All posts in economy

What The Low Cost Country Sourcing Mindset Must Evolve To

One of the hottest buzz phrases of the early 2000’s was “low cost country sourcing,” or LCCS. Here in 2018, we still outsource to low cost countries.  But, with the hot economy that I’ve been blogging about lately, it’s time for an evolved focus and perhaps a new buzz phrase. As I’ve written about the currently hot economy, there “is a…

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What An Overheated Economy Means For Procurement

A couple of weeks ago, I blogged about how the Trump administration tax cut would impact procurement. A related potential development is the possibility of the U.S. economy overheating in 2018.  The fact that the Dow Jones Industrial Average closed above 25,000 for the first time ever just yesterday only serves to reinforce this possibility. A good economy is characterized…

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Will Procurement Get Insanely Busy With The Impending U.S. Tax Cut?

Indications are that the U.S. government is set to approve a massive tax cut.  U.S. corporations are set to see their federal tax rate drop from 35% to 21%. So, what’s going to happen with the difference? One with a liberal mindset may think that it will go solely into the pockets of shareholders.  But, logically, businesses reinvest in their…

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The Supply Chain Talent Crunch: We’re Still Talking About It 10 Years Later, Eh?

I had to LOL today when I read Spend Matters’ interview with ISM’s chief content and engagement officer, M.L. Peck.  One excerpt of the interview stood out to me because it ventured into the topic of the “supply chain talent crunch.” In this excerpt, Spend Matters’ wrote “We always hear about the mass exodus of supply chain professionals that’s going to come when…

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The Internal Procurement Challenge In A Hot Economy

In yesterday’s PurchTips, I wrote about three procurement challenges in a hot economy.  These three particular challenges were all externally-focused:  supply availability, supplier service and quality, and upward price pressure. But there are internal challenges in this environment, too. The biggest internal challenge is acquiring and retaining procurement talent. When an economy is hot – as evidenced by the uber-low…

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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?” Don’t miss updates on Procurement & Supply Chain, Subscribe here! 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…

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What The Fed’s Interest Rate Decision Does (Or Doesn’t) Mean For Corporate Procurement

On September 17, the U.S. Federal Reserve Bank announced that it would not increase the benchmark interest rate that was being so closely watched by professional and amateur economist alike. Don’t miss updates on Procurement & Supply Chain, Subscribe here! Generally, the Fed will raise this rate when the economy is showing signs of overheating, as evidenced by high inflation…

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Is What’s Good For Procurement Bad For The Economy?

Yesterday, the stock market took an ugly hit. The Dow Jones Industrial Average dropped by the biggest amount since the financial meltdown three years ago. This drop followed smaller drops in prior days that were at least partially influenced by lower-than-previous-month numbers in ISM’s economic indexes. Don’t miss updates on Procurement & Supply Chain, Subscribe here! Earlier this week, the…

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