Manufacturers often struggle to turn reshoring goals into a qualified regional supplier shortlist. Learn a three-step supplier sourcing process for aligning stakeholders, finding stronger North American candidates, and giving capable suppliers a reason to respond.
AI chatbots can help procurement professionals work faster, analyze information, and prepare stronger sourcing decisions. But access to a chatbot does not create capability. Boston Consulting Group found that 74% of frontline employees regularly use AI, yet only 36% believe they have received sufficient training….
Negotiation tactics can be useful, but without a clear negotiation strategy, they can damage buyer credibility and create inconsistent results with suppliers. Learn why tactics should support a strategic framework.
A buyer completes a market test and identifies significant savings. The analysis is solid. The recommended supplier meets the documented requirements. Then the stakeholders refuse to change suppliers. This happens too frequently. The buyer starts by evaluating the supply market and approaches stakeholders after finding an opportunity. By then,…
Reshoring creates a challenge traditional sourcing teams do not always face: evaluating suppliers they may not know. After years of sourcing products overseas, many purchasing teams have limited knowledge of the North American supply base A supplier may appear capable based on its website or an introductory call. But…
Most CEOs want cost reduction. They want Purchasing to help improve margins, strengthen competitiveness, and lower the company’s cost structure. They want cost reductions that drop to the bottom line and help the business win. But too often, the way they ask for cost reduction…
Most buyers prepare for negotiation by getting their facts together. Great! They review pricing history. They look at spend. They check supplier performance. They think through the company’s savings target. They may prepare a desired outcome, a target, and a walk-away position. All of that…
Procurement teams are already using AI. The real question is whether they are using it well enough to improve business results. That distinction matters. According to the Work AI Institute, 87% of digital workers now use AI at work, and 75% say it makes them…
Indirect purchasing teams in manufacturing companies don’t get much recognition. Direct material savings are usually easier to measure. A buyer negotiates a lower part price. The savings flow into product cost. Finance can see the impact. Indirect purchasing is different. The work is spread across facilities, functions,…
Most procurement teams still approach sourcing as if suppliers are waiting to be selected. They’re not. Strong North American suppliers are busy. They are choosing which customers to support, which RFQs to quote, and where to allocate limited engineering and production capacity. If your team…
Artificial intelligence is creating the same kind of divide we have seen in every major business technology shift. Some organizations are using it to move faster, prepare better, and make more informed decisions. Others are experimenting, getting inconsistent results, and quietly backing away. That second…
Negotiation experts are fairly consistent on one point: when relationships are long term, issues are complex, and both sides have strong shared interests, the best approach is usually collaborative negotiation. That should make automotive a perfect environment for collaboration. OEMs and suppliers are tied together…
Sometimes manufacturers need cost reductions sooner rather than later. The problem is that traditional strategic sourcing takes time. A typical project requires months of spend analysis, stakeholder alignment, supplier discovery, market testing, negotiations, and implementation planning. Then comes supplier validation, customer approvals, and resourcing. The…
Over the past 40+ years working in purchasing, I’ve watched thousands of negotiations. And there’s one mistake that shows up over and over again. It’s not poor preparation.It’s not weak leverage.It’s not even lack of data. It’s this: buyers negotiating against themselves. And the worst…
Indirect purchasing is messy by nature. A direct materials buyer may focus on a handful of categories tied to a production process. An indirect buyer often manages dozens of unrelated categories at the same time. Marketing services. MRO. Fleet. Travel. IT. Janitorial. Temporary labor. Capital…
Carrots, Sticks, and the Rule of Sevens: How Buyers and Sellers Should Sequence Negotiations In negotiations—whether you sit on the buy side or the sell side—we often hear the same shorthand: carrots and sticks. Carrots are the incentives. The benefits. The value that makes a deal…
Strategic sourcing gets overcomplicated. Most teams treat it like a long checklist with dozens of steps. That’s not the problem. The real issue is losing focus on what actually drives results. At its core, strategic sourcing is simple. It’s a project to improve cost, reduce supply risk, and align suppliers with your business…
More and more procurement teams are moving quickly to implement AI agents. The tools look capable, and the pressure to automate is real. But most failures come from a simple mistake – they choose the wrong AI execution model for the work. You have three options for applying…
Procurement teams are not struggling with access to AI. They are struggling with how to use it in a way that delivers real outcomes. These are the five patterns that when applied, start to change how work gets done. 1. Stop treating AI like a…
