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Do tough-times demand closer supplier audits? By Kristofer Whitfield It is at times of economic stress that buyers need to be particularly alert to the risk suppliers present. Cuts in corporate budgets erode the resources that are available to supplier...
Bringing supplier audits on track A tremendous opportunity exists for the Rail sector to realign and enhance the auditing processes for its suppliers - an opportunity that will deliver greater value to suppliers and buyers alike. By Annette...
The art of competitive collaboration Everyone is facing the same problems of recession, supplier instability, and greater regulation of business – which is driving more concerns about suppliers. So how do you afford it all? I believe companies...
Research shows sharp rise in Supplier Challenges Research by Nottingham University and Achilles indicates a sharp rise in the number of supplier challenges going to court - a significant concern for buying organisations in the Public Sector. The report...
Procurement’s changing role as a more vital and strategic... The AT Kearney 2011 Assessment of Excellence in Procurement Study, published last week, found that 90 per cent of the 185 global companies surveyed believe the procurement function is performing a more...
Procurement in 2011 – pro-active or reactive, holistic or targeted? And what about risk?
Posted on 17-01-2011
Recent Spend Matters research suggests that the period between 2008-2010 witnessed a dramatic increase in the number and types of supplier management solutions available to help companies monitor suppliers, mitigate risk, save time and money. Given the confusing, fragmented, and ever changing landscape, is it any wonder that Spend Matters also identified that the majority of the Global 2000 at this time did not feel ready to tackle supplier management holistically. Rather, many of those organizations...
What are the implications for public procurement of the Spending Review and sustainability requirements?
Posted on 22-12-2010
Procurement across the UK Government and public sector is a significant part of the economy as a whole. Last year the Office of Government Commerce reported that, ‘The Public Sector spends around £220bn each year on procurement in over 44,000 organisations right across the UK in every sector that government operates. Public sector spend often constitutes a large percentage of a given supply market – often between 10% and 15% ’. This scale of public procurement suggests that it can play a major...
Four trends set to impact automotive procurement in 2011
Posted on 16-12-2010
The automotive sector has always been at the cutting edge of procurement practice. This is a dynamic industry with highly complex supply chains, so adapting to a changing economic climate, market conditions, technological developments and new sourcing policies is a familiar challenge. But at this point in time there are four trends that are shaping the future of automotive supply chains and that will impact purchasing. 1) Buyer Responsibility. As is the case in other industry sectors, buyers are...
What are the implications of far reaching company wide sustainability plans?
Posted on 06-12-2010
Unilever has just announced its ‘Sustainable Living Plan’. Their website states that, ‘Unilever unveils plan to decouple business growth from environmental impact’, which I think involves a very interesting and bold claim. The website also makes the more familiar but still significant claim that, ‘Our plan isn’t just the right thing to do for people and the environment. It’s also right for Unilever: the business case for integrating sustainability into our brands is clear’. Reflecting...
New remedies for tenderers may mean greater risks in the public procurement process
Posted on 19-11-2010
For a long time suppliers have had a right to go to court when a public body breaches the tendering rules in the Public Contracts Regulations – and most of those involved in public sector procurement will be aware that recent UK legislation (required by the EU) has now given even stronger remedies to suppliers. What are the main changes – and what are the practical implications? Greater risks for purchasers in the public sector? Compared with almost all other EU countries there is actually...
Can damage to your reputation be avoided when disaster taints your industry?
Posted on 16-11-2010
“Could it happen here? The environmental disaster that followed the blow-out of the Deepwater Horizon rig in the Gulf of Mexico has shown that deep-water drilling is indeed a hazardous activity. . . Like the big banks, big oil needs to be restrained.” – The Independent, 10 June 2010. As BP is an oil company, its massive Gulf of Mexico oil spill has significant consequences for Shell, Exxon, and other oil firms. The tar ball that spread across the Gulf is also spreading across the oil industry,...
What can we learn from the mining incident in Chile?
Posted on 05-11-2010
On 13th October, Chile celebrated on seeing 33 miners surge from deep underground; 33 miners that were trapped for 70 days, 700 metres underground. The drama began on 5th August, when a collapse in a mine made us fear for the lives of these people. We went from desolation and little hope to exuberant joy at the moment we learned they were all still alive. Some people said the rescue was a miracle. Others said it was professionalism, both of the miners and of the rescue teams working in the area....
CSR Risk: Asking the Right Questions
Posted on 29-10-2010
Many individuals in the field of procurement and corporate responsibility will no doubt be aware that the last five years have seen a marked increase in the pressure on companies to take responsibility for the activities and actions of their suppliers. Most corporate sustainability reports will include brief sections on suppliers, however most companies are barely scratching the surface when it comes to the supply chain. It is easy enough for a first-tier supplier to sign up to a “code of conduct”...
Audits should unlock hidden value for suppliers
Posted on 22-10-2010
Audits are quite an emotive subject within the procurement community; whether they are focused on the domestic or international market. From a supplier’s perspective, the buyer derives the benefit from an audit and yet the supplier picks up the bill. Very often an audit is seen as just one of those things you have to go through in order to get a ‘tick in the box’ – a necessary first step to even being considered by a buyer. This may be the case with some auditing programmes where the...
Does it pay to be moderately socially responsible?
Posted on 15-10-2010
It is interesting to discover that “sort of nice guys” who engage in some socially responsible practices but do not fully commit to social responsibility finish last. Rob Salomon (Stern School of Business, New York University) and I studied how variation in the level of social responsibility of firms and mutual funds related to their financial performance and found that those that were the least and most socially responsible did the best financially, while those that were moderately socially...
