Iran has demonstrated its capacity to disrupt regional energy flows since the Iran-Iraq War of the 1980s; however, it remains uncertain whether this influence will impact the outcome of the current conflict. Recent missile attacks by Iran have targeted oil tankers and facilities, resulting in temporary interruptions in the Strait of Hormuz. Consequently Brent crude … Read more

I recently ran a Poll concerning what re the most important of the three “C” s of Procurement. For those who are unaware or have forgotten, this simple post highlights what they are all about.   Within the Procurement “Three C’s” refer to Cost, Control, and Consolidation, providing a framework for managing expenses, overseeing the procurement … Read more

Especially since the 1990’s, modern manufacturing involves sourcing components, technology and design input on a” global village” basis, aspects such as political relations, sanctions, human and workers’ rights, trade wars, hot and cold wars all impact Procurement. Over the last twenty years or so, Procurement has gained a strong influential role regards influencing the organisation … Read more

Recently I posted a poll on the frequency with which supplier performance audits should be conducted from a Procurement Risk Mitigation perspective. The options were three, six and nine months. The overwhelming majority of participants voted for the six-monthly option, which of course is the recommended audit interval. However, on groups that were specifically orientated … Read more

In today’s world vendor fraud schemes are on the rise and criminal elements become ever more sophisticated, resulting in cost inflation and worse. The overall pecuniary loss to the company can be staggering when legal and investigative fees, changes to systems and processes etc are factored in. Then there are the non-monetary factors such as … Read more

I recently ran a Poll on this subject, with most voters voting for good old mk 1 Human Intelligence over AI. Some would state that the obvious reasoning for such voting results is that none of us want to accept the fact that we can be replaced, and possibly will, by in essence a machine. … Read more

I recently ran a Poll on this topic with the results reflecting that most participants voted that Dual or Multi Sourcing (or Supplier Tiering) policies is a necessary Procurement Risk Mitigation strategy. I experienced this for real, many times, but most prolifically during the geologistics aftermath of 911. Beyond the obvious Procurement Gloden Staples of … Read more

To any strategic sourcing initiative there are eight basic “foundation” components (or steps) to building an organised strategic sourcing model. These guide the Procurement function when managing improvement, or effecting change to spend areas or processes, with the overall goal of reduced cost and greater process efficiency and effectiveness. These components can be used collectively … Read more

Ethics in procurement consist of a wide based set of values (or ethics code) that govern the Procurement Process for both the buyer and suppler base, ensuring professionalism and integrity for all concerned parties. These Ethical values would provide for critical considerations such as expectations, vendor and internal stakeholder relationships, social responsibility, environmental, supply and … Read more

Some while back I posted a LinkedIn Poll on what are the current major contributing factors to Procurement Risk. Many thanks to those that participated. The feedback from the Poll was statistically as follows: Rising Logistics costs as a factor: 40% Unspecified Macro Eco-Political reasons: 30% Knock on effect from the Russo-Ukrainian War: 18% Unspecified … Read more