We recently surveyed manufacturing purchasing leaders on their priorities for 2024. Over 50 shared their thoughts, and we conducted follow-up interviews with many to understand their concerns – and plans – for the coming year. This article focuses on the top 3 issues cited as a high priority by those surveyed. Little Time to Be…
Purchasing leaders and C-suite executives recently gathered to discuss what’s working and not working in the pursuit of cost savings in the current economic environment. A dozen leaders from manufacturing companies from a variety of industries recently shared their insights over two online executive roundtables. Below is a synopsis of some of the topics shared shared. President,…
“Companies don’t invest in training for the education – they invest to get a return”, someone told me that 30 years ago. This insight, shared with me three decades ago, holds even greater significance today, particularly for purchasing departments. The role of purchasing in determining profitability is unparalleled, placing them at a distinctive position within…
We recently organized an Executive Roundtable where manufacturing purchasing leaders and c-level executives came together to discuss potential cost saving opportunities. The event was highly insightful, with over a dozen participants from diverse industries sharing their successful (and unsuccessful) cost saving implementation experiences in the current business environment. Additionally, APD presented four real client projects…
Identifying and delivering on the needs of stakeholders is an important element in any successful strategic sourcing project. Without appropriate stakeholder input, you’ll be left to guess at what exactly is required for a supplier to meet the needs of your internal customers. Unintended consequences are likely, and can erode the value that your project…
Jerome Barthelemy’s 2003 article in Academy of Management identified 7 deadly sins that underlie most failed outsourcing efforts. While all seven are important, and you should carefully plan to have the countermeasures outlined below in place for any strategic sourcing initiative, some of the “sins” are much more impactful than others. The author surveyed nearly…
Sometimes smart people ask really smart questions. Recently, a Sr. Purchasing Director at a $3.5B manufacturer asked what we consider to be the most important factor for strategic sourcing projects. After careful consideration, we believe that there are three critical factors for success in strategic sourcing projects that deliver results. First, here’s our definition of…
Buying resins is tough. Purchasing teams have too little information about the resins they buy and the supply markets available to them, while sellers have substantial sources of leverage. Consider these realities: It can be very difficult to implement alternative materials for a particular resin. Alternatives are both challenging to identify and can be extremely…
Finding capable suppliers is always a challenge, whether you are focusing on local, regional, or low-cost country suppliers. In addition to reliable supply and competitive pricing, you have to do your homework to vet potential supplier attributes such as: Do they have the right manufacturing processes and experience with the materials you require? Are their…
There’s never been a better time to “kick the tires” on your corrugated packaging spend. Prices are dropping for the first time in two years as global box demand finally weakens after the severe post-pandemic run-up. Corrugated packaging buyers that don’t have index-based pricing agreements with supplier have two options: hope their box suppliers provide…