5 Ways Cost Models Help Companies Succeed 

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 Advanced Purchasing Dynamics in 2004 to help companies with collaborative,…

Time to Take a Closer Look at Indirect Savings

Purchasing teams have endured a constant state of crisis since Covid 19 shut down most manufacturing in early 2020. Material shortages and seemingly endless price increases have interrupted nearly any strategic focus as teams have been overwhelmed with “chasing parts” and fighting off supplier price increases to the best of their abilities. Now that the…

5 Critical Mistakes When Restructuring the  Supply Base 

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 are being made, and what are the lessons learned?  We…

5 Tips for Understanding Costs Better 

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 this way:  “The best purchasing organizations and buyers can answer…

How Purchasing Cost Models Help Companies Succeed

Cost models provide buyers with 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. When it comes to understanding supplier cost structures, I admit that I am biased. After all, understanding supplier cost structures was what started my…

Are Suppliers Ready to Compete for Your Business?

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 evidence that supply markets for many commodities are beginning to…

Say Good-bye to Should-be Costs and Hello to Predictive Pricing 

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 found it to have some drawbacks:  Many suppliers find the…

Outlook for Corrugated Packaging

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 download the on-demand webinar recording here. Corrugated packaging costs have…

Is It Time to Optimize Your Cardboard Packaging Buy?

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 their most profitable orders. And demand is expected to continue…

Finding Untapped Savings Opportunities

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 the questions you should be asking about each commodity that…

4 Keys to Purchasing 4.0

The global economy is undergoing a Digital Transformation at record pace. Decliningcosts in bandwidth, storage and computing enable organizations to optimize, connectand model data to improve decision making and to drive results. Whatever the experts call it: Industry 4.0, Digital Economy, Internet of Things,Harnessing the Power of Artificial Intelligence and Machine Learning – its potential…

Are there Capable Machining Suppliers with Capacity in North America?

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 exchange rates) that have made sourcing to Asia a less…

Go Bionic

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 just as man and machine came together in The Six…

Tips to Becoming Your Customer’s Favorite Supplier

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 requests from suppliers touting their manufacturing capabilities from all around…

Manufacturers Intensify Sourcing from Mexican Suppliers

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 supplies to Europe are going to impact suppliers’ ability to…

Does Purchasing Have a Seat at the Big Table?

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 we, as purchasing leaders and professionals, have a seat at…

Why Purchasing Departments are Choosing to Evolve Digital Transformation in 2022

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 topic, however in 2022 there’s a new twist:  Purchasing Departments…