Artificial intelligence is rapidly becoming part of the negotiation landscape. Buyers and sellers are experimenting with AI tools to analyze data, draft questions, prepare talking points, and even simulate negotiation scenarios. That’s the opportunity — and the risk. AI doesn’t replace judgment. It amplifies whatever…
Many manufacturers say they want to reshore. They run the analysis, align on the strategy, and target Mexico or the U.S. as alternatives to Asia. Then progress slows. Most teams assume that if capable suppliers exist, they can find them quickly. They believe a web…
Capital projects carry high stakes. They consume large budgets. They affect capacity. They influence customer commitments. And once work starts, reversing a bad decision is expensive. Many capital project failures do not start in the field. They start in the contract. If you want fewer surprises, focus on three contract…
I’ve been using AI almost every day for the past two years, and here’s the truth: in the beginning, it felt a lot like managing a brand-new intern—AI was full of enthusiasm, eager to help, but with very little wisdom. Back then, when I asked AI to complete a task, the results were maybe…
If there’s one thing buyers consistently excel at, it’s preparation. Most buyers walk into negotiations armed with data, cost models, supplier analysis, power assessments, volume history, economic indicators, and a clear understanding of the organizational objectives. Preparation is rarely the problem. But here’s the pattern…
Most reshoring initiatives still start the same way – someone asks purchasing to “send out RFQs.” That instinct is understandable. RFQs feel rigorous. They create a paper trail. They signal control. They are also the fastest way to stall a rapid reshoring effort. RFQs were designed for a…
Indirect spend categories like temp labor, packaging, freight, and capital equipment are notorious for hiding savings in plain sight. Experienced indirect buyers have learned that cost tables transform the way organizations manage these categories. Here’s how you can leverage cost tables to drive real results. Why Cost Tables Matter Indirect categories are complex. They often involve dozens of…
This guide explains how purchasing executives can use current ChatGPT Plus functionality to drive faster analysis, better decisions, and measurable productivity gains. It reflects how ChatGPT Plus works today and focuses on practical procurement use cases. Most lessons apply to the paid M365 Copilot and…
Artificial intelligence is quickly becoming one of the most powerful tools available to today’s buyers. It can analyze data, summarize trends, accelerate research, and improve preparation for supplier discussions. Used correctly, it strengthens judgment and gives buyers a meaningful edge. But when AI is used…
Indirect market tests rarely go smoothly when the Statement of Work is unclear. When requirements are vague, suppliers make assumptions. Quotes come back inconsistent. Performance varies across sites. Internal customers complain that the supplier “isn’t doing what we hired them to do,” and the supplier…
Cost savings still sit at the top of every purchasing scorecard. Yet executives know the current environment is harder. Tariffs, supply volatility, and higher operating costs have made it tougher to find cost savings the old way. Market tests alone are not enough. The good…
Microsoft’s M365 Copilot is built directly into Excel. You must have a Microsoft 365 Enterprise subscription, as well as an additional M365 Copilot subscription, but its ability to handle so many of the Excel tasks buyers are tasked with is well worth it. It also…
For decades, most U.S. manufacturers followed a clear sourcing playbook: move production to low-cost countries, particularly in Asia, to reduce piece-part prices. That approach worked—until it didn’t. Tariffs, rising freight rates, supply chain disruptions, and more tariffs have pushed manufacturers to rethink their sourcing strategies….
When most organizations think about sourcing strategy, they typically focus on direct materials, where strategic sourcing initiatives are well-established and commonly used to implement category strategies. Indirect categories like IT, facilities, logistics, marketing, and MRO are often left behind because they are decentralized, complex, and…
A new Economist Impact study — The Resilient Edge: Procurement in an Era of Polycrisis (2025) — reveals a profession under pressure. Two-thirds of CxOs now rank geopolitical instability and supply chain disruption as their top risk. Inflation and tariffs continue to erode margins. While…
APD recently hosted the 2025 ProcureForce User Conference, bringing together procurement leaders, customers, and our team to exchange ideas and share how organizations are getting more value from the platform. The event also gave users a direct role in shaping what comes next. Key themes…
If you’re a purchasing leader, you know the rhythm by now. Each year, the savings drumbeat begins earlier than we’d like. Over the past few years, many of us have been consumed by negotiating tariffs, battling inflation, and managing supply disruptions. Those fights were necessary….
This year, tariffs have reshaped the cost structures of many manufacturing supply chains. Too often, I’ve seen buyers accept supplier pass-throughs of tariff costs without pushback—or, just as problematic, they made a single attempt to negotiate an offset and gave up when the supplier resisted….
