Category Archives: Serious

Another Public Nomination

Astute readers will have noticed a comment yesterday by one Ron Holland of FreedomFest News, regarding the creation of the Free Market Hall of Fame where members of the Freedom Movement (not clearly defined or referenced on the site) will have the opportunity to initially vote on individuals contributing most to the success and advancement of free markets and free people around the globe during 2007. My first instinct was to delete it, since even if it wasn’t spam, it was obviously some sort of non-approved advertising, and more than likely in violation of at least one of the Sourcing Innovation Blog Comment Rules, and Rule #1 in particular (since it did not seem to have anything to do with the post).

However, I decided to check it out since I really couldn’t see too much harm leaving it as long as it did not put forth the views of any particular government party or political association. And although I’m still not entirely sure what it is, I am a bit intrigued. I’m particularly intrigued by the fact that write-ins are permitted and “journalists and writers” is a category. After all, I think the supply and spend management space needs all the attention it can get, and a few bloggers in particular definitely need more attention.

So it got me thinking. Specifically, it got me thinking that maybe if not a lot of people vote and maybe if a lot of sourcing and procurement professionals vote (for the same write-in candidate), maybe one of our own can get an honorable mention. (After all, you know Stephen Colbert is going to win once the Colbert Nation picks up on this, assuming it hasn’t already.) And that would make a great story.

So, even though he’d probably tell you it’s likely a big waste of time, if you have 30 seconds, please go to the Free Market Hall of Fame Survey, write-in Jason Busch for Question 1, and enter a valid e-mail address and zip code for question 2 and submit.

Then, if you have another 30 seconds, as the comment instructed, please e-mail ron@freedomfest.com and nominate Jason Busch for a Free-Market Hall of Fame Position under the “journalist and writer” category. To aid you, I’ve created a short nomination that you can cut and paste.

For the last two years, Jason Busch, a pre-eminant thinker in the supply and spend management space and author of the Spend Matters blog, has been diligently blogging multiple times a day on issues, events, best practices, and thought leadership in an effort to raise not only the profile of the space, but to inform each of his readers - peers, consultants, vendors, and general practices alike - of it's, and their, potential.

As one of the first practitioner's to realize that procurement is undergoing a transformation into a strategic supply and spend management function that will cross all boundaries and borders of the business, Jason's thinking is second to none. He was also one of the first to realize that forward thinking organizations not only need to consider long term price hedging contacts to insure supply and spend stability but also need to consider securing, and securitizing, raw production capacity, which they can then trade on a new type of open market if they secure more, or less, than what they need. (For example, see his great post "Sourcing Innovation: Securitizing Direct Materials"* on August 28, 2006.)

He is a firm believer in free markets who strives hard to get the message across that as procurement evolves into the most strategic supply chain function, so does it's position and recognition within a corporation. Considering that good sourcing and procurement can save an average billion dollar company tens of millions while bad sourcing and procurement can cost them tens of millions, or more, it's important to have such a forward thinking journalist embrace the web, the new medium for content delivery, and blog almost religiously in an effort to simply open the minds and increase the understanding of others. And in this regard alone, he is a thought leader of the Free Market Movement and deserves to be recognized as such.

He may not win, but if the Colbert Nation can convince Google that Stephen Colbert is the Greatest Living American by overloading the system, maybe we can do the same and finally get this sector a little limelight!

* All posts prior to 2012 were removed in the Spend Matters site refresh in June, 2023.

Cadbury gives Oompa Loompas a Bad Name

Last month I reported that Cadbury, who was making grandiose efforts to become “synonymous with the color purple” (Metro UK) was down on its luck and was announcing massive job cuts to try and right the ship. But before you go feeling sorry for the sugary giant (which is the world’s largest confectionary company with revenues of about £7.4b in 2006) and it’s self-reported need for a “£650m four-year cost reduction plan” (Silicon.com), which it is partially blaming on its enterprise rollout of SAP (which caused too many chocolate bars to be produced and forced it to take a £12m hit on profits), it seems that it decided to introduce a new testing system for salmonella last year that allowed “safe” levels of salmonella in its products.

