The ideas behind value engineering are not new. In fact, they go back to the 1940s, when the construction industry in particular was seeking new and more scientific ways to guide its purchasing decisions. It would not be unreasonable to assume that the methodology and its use would have matured by now. But you would be wrong; it has actually gone backwards.
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Topics:
contract /commercial management,
procurement,
technology,
communication,
IACCM,
value engineering,
Architectural products,
risk,
sustainability
The 2019 IACCM Benchmark Report will soon be issued, providing a wealth of data and insight to the current state of contract and commercial management. One of the many areas we have researched is to understand what major initiatives contracts and commercial teams are currently undertaking. The list (which appears below) is interesting - and the differences between buy-side and sell-side priorities even more so! Our report explains the implications and the reasons - along with a myriad of data regarding performance measurements, headcount levels, the state of automation, skills and knowledge management and a host of other topics.
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Topics:
contract /commercial management,
procurement,
communication,
IACCM,
contract benchmarks,
commercial benchmarks
It is widely recognised that collaborative relationships generate better results. It is also generally acknowledged that collaboration doesn’t just happen - it requires characteristics such as openness, honesty, free-flowing communication and a sense of shared interest.
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Topics:
contract /commercial management,
procurement,
communication,
IACCM,
collaboration
“Innovation was for the first time cited as a top-3 driver for more strategic and collaborative supplier management”, according to research by SRM consultants State of Flux. That observation is borne out by other studies and by the anecdotal evidence from executive statements and annual reports.
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Topics:
contract /commercial management,
procurement,
relationship management,
supply chain management,
communication,
IACCM
A recent report from CAPS Research states that 70% of companies are experiencing a supply management talent shortage. Almost 40% say that recruiting in this field is more challenging than for any other function.
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Topics:
contract /commercial management,
procurement,
communication,
IACCM
The use of ‘supplier panels’ is relatively widespread in modern procurement, especially in categories such as professional services. The concept behind them is that they bring greater speed and efficiency to supplier selection and - in theory - reduce costs. In practice, some argue, they undermine value, stifle innovation, threaten integrity and more likely increase costs.
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Topics:
contract /commercial management,
procurement,
communication,
legal & regulatory,
supplier platforms,
IACCM
Twice in the last week I have had conversations with people who think that Procurement functions today are ‘dumbing down’ contracts. If true, that’s a big mistake and will undercut the stated ambition of the function to raise its profile and value. It is also at variance with what we see happening in at least some IACCM member organizations.
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Topics:
procurement,
relationship management,
commercial management,
communication
More and more is written about the future of Procurement and the shift that is required in its approach. Collaborative, value-focused, approachable – there is extensive commentary on the changes in behavior and attitude that are needed to engender trust and thereby raise functional status.
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Topics:
contract /commercial management,
procurement
“Sourcing without SRM is like selling without Account Management”.
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Topics:
contract /commercial management,
procurement,
contracting excellence
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