U.S. manufacturers are reducing dependence on distant supply chains. This trend started in 2018 with the steel and aluminum tariffs, accelerated in 2021 with post-covid supply chain disruptions, and has now become the “new normal” with U.S. tariffs on imported goods averaging nearly 15% –…
When it comes to indirect spend, purchasing leaders face a different challenge than with direct materials. With so many stakeholders, it’s important to understand their needs related to the category. There’s also a need to understand how the company’s strategic plan translates into needs for…
Buyers are under constant pressure to evaluate supplier quotes, justify cost increases, and negotiate effectively. Too often, suppliers provide incomplete information or push back on requests for detail, leaving buyers with little leverage. Chat-based AI (like ChatGPT) can help. By using well-structured prompts, buyers can…
In recent years, more manufacturers have shifted away from relying solely on Asian suppliers. Rising freight costs, tariffs, long lead times, and supply chain uncertainty have made reshoring manufacturing and nearshoring to Mexico a smart strategy for many companies. But for procurement teams that have…
Years ago, I attended a Sandler Sales Training session that left an impression. One specific concept stuck with me: In a sales conversation, the prospect should be talking 70% of the time. Sandler’s logic is clear—buyers don’t buy because of what you say. They buy…
The global tariff front is shifting again—and fast. On July 9, 2025, President Trump issued fresh tariff letters to emerging economies like the Philippines, Moldova, Iraq, Brunei, Algeria, Libya, Sri Lanka, plus major materials and goods categories—starting August 1. For example, a 50% levy on…
AI chatbots like ChatGPT and Copilot are helping purchasing teams save hours each week. A recent report by AI at Wharton showed that 94% of purchasing professionals surveyed reported using AI chatbots at least weekly. That’s up from just 50% the year before! We’ve found…
I was in a CEO roundtable recently when something came up that perfectly validated what we’ve been telling buyers in our training for the past year: suppliers are overwhelmed with RFQs—and they’re ignoring a lot of them. Not because they’re lazy or arrogant, but because…
Corporate services can be one of the hardest areas for indirect buyers to manage. This category covers everything from facility management and payroll to legal services, marketing, recruiting, and software licenses. Each area has its own complexities, stakeholders, and cost drivers. You’re expected to drive…
I’ve spent a lot of time over the years negotiating—face-to-face across tables, over the phone, and, more recently, on video calls. But lately, something’s been catching my eye. In video negotiations, I’ve seen buyers checking emails mid-call, sellers pitching from poorly lit basements, and—my personal…
If you’re trying to reshore production or shift business to suppliers in the U.S. or Mexico, you need a better approach than just blasting out RFQs. Local suppliers aren’t always hungry for your business. Many are busy and the good ones can be selective. They’re…
Tariffs. Inflation. Supplier price pressure. In times like these, it’s easy to feel boxed in. But not all buyers are stuck. In fact, some are thriving. We recently wrapped up another round of the Cost Management Certification (CMC) program, where buyers from various industries tackled real-world cost…
AI chatbots like Copilot, ChatGPT, and Gemini are more than a novelty. Manufacturing procurement teams are using these low-cost tools to analyze supplier quotes, prepare for supplier negotiations, developing category strategies, and speed up daily work. But most teams don’t know how to get started. …
Many buyers in manufacturing companies default to using supplier-provided contracts when sourcing indirect materials or services. It’s easy to understand why – every indirect category is different, and suppliers often have templates ready to go. But there’s a risk in letting the supplier write the…
Here’s how the best teams avoid inflated supplier pricing — and how yours can too. Tariffs may be out of your control — but your response to them isn’t. Over the past two decades, working with hundreds of procurement teams, one pattern has become clear: Companies that…
The 2025 tariff war has created a new workload for purchasing teams – first to understand the ever-changing tariffs and trade policies, then to implement actions to mitigate cost increases. One of the mitigation strategies for manufacturers importing materials to the U.S. is to evaluate…
The 2025 tariff wars are bringing a new level of turmoil for manufacturing purchasing teams. Quick reaction plans fall into two areas that should be addressed in parallel: 1. Actions to mitigate increased costs Understand the impacts from changes to tariff policies in all countries…
At Advanced Purchasing Dynamics (APD), we’ve spent decades helping companies elevate their purchasing performance. Along the way, one thing became clear: purchasing leaders weren’t just looking for better tools—they were looking for a better way to work. That realization led APD’s founder, Jeoff Burris, to…
I. Preparation is Power: Reassessing Leverage in a Tariff-Impacted World Start with this premise: The most successful negotiations begin long before the first conversation. At APD, we train buyers to evaluate power dynamics between buyer and supplier before any negotiation begins. Tariffs dramatically shift those…
