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Welcome to the new era of Implementation Physics!
Double Marginalization and the Point of Ideal Price Viability
Referencing my last post (Double Marginalization and the Decentralized Supply Chain, August 9, 2007) double marginalization “DM” is defined as the “exercise of market power at successive vertical layers in a supply chain.” The problem that arises as a result of DM is tied to an impetus to mark up the product’s price above marginal […]
Posted in: Procurement Trends
Double Marginalization and the Decentralized Supply Chain by Jon Hansen
August 9, 2007
Double marginalization is defined as the “exercise of market power at successive vertical layers in a supply chain.” Dating back to Lerner (1934) the problem that arises as a result of double marginalization is tied to an impetus to mark up the product’s price above marginal cost. According to a 2005 Caltech paper (Vertical Integration […]
Posted in: Commentary, Procurement Trends
Procurement’s expanding role and the executive of the future
August 3, 2007
In 2006 CPO Agenda’s London-based editor chaired a panel discussion asking the question “are there any limits to procurement’s role?” The panel which included senior procurement personnel from organizations such as Nestlé, Danone, British Airways and Merrill Lynch provided some interesting insights into the prevailing (and emerging) attitudes towards procurement from an executive suite perspective. […]
Posted in: Procurement Trends
Technology and the Growing Talent Crunch!
August 1, 2007
A debate of reasonable fury has been raging since the Bureau of Labor Statistics released their latest report on procurement sector job growth. The primary point of contention is the BLS’ assertion that the “overall employment for purchasing and supply managers is expected to grow slower than the average for all occupations through the year […]
Posted in: News & Updates
The Greening of Procurement (Part 2): It’s not easy being Green!
July 26, 2007
Are environmental considerations truly the central element of recently emerging green programs, or are they an advantageous, politically correct by-product of an existing strategy that is linked to more “traditional” motives? While the EcoMarkets 2007 Survey adroitly provided us with an unbiased look into the mindset of the purchaser, the attitude (and actions) of vendors […]
Posted in: Green Procurement
The Greening of Procurement (Part 1)
July 20, 2007
In my extensive travels to exotic locales (alright Calgary may not be exotic but it is certainly a great place to visit), purchasing professionals who have attended one of my conferences have rarely if ever broached the subject of environmentally friendly (re green) procurement practice. Burdened by the more pressing challenges associated with unnecessarily complex […]
Posted in: Green Procurement
Public Sector Procurement and the Walmart Effect
July 9, 2007
UPDATE March 4th, 2013: According to an article in FCW, President Barack Obama is slated Monday morning to tap Walmart Foundation President Sylvia Mathews Burwell as the next head of the Office of Budget and Management. Reuters first reported the news, citing sources familiar with the issues. Given Walmart’s history in terms of “dealing” with […]
Posted in: Public Sector Procurement
Dangerous Supply Chain Myths (Part 7)
July 4, 2007
Segment 7 – Enabling Technology: The Emergence of the Metaprise Enabling Technology Technology is the key in the supply chain organization of the future. The right technology will enable enterprise-wide supply management, external supply chain visibility, and internal and external collaboration. With this statement, the ISM, CAPS and AT Kearney report has provided the single […]
Posted in: Supply Chain Myths
Dangerous Supply Chain Myths (Part 6)
June 28, 2007
Segment 6 – Enablement of the Supply Management Organization: Balancing Capability with Control Enablement of the Supply Management Organization Although center-led organizations will continue to dominate for the next decade, as global operations become more complex, hybrid center-led models will begin to emerge to maximize value based upon the right mix of responsiveness and centralized […]
Posted in: Supply Chain Myths
Our First Month in Review
June 26, 2007
Having just completed the first month of the Procurement Insights (PI) blog I can’t help but think about an article I read shortly after my initial post in which Brian Gillooly talked about his new blog (CIO Nation). What stood out to me in particular was his statement that he sees his new blog as […]
Posted in: News & Updates
Procurement Insights 
August 10, 2007
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