Monthly Archives: May 2015

Happy 65th, EU!

I know you’re probably thinking the doctor is being a little loose with his own prescription pad, as the EU officially came into being on November 1, 1993 under the Maastricht Treaty, but this was just the evolution of the European Economic Community (EEC) that was formed by the Inner Six countries on January 1, 1958 under the Treaty of Rome. But before then came the European Coal and Steel Community (ECSC) which was formally established by the Treaty of Paris on April 18, 1951 by the same Inner Six countries, and this was the net result of the Schuman Declaration, made 65 years ago today, by the French Foreign Minister Robert Schuman to create a new form of organization of states in Europe called a supranational community which was the real beginning of the modern EU.

So if you think about it, the EU isn’t the 22 year old new kid on the block (not to be confused with the new kids on the block that formed in 1984 to unleash boy band hysteria on the world, presumably to usher in the Orwellian era through omni-present pop), but the freshly minted senior who’s been around through three generations.

What do you have to say, señor LOLCat?

I guess the current economic crises in Greece, exacerbated by the slow recovery of Cyprus, has made LOLCat a little cranky.

Talent IS the Biggest Issue Facing Procurement Today.

the doctor follows a wide-range of Procurement topics and channels. There’s a lot of noise. There’s a lot of repeat messaging. But sometimes there’s not enough repeat messaging. One area where there’s not enough repeat messaging is with respect to talent: the lack of talent, the difficulty in retaining talent, and, most importantly, the lack of necessary investment in talent by companies that need it the most.

A recent post over on the Argentus Talent Acquisition site on what are the biggest issues facing Procurement today correctly pointed out that there are two main issues: the shortage of attracting talent, and the shortage of retaining talent. But, to be fair, that’s not the biggest issue.

The biggest issue is the lack of training for emerging and existing talent. For years, talent has made the top three issues on Procurement survey after Procurement survey and for years, the investment in talent has been minimal or non-existent. The average university does not have a Supply Chain Management / Procurement program, the average individual looking for a career and funding her own continuing education doesn’t even consider Procurement, and the average subject matter expert (SME) hired into, or transferred into, Procurement barely understands basic Purchasing policy.

So where does an organization expect to get the talent it needs if it is not willing to invest to create that talent? And how does it expect to retain the ration of talent it gets if it does not continually invest in that talent to give it a reason to stay?

Talent is the issue. And will be the issue for years. It’s not a prediction. It’s not even an observation. It’s just reality.

Environmental Damnation 22: Natural EMPs

An EMP, or an electromagnetic pulse, is a short, typically intense, burst of electromagnetic energy that is generally disruptive, if not damaging to, electrical and electronic equipment, and high energy EMPS can even damage buildings and aircraft.

While EMP weapons are a concern, as they could be set off in a terrorist attack, naturally occurring EMPs are of a greater concern as they are often even less predictable and not preventable (whereas an EMP weapon can be prevented if the person holding it can be prevented from setting it off).

Whether one realizes it or not, a number of natural events cause EMPs:

  • lightning
    which is the most common, and well known, cause as it is known that it can fry the electrical and electronic systems of anything it hits
  • solar flares
    intense solar storms, like the one that occurred on July 23, 2012, could knock us back to the stone age; the geomagnetic storm (which occurs when a solar flare hits the earth’s atmosphere) of March 1989 collapsed the entire Hydro-Quebec electricity transmission system
  • earthquakes and volcanoes
    while not likely, an intense earthquake or massive volcanic eruption could (theoretically) cause an EMP similar to that produced by a massive (nuclear) explosion (as electrical discharges have been recorded as a result of earthquakes)

Just when you thought you understood the natural disaster risks in your supply chain, a whole new level of risk, that can decimate the information supply chain that the physical (and financial) supply chains depend on, is exposed.

When we said Procurement is Damned, we meant it!

“Best” Procurement Organization? What “Best” Procurement Organization?

A recent post by the maverick over on Spend Matters asks “Does the “Best” Procurement Organization in the World Exist”? There’s the long answer, which the maverick gives, and the short answer, which the doctor will give.

Question: Does the “Best” Procurement Organization Exist?
Answer: No!

There is no best, at least, as the maverick explains, as a whole.

