When I came across the notion of the opportunity cost, I realized I was barely adding it to my TCO calculations. The Notion of Opportunity Cost Opportunity cost is a fundamental economi… Read More
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This blog contains over 20 years of experience and 1000s hours of research and writing on various aspects of technology, agile transformation, value management, strategy, and procurement. All posts reside on the personal practical experience curated for demanding professional readers.
Nudge TheoryNudge theory, developed by Richard Thaler and Cass Sunstein, subtly guides individuals towards better decisions without restricting their choices. It leverages behavioral science… Read More
As I constantly update my course materials on Technology Procurement, I encountered some odd species of IT and technological jargon, which I wanted to share in this post. Some are stran… Read More
"One of the worst and most expensive contracting fiascos in the history of the public sector."Some real-life cases only require a little reflection to understand that the project was predefi… Read More
Source linkWhy are so many colleagues not pursuing professional procurement certification? As a Fellow of CIPS (FCIPS), I’m asking this question to sense-check my earlier dec… Read More
The journey to holistic valueLet's nail it - those obsessed with savings only look at a single link of a complex value creation chain. It's not just about the Needs to Resources transformati… Read More
It all started in the attempt to understand the theoretical concept of servitization, i.e., the transformational shift from a product-centric to a service-centric business model and log… Read More
We often choose products or services based on their value or price. Value can be found in savings, efficiency, or competitive advantage. On the other hand, price is a standard measure t… Read More
100-million-dollar waste.Recently, we wrote about the information asymmetry in SaaS negotiations: buyers tend to limit their spending on SaaS due to the need for more knowledge of its fair m… Read More
My online course, "Modern Approach to Cloud Software (SaaS) Negotiations," is live on Udemy. Please follow this link https://www.udemy.com/course/cloud-software-saas-negotiations/… Read More
The source link.How could you describe your career path in a few words? I worked in procurement for 22 years - telecom, airline, railways, public infrastructure services and consulting… Read More
SaaS procurement negotiations in today's business ecosystem have evolved to encompass multifaceted strategic considerations beyond traditional software purchases. The advent of cloud-based s… Read More
This post will review a research study addressing the procurement challenges of the information asymmetry between buyers and suppliers in digital transformation. In… Read More
Integrated solution as a guarantee of competitive advantageA significant difference in IT procurement is associated with a change in the paradigm of competitive advantage in the conditions o… Read More
In our earlier posts, we used to praise strategic sourcing. The concept is not new, with its routes in the Buygrid framework (1967), but still, many companies are working on embracing i… Read More
This article suggests a practical procurement case from the infrastructure company (e.g., water transmission and distribution.) One of their top-spend items is a high-density polyethyle… Read More
Supplier Relationship Management from Day OneThe good news is that our management knows Supplier Relationship Management (SRM.) Some consultants and public speakers did their job well.The fl… Read More
Chat GPT on category management I tried ChatGPT as an aid in blogging, and it works very well when you need an explanation of a generic theory or concept for your audience. Getting… Read More
Building a High-Performing Procurement TeamWhile efficient sourcing, negotiation, and supplier management are crucial for organizational success, the strength of the procurement team is equa… Read More
A contract projects an economic exchange into the future. This simple definition suggests that a contract doesn't disappear upon its execution, just like some colleagues believe when th… Read More
Where's the procurement planning when you need one?Once, we wrote about demand management in this blog. It's a good enough topic, which misses one crucial element - demand management ma… Read More
How to write and promote a niche business bookI'm the author of a niche business book on technology procurement. It's taken me two years to write and publish it, and for the third year… Read More
Three years ago, I wrote in "The Technology Procurement Handbook": "Three horsemen of Apocalypse – decentralization, automation, and outsourcing – entered the realms of proc… Read More
This post aims to study the tendency of SaaS vendors to provide ACV offers and suggest an uncommon negotiation argument.The definition and purpose of the ACVACV, or Annual Contract Value,&nb… Read More
Modern trends in the procurement of business servicesLong ago, I wrote a post about XaaS – Everything-as-a-Service, where I tried to cover general tendencies in the outsourcing market… Read More
Modern procurement techniques made simple.My previous posts mainly elaborated on procurement's theoretical and conceptual aspects. However, as I work on my ever-growing portfolio o… Read More
We already discussed the role of stakeholders in procurement value creation in our previous posts.Let's briefly summarize earlier definitions and underlying concepts and take one step forwar… Read More
The "Value-based Procurement" online course is now live on Udemy."Value-based Procurement": Your well-deserved procurement seat at the executive table.Procurement value became the second-pop… Read More
The Kraljic matrix is still an excellent procurement tool, yet somewhat simplistic. Its two dimensions suggest the flat Earth approach with insufficient room to cater to the comple… Read More
Seeking the source of consulting challenges.As a procurement consultant, I'm increasingly exposed to the IT software development industry. In my latest consultancy endeavors, I have rea… Read More
Outsourcing contracts are all based on relationships.You cannot overestimate the value of relationships in outsourcing. Since the contracts shape relationships between economic actors… Read More
Procurement value demystifiedUnfortunately, "procurement value" became another buzzword – everyone tells us to generate, capture, and sustain it. This post attempts to provide the… Read More
Why is supply chain collaboration essential?Once, I was asked what makes the supply chain important to a company.Perhaps, our profession is no rocket science. Other peers around th… Read More
"Procurement Lab" online course is now live on UdemyMy new online course, "Procurement Lab," is live on Udemy."Procurement Lab": online business course for beginners and expertsThis online c… Read More
My Udemy course “Adaptive Sourcing: Agile Procurement in Practice.” Please review my new course on Udemy, “Adaptive Sourcing: Agile Procurement in Practice.”This… Read More
Is there a procurement seat at the management table?Procurement has been tirelessly trying to claim its seat at the management table for years. Some of our colleagues managed to get there, w… Read More
The confrontation between procurement and stakeholdersOne of this blog's readers recently wondered why procurement constantly conflicts with stakeholders and fails to understand them.Po… Read More
Thoughtful sourcing management contributes to the competitive advantage.The competitive advantage isn't just the virtue of the firm's internal capabilities. Suppliers contribute to it with q… Read More
The New Sales Imperative: Changing the Paradigm In this blog, I usually call fellow procurement colleagues to embrace an Agile mindset, open themselves up to suppliers with trust and tr… Read More
Category management is the brain and spine of strategic procurement. Procurement largely relies on category management in its constant endeavor to transform transactional purchasing int… Read More
The problem with the category management processOne of the most significant problems of the category management process is the lack of adaptivity. Once issued and approved, a category s… Read More
The role of cost avoidance in procurement savings managementCost-saving has always been an essential and high-visibility priority for the procurement function. Despite the declared acco… Read More
The relationship-based supplier segmentation modelIn our earlier post, we provided a comprehensive view of the theoretical and practical aspects of outsourcing. Recently, we came across… Read More
Industrial buying has been subjected to research for over half-century. Instead of looking at the act of buying as a spontaneous event, researchers viewed it as a series of patterns exp… Read More
![The Cost Of Bad Procurement Process [Part 2]](http://cdn.blogarama.com/images/posts_thumbs/1381/44504276.w307.h193.jpg "The Cost Of Bad Procurement Process [Part 2]")
The actual cost of the bad procurement processBad procurement concerns poor planning, untimely delivery, inflated product cost, failed supplier relationships, and many more.Its conseque… Read More
"Procurement Lab" is now live on Udemy.My new online course, "Procurement Lab," is live on Udemy."Procurement Lab": online training course for beginners and expertsThis online procurement co… Read More
![The Cost Of Bad Procurement Process [Part 1]](http://cdn.blogarama.com/images/posts_thumbs/1381/44510706.w307.h193.jpg "The Cost Of Bad Procurement Process [Part 1]")
Competitive bidding may become bad procurement practiceThe use of competitive bidding remains an established practice. 30-60% of market approach strategies in private companies and up t… Read More
My online training course "Foundations of Contracts and Outsourcing" is live on Udemy.My new online training course, "Foundations of Contracts and Outsourcing," went live on Udemy.Foundation… Read More
My online procurement training course, “Adaptive Sourcing: Agile Procurement in Practice,” is live on Udemy.Please review my new course on Udemy, “Adaptive Sourcing: Agile… Read More
![The Journey To Value-Based Procurement 4.0 [Part 1]](http://cdn.blogarama.com/images/posts_thumbs/1381/44510572.w307.h193.jpg "The Journey To Value-Based Procurement 4.0 [Part 1]")
Procurement is on the journey from cost-cutting to value deliveryNaturally, Procurement started in the lowest cost arena, where the cheapest bid wins. As we evolved from the transaction… Read More
![The Journey To Value-Based Procurement 4.0 [Part 2]](http://cdn.blogarama.com/images/posts_thumbs/1381/44510521.w307.h193.jpg "The Journey To Value-Based Procurement 4.0 [Part 2]")
Public procurement should be about value, not just savings What matters most when we elect a public servant - a healthy society, clean and secure environment, quality education - or the… Read More
Tail spend - the procurement nightmare.While we carol Procurement 4.0 and its value-centric agenda, some aspects of our job still remain in Dark Ages.What is the worth nightmare of a procure… Read More
Agility and customer value for competitive advantageIn the chart of buzzwords, "customer value" competes with "agility." Businesses need to understand, create, manage and retain it to remain… Read More
Agile teams from the perspective of a small group theoryAgile transformation of many businesses is ongoing, while many more queue up for the inevitable change of their culture and working pr… Read More
Supply chains evolving into demand networksSupply chain management overlooks the end-to-end production flow of goods or services — from the raw materials to the final product del… Read More
The guts and glory of procurement savingsProcurement savings is a double-edged sword. Some colleagues use it to massage their egos by claiming millions of hot-air dollars that make no good t… Read More
Yet another definition of Agile'Agile' has become a buzzword across many professions. Advisors, analysts, and random strangers tell us what it takes to become agile. Expectedly, th… Read More
The view on procurement from the perspective of traditional economic theories Nowadays, procurement increasingly speaks up about its critical role in the firm's very existence. Des… Read More
The new source of competitive advantagePorter's two primary sources of competitive advantage are cost and differentiation.Companies set out to become either the cheapest in the industry/mark… Read More
Early Supplier Involvement to the rescue from bad sourcingIn many companies, the sourcing process remains a disappointment for internal stakeholders and suppliers. All-purpose RFPs and blank… Read More
I live in Ukraine. That says a lot nowadays. It's taken me a month to return to this blog. My thoughts are still all over the place. I'd instead write about modern Ukrainian war he… Read More
