Can Purchasing Deliver without Buyer Cost Objectives?

Background The financial crisis of 2008 lent credence to the adage that “only the strong survive.” The balance of power between customer and supplier shifted to become more equal.  The notion of annual price reductions baked into contracts was challenged. The concepts of early upfront business awards and increased collaboration between supplier and customer started…

7 Reasons Purchasing Executives are Losing Job Security

Do you know which forces are threatening your job security? We’ve identified the top seven reasons purchasing executives are losing job security, which we reviewed in a cloud conference earlier this year. In the meantime, let’s look at one reason purchasing executives are losing job security: the lack of a repeatable cost savings strategy. Repeatable…

Embracing the cloud: The time is now for manufacturing

Back in January, Manufacturing Leadership Journal posted predictions for the manufacturing industry in 2015. Among the list of trends, one item in particular stood out to us: “The rise of cloud-based supply chains.” Now, with the first half of 2015 behind us, we couldn’t agree more. Cloud-based solutions have become increasingly more attractive to manufacturers,…

The Move to Open Book Costing

Recently, I was quoted in an Automotive News article on GM’s move to open book costing, which they call One Cost. The article prompted a number of conversations with CEOs and sales executives not only about GM and their move to open book costing but also about the use of cost models and cost breakdowns…

Falling Oil Prices: What Should Resin/Plastic Component Buyers Do Right Now?

Crude oil prices are hitting record lows and are having a significant impact on resin prices. But the real question is: Have they hit rock bottom yet? The short answer is that timing and price movement will vary greatly by region and resin type and grade. Buyers of resins and plastic components need the right…

Are You Getting Paid What You’re Worth?

As the economy improves and manufacturing revenues rise, purchasing and procurement executives may be ready to make a job change. The process involves extensive research and finely honed negotiation tactics. What are the best strategies for upper-level executive negotiations? Research, Research, Research Before starting the compensation negotiation process, purchasing executives need the facts. Which market…

Trends in Purchasing/Procurement: Collaboration

It’s a question our purchasing and procurement experts are hearing more and more: How are world-class manufacturing enterprises eliminating waste and reducing costs in their supply chains? The answer can be found in one word: collaboration. Getting to the Heart of Collaboration When manufacturers can establish trust and set up high-level channels of communication with…

Procurement’s Reshaping in Coming Years

At the beginning of the month, I was fortunate enough to attend the Center for Automotive Research (CAR) briefings seminar. The CAR conference had a record 1,000 attendees. While attending world class networking in the evenings, it was great to interact with other executives in procurement, manufacturing, operations, finance and sales. If you have not…