My attention was drawn to an article on dealnews.com entitled “20 Things That Will Be More Expensive in 2011.” Now, I fully expected the article to be written for consumers, but I thought I may also find some tidbits that would be revealing for the corporate purchaser as well. And I believe I did.
Here are three categories mentioned in the article that a corporate purchaser should keep an eye on in 2011:
Insurances: The article mentions both car insurance and health insurance as two items that are expected to go up in price. Now, many purchasing departments do not handle insurance purchases. But the question is: should they? With prices on the rise, companies may need more spend management firepower to protect themselves from expense increases in “non-traditional categories.” In other words, it may be time to execute Stage 3 of the Strategic Sourcing Plan of Attack.
Utilities: VOIP services and water rates were among the categories cited by the article. Again, these are categories outside of the traditional procurement domain but as pointed out in an earlier post on this blog entitled “Whitepaper Wednesday – Energy Buying,” utilities may be ripe for a purchasing department’s involvement.
Commodities: The article mentions consumer commodities such as chocolate, coffee, and gold as those likely to go up in price, but you better believe that commodities more commonly purchased by business will be facing upward price pressure as well. The article does touch on the cost-driver effect a bit when discussing ammunition, saying “Ammo prices…will rise again in 2011, all because the metals they’re made of are going up in price.”
So what categories are you expecting to go up in price in 2011?
And what do you plan to do about it?
To Your Career,
Charles Dominick, SPSM, SPSM2
President & Chief Procurement Officer
Next Level Purchasing, Inc.
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