Too many buyers rely on ERP system exports to create RFQs for indirect categories like MRO, freight, and corrugated packaging. But ERP data rarely includes the information suppliers need to quote accurately. If suppliers have to spend extra time researching details or making assumptions, you’ll…
New tariffs – both recent changes by the U.S. administration and retaliatory tariffs from affected countries – are accelerating the need for purchasing teams to drive cost savings. While taking actions to mitigate the impact of ever-shifting trade and tariff policies is a priority, manufacturing…
As the threat of U.S. tariffs are quickly becoming a reality, North American manufacturers are seeking local suppliers to reduce reliance on overseas sourcing, particularly from China. While some focus on U.S.-based suppliers, others are continuing to expand their Mexican supply base. We’ve helped manufacturers…
For decades, negotiation experts have debated the best strategies for securing favorable deals—should one take a competitive, hardline stance or adopt a collaborative, problem-solving approach? My favorite competitive and collaborative negotiation books are: Chester L. Karrass’s The Negotiating Game (1970), which outlines competitive negotiation tactics—leveraging…
Strategic sourcing is a great tool for delivering savings when there are many suppliers and consolidation makes sense. The goal of strategic sourcing is to transform the supply base for a category or commodity to better align with organization needs and expectations. Done, right, strategic sourcing…
Purchasing leaders in manufacturing are currently grappling with an unpredictable tariff landscape, making it nearly impossible to “read the tea leaves” and predict what will actually transpire. The Shifting Nature of U.S. Trade Policy The difficulty lies in the ever-changing nature of U.S. trade policy,…
Most of the recent business press on Mexico manufacturing has been focused on the on-again-off-again 25% tariffs that the U.S. is considering for Mexico. Wherever the tariffs land, a new $1.4B tax incentive package intended to strengthen Mexico’s manufacturing base will surely increase the attractiveness…
I recently met with purchasing teams who attended APD’s Indirect Purchasing Certification course, and they consistently point to two take-away tools that they believe will give them immediate ROI – category cost tables and the stakeholder interview guide. In this article, we’ll provide an overview…
We at Advanced Purchasing Dynamics have been posting a lot about tariffs and thought it might be time to step back and provide some education on the topic, along with the current status and direction of U.S. trade policies. Tariffs have long been a pivotal…
Negotiation is a core skill for purchasing professionals, something to continuously work on improving. Whether it’s cutting a deal with a key supplier or mapping out a sourcing plan with internal stakeholders, negotiation is a daily activity for most buyers, sourcing managers, and procurement directors. It’s…
In preparing for our upcoming webinar with Strategic Manufacturing Solutions (SMS), I started reflecting on my history with supplier-related production issues. Over the years, I’ve seen how seemingly small supplier missteps can escalate into full-blown crises, halting production lines, delaying vehicle launches, and forcing costly…
At Advanced Purchasing Dynamics (APD), we’ve consistently provided insights into how tariffs impact purchasing teams, helping you navigate the complexities of global trade. Recently, a purchasing leader in our network asked, “What gives the President the authority to impose tariffs?” Let’s explore the legal foundations…
Delivering cost savings continues to be a focus for procurement organizations for 2025. Learn three different approaches manufacturing companies have proven to be successful, and the differences between them. Category Management can deliver the biggest cost savings but is a long-term effort best suited for…
We surveyed large and mid-size manufacturing purchasing leaders on their priorities for 2025. 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…
Nearshoring – finding suppliers in regions closer to your manufacturing locations, is getting more difficult for US and Canadian companies looking for suppliers in Mexico. Specifically, it’s getting harder to find suppliers with the right capabilities, capacity, and willingness to do business. Demand has grown faster…
How can buyers negotiate with suppliers impacted by tariffs? The goal is to gain actionable strategies that ease tariff burdens. Here’s how to do it, drawing from lessons in Getting to Yes, a foundation text for APD’s Strategic Negotiation program. Let’s see how to apply the…
In a rapidly shifting trade environment, the announcement of significant tariffs by President-elect Donald Trump has left many businesses grappling with uncertainty. For purchasing leaders in the manufacturing sector, the stakes are especially high. These tariffs threaten to upend global supply chains, inflate costs, and…
Manufacturing purchasing teams need to know a lot. What other business function requires mastery of both commercial aspects like contract management and supplier negotiations, technical aspects like cost engineering and category expertise, and business skills ranging from data analytics to writing? Some people refer to their first…
The election of a new U.S. administration usually results in anticipated changes that modestly affect supply chains. This time appears to be a little different. The news has been filled recently with articles on topics such as “tariffs as trade policy,” “dollar diplomacy,” and “rewriting U.S….
