Purchasing and Negotiation Training

Robert Menard
Certified Purchasing Professional,
Certified Professional Purchasing Consultant, Certified Green Purchasing Professional, Certified Professional Purchasing Manager

A recent story authored by Kelly Barner drew my attention.  It appeared in Professional Purchasing, a publication of the American Purchasing Society.  Kelly is the Managing Editor of Buyers Meeting Point, an online resource for procurement and purchasing professionals.  She has some education and experience chops in the profession so I always read her material. 

Kelly writes that that interest in supply chain visibility is on the rise.  She cites an Aberdeen Group study published in 2013 which found” 63% of companies surveyed see visibility as a high priority activity.” The drivers were documented to be “operational benefits such as resource efficiency and cost reduction.”    

So what is supply chain visibility? 

According to Jeff Dobbs, Global Sector Chair, Diversified Industrials and a partner with KPMG, “obtaining real-time visibility across all tiers in the supply chain can significantly increase speed to market, reduce capital expenditures and manage risk.”  

Well, this is not a definition.  Indeed, definitions of this relatively new concept vary wildly.  I see divergent concepts in virtually all of my consulting clients.  Here is another one.  The track-ability of products in transit from the contributing suppliers at all tiers to the end customer.  It follows that visibility encompasses the increase of available data that can be analyzed to make recommendations, determine strategies, reduce costs, and drive risk out of the supply chain. 

Most supply chain pros seem to agree on these three goals, if not a definition. 

1. Reduce business and supply chain risk
2. Improve lead times and performance
3. Identify shortage and quality problems along the supply chain 

We will be hearing much more about supply chain visibility going forward so let’s learn about the three concepts that will accompany any visibility initiative. 

1. Processes – No matter the process (supplier evaluation, tracking until delivery, SO&P, to name but a few), it must be more collaboratively discharged with internal and external customers.  Organizations need to develop specific data requirements that can be shared between internal and external customers to improve demand planning.  Especially for overseas suppliers, mitigating supply disruptions must become a priority. 
2. Information and Data – Both must be shared and available across the supply chain and with customers.  This will generate more “Partnering” relationships, which in itself, is a good result. 
3. Technology – This is always an evolving problem.  Disparate information systems must be homogenized.  Cloud computing, data collection, and analysis software will make it easier for partners to cooperate and literally have the visibility they need. 

Write to me with how you see visibility.