Ethical Sourcing: Do Consumers and Companies Really Care?
According to Steve Polski, senior director of responsible supply chains and sustainability at Cargill, consumers consistently say they want more sustainable products and services but are often unwilling to pay a premium. Polski has spent years researching this topic, and he has found that consumers care about a company’s sustainability and ethical sourcing efforts and may reward it with brand loyalty, but they generally don’t want to pay more for the products.
The survey also found just how much consumers said they were willing to pay for ethically and sustainable sourced products. Thirty percent said they would pay up to 5% more and 28% said they would pay up to 20% more for such products. A quarter of consumers also said they actively sought sourcing origin information when they made their most recent purchase.
The Science of Us explains that, like most people, when you feel powerless or helpless, your first instinct is to exert control over the things you do have some control over, and if you’re a boss or manager, that might mean your employees. While we know that most people work best when they’re given independence and autonomy, and when managers trust their teams to make the best calls when they need to, well, sometimes good old psychology just takes hold.
This fellow is a little smug, but he makes some really interesting points.
3 Predictions For Apple’s Supply Chain In 2017
China isn’t the only Asian country Apple could continue to work with. The Wall Street Journal reported that it may manufacture products in India and could be currently working toward a deal for this with the Indian government.
However, this seems to be more of a matter of speculation and deduction than pure fact, since Apple did not comment and Tim Cook, the company’s CEO, openly said that there were no plans to start producing in the country earlier this year.
Forbes contributor Tim Worstall also pointed out that most of the benefit would go to Apple, with the Indian economy itself not gaining too much from the company’s presence there. This sits in contrast to Apple’s work in China, which also benefits the country in addition to the business’ sales themselves.
7 things Silicon Valley needs to stop doing in 2017
Stop acquiring companies and products just to kill them:
Some of the greatest apps and sites ever created were acquired as they were rising in popularity, then terminated. Remember Posterous, Pownce, Dodgeball, reMail, Nextstop and Friendfeed? These were all innovative, powerful, well-designed apps or services that were terminated on purpose because they were so good.
CEOs still don’t ‘get’ what their procurement teams do
“While a stagnant economy proved a fertile breeding ground for successful cost reduction strategies, the function needs to adapt to the new environment and demonstrate its versatility if it is to always be seated at the board table. For example, highlight how the department’s risk management programmes minimise the potential impact that a disaster could have on the business bottom line or the added value it can bring to the company’s corporate social responsibility programme and show how procurement is driving innovation within the supply chain, giving the company that competitive edge.”
You have two basic choices: either build your own internal means of vetting the code and applying product management processes, or rely on an intermediary to perform that function. You can make an argument for creating the processes for pulling down source code, determining legal compliance, applying patches, and getting it ready for production yourself, but it is expensive from a human resources point of view. You should base your decision whether or not to self-direct the process on its strategic importance to the company and some ROI analysis: If you build a team to manage that process for some software components, will you see a sufficient return on that investment?
Kartik Gada: “The ATOM: The New Economics of Technical Disruption”
Kartik Gada joined Google to talk about his e-book the ATOM. The book examines the new economics of technological disruption, and its impact on governments, businesses, and society. The Atom is a 14-chapter e-book that contains novel concepts, research, and policy
Follow-up to last week: Trump to tech CEOs: We’re there for you
“We want you to keep going with the incredible innovation,” Trump said. “There’s nobody like you in the world, in the world, there’s nobody like anyone in this room. And anything we can do to help this go along, and we’re going to be there for you.”
Among the issues the tech CEOs might discuss with Trump is his proposed curbs to immigration. Silicon Valley relies on bringing in large numbers of immigrants every year or keeping them in the U.S. after college. Making immigration more difficult or restricting the number of H-1B high-skill visas available could cause tech companies problems.
In 2017 we will see supplier relationship management (SRM) come of age. Sitting in a unique position between the supply base and the business, procurement has a real opportunity to leverage that position to bring new innovations into the business. Capitalizing on their supplier management role, we will see more procurement teams using insight and market intelligence to seek out new suppliers and different ways of working to leapfrog endless iterations of ‘business as usual’ to really drive change. Moving away from reacting to the business or finding a cheaper way of working, the more challenging business environment will see procurement teams looking externally for innovative suppliers that can revolutionize the existing business and make a significant impact on the bottom line.
Why Trump and the Tech Industry Are on a Collision Course
During the campaign, Trump in turn lashed Apple for manufacturing too many of its products overseas. Stephen Bannon, the former chief executive of Breitbart—who has emerged as the ideological synthesizer of Trump’s worldview—has touted Democrats’ courtship of the technology industry as evidence the party had abandoned heartland workers for coastal elites. As Bannon recently told The Hollywood Reporter, “They were talking to these people with companies with a $9 billion market cap employing nine people. It’s not reality. They lost sight of what the world is about.”
What Does It Mean to be “Strategic” in Supply Chain, Anyway?