Early in my career, I had the privilege of observing two purchasing directors who set the gold standard for negotiation success. What made them exceptional wasn’t just their preparation or market knowledge—it was their ability to actively listen. They consistently outperformed their peers because they…
Purchasing teams almost always hit sizeable speed bumps when implementing cost savings. We’ve learned over 20 years that investing a little time at the front end of a sourcing initiative to engage stakeholders pays huge dividends when it comes time to implement. Here are 3…
A Decade of Tariff History The last decade has witnessed significant shifts in U.S. trade policies, particularly under President Trump’s administration (2017–2021). Key measures included tariffs on steel (25%) and aluminum (10%) and comprehensive duties on approximately $300 billion worth of Chinese imports. These policies…
Negotiating with a sales representative instead of the actual decision maker can feel like playing a game of telephone, where your messages risk getting lost in translation. However, this situation is common in procurement negotiations, and it doesn’t have to put you at a disadvantage….
Buyers of indirect categories such as energy, capital equipment, MRO, and packaging are using ChatGPT and other AI chatbots in a couple of different ways. First, they look to the chatbots to advise on best practices, recommend tactics for specific scenarios, and help them craft…
U.S. manufacturers continue to nearshore portions of their supply base, and Mexico is a great choice. There are established regional hubs for many industries, including Automotive (Monterrey, the Bajio region, and Puebla), Electronics (the Bajio region, Baja California, and Guadalajara), and Aerospace (Bajio region and Baja…
Negotiation is an essential skill for purchasing and sales professionals. Recently, a participant from Mexico in one of our negotiation courses stated, ‘Ego is the Enemy.’ While the participant was referring to only one aspect of negotiations, I marveled at the truthfulness and power of…
MRO should be a simple category for delivering savings through spend consolidation. There are plenty of distributors ready to compete for your business, and at least a handful can offer the range of MRO items and services you need. But, there are two things that typically…
Indirect spend categories can eat up a big part of your budget. Think of items like janitorial services, IT resources, packaging, freight, capital equipment, and warehouse services. These are often overlooked because they aren’t directly tied to production. But they add up quickly. One simple…
Details matter when you’re searching for new direct material suppliers. You need to confirm their manufacturing and delivery capabilities, willingness to win your business, and available capacity. It turns out, details matter for indirect suppliers as well, it’s just that the details can be more nuanced. …
In preparing for a presentation on “Using AI Chatbots for Cost Engineering”, I updated my knowledge on the current state of data analysis with ChatGPT. Specifically, I wanted to know the best advice for: Cleansing data Summarizing supplier quote data Conducting regressions analysis Calculating out…
APD is pleased to announce a new virtual training course focusing on practical skills for buying indirect categories. Manufacturing purchasing teams have come to rely on APD training for important topics like negotiations, cost management, and commodity leadership. Now buyers and purchasing managers can expand their…
An effective Statement of Work (SOW) ensures that the scope and expectations for an RFQ are clearly understood by suppliers. Done correctly, a well-constructed SOW helps prevent: Scope creep Missed deadlines Contractual disputes Here are 7 steps to developing an effective SOW for indirect categories Engage…
Managing indirect categories such as capital equipment, temporary labor travel, and MRO requires active collaboration with internal stakeholders. Photo by Mark König on Unsplash Without appropriate stakeholder input, you’ll be left to speculate about what exactly is required for a supplier to meet the needs…
Implementing cost reductions is a priority for most manufacturers, but the path to achieving these savings can often be long and complex. Traditional strategic sourcing is a proven sourcing strategy, yet it requires significant time and resources, typically spanning 8-18 months before yielding substantial results. …
OpenAI rolled out ChatGPT 4o (for “omni”)in May and made this fully-functional chatbot available on a limited basis to users without a subscription. This is a big deal because up until then, users were forced to pay a $20/month subscription fee or forego important functionality. …
In the ever-evolving landscape of global supply chains, understanding the myriad risks that suppliers can introduce to your operations is paramount. Whether you’re a purchasing leader, a procurement manager, or a buyer, being proactive in identifying and mitigating these risks is crucial for maintaining smooth…
Strategic sourcing project projects can take 12 to 18 months before you start realizing savings. Four to six months to segment the spend and interview, identify suppliers, and conduct a multi-round market test. Then another 8 to 12 months to validate suppliers and gain customer approvals….
