outsourcing is cost effective and saves you money What is the best type of Graduate Degree for a Supply Chain Professional? - Click To Read Article Member Question: What is more useful in terms of applicability for a young supply chain professional...an MBA or a Masters in Supply Chain Management? Ben, Logistics Engineer How do you create corporate values? - Click To Read Article How should the corporate values be created? Where do they come from? Can the brands a company has have their own values? Can these extend the corporate core values? Where do the brand values come from? Pasi, Sales and Marketing Executive Finland Virginia Ranked No 1 in U.S. Report - Does Canada Need a Similar Study? - Click To R | ||