Archive for 2017

Strengthening Your Strategic Sourcing Process by Incorporating Six Sigma Methodologies

Special thanks to Source One Management Services for this guest post From a high level, Six Sigma methodologies and the strategic sourcing process follow a comparable path and strive for similar results: efficient, leaner, and more cost-effective business environments. Both processes progress by adhering to decisions that are driven by qualitative and quantitative data. While Six Sigma has found most success in…

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Procurement As An Insurance Policy?

Think about the concept of insurance. Insurance allows you to recover from the unexpected. If you get into a car accident, car insurance will pay for the repair of your car.  If your home catches on fire, homeowners’ insurance will pay for the replacement of your home.  If you get injured, health insurance will pay for your visit to the…

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Procurement Priorities Should Mirror Organizational Priorities…But They Often Don’t!

In this smoking hot economy, workers are moving to greener pastures extremely quickly.  And procurement leaders are no exception. It’s been a great time for procurement professionals to climb the corporate ladder into CPO-level roles.  But the uncomfortably fast pace of this upward mobility means that a portion of CPO positions are being filled with individuals who are perhaps a…

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3 Ways an RFP Can Give Your Telecom and IT Services a Boost

Special thanks to Source One Management Services for this guest post Overhead expenses, including telecom costs, can slow or completely sabotage your business success if left unmanaged. You don’t need to fall victim to escalating overhead.  Instead practice efficient and pro-active management by preparing a detailed Request for Proposal (RFP). It’s true an RFP process can take an investment of time and…

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Landed Cost Model vs. Should Cost Model

I received a great question on a webinar I did today:  “What’s the difference between a should cost model and a landed cost model?” This is a fun question to answer.  These two things could be the same in a certain application.  But how they are typically constructed and used in practice makes them distinct. A should cost model is most…

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NLPA Now Part of CertiTrek Group

The following is an announcement from the new president of Next Level Purchasing, LLC, Vivek Shally. Next Level Purchasing Association (NLPA) is the world’s largest membership association for purchasing professional having over 280,000 members in over 100 countries. NLPA is now a part of the CertiTrek Group portfolio of certifications. CertiTrek raises the bar to set new standards for a certification…

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Why July 5 Reminds Me of Procurement

July 5.  The day after Independence Day in the USA. What the h*ck does such a day have to do with procurement? Well, let me walk you through what I’ve observed in the last 24 hours. On Independence Day – better known as “the Fourth of July” – many of us set off fireworks on our curbs at night.  We…

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How Important Is Asking About Prospective Supplier Personnel?

I accidentally ran across a 17-page sourcing case study from Allegheny County, Pennsylvania. This case study will likely be the subject of a number of posts on the NLPA Blog.  There’s a number of things that the County’s sourcing team did well in the sourcing project.  And there are plenty of things that are downright questionable. In this first post, I’ll…

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Difference Between The PPI & The CPI

A common question I get from individuals who take the NLPA’s online procurement courses is “What is the difference between the PPI & the CPI?” Both the Producer Price Index (PPI) and the Consumer Price Index (CPI) are US government-published indices that measure the changes in pricing over time for various categories of goods and services. Generally, the PPI represents…

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The Role of Standards in Achievement

In discussions of achievement, a standard is the degree of proficiency that you consider to be “good enough.” When set ideally, standards can motivate high achievement.  When set sub-optimally, standards can sustain mediocrity. One example of a sub-optimally set standard that sticks in my mind is a local band that I once heard on a radio station. On Sunday nights,…

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