Monthly Archives: May 2007

You Know Your Recession Is Over When …

Your idea of a relaxing drink with your significant other at the end of a long day is a $15,000 Diamond-Tini at the Ritz-Carlton.

The Diamond-Tini, a cocktail with a hint of lime and chilled Belvedere vodka over a 1.06 carat stone, is Japan’s answer to Manchester’s slightly more expensive Diamond Cocktail, which uses a 1/2k pink tourmaline and diamond ring set in 18k white gold, which averages around $30,000 a pop.

My only question is what’s next? A solid-gold sundae dish that doubles as a crown?

Desert Chocolate

Although some Oompa-Loompas have forsaken the ways of their forefathers and now blend code instead of chocolate, others still work in the chocolate factory, although it’s not your fathers chocolate they blend these days.

Armed with chemistry, biology, and nutrition expertise, they have developed a new vitamin-packed super form of dark chocolate that will last for years and not melt even in desert heat. Now when you’re vacationing in the South American Jungle, the deserts of Egypt, and on Ayers Rock down Under, you’ll be able to take your chocolate with you – after all, what could you possibly want more in 48C weather under a blazing hot sun?

Kudos to The Cynical Sourcerer for the assist.

(e-Sourcing) Wikis are Organic

The recent issue of Backbone, the Canadian Business Technology Lifestyle magazine, had an article titled Building a Wiki Workplace: Unleashing the Power of Human Capital that noted that the nature of work is changing; it is increasingly team-based and collaborative, cutting across the organizational silos and bureaucratic structures of the 20th century corporation. (Echoing the sentiments of Tim Hindle as summarized in The New Organisation, as printed in the Economist last January and discussed in my post Sourcing the New Organization, the fifth installment of last summer’s Purchasing Innovation series.)

It discussed the increasing popularity of wikis and blogs in the corporate world because they help employees work with more people, in more regions of the world, with less hassle and more enjoyment than earlier generations of workplace technology. The result is faster innovation, lower cost structures, greater agility, improved responsiveness to customers, and more authenticity and respect in the marketplace. The primary example provided is that of Best Buy, which continues to crush its competition with plans to open more than 100 new stores when competitors such as Circuit City are closing locations. Best Buy believes store managers and associates know customer habits, wants, and frustrations better than market research statistics and asks general managers to fine-tune the company’s broad-brush thinking for local markets. These general managers then go online to brainstorm and swap experiences and ideas, using collaborative technologies such as wikis.

However, it is the closing paragraph that provides the most insight:
Clear goals, structure, discipline and leadership in the organization will remain as important as ever and perhaps more so as self-organization and peer production emerge as organizing principles for the workplace. The difference today is that these qualities can emerge organically as employees seize the new tools to collaborate across departmental and organizational boundaries.

In other words, the benefits of the wiki will grow and emerge over time, and possibly provide value and insight in a manner you could never have predicted. Just make them available, make them easy to use, encourage their use, and have some patience. Given time employees will develop their own self-organized interconnections and form cross-functional teams capable of interacting as a global, real-time workforce. And, oh yeah, check out the eSourcing Wiki and spread the word.


The article also provides six tips on the implementation of collaborative technologies.

  • Use Pilot Projects to prove benefits
    and start with fact-based efforts
  • Choose a receptive group for the pilot
    such as young people familiar with collaborative technologies
  • Maintain Leadership and Vision
    and find a leader who is passionate but not too controlling
  • Use loose control systems
    and set clear performance goals while encouraging the use of new tools
  • Use innovative techniques to achieve critical mass
    and pre-populate the wiki with baseline useful content
  • Use light incentives
    and focus on creative pleasure, peer recognition of expertise, and visibility

Those China Pirates …

Ashton Udall has a good discussion on why the Chinese are likely to copy your products and steal your Intellectual Property over on the Product Global blog (which was inspired by a posting on the DesignSojourn blog). The great thing about the post is he breaks it down into two major themes, each of which boil down to the same basic theme: culture, which I have partially discussed in my Is Low Cost Country Sourcing to China really Innovative, my Can China Be Innovative, and my Supply Chain Top Three posts. For those of you considering a new sourcing venture to China, I would highly recommend you check the post out.

