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Apr27
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I found an interesting post that I want to share. Dave Hudgeon, a vendor management consultant in Australia, writes a blog called appropriately enough, Vendor Management.
He recently worked up a simulation to show the possible savings differences between putting a commodity out to bid and simply renewing existing contracts. he commented that he's noticed, "under-resourced procurement departments are often so overwhelmed with day-to-day vendor management issues that they roll-over contracts rather than go to market."
I call that the "too busy putting out fires to have time to build a fire station" problem. (That deserves its own post a later time!)
Visit his website, specifically this post, to see the model in action and discover the savings difference. (You'll be impressed.) Dave also offers to send the spreadsheet to anyone who asks him by e-mail.
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Apr27
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After talking about a topic usually swept under the Purchasing rug (bad Buyers), we're going to switch gears here and talk about another major challenge of our jobs - resistance to change. Human nature is to seek stasis, a place...
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In Part 1 of the series on Purchasing challenges, I introduced the taboo subject of bad Buyers. In Part 2, we'll talk about what some Buyers do to earn that name. 1) Poor Customer Service Skills - Working with end users...
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There are many articles about the good things that Purchasing professionals accomplish. I have written some myself and done so gladly. I like to highlight individuals and companies that work hard and deserve the recognition. What about the other side? What...
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Buyers always look forward to Purchasing Magazine's annual salary report. Today, I found another source that has salary information for the Purchasing field. Money Magazine and Salary.com teamed up for a look at the Best Jobs in America. I always...
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Apr26
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I just found these articles about Wal-Mart's introduction of RFID (radio frequency identification) labeling technology to a group of 300 of its suppliers. Zebra Technologies worked with a large number of the original 300 suppliers as the RFID technology was...
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Fans of this column know that I'm not really a huge fan of savings reports in general for many reasons. See Why Savings Reports Are (Somewhat) Bogus for details. Here's a good example. Try creating, justifying, and tracking a savings report with any...
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I'd like to see some comments from Buyers who deal with purchasing items shipped directly to them via overseas freight. I haven't had a lot of experience in this area, but I did work with a company that was receiving freight...
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Apr25
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I'm sitting at my desk in my home office working on my PurchaseRealm blog entries when suddenly I hear a loud noise outside. It sounds like some kind breaking or scraping on the street. (In my mind, I'm picturing Tom Cruise...
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In Managing Travel Services - Part 1, I gave an overview of Procurement getting involved in this commodity. Here in Part 2, I'll get into more specifics. What will Buyers be looking for in a travel services RFP and what will...
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As I mentioned in a previous post, being the Buyer in charge of travel services is a tough job. It is also an area that is seen as low hanging fruit in Strategic Sourcing initiatives because there is so much opportunity to...
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My readers know I like to read fellow KMM authors and give the Purchasing Perspective on some of their blog entries. Today I want to welcome Greg Meintjies of Corporate Treat. His new blog covers the ins and outs of being...
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1) The pay is better. (OK, I'm sure this is debatable. Personally, I can think of salespeople who are former Buyers, but not any Buyers who are former salespeople. I think that counts for something here.) 2) Many salespeople (at least partially) work from...
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Apr21
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In Working with It - Part 1, I talked about the various ways that IT and Purchasing interact. Part 2 shares hints to help the relationship stay smooth. IT employees have great demands made on their time. Buyers should ask...
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Buyers don't toil away in isolation. In addition to their friends in Accounting, Legal, and Receiving, Buyers may also work closely with the IT Department. This occurs in several ways. ...
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Save this list for next time you are having a bad day. It will help you remember why you got into this profession (both serious reasons and some just for fun) in the first place and what makes you want...
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We've previously looked at the issue of vendor references from the point of view of the Buyer making the call to gain information. Today, we're going to examine the issue from the point of view of the Buyer who is...
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Attention MRO (maintenance repair, operations) Buyers: You have just over a week left to become involved with Purchasing Magazine's Purchasing MRO Champions story for their August issue. Per their website, Purchasing Magazine is looking for "stories of MRO purchasers who...
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Apr10
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I recent wrote a post called Buy Your Way Around The World in which I talked about travel opportunities in the Purchasing profession. The title of this post, Buy Your Way Around Your Interests, is in a similar vein of exploring...
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To meet or not to meet? That is the question faced by Buyers when a salesperson approaches by phone or worse (unannounced, in person - in the lobby). Sales training teaches salespeople that they absolutely must get a face-to-face meeting with prospects. ...
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I had a boss who used to say that "in the old days" Purchasing Departments really "beat up" on vendors by being demanding and inflexible. He came from the manufacturing sector so perhaps there was a slightly different attitude in that sector as...
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Apr 6
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Continuing a trend I've started here on PurchaseRealm, I want to recognize some more Procurement professionals who have earned industry honors. Supply & Demand Chain Executive featured several outstanding Sourcing experts in their sixth annual Pros to Know issue. Their...
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Apr 5
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When most people get their first jobs in Purchasing as Buying Assistants, they never imagine that Purchasing could end up helping them see the world. Indeed, sometimes it does just that. Purchasing Departments these days often include the word "global"...
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Apr 4
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1) E-mail blasts - quick reminders or links to web pages, incoming e-mail for questions/issues 2) Newsletters - can be paper based or electronic 3) Web pages - make a web page as a permanent resource for policies and procedures,...
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Have you ever wondered what happens Purchasing-wise behind the scenes in an organization as large and unique as the Unites States Postal Service? Inside Supply Management takes you inside the USPS Purchasing Department in the article First Class Results. Today...
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I just wrote a post encouraging readers to nominate themselves or deserving co-workers for the title of Purchasing Magazine's Supply Chain Manager of the Year. Since the PurchaseRealm blog had not been founded when Purchasing Magazine named the winner for 2005 last...
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"Best Practices" and "World Class" are terms we hear in many different industries. These terms are usually used in abundance during a departmental or company-wide reorganization. Everyone may be striving to be world class in their respective areas, but who...
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What are blanket PO's? Are they the type of Purchase Orders that textile factories and bedding manufacturer's create? Well, they may use the term "blanket PO" in those specific industries for their products, but there is more general meaning. Buyers use it...
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