Optimizing Your Procurement Technology Investments in 2009

1. Get Visibility Into Your Spend (Spend Analysis)
If you don't know how much you're spending on each category, sub-category, product, and service, who you're spending it on, in what amount, by unit, you need to get this visibility. Get a good spend analysis solution and dive in!

2. Take Your Strategic Sourcing up a Notch (with e-Sourcing)
Start with the most attractive savings opportunities that were outlined in step 1. This is your best bet to negotiate big savings in this downturn.

3. Focus on Contract Compliance (adopt Contract Management)
You need to enforce hard-won savings by insuring that internal staff and suppliers are compliant with contractual agreements.

4. Implement e-Procurement
Done right, this will make it easy for your buyers to buy on contract.

5. Get a Grip on Global Trade (adopt Trade Visibility solutions)
Chances are your global sourcing endeavors are needlessly costing you more than you think! As per my recent Illumination on "why you need trade visibility", you're probably paying more than you need to on duty, using costly inefficient processes, paying unnecessary document preparation costs, and making costly errors that are costing you million of dollars a year.

To view this article, visit Sourcing Innovation at BLOG.SOURCINGINNOVATION.COM/2009/03/24/optimizing-your-procurement-technology-investments.aspx

Insourcing Global Trade Management

Most importers and exporters are careful to manage inventory, tariffs and compliance. In a recent survey of trade consultants conducted by Integration Point, every respondent (100%) indicated that their client companies perform denied party screening and recognize foreign trade zones. However, most outsource this work to consultants, freight forwarders or other third party service providers. The cost of internal automation and process control has been too high for most importers and exporters to do on their own. Acquiring and maintaining a trade management system and data has been too much of a burden for smaller companies to adopt on top of their core business needs within manufacturing, sales and marketing and supplier relations.

Now however, with increasing government fines and liability being imposed, companies often don't want to entrust a third party for all compliance requirements. In a recent case, Cabela's, an outdoor equipment outfitter based in Nebraska, agreed to pay a $680,000 civil penalty to settle allegations that it committed 152 violations of the Export Administration Regulations. The law stipulates that even jail time may be imposed on offenders. As such, compliance failure is just too risky for any sized importer and exporter.

To avoid such liabilities, importers and exporters must be able to clearly prove that they applied "reasonable care" to all traded goods. While third party (outsourced) solutions can do this, many importers and exporters want tighter control of the process and paperwork. For example, every respondent in the Integration Point survey indicated that they want to store product certificates for future reference, even if the compliance checks are being done by a third party.

To view the full article, visit Industry Week at http://www.industryweek.com/articles/insourcing_global_trade_management_18650.aspx?Page=2&SectionID=4?ShowAll=1

You Can’t Do Global Compliance and Security By Hand

“I can't see supply chain professionals effectively managing global trade processes in a manual environment any longer,” says Rennie Alston, president of American River International, a logistics services provider. Time was that moving cargo cost effectively, timely and safely was your only concern, but not any more. Security rules and regulations mandated by various government agencies make compliance management a requirement for any company today. That calls for senior management buy-in, education and training, assessing your internal policies, breaking down silos in your organization and ensuring that your providers are complementing your efforts, Alston says. Automation is the key.



To view the article and video interview, visit SupplyChainBrain at http://www.supplychainbrain.com/content/nc/logisticstransportation/global-trade-management/single-article-page/article/you-cant-do-global-compliance-and-security-by-hand/