Global Trade Management 2007

Aberdeen recently released a research brief on Global Trade Management in 2007 Benchmarking Trade Compliance, Global Supply Chain Visibility and Risk Management Practices in advance of their forthcoming study on Global Trade Management (with a scheduled release date of May 31) that highlighted this years focus in Global Trade Management (GTM): improving agility, trade compliance, and risk management.

This brief highlighted the alarming statistic that 90% of participants in the 2006 Global Supply Chain Benchmark study reported that their global supply chain technology was inadequate to provide the corporate finance organization with the timely information it required for budget and cash flow management. Thus, the importance of Supply Chain Finance (SCF), as highlighted in yesterday’s post should not be overlooked.

The brief outlines their Best-In-Class PACE (Pressures, Actions, Capabilities, and Enablers) hypothesis which they outlined as follows:

Pressures Actions Capabilities Enablers
  • Lack of critical supply chain process visibility
  • Move to a paperless GTM process
  • Implement new processes that enhance agility
  • A centralized global supply chain management organization
  • A cross-functional purchasing, supply chain, and finance team to oversee GTM strategies
  • Online visibility into international order and supplier event status
  • Online visibility into in-transit shipment status
  • Supply Chain Visibility Platform
  • Import Compliance Automation Platform
  • Export Compliance Automation Platform
  • Preferential Trade Agreement Automation
  • Risk Management Tools

Not a bad start, but I would hypothesize the following:

Pressures Actions Capabilities Enablers
  • Lack of critical supply chain process visibility
  • Lack of insight into supply chain risks
  • move to a paperless GTM process
  • implement new processes that enhance agility
  • implement end-to-end e-Sourcing, e-Procurement, & e-Logistics Management systems to simplify and enable the GTM process, including relevant SCF solutions
  • Center-led supply chain organization
  • Cross-fucntional purchasing, logistics, finance, and engineering team to oversee GTM strategies
  • Online visibility into international order & supplier event status (including in-transit shipment status)
  • Online visibility into status of 3PL carriers and international ports (of entry)
  • Online visibility into risk mitigation efforts
  • Online visibility into alternate supplier status
  • Supply Chain Visibility Platform
  • Import & Export Compliance Automation Platform
  • Non-Preferential & Preferential Trade Agreement Automation
  • Risk Management Tools
  • Enhanced Spend Analysis Tools

My rationale for this is the following:

Pressures Actions Capabilities Enablers
Process visibility is good, as this allows you to improve your processes, but if you overlook key risks, your supply chain could still be brought to a grinding halt no matter how efficient your processes are A good GTM process is enabled by the proper SCM systems, and these will need to adequately cover e-Sourcing, e-Procurement, and e-Logistics, as well as the appropriate areas of Supply Chain Finance and International Trade Management if an organization is to achieve efficient, paperless processes Center-Led is better than centralization. As indicated in my weekend series over on eSourcing Forum last summer (Part I, Part II, and Part III) and in the Center Led Wiki, not everything is appropriate to centralized sourcing or management. A Center-Led organization allows you to centralize where it makes sense, and decentralize where it does not.

Don’t overlook engineering when evaluating key suppliers and supply risks – they will often know more from a product standpoint than the rest of the organization combined!

It’s important to not only track the status of the carriers you’re using, but the inbound ports (of entry) you’ll be using as well. For example, if you are shipping ocean freight and the planned port of entry is expected to be hit by a hurricane, you need to be able to re-route the shipment. Also, if you have a choice between ports, sometimes its best to use the port with the fastest turn-around time if the items are perishable or the valuation is dependent on how fast you get the product to market.

Don’t overlook spend analysis – it lets you know who you are spending with, how much, and when. This will help you identify key suppliers, carriers, ports, etc. that need to be addressed in your global trade and risk management plans.