Source One Procurement and Strategic Sourcing January 2018 Newsletter
 

The ReSource – January 2018

Source One Newsletter - January 2018 Edition

Strategic Sourcing News and Insights

 


– SOURCE ONE NEWS –


Source One to Sponsor ISM2018

Once again, the leading Procurement Services Provider will partner with the Institute for Supply Management as sponsors of its Annual Conference. Source One and ISM share a commitment to driving innovation and promoting Procurement’s value. As Diamond Sponsors, featured exhibitors, and guest speakers, Source One’s team looks forward to initiating conversations that will drive the future of Supply Management.

Source One’s Experts Earn Sixth-Consecutive Green Supply Chain Award

The Strategic Sourcing and Procurement consultants at Source One are proud to accept Supply and Demand Chain Executive’s (SDCE) 2017 Green Supply Chain Award. The award recognizes the supply management team’s commitment to helping forward-thinking organizations achieve their sustainability goals. One particularly effective initiative Source One provide direct materials sourcing support to a building products manufacturer. Leading the bid process, Source One uncovered opportunities for cost reduction that also improved the sustainability of the manufacturing process. The honor brings Source One’s 25th anniversary to a close on a high note.

What’s Next for Procurement?

Reflecting on a tumultuous year, Source One’s Procurement experts offer their predictions for Supply Chain Management in 2018. In what’s become an annual tradition, the Strategic Sourcing consultants published their insights in a whitepaper. They offer their thoughts on talent management, emerging risk factors, communicating Procurement’s value, and the changing profile of leading Procurement professionals. 2018 promises to provide it’s own share of surprises, but Source One remains confident that one thing (at least) will remain constant. Leading companies will continue to leverage the strategic potential of best-in-class Procurement.

Big Changes for Source One’s Rapid, Low-Cost Spend Analysis Solution

Source One continues to simplify the cost reduction process by adding new features to its spend analysis platform, SpendConsultant.com. Leveraging the Procurement Service Providers’ decades of experience, the tool empowers Procurement professionals with a user-friendly interface and uniquely simple spend analysis experience. One notable addition is the tool’s new Opportunity Assessment Calculator. Truly setting the tool apart, the OAC enables Procurement teams to put their spend data to work and pursue their savings goals.

 

– SOURCE ONE INSIGHTS –


Procurement Teams Respond to Natural Disasters

Pulp and Paper Prices on the Rise Again? The Aftermath of Hurricanes Harvey and Irma

At the start of 2017, the price of wood pulp was predicted to rise at an annual rate of 5.1%. The rash of natural disasters that closed the year have only exacerbated this issue. A total of 18 paper mills, producing a combined 6.5 million tons a year, were destroyed between Texas and Florida. New shortages in raw material supply will likely continue to drive up surcharges as packaging and other industries attempt to recover and introduce new risk-mitigation strategies throughout their supply chain.

Put Data to Work Producing Savings

Don’t Bother with Spend Analysis if you Can’t Answer this Question 

Data analytics is increasingly essential to Procurement’s processes and operations. Unfortunately, many Procurement teams spend too much time focused on data. They collect, cleanse, categorize, and catalog it, but then what? On it’s own, data doesn’t offer much. Procurement teams need to turn the raw facts provided by data into action. Reams of raw data should serve as an addendum to cost reduction initiatives. When data becomes too important, Procurement professionals can find themselves suffering paralysis by analysis.

Procurement Experiences Industry 4.0

Industry 4.0 – Who’s Reacting?

Industry 4.0 is here. Machine learning, artificial intelligence, and predictive analytics are creating new efficiencies and changing the way companies across the world do business. The rapid advancements in technology make it an especially interesting time to work in supply chain management. Tasked with adapting to customer demands, supply management leaders look poised to take particular advantage of new developments. Laggard companies, however, should be wary. The high-pressure world of Supply Management is about to get all the more high-pressure.

Tips for Managed Fleet Strategic Sourcing

Fleet Management – Savings Through Incentives

During contract negotiations for fleet management services, it’s critical to consider your options for incentive structures. These can take a contract from good to best-in-class. Signing bonuses, services rebates, loyalty incentives and more can also increase the competitiveness and strategic value of your agreements. Source One’s Jonathan Groda recommends evaluating every possible opportunity to adjust your contracting efforts to meet your organization’s particular savings needs.

Will American Airline's Supply Chains Suffer?

United Airline’s ‘Re-Accomodation:’ Will Poor Supply Chain Practices Result in a Hit to the Bottom Line 

News of United Airlines’ re-accomodation policy raised eyebrows in 2017. In a service-specific industry, this cavalier attitude toward ‘inventory’ led to a great deal of controversy and public backlash. CEO Oscar Munoz’ unrepentant response only made matters worse. It remains to be seen how these supply chain practices will impact American Airlines’ operations moving forward. What’s already clear, however, is that customers expect more from their preferred providers than they’ve gotten from many airlines. As corporate ethics become more essential, it could fall upon Procurement teams to encourage more palatable practices.

 

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