Sourcing in Mexico continues to be appealing to companies with manufacturing operations in North America. We noticed this trend become popular in mid-2021, driven by staggering ocean freight challenges, changing labor rates and exchange rates, and impacts from the USMCA trade agreement. Unfortunately, Mexican suppliers soon…
We’re often asked what industries are having success finding capable suppliers in Mexico and for which commodities. The answer is not a short one! We looked through our projects from the past two years and found that we’ve helped manufacturers ranging from agriculture equipment producers to…
Strategic sourcing is a well-established procurement process designed to achieve durable cost reductions by realigning the supply base. The focus is on translating the organization’s strategy and stakeholder goals into specific commodity objectives that drive sourcing efforts. Typically, strategic sourcing is the preferred approach when…
1. Defending the Models Imagine presenting your cost model to a supplier, only to be met with skepticism and doubt. One of the biggest challenges buyers face is defending the integrity of their cost models. Suppliers might question the validity and accuracy of these models,…
A Chief Procurement Officer (CPO) recently asked me what typically leads to the failure of cost reduction programs, especially those that involve supplier suggestions for optimized design or services. In training buyers on commodity leadership, we often cite the article “75% of Cross-Functional Teams Are…
Data from a Harvard study of 758 management consultants, some of whom were given ChatGPT (control group was not), showed double-digit improvements in the quality of work produced and task completion speed. Here’s an infographic from our Supercharging Purchasing Productivity with AI to get you…
Advanced Purchasing Dynamics recently published a blog on 5 Tips for More Effective Negotiations. All of the points in the article hit home, but one of the tips really resonated with me – Act, don’t react to maintain composure. Being proactive as opposed to reactive is sound…
Live online training is transforming how global purchasing teams enhance their expertise, offering a host of advantages that traditional face-to-face education methods cannot match: Flexibility and Accessibility: Learners can access a diverse array of courses no matter their location. Cost-Effectiveness: Eliminating the need for travel…
A successful strategic sourcing project delivers: Significant savings Reliable supply Alignment of supplier capabilities with the needs of the organization for service levels, delivery support, and supplier innovation To accomplish this, a focused effort to clearly understand what the organization requires for success is needed…
Prior to Covid, an eye-opening 58% of CEOs expressed doubts about whether their purchasing departments were truly contributing to the bottom line. Post Covid it is still a frequent lament when we talk to CEOs. This skepticism often stems from a narrow focus on cost…
Key Highlights Training is an investment, follow best practices to optimizing ROI on training. Clear expectations and communication are key to successful training. Integrating training into performance objectives ensures accountability and evaluation. Active engagement and practical application of skills lead to better results. Post-training actions,…
Imagine going into an important negotiation with the confidence you’ll be able to direct the conversation according to your plan – no matter how your counterparty acts – and drive the agenda to achieve the best possible results. To achieve this, you’ll need strong negotiations tactics…
AI chatbots – particularly ChatGTP 4 – are quickly proving to be a nearly effortless, swiftly deployable tool that stands to revolutionize how purchasing teams tackle both time-consuming and creative tasks. Imagine having an assistant that combines the eagerness of an inexperienced intern with the…
In the past year, the resin market has experienced varying price changes across different materials. Most resin types have seen a decrease in prices, with Polycarbonate (PC) being an exception, as its price remains almost unchanged. The past twelve months have notably affected the prices…
Training and developing teams in purchasing are important goals for purchasing leaders, now more than ever. For the last four years, purchasing teams have had many additional challenges in the supply chain creating day-to-day challenges: Covid, price increases, inflation, tariffs, and wars throughout the globe…
Having strong negotiation skills within a purchasing group yields a multitude of benefits. It empowers buyers to secure more favorable deals, resulting in cost savings and increased profitability for the organization It results strengthen supplier relationships for long-term collaboration and resilience against market changes It…
Generative AI (think ChatGPT and Bard) is quickly becoming an essential tool for purchasing professionals. The response to our December 2023 blog article Exploring Generative AI for Procurement – where we summarized the use cases for AI for purchasing teams from eight recent articles – has…
Twenty years ago, I made the decision to set up a company focused on what drew me to purchasing in the first place. Understanding cost and collaborating with suppliers. Twenty years prior to that I had decided to enter purchasing, a profession I had not…
A guest blog by MetaExperts In manufacturing, every second and strategic decision counts, and operational excellence (OpEx) isn’t just a goal; it’s the secret sauce to outmaneuvering the competition. If becoming an industry leader is on your list of your goals, it may be time…
Artificial intelligence (AI) has the potential to assist purchasing and supply chain professionals with one of their top pain points: an overwhelming amount of administrative tasks. However, most of the purchasing leaders we talk to are at the beginning stages of understanding how they can…
A guest blog by MetaExperts In the rapidly evolving world of manufacturing, staying ahead in procurement and purchasing is essential. By bringing skilled interim talent into the mix, manufacturers are finding innovative solutions to their most challenging business hurdles, achieving rapid breakthroughs that were once…
Advanced Purchasing Dynamics recently surveyed purchasing leaders concerning the challenges they would be facing in 2024. A top concern of the purchasing leaders is that their companies are expecting them to deliver an unachievable amount of savings in 2024. While savings are always a purchasing…
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…
Becoming more strategic in purchasing involves a shift in mindset, processes, and priorities. Here are 5 key tips to become more strategic and enhance your purchasing strategy: Understand the difference between tactical and strategic: Clearly distinguish between tactical and strategic purchasing. Tactical purchasing is transactional…
Mexico is a major manufacturing hub for many global companies. It offers several advantages, including a large and skilled workforce, competitive labor costs, and proximity to the United States market. However, strategic sourcing in Mexico can be challenging, and there are a number of common…
Introduction: Having strong negotiation skills within a purchasing group yields a multitude of benefits. Firstly, it empowers the team to secure more favorable deals, resulting in cost savings and increased profitability for the organization. Secondly, effective negotiation builds stronger relationships with suppliers, fostering collaboration and…
Cultivating strong supplier relationships is essential for the success and sustainability of your company. Strong supplier relationships can lead to better pricing, improved quality, reliability, and shorter delivery times. Here are some strategies to help you cultivate and maintain strong supplier relationships: Clear Communication: Establish open…
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…
Mexico has long been a popular destination for nearshoring, and the trend is only expected to continue in the years to come. There are a number of factors driving this growth, including Mexico’s proximity to the United States, its large and growing workforce, and its…
Negotiation is an essential skill in business and life. It’s about finding common ground, reaching agreements, and building strong relationships. Last week we had a webinar where I interviewed Mike Wynn, APD’s lead for Sourcing Optimization, about the application of behavioral science to commercial negotiations….
