When it comes to packaging, raw material generally represents the largest cost component, especially in an inflationary commodity environment. Raw material also represents the largest carbon footprint share of the packaging itself. With the climate in peril, sourcing sustainable materials is instrumental in creating an environmentally aware product. So, it’s all the more important to ensure you’re considering key elements when determining the sustainability performance of the packaging solution.
Just as there was no roadmap for navigating a crisis like COVID-19, there is no formula for the best way to come out of a pandemic, either. However, if anyone has proven that they are up to charting the way forward, it’s procurement professionals. As resourcing experts, procurement is known for finding strategic solutions that satisfy diverse stakeholder needs — and fast.
Sourcing professionals around the globe face increasing challenges and demands, and that was true even before the pandemic. Siloed systems have historically slowed down the supplier onboarding and source-to-contract process.
But flexible contract lifecycle management (CLM) solutions can enable new agility in the sourcing process, especially if they are extensible enough to bring sourcing professionals directly into the contract management process.
Contracting, common for every company, is something that few companies do efficiently or effectively. The process of reviewing contracts and legal documents is manual, tedious and error-prone, exposing organizations to legal risks if not well managed. The financial consequences can also be severe. KPMG estimates that inefficient contracting causes firms to lose up to 40 percent of value on a given deal, depending on circumstances.
A topic that comes up time and time again in discussions with clients is the idea of benchmarks as a means to drive high performance. Are benchmarks valuable? How much emphasis should we place on them as we think through what we want to get done in our function?
Procure-to-pay (P2P), which involves the four key stages of selecting goods and services, enforcing compliance and order, receiving and reconciliation, and invoicing and payment, is a core business process that offers exceptional opportunities for optimization and integration.
Supply chain management and procurement are fields commonly misunderstood by many. The contribution of these fields to any business or their perception as a career option is governed by many misconceptions.
In this article, some of the common myths about supply chain management and procurement will be explored. The purpose of this is to get rid of the common myths around these fields and to help you get a better understanding of the profession.
B2B companies are currently up to their necks in “digital transformation.” They're moving at a rapid clip to enhance the customer experience through technologies that automate processes while focusing on marketing, sales, and e-commerce. While this was percolating before COVID-19, it’s now all-encompassing and tied into the overall business strategies. On the back end, ERP providers and their VARs are scrambling to keep up. Maybe, just maybe, it’s time to take a step back and look at this through a different lens.
Julian Nyarko, assistant professor at Stanford Law School, has researched an interesting concept he calls contract “stickiness.” His findings? Once a contract’s terms or covenants is written into a contract it “only rarely” gets changed or improved – hence the concept that contract terms are sticky.
The year that started the global pandemic also brought more than just the coronavirus. The world became acutely aware of the weak links within the global supply chain. At the onset, product and people movements were challenging. We saw supply shortages not entirely driven by hoarding behavior, but because the supply chain was stuck.
The question became this: How do we get people and products moving safely, without jeopardizing employees’ health, safety and well-being, as well as customers?
Poor contract management costs businesses up to 9% percent of their annual revenues. Contracts determine the flow of an organization’s finances and directly impact customer satisfaction, savings, risk exposure and productivity. However, organizations can have thousands of working contracts at any given time—each with their own set of set of risks, terms and expectations.
Keith Hausmann, Chief Revenue Officer, Globality, explains how the AI revolution is transforming the way companies source complex categories – typically services, delivering faster, better decisions; more autonomy for stakeholders; and greater opportunities for procurement professionals to drive innovation.
The COVID-19 pandemic has reshaped the global workforce in a variety of ways, with employee health and safety catapulted to the forefront of business concerns. Even with vaccination rollouts and months of experience navigating a worldwide pandemic, the future of the global workforce remains uncertain.
When Alibaba.com surveyed 5,000 SMB decision-makers in September 2020, keeping employees healthy and safe while reopening in-person operations was reported as the number one concern among employer firms in 2021.
Environmental, Social and Governance (ESG) factors are becoming increasingly important in supply chains. Consumers are demanding more transparency and better practices than ever before. Meanwhile, millennials are putting their money where their mouths are and increasingly investing in companies that align with their environmental and societal values.