On July 6th, 13th, and 21st, I will be posting about the following three discussion points referenced in the above webinar outline:
✅ Leveraging cost modeling – A tool of collaboration and mutual gain
✅ Forecast Prices – Paper Review (Evaluation of Ambiguity in Commodity Futures Markets: Analysis of Corn and Coffee Futures Prices)*
✅ Commercial mechanisms with suppliers – Using an open-book framework
* by Waldemar Souza, Rafael Palazzi, Carlos Heitor Campani, and Martin Bohl
I would invite you to use the following link to check out the webinar in greater detail and register
In the meantime, here is the first of three posts on Leveraging Cost Modeling.
Cost Modeling: A Tool Or A Weapon
“By leveraging cost modeling, the procurement and purchase managers gain the upper hand in devising negotiation strategies which helps them to identify and understand the costs involved from a supplier’s perspective.” SpendEdge (Mar 26, 2024)
I recently shared a story from my interview with the co-founder of the famous Second City Comedy Club in Chicago. During our discussion, he said, “To be a real superpower means that it can be used for either good or evil.”
Based on the quote from SpendEdge in the first paragraph, cost modeling is definitely a superpower. The question then becomes, are you using it for good or evil?
While I do not want to criticize the SpendEdge blog post, the author’s discussion of cost modeling in terms of “You Get What You Ask for” is sadly reminiscent of Dr. Karrass’s negotiation seminar tagline: ” You don’t get what you deserve; you get what you negotiate.” The inference is that cost modeling is a zero-sum tool of conquest versus collaboration.
I interviewed Expana’s US Managing Editor, Andrew Moriarty, this past week.
Referencing his years with Tesco, Moriarty discussed the importance of using an open-book framework and transparency when collaborating with suppliers. Yes, I intentionally highlighted the word collaborating.
The reference to a collaborative mindset reminded me of an interview I gave to Forbes about the I35-W bridge collapse and the importance of collaborating beyond a crisis. This is also why the Expana webinar on July 11 got my attention.
Looking at the panel members, including top people from Mars, Frost Procurement, and Huel, I think the discussion will result in viewing cost modeling from the “right side” of the superpower question.
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Procurement Insights
Cost Modeling: An Invaluable Tool or Destructive Weapon
Posted on July 6, 2024
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On July 6th, 13th, and 21st, I will be posting about the following three discussion points referenced in the above webinar outline:
✅ Leveraging cost modeling – A tool of collaboration and mutual gain
✅ Forecast Prices – Paper Review (Evaluation of Ambiguity in Commodity Futures Markets: Analysis of Corn and Coffee Futures Prices)*
✅ Commercial mechanisms with suppliers – Using an open-book framework
* by Waldemar Souza, Rafael Palazzi, Carlos Heitor Campani, and Martin Bohl
I would invite you to use the following link to check out the webinar in greater detail and register
In the meantime, here is the first of three posts on Leveraging Cost Modeling.
Cost Modeling: A Tool Or A Weapon
“By leveraging cost modeling, the procurement and purchase managers gain the upper hand in devising negotiation strategies which helps them to identify and understand the costs involved from a supplier’s perspective.” SpendEdge (Mar 26, 2024)
I recently shared a story from my interview with the co-founder of the famous Second City Comedy Club in Chicago. During our discussion, he said, “To be a real superpower means that it can be used for either good or evil.”
Based on the quote from SpendEdge in the first paragraph, cost modeling is definitely a superpower. The question then becomes, are you using it for good or evil?
While I do not want to criticize the SpendEdge blog post, the author’s discussion of cost modeling in terms of “You Get What You Ask for” is sadly reminiscent of Dr. Karrass’s negotiation seminar tagline: ” You don’t get what you deserve; you get what you negotiate.” The inference is that cost modeling is a zero-sum tool of conquest versus collaboration.
I interviewed Expana’s US Managing Editor, Andrew Moriarty, this past week.
Referencing his years with Tesco, Moriarty discussed the importance of using an open-book framework and transparency when collaborating with suppliers. Yes, I intentionally highlighted the word collaborating.
The reference to a collaborative mindset reminded me of an interview I gave to Forbes about the I35-W bridge collapse and the importance of collaborating beyond a crisis. This is also why the Expana webinar on July 11 got my attention.
Looking at the panel members, including top people from Mars, Frost Procurement, and Huel, I think the discussion will result in viewing cost modeling from the “right side” of the superpower question.
30
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