Well, when it comes to salmonella, there are no safe levels when consumables are involved, and that’s why the official guidelines say that there is to be no salmonella in ready-to-eat products. Furthermore, they did this knowing perfectly well that outbreaks of salmonella had been associated with very low levels in chocolate. See, salmonella is a bacteria … a gram-negative enterobacteria to be precise … and, like all bacteria, they have this funny habit of multiplying like mad under the right environmental conditions (which, oddly enough, are provided by the human body). And what did they get for it? A slap on the wrist for potentially exposing thousands and thousands of people to a bacteria that is known to kill at least 600 people a year (as per the CDC) and infect over 40,000.

Salmonella
and you’re to blame
Cadbury, you give oompa loompas
a bad name

The Cost of Capitalism

Capitalism, the foundation for a free market, has its cost. It’s called inflation. And when that cost is accompanied by rising raw materials prices, especially in metals, that cost multiplies. We’ve all heard the arguments that we should at least stop using pennies in North America, since the average penny cost 1.25 cents to make in the US in 2006, and maybe even nickels, since they cost 5.73 cents to make in the US in 2006, but it seems that our problems in North America are nothing compared to the problems they have in India.

It seems that their rupee, worth about 2.5 cents in North America, is actually worth about 15 cents to your average resident if they melt it down and make razor blades. It’s as illegal there as it is here, but when your currency is worth at least 600% more as scrap metal, and at least 25% of your population is below the poverty line, it becomes a bigger problem than copper salvage in China. The coin shortage is so bad in some places that some tea gardens have had to resort to using card-board coin slips internally.

It’s a good thing the smugglers and grocers aren’t thinking globally, because razor blades these days cost a heck of a lot more than 2.5 cents! The going price is somewhere in the neighborhood of 2.22 cents for a Gillette Mach 3, or roughly 74 cents here in Canada (as evidenced by a recent Walmart receipt, which is the lowest cost seller in the area). If they ever figure this out, I doubt there’ll be a single rupee left in India!

It Really Is a Dog’s Life (if You’re in the UK Army)

A lot of people don’t like the military and do their best to find and pen disparaging articles on it. And that’s okay, it’s a free country. But every now and then you find an article like this one that really is quite disparaging. Army food is “cheaper than a dog’s dinner”. In the UK, not only do convicted prisoners (with a daily meal cost of £1.87) eat better than serving soldiers (with a daily meal allowance of £1.51), but so do the dogs (with a daily budget of more than £2.63). When they say It’s a Dog’s Life, if you happen to be a dog in the employ of the British Military, it takes on a whole new meaning.

Tip-of-the-hat to The Cynical Sorcerer, Tony Poshek, for demonstrating why there should be a little cynic in all of us!

The Cadbury Crunch

Cadbury, who we know is making grandiose efforts to become synonymous with the color purple (Metro UK), is being hit with hard times. In addition to announcing jog cuts (CNN) in the 7,500 range, it has also announced that it is planning to sell its US beverage unit (that makes Dr. Pepper, Snapple, and 7-Up) because, unlike Coca Cola and Pepsi, when it comes to the US way of life, it just can’t keep up with the Jones’.

And if those sustainability issues weren’t enough, as one of the largest UK manufacturers of chocolate and confectionary, you know its likely going to be accused of sustaining the African conflicts along the Ivory Coast. The Independent has recently reported that British chocoholics (alone!) may have unwittingly helped fund African conflicts along the Ivory coast to the tune of $120M due to the large amount of cocoa purchased from the region (which amounts to 40% of global cocoa production) and the fact that significant proceeds of the sale of cocoa are being used to maintain the war chests. Cadbury is claiming their cocoa comes from Ghana, which borders the Ivory Coast on its western border, but because confectionary mixes are so secretive, a consumer never really knows. Furthermore, how do you know if the truckload you bought in Ghana didn’t just cross the border? Slippery supply issues from a social responsibility perspective indeed!