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,…
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…
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…
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…
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…
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…
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…
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…
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…
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…