K2 Sourcing Releases Free Contracts Module Focused on Simplicity

K2 Sourcing announces the release of Sharewise, a free cloud-based contracts module with a unique twist intended to help find qualified suppliers faster.  Sharewise enables procurement and supply chain professionals to share files easily and securely and generate automated alerts to keep suppliers and team members on the same page.  Sharewise further features functionality to enable fellow procurement experts to easily network and optionally share information.    A fully functioning free…

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Large quotes? How K2 Sourcing eRFQs Reduce Spreadsheet Headaches

In this post, K2 Sourcing will discuss an easier way to get those large quotes completed accurately and with much less work.  Quotes that contain a large set of items, including services, create a number of challenges. First, it can be difficult to layout the quote forms and request.  This is especially true when including multiple regions, multiple team members, and multiple sub-categories.  Secondly, communicating the information to suppliers might…

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Will Steel Prices Decline?

Amidst the talk of price increases on carbon and stainless steel, K2 Sourcing attended a meeting late October where a large industry scrap dealer predicts the opposite, price decreases.  The cause – global economic issues.  Led by Chinese over capacity combined with a construction market propped-up by bad loans, there is an expectation of a decrease in demand.   Overcapacity plus too much inventory should lead to reductions in price.  Will…

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One Page Procurement Humor

I have been diligently working out the details of a hardware contract.  It’s making me nuts.  When I tested that joke on Richard he said it was a bit screwy. Of course it was quite the riveting conversation.

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Webinar: Multi-Source Strategy Using a Reverse Auction

There are good reasons to multi-source.  Perhaps choosing multiple suppliers avoids supply disruption and ensures capacity or perhaps multi-sourcing improves supplier performance. Irrespective of the reason, what if you would like to utilize the competitive gains realized by a reverse auction and yet award business to multiple suppliers?  This scenario may be more common than you think. One can maintain transparency and process integrity while utilizing a reverse auction with…

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Single or Multi-Source Survey Results

Regardless of selecting a single or a multisource strategy the end goal is the same; ensure a reliable flow of quality products at the lowest total cost.  The results of the single versus multisource survey yielded 92% of  organizations utilized multiple suppliers on at least one category. The distribution was divided evenly with 33.3 % of organizations utilizing a single source 0% to 20% of the time.  It happens that…

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K2 Sourcing: Single or Multi-Source Strategies

Take the 30 Second survey – Single or Multi-Source Strategy. There are many factors impacting the decision to choose or not to choose to purchase from multiple suppliers for a category. This survey seeks to gauge a general preference. K2 Sourcing will tabulate and share the results. http://ow.ly/zK9Dl Results will be posted here on the One Page Procurement blog.  If you choose we will email you a copy with a link to the…

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Procurement Humor from K2 Sourcing

A Purchasing Manager weary from travel goes to the airport bar and restaurant.  A lady sits across from him at his table and says, “I’ll take you around the world for $200 dollars.”  The Purchasing Manager replies, “Thanks, but we just finalized our corporate travel agreement.”

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How to Set up and Run an Ocean Freight Reverse Auction

Recently K2 Sourcing conducted a managed reverse auction for contracting ocean freight for a midsized organization. The result was significant savings. Participation was excellent.  Even after a prequalification phase and shortlisting companies, 300 counter- offers were received over a period of 2 hours. The reverse auction replaced a slower, labor-intensive, multi-round spreadsheet driven bid.  K2 Sourcing’s reverse auction system automated data collection and analysis thereby replacing many hours of labor…

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Lean Source Upgrades

The new Lean Source Buyer Guides make it easier than ever to use the system, and the upgraded automated alerts are a big help to buyers and suppliers.

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K2 Sourcing President Elected as ISM Milwaukee President

Matt Miller, President of K2 Sourcing, has been elected to serve as President on the Board of Directors for the Institute of Supply Chain Management Milwaukee (ISM Milwaukee). The ISM Milwaukee has over 300 members.  In the role of president, Miller will lead the board and committees to determine and execute the best strategies and objectives to meet the mission of the ISM–To enhance the value and performance of procurement…

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Competition Continues to Decline in the US Airline Market

American Airlines and US Airways merged on December 9, 2013 to create the world’s largest Airline. That’s probably bad news for travel procurement. Over the last year, eight major airlines have consolidated into four airlines. These four now control 90% of the market.  Fares have been going up and the airlines don’t seem to be aggressively fighting over regional market share. This is especially true as airlines are obtaining strong…

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Negotiating in a Controlled Price Environment

A few years ago, the eSourcing team was reviewing top moving items and categories to identify best candidates for an ongoing series of reverse auction negotiations. One of the items that had a very large sales figure across the company was a gallon of milk. It was no surprise that milk was a high volume item. It is a common reason people come into a store. The retail price needs to be attractive…

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Overcoming Cognitive Bias in Supplier Evaluation

With the redesign of the K2 Sourcing process for multi-attribute decision making, I have been studying bias in decision making.  After all, the idea of using pre-defined formulas to weight decision making is to reduce decision making bias during supplier evaluation and award.  One bias that is difficult to overcome Cognitive Bias.  Let’s review what and how Cognitive Biasimpacts decision making, and then look at methods to minimize the issue.…

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Innovating Procurement: Plexxus’ First Reverse Auction

Plexxus Hospital Operations Sourcing Team took a new approach towards driving down costs for Member Hospitals by having proponents in the Nursing Staffing Services RFP– on behalf of University Health Network and Mount Sinai Hospital — participate in a live reverse auction, a first in healthcare in Ontario. Six proponents who obtained the minimum score in the RFP evaluation process were shortlisted and invited to participate in a reverse auction,…

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Improving Procurement’s Credibility: Defining Cost Savings

Many CFOs and CEOs believe there is a gap between what the procurement organization is reporting as cost savings and the reality shown in the P&L.  The difficulty is primarily due to poorly agreed upon definition of cost savings by many organizations, a lack of sophisticated reporting tools, and appropriate checks and balances.  In the 1st installment of this multipart commentary, K2 Sourcing will provide an overview of a few…

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Seven Components for Successful Indirect Consumables Bids

K2 Sourcing has helped organizations bid over $150,000,000 in indirect consumable expenditures.  We have learned a great deal on the way and will share some of that with you here.  Before we talk about the seven components, let’s take a minute to define consumables and what we like and what is challenging about these categories. Consumable expenses are those categories of purchased goods that are usually expensed (not inventoried), and…

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