The reasons for this, as detailed by the maverick, include, but are not limited to:

  • direct vs. indirect
    there are organizations “best” in direct, “best” in indirect, but typically not “best” in both
  • categories
    there are organizations that excel in certain categories, direct or indirect, but not other direct or indirect categories
  • trade secret
    organizations that are, or at least believe they are, truly ahead of their peers tend to keep quiet, thinking this provides them a competitive advantage
  • inbound vs outbound vs omni-channel retail
    most organizations tend to excel in one of these supply chains
  • operational efficiency
    which allows an organization to attack more categories than their peers

But also include the following:

  • market intelligence
    detailed supply market and pricing knowledge that can be used to the organization’s advantage
  • modelling capability
    to build accurate should-cost models using raw material, labour, energy, and overhead data to understand the gap between market pricing and actual costs and whether or not it is a fair profit margin
  • optimization-based negotiation
    to get the truly best price during the organization’s sourcing exercise

There are a host of factors that make a “best” Procurement organization, and all of them need to be met for an organization to be “best”. And since no organization is best in all of them, there is no “best”. But the good news is that not only is there room for improvement, but it’s easy to identify where the improvement needs to happen, to make the improvement, and surpass your peers. Fortunately, to win the game, you don’t have to be “best”, just “better” than your peers. Improve on each of these eight dimensions, and your organization will be on the fast track to getting there.

Navigating & Keeping Up with Digital Agency Landscape: Part I


In this three-part series of articles, Kathleen Jordan, Associate Director at Source One Management Services will take a look at the complex digital agency landscape and provide insights on the process of agency sourcing: considerations when sourcing, vast digital agency options, and the need for bridging the gap between marketing and procurement departments. Kathleen Jordan is a strategic sourcing subject matter expert with a wide range of experience in the marketing category who works closely with marketing professionals and helps alleviate challenges encountered when overseeing agency relationships.

Defining Your Requirements

The marketplace for marketing services is anything but easy to navigate. It is complex, and crowded with a wide range of agency options available to fulfill any marketing support requirement. Niche and full-service players exist, some agencies operate independently, and remaining ones are owned by a holding company. Sister agencies compete against one another or may team up to offer a comprehensive service offering. Mergers and acquisition are relatively frequent and can consequently lead to conflicts of interest. Overall, there are a number of considerations when you are seeking out an agency to support a new marketing channel or upcoming product launch. And these considerations should be known even if there is no forthcoming agency search or new marketing tactic on the horizon to support. Marketing professionals and their sourcing colleagues must always be aware of the current state of the marketplace for marketing services to remain competitive and innovative, especially when it comes to the digital space.

Digital Marketing continues to evolve due in part to the various technologies that apply to digital tactics. Advanced technology and digital marketing as a whole have reshaped the way consumers interact with brands, and digital agencies have emerged to support the various digital channels and technologies that exist. It is vital for marketing professionals and their sourcing counterparts to recognize this and determine what type of expertise they wish to obtain to supplement their internal marketing team and fulfill a specific scope of work. Digital Marketing Depot’s whitepaper titled “Digital Advertising Agencies 2014: A Buyer’s Guide” (download required) serves as a great resource for marketing professionals, defining various types of digital agencies and how and when they should be engaged. Overall, the report provides an accurate snapshot of the current digital landscape and guidelines on how to effectively work with digital agencies across the various service types.

The initial starting point is validating the need to conduct a digital search. Consider:

  • Is the marketer unsatisfied with their current digital shop and looking to transition?
    Review and consider the performance of the current agency. Common reasons for dissatisfaction include: missing deadlines, under-delivering, and poor communication, especially when several agencies work together on a project.
  • Is a new digital channel under consideration that would lead to an increase in scope, impacting the current retainer model?
    When looking to implement a new digital tactic, consider the potential for scope creep. This can occur when a project is poorly defined and can end up consuming allocated budgets.
  • Is there an upcoming product launch in which the consumer base has a strong digital presence?
    Review the campaign you plan to implement. Are the tactics you plan to use offered at your current agency? Is it something a specialty agency would be better suited handling?

Once the objectives are clearly outlined and the scope details are ironed out, the agency selection criteria should be established. This criteria will dictate the search in its entirety and should tie directly to the scope requirements. For example, if the scope is strictly website development, a social media monitoring agency is not nearly the right fit.

With these activities complete, you can move on to agency selection. We’ll explore this topic in-depth in Part II of this three-part series.

Thanks Kathleen!