Good Spending

The source link . How could you describe your career path in a few words?   I worked in procurement for 22 years - telecom, airline, railways, public infrastructure services and consulting industries, and multiple geographies. I’m a Fellow of CIPS and an author of “ The Technology Procurement Handbook ,” where I tried to share my passion for what we used to call “IT Procurement.” This is where I started digging deeper into the Agile agenda , thinking of finding repercussions with our professional life and blogging on related topics.      How do you think agile practices have transformed companies over the past two years?   I assume that Agile practices in procurement are hyped more than used : many companies still mandate the use of the RFx as the sole answer to any emerging sourcing requirement, many fear or don’t appreciate the demand management, and digital transformation frequently happens without any comprehensive strategy and benefits trac...

Early Supplier Involvement to the rescue from bad supplier sourcing In many companies, the procurement process remains a disappointment for internal stakeholders and suppliers. All-purpose RFPs and blanket e-auctions may put governance above business interests and demotivate suppliers unless consciously applied to appropriate categories. The need for an agile procurement process is undeniable. The entire industry revolted, wanting to kill the RFP and claiming billion-dollar losses from outdated sourcing approaches. Nowadays, everyone carols about Agile procurement and sourcing but forgets to explain it. Alternatively, o ur intention is not to generalize but suggest fine working examples.  This post will elaborate on Early Supplier Involvement, which demonstrates virtues of true agility - trust, cooperation, flexible governance, and a value-centric mentality. Early Supplier Involvement (ESI) ESI resides on a simple premise - the early involvement of critical suppliers in t...

The new source of competitive advantage Porter's two primary sources of competitive advantage are cost and differentiation. Companies set out to become the cheapest or most unique in the industry/market.  Naturally, the cheapest ones engage in price wars to win or die.  Differentiation champions tend to become most valuable to their customers. They do so not by being the most affordable but by uniquely positioning themselves to meet the specific demands of their refined clientele.  Apparently, just like any other bipolar model , this one oversimplifies reality. The third force has always been there, or it emerged with evolution. The definition and main attributes of cost innovation Cost innovation assumes the provision of high-end disruptive technologies and niche products to the mass market at affordable prices. It breaks the barriers of uniqueness established by differentiators.  Suddenly, wine chillers don't just belong to connoisseurs - they have become ...