A study in Supply Chain Quarterly provides six models or “styles” of Supply Chain strategy, each suited to a different kind of industry: “efficient” Supply Chains, “fast” Supply Chains, “continuous-flow” Supply Chains, “agile” Supply Chains, “custom-configured” Supply Chains, and “flexible” Supply Chains. These names might seem like different terms for the same thing – and these words often get thrown around as buzzwords all over the industry. But the study’s author, Hernan David Perez, goes into deep detail about the differences in each strategic approach that shows the depth and complexity inherent in developing a truly strategic Supply Chain.
Words Of Advice From Millennials In Supply Chain Management
Khan explains how she appreciates management that challenges her and suggests that employers need to recognize that not all millennials are the same – despite what the stereotypes might imply. The solution: get to know your millennial talent individually and take the time to understand their goals to help them reach their full potential. As the most educated generation, millennials are eager to apply their degrees in their work and they are driven to advance. However, that drive doesn’t necessarily mean they are willing to “job-hop”. Employers should strive to challenge millennials by rewarding performance with new responsibilities and opportunities to grow.
But one outdated technology still stands in the way of transparency: the DUNS Number.
Twenty years ago, the federal government entered into an agreement with Dun & Bradstreet, Inc., to provide a numbering system to track contractors. In order to do business with the government, companies must pay Dun & Bradstreet to be issued a DUNS Number.
Dun & Bradstreet continues to own every DUNS Number. That means anyone who wants to download or analyze the government’s public procurement data must buy a D&B license.
Are Women In Procurement Still Earning Less Than Men? It Seems So
A female CPO, for example, can expect to earn around 94% of a male colleague’s salary. For regional category managers, women have been found to earn only 69% of a man’s wage.
This tends to get compounded by the ‘glass-ceiling effect’, in which women find it difficult to break through into the higher levels of an organisation. Only 14% of our CPO sample last year were women.
7 Ways to Politely Shut Down a Conversation This one is my favorite…
5. The ‘pass off.’
When you are trapped in a rambling conversation, pull in another person to join you if possible. Introduce the topic to the new person, and once the other two get a conversation going, politely excuse yourself and don’t look back.
DOD in ‘knife fight’ over supply chain, security chief says
Department of Defense (DOD) officials increasingly view the Pentagon’s supply chain as a key vulnerability within the defense enterprise, with bad actors seeking to affect systems and steal innovative technologies. This risk extends beyond prime contractors, which have extensive resources to invest in security to medium and small contractors, which in turn may not have those resources.
The Pentagon’s emphasis on affordability often pushes suppliers to use commercial off-the-shelf (COTS) items, said Frank Kendall, the DOD’s undersecretary for acquisition, technology and logistics.
“All of this presents an opportunity for somebody with a nefarious purpose to get at our products,” Kendall said. “The thing that makes me most nervous is a high-end adversary who finds a way to hide something in our weapons systems and lets it sit there until it can be activated at the worst possible time.”
Amazon’s logistics venture has yet to make up for costs
“A full-blown Amazon parcel delivery operation would likely take years to complete, so we believe [FedEx] and UPS would have time to react,” RBC Capital Markets analyst Mark Mahoney previously told Retail Dive. Similarly, although UPS and FedEx have decades of experience, Amazon’s entry to the logistics market comes with a learning curve, particularly when it comes to aircraft operations and regulations.
The earliest signs of success, however, may come through the cost-to-sales comparison made by Seeking Alpha. If Amazon seeks to compete with UPS and FedEx, the company needs to see a downward trend in the metric, which would indicate the logistics services are driving profit to the company.
6 Ways to Convince Your Boss That Traveling is Important
The potential ROI gained from the trip is greater than the trip’s cost:
For anyone who wants his or her boss to approve a business trip, it’s a good idea to map out the specific costs in advance, then estimate the potential ROI that could be garnered if you attended the event.
Ensuring you keep all your business expenses related to the trip low — though many trips are tax deductible — will help create an optimistic view of the revenue potential and what positive gains could occur that could become the leverage for future business trips.
In telecommunications, acquisitions have strong influences on pricing structures, service offerings, and overall capabilities. The competition for these services continues to boom with more localized suppliers playing against the big wigs. Going for the “popular” name does not always result in the best fit for your company. When choosing a provider whether through a formal sourcing engagement or going to the market direct, you need an unbiased opinion and should focus on the facts versus fiction.
How To Manage Your Anxiety During Tough Times At Work
When paranoid thinking creeps into your work life, you tend to look for evidence to prove your thinking right. It’s a cognitive function called“confirmation bias.” When you have a belief, for example, that someone is trying to keep you from getting promoted, you look for evidence that confirms that belief. In this case, you believe your colleague is blocking your promotion. When he doesn’t respond to your email, you see that as evidence of your belief.
Instead of jumping to this conclusion, ask yourself, “What if the opposite were true?” What if he wasn’t blocking