“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…
Negotiating in a global purchasing environment can be rewarding but also prevents challenges if you are not aware of different global negotiating practices. When working with different cultures, customs, and business practices, it is important to adapt negotiation strategies to drive successful outcomes. Here are…
Nearshoring is a trend that consists of companies moving their operations to nearby countries, instead of doing it to distant countries. Mexico is one of the most attractive countries for nearshoring, thanks to its geographical location, its skilled workforce and its low costs. In recent…
Negotiating is an important skill for everyone in business, but it’s an essential skill for buyers, purchasing managers, and business leaders. Skills such as preparing for a negotiation, active listening, and applying the right negotiation tactics for the situation are fundamental to basic success. Skills…
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…
Cost models can play a crucial role in driving successful outcomes for purchasing departments. Used effectively, they help drive optimal design, reduce the time required to bring products to market, and help companies succeed. Here’s how cost models contribute to achieving favorable outcomes in purchasing:…
In the face of global challenges, such as supply chain disruptions and shifting market dynamics, manufacturing OEMs are seeking alternative solutions to meet their production demands. One country that has emerged as an attractive option for opening production facilities with shorter delivery routes is Mexico….
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…
Cutting edge purchasing organizations are embracing a digital transformation to leverage technology for smarter decision-making and improved results. This transformation, known as Purchasing 4.0, empowers purchasing organizations to optimize costs, connect with optimal suppliers, and ensure optimal quality levels. In this article, we will explore…
During the past 3 years, Purchasing teams have been consumed with urgent firefighting tasks requiring immediate attention. At the same time, we changed how we work: going from in-the-office to work-from-home and then back to the office or a hybrid of the two. These factors…
A Buyer’s Market for Indirect? This month’s Manufacturing ISM report brings good news for North American buyers of indirect spend. Corrugate, pallets, and freight are all listed in the Commodities Down in Price, with no indirect commodities listed in the Commodities Up in Price or…
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”…
I have been around cost estimates and should-be costs since 1984 when I joined Ford Motor Company with my newly minted MBA and partial head of hair (yes, it is all gone now). While should-be costing provided real insights into costs and pricing, I always…
2023 started off with Covid once again impacting the daily routines of many. Time will tell how badly manufacturing and logistics will continue to be affected and how much of a delay this will add to supply chain recovery. Purchasing organizations have been consumed by…
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…
For the past three years, buyers have been inundated with negotiating and settling supplier requests for price increases. The combined breadth (cost areas impacted) and percentage increases are higher than I can remember in my almost 40 years in purchasing. You must go back to…
Having experienced unprecedented upward pricing pressure over the past 2 years, purchasing leaders are telling us that they are under increasing pressure to increase cost savings efforts and results. A commodity-by-commodity review of company spend can often turn up untapped, easily implementable savings. To start, take the time to write down…
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….
Companies continue to establish supply chain networks & manufacturing in Mexico. However, there remain challenges to sourcing in Mexico. Mexican suppliers are overwhelmed by the large number of companies trying to diversify their supply chain. As a result, they are often not responding to requests…
Tariffs, covid, shortages, war, and inflation. We have experienced over 5 years of chaos that have had purchasing professionals restructuring their supply chains. However, due to the unprecedented issues requiring immediate firefighting, sometimes shortcuts are taken and the restructuring results are not favorable. What mistakes…
Purchasing success cannot be achieved by purchasing organizations or individual buyers without cost success. But what is cost success? One of the best purchasing leaders in the manufacturing industry explained it to us this way: “The best purchasing organizations and buyers can answer these questions: …
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…
Have you experienced unprecedented upward pricing pressure over the past 3 years? Purchasing leaders are telling us that they are under increasing pressure to increase cost savings efforts and results. This has been a challenge to say the least, with unrelenting price increases for the last 3 years. When working…
Cost negotiation becomes a very hot topic when commodity prices fluctuate greatly. In the last few years sales organizations led the negotiation charge as they sought price increases to offset steep increases in raw materials, labor, and indirect costs. Now, buyers are starting to initiate…
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…
Currently in China, “Zero COVID” policies continue to be implemented that imply extensive confinements. According to The Inter-American Development Bank (IDB), there are estimates that suggest around 79% of US manufacturing companies in China have already started or have plans to relocate part of their…
It appears we are finally transitioning from a prolonged period of supply constraints and rapidly rising prices to a more “normal” state. Supply-demand dynamics will vary by commodity, and the possibility of a global recession still looms, but after several years of chasing parts and…
Every resin grade has its own price movements. Feedstock costs, supply availability, and demand drivers are unique to each material. That being said, the general trend is that prices for most resins are starting to soften – but are still well above pre-covid levels. The…
Cost models provide companies valuable benchmarks to validate supplier pricing. Used effectively, they help drive optimal design, reduce the time required to bring products to market, and help companies succeed. Coupled with advanced analytics they can be used to predict supplier pricing. Jeoff Burris started…
Purchasing success cannot be achieved by Purchasing organizations or individual Buyers without understanding costs. But what does it mean to understand costs and how can you expand your costing skills? One of the best Purchasing leaders in the manufacturing industry explained understanding costs to us…
Is it time for North American purchasing teams to refocus on strategic sourcing? After staggering material shortages and unheard of ocean freight costs, purchasing teams are seeing glimmers of light that suppliers might be ready to compete for business once again. There’s a lot of…
APD recently delivered a webinar on Reducing Corrugated Packaging Costs in which we discussed the current state of supply and demand dynamics and shared what companies can do to optimize costs in the current environment. This post highlights some of interesting information shared. You can…
It’s been a rough time to be a buyer of cardboard packaging. Corrugated paperboard prices have been rising rapidly – up nearly 40% in past 20 months. Cardboard supply lead times have been painful, with some suppliers selectively firing customers to ensure they can fulfill…
Nearshoring is becoming an important initiative for global manufacturing companies that haven’t already established a strong North American supply base. It’s making more sense to “make where you sell and buy where you make” given ongoing freight challenges and shifting economics (mainly labor costs and…
Go Bionic – is the recommendation made to CEO’s the Boston Consulting Group’s (BCG) recently published book makes in its recently published book Profit from the Source1. BCG lays out some ideas for creating a bionic purchasing department combining technology/data and skilled and knowledgeable personal…
The connected world has opened opportunities for customers to find just about any type of supplier to fulfill their needs. Systems like Linkedin even allow suppliers to find you – I don’t know about you, but on a typical day I receive 2-3 Linkedin connection…
In recent days, we’ve had several conversations with manufacturing business leaders focusing on the potential crises looming in both Asia and Europe, potentially affecting their suppliers. They are concerned that intense Chinese military drills in the area surrounding Taiwan and Russia’s slashing of natural gas…
Approximately 70% of all manufacturing companies’ revenue is spent with third party suppliers. The importance of the strategic management of that spend, across the entire purchasing lifecycle, cannot be overstated in terms of its impact on an organization’s financial success. But despite that imperative, do…
At APD, we’ve learned that details matter when you are conducting a search for new suppliers of direct materials. Starting a search without having consensus on what you are looking for is a recipe for wasted effort and prolonged search times. So what are the…
There is a common mistaken belief that Lemmings hurl themselves off of cliffs in an act of mass suicide to control their population. Actually, the Lemmings are participating in a mass migration. The fortunate land in the water and complete their migration; the unfortunate land…
A few years ago, we published two white papers about Should Be Costing, The Road to Should Be Costing Part 1 and 2. In the papers we provide an overview of different (and easy) methods buyers can use to develop should cost models. Our Cost…
Purchasing Departments are accelerating Digital Transformation efforts in 2022 to escape the pitfalls of conducting business with excel, eliminate the clutter, organize their data, and ultimately become more efficient. Given the last 2 years with COVID, Digital Transformation in purchasing has become an essential hot…
APD’s 2026 survey shows how manufacturing procurement teams are using AI, which applications provide the most value, and what prevents broader adoption. Explore seven findings on chatbot access, time savings, practical use cases, training gaps, and the next steps procurement executives should consider.