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Buyer Analytics Purchasing Blogs - News About Procurement
Monday
Jun012015

Purchasing Template for Bid Waiver Request

An updated procurement template for bid waiver request is now available for download. This template works with Microsoft Excel. Using a bid template documents the reason for bid waiver.

Over time, bid waivers should be tracked by procurement. Template categorizes the reason for bid waiver by department, management and supplier. This information could be helpful in determining areas for further spend analysis.

Here is a screenshot of the bid waiver template:

Here is the link to the bid waiver template for procurement.

Wednesday
May272015

Smart Beta for Procurement

smart betaSmart Beta is all the rage in the ETF industry. Could there be a parallel adaptation of Smart Beta strategy for procurement? According to Investopedia:

Smart beta defines a set of investment strategies that emphasize the use of alternative index construction rules to traditional market capitalization based indices. Investment managers that follow a smart beta investment strategy seek to passively follow indices, while also taking into account alternative weighting schemes such as volatility. Smart beta strategies are implemented like a typical index strategies in that the index rules are set and transparent.

The Smart Beta strategy could be applied to MRO sourcing. A manufacturing plant would utilize several distributors per category and measure performance based upon key performance indicators (e.g. on time delivery, price, technical support). The key performance indicators would be transparent to suppliers and automate sourcing each quarter or each year. Buyers would allocate spending starting at 50/50 and moving to 75/25 based upon performance.

Since MRO procurement is very resource intensive - procurement resources could be used more efficiently. Business would be awarded based upon Smart Beta KPI's instead of the typical leverage and consolidate strategy.

Monday
Jan192015

Purchase Order for Excel works on IOS

It's nice that Excel works across IOS (Apple's operating system) and Android. Here is a screen shot of the same Excel purchase order template imported into Excel for iPad.

Here is the link to download the purchase order template. Free Purchase Order Template.
Friday
Jan092015

New Free Purchase Order Template

A new free purchase order template is available for download. Here is a screen shot of the free purchase order template for Excel.

You can download by clicking below:

Saturday
Jan122013

U.S. Closing the Gap on Manufacturing Labor with China

Emerging and Frontier markets are still the lowest cost labor markets. According to research from JP Morgan Asset Management:

Wages, which are the largest part of most manufacturers costs, are still vastly different around the world, regardless of the rise in manufacturing costs in some emerging market countries seen over the last decade.

Here is a great graph from JP Morgan depicting this data:

image 

Today, manufacturing labor from China is 10 times lower that the U.S. However the gap is closing since in 2001 the gap was significantly higher at 39 times.