This Week in Procurement

This Week in Procurement: Why is this so cheap?

Written by Philip Ideson

1.
MUST READ

After a week’s hiatus due to the Easter weekend, This Week in Procurement is back. And I have two weeks worth of articles to fit into today’s edition…

This week’s must read asks a question that I think we should all ask when evaluating supplier responses in search of the cheapest solution: why is this so cheap?

The article provides an example from the fashion industry. However, I can speak from personal experience earlier in my career when I wasn’t too concerned why I was given a low price from a supplier, I was just happy to take the savings to the bank. Yet I never asked the question… is this price low because of a source of competitive advantage that the supplier has, or is it because they are cutting corners?

Why is this so cheap: what stands behind low prices | Originally by Carol Chan, Karma Athletics, via Robert Freeman, Future Procurement


2.
OTHER INTERESTING ARTICLES

The 21st Century Executive’s Guide to Getting Infinite Value from P2P | David Hearn, CPO Advisement Services, LLC

Pick the Right Competitive Bidding Method for Your Sourcing Situation | Kate Vitasek, University of Tennessee

Top 3 Roadblocks to Supplier Collaboration | Sean Harley, LUPR Inc.

Two thirds of procurement teams have no digital strategy | Andrew Allen, CIPS

‘Conservative’ buyers prioritise track record over innovation | Francis Churchill, CIPS

Raising Procurement’s Image – One Person At A Time | Elaine Porteous, Procurious

Alignment of organisational values and procurement behaviours | Alison Smith, The Purchasing Coach

Beating the Unbeatable Supplier | BCG

Why Can Negotiation Be So Irrational? | David L Loseby, Inchcape PLC

Mind Over Matter: Planning Horizons in a Dynamic Economy | Kelly Barner, Buyers Meeting Point


3.
PROCUREMENT & SERVICE PROVIDER NEWS

Coupa Acquires Trade Extensions, Leading Sourcing Optimisation Software Provider | Peter Smith, Spend Matters

Trump strengthens buy American policy | Francis Churchill, CIPS


4.
@ THE ART OF PROCUREMENT

Podcast: How Best Buy Procurement Delivers Value Beyond Savings through CSR, w/ Tim Meester

Blog: The Need for Speed – A Case Study from the Drug Manufacturing World | Mark Davis


5.
OTHER STUFF

It has been a month since Kelly Barner and I launched Palambridge, and we have been thrilled with the response so far – both from prospects and professionals interested in joining the Palambridge Circle of Experts.

The second in a two part series on the launch of Palambridge by Spend Matters UK / Europe was published this week. You can check it out here:

More on Palambridge – A New Model For Procurement Consulting | Peter Smith, Spend Matters

About the author

Philip Ideson

Philip Ideson is passionate about the role that procurement professionals and leaders can plan in creating competitive advantage for their organizations in ways that go beyond the traditional value proposition.

Philip founded Art of Procurement as a way for the procurement community to learn from each other, increasing the impact they have on their organizations. In 2017, he co-founded Palambridge, a virtual platform of procurement experts, technology, and intelligence. Palambridge provides a broad range of flexible procurement solutions, available on-demand.

Prior to Art of Procurement and Palambridge, Philip enjoyed a career that spanned the procurement value chain, working across three continents for organizations such as Accenture, Procurian, Ally Financial, Pfizer and Ford Motor Company.