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…

Why U.S. Manufacturers are Expanding Their Mexico Supply Base in 2022

After decades of rapidly increasing the amount of sourcing in Asia, U.S. manufacturers are accelerating efforts to reduce costs and shorten their supply chains by “nearshoring” to Mexico. There are three main drivers that are bringing urgency to this issue and one little known reason why the time is right for expanding your supply base…

Achieving Cost Savings in the 3rd Year of Covid

2022 started off with a significant Covid surge, once again impacting the daily routines of many.  Time will tell how badly manufacturing and logistics will be affected, and how much delay this will add to supply chains recovery from the prolonged disruptions of 2020/2021.    Purchasing organizations have been consumed by the urgent demands of ensuring…

Negotiating Price Increase Requests

As a buyer or a seller, one of the most difficult negotiations is a price increase request.  Despite the difficulty, there appears to be a lot of it going on in the marketplace.  Whichever side of the negotiation table you are on, we are seeing success from the side that outperforms the other in two key aspects of negotiation:  Preparation  Active Listening  Preparation –…

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…

Packaging Manufacturer Achieves 8% Resin Price Reduction

“I want everybody to have the same experience that we had because it was really a good experience and a good savings for us working with APD.” The recent retirement of an APD client spurred an interesting conversation.  The Vice President of Purchasing and Supply Chain at a plastics packaging manufacturer turned to APD for…

4 Keys to Purchasing 4.0

The global economy is undergoing a Digital Transformation at record pace.  Declining costs in bandwidth, storage and computing enable organizations to optimize, connect and 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…

Quotation Whack-a-mole

In whack-a-mole a person hits the mole forcing it down only to have it pop right back up in another location.  In quotation whack-a-mole buyers push on an area of supplier costs to get pricing to go down only to have costs pop-up in another area bringing prices up as well.  Buyer and suppliers continue this…

Manufacturers Need Cost Savings Now More Than Ever

Expectations are that hard hit manufacturing sectors will see improving revenues in 2021, although how quickly improvements will come is greatly dependent on the world’s ability to rebound from the ongoing covid surge.  With little control over revenue growth amid a global pandemic, company leaders are looking to their purchasing teams to aggressively drive cost…