Quite often, we use this blog to discuss the increased reliance companies have on their global network of suppliers – the notion of corporate virtualization - and the importance of carefully managing suppliers and understanding their behavior and ethics. We have seen and written about many circumstances in which a supplier-related failure or business behavior has impacted a company’s reputation or bottom line. In many ways, company and supplier have become one, with the lines between the two increasingly blurred.
US retailer plays chicken with notorious egg supplier
When a major, well-known and generally respected retail brand retains a supplier with a shady track record for food sourcing, it should hardly be a surprise when that supplier drags that retailer into a PR fiasco. In the recent case of a popular US retailer (which stocks everything from cleaning supplies to electronics to groceries), and Hillandale Farms of Gettysburg, the question of “the chicken and the egg” and which comes first is quite a literal one, as it relates to who gets the blame.
Tesco aside, supermarket-supplier relations improve in the UK
We are in an age where companies of all shapes and sizes turn to global suppliers more than ever before. There is perhaps no group of companies more reliant on suppliers than supermarket chains. Without suppliers, the supermarket chain is nothing more than a store with empty shelves, baskets and a neon sign.
New study suggests American consumers intend to punish companies involved in supplier-driven scandals
NEW YORK, NY and London, UK – May 14, 2015 – A newly published survey suggests that companies who are not actively monitoring the business practices of their suppliers, or who are engaged in questionable supplier practices themselves, are placing their reputations and their balance sheets in harm’s way.
It’s always fashionable to muse on the parlous state of capitalism. Seven years ago, it was all broken: financial services run wild had all-but-destroyed our way of life. Four years ago, the Occupy neo-hippies were camping out to find something – anything – as an alternative to the broken promises of the market. A year-and-a-half ago? Thomas Piketty’s algorithmic tear-down of the balance between capital and economic growth.
OC&C and Retail Week recently collaborated to provide a report on the UK's retail industry. Proxima's latest research around corporate virtualization was featured to help understand the figures behind retailers' spend.
Faltering growth means proactive supplier engagement is required
Something has to change. Retailers face being subsumed by the economic conditions, drawing on increasingly limited funds for reinvestment back into their businesses. But sustained sector growth seems a small dot on the horizon. There will always be the trend-buckers and those that insulate themselves from the worst of the high street maelstrom, but for everyone else, it is time to think differently about how profits can be boosted from sources closer to home.
Ladbrokes Chief Procurement Officer bets on stakeholder management
Supplier relationships are obviously vital to a sound procurement strategy. But for Clive Rees, Chief Procurement Officer at betting giant Ladbrokes, keeping internal stakeholders close is just as important.
Banks seek agility, transparency and transformation from procurement
Procurement adds value by offering transparency into where and how a business spends it's money. But when it offers "an understanding of what is driving a particular spend pattern where the demand is coming from and how can it be managed effectively," it can really start to deliver both strategic and tactical benefits.
Driving Fujitsu’s growth agenda: aligning business supply with business development
Andrew Croston (AC), Chief Procurement Officer (UK and Ireland) at Fujitsu discusses how building business-wide communication, collaboration and relationship strategies into the functions overall operations, procurement has been able to act as a true partner to finance, operations and business development teams – embedding itself into the very core of the business.
Clive Rees (CR), CPO of Ladbrokes (a leader in the global betting and gaming market) discusses the changing role of procurement in supporting mergers and acquisition (M&A), enhanced SRM and a much greater focus on understanding the overall business.
Redefining procurement series: Stakeholder communication (part 1)
My last post in the Redefining Procurement Series finished by stating that the key to being a great leader is understanding your stakeholders needs and drivers and adapting your approach and metrics to their unique needs. With this established, we now need to understand how procurement can (and should) engage with the various departmental stakeholders and forge close working relations.
Where is the value in better management of GNFR for retailers?
Following on from my first post in the UK Retail Series (in which I asked how can UK retailers look to safe guard themselves over the coming 2 years?), I would now like to look a bit closer at the importance of the supply chain.