Browsing: TCO

This is a conversation that I’ve had with a number of CPOs and the good news is that it is taking less and less effort to convince them.  You can’t expect to deliver exceptional results if your processes were never designed to do that.  You may remember the…

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As a Procurement professional, I want to believe that I’m a reasonable and sensible person when dealing with potential and incumbent suppliers. However, after reading the list of Common Fallacies in Reasoning I questioned if I ever experienced or observed some of the fallacies in reasoning during my…

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Who remembers the summer of 2011 when Netflix, Inc. raised its prices by 60% (“Netflix raises price of DVD and Online Movies Package by 60%” NY times 7.12.11) and lost almost one million customers? Fast forward to October 22, 2013 where Netflix reported adding 1.3 million U.S. customers just in the third quarter ( “Subscribers Fuel Netflix Stock” – WSJ) to eke out HBO by one million subscribers. In addition, its stock price is up 282% since the beginning of the year. How did they do it?

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I was recently invited to speak to the Board of FSMA on an issue that has them totally perplexed. FSMA is an organization of large food manufacturers and their agents which has been experiencing the following: longer sales cycles, lower margins, demand for additional services, challenges to prove their value add, etc., etc. And lo and behold – they thought they had found what was causing them all this angst – it was this new thing called Category Management (CM). For those of you not familiar with the retail sector, this is an integrated process to manage the entire lifecycle of a category of consumer goods. What it is not, is the category management (cm) process that people in sourcing and supply chain use. And this is where the confusion and tension arises.

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