Elastic Procurement Is Better than Traditional Procurement
A good procurement event is one in which the buyers find the best combination of problem-solution fit, a reliable supplier, and a reasonable price. We call this value-for-money. Problem-solution fit refers to the degree to which the good or service purchased fixes the problem that motivates the procurement. The buyer’s objective function is to maximize […]
Interoperability Is a Force Multiplier for Procurement
In science fiction movies and television everyone speaks English. Often, there is a convenient poetic device called something like the “Universal Translator” that enables beings from wildly different backgrounds to communicate. Human Being H can speak to Vulcan V. Through some magic, H hears English and V hears Vulcan. How boring would shows like Star […]
Generative Text is the Procurement Junior Staffer You Didn’t Know You Needed
Procurement is the first mile of the supply chain. Already, before the Pandemic, procurement teams were spread too thin. When Covid hit with its full force, these employees faced tremendous additional stressors, challenges that persist in many ways. It’s no wonder that there is burnout. 89% of survey respondents in this Keelvar survey say that they are “banking […]
What Is Elastic Procurement™?
What is elastic procurement™ and who should care? CIOs will recognize the word “elastic” from cloud computing. Elastic procurement™ is a delivery model that is to Big Procurement technology systems what cloud computing was to the corporate data center. It lowers costs, eliminates complexity, and empowers staff. Before Amazon Web Services or Microsoft […]
Managing Opportunity Costs Is More Important and More Difficult than Reducing Transactions Costs in Procurement
Why are opportunity costs more important than transactions costs? They’re larger. Why are opportunity costs more difficult to manage than transactions costs? They’re hidden. There is no line item for opportunity costs. There is only foregone revenue or higher costs than what the company could have realized in the future because of decisions made today. […]
Everything Is Sourcing
Sourcing is matching: finding the best solution to a problem.
How Many Sourcing Systems Should a Buyer Have?
“Nearly half (49%) of agency respondents indicate that they are failing to attract enough interest among vendors and contractors to their competitive solicitations.”
Why Choose a Best-of-Breed Sourcing Vendor?
The defining aspect of the 21st century supply chain will be the need to connect people, data, and processes.
How Best to Change Procurement Technology?
Proponents of change need to ensure that there is a balanced, complete conversation around costs and benefits by challenging the standalone case for the status quo approach.
How Should You Measure Procurement Performance?
Perhaps the best way to measure procurement’s strategic performance is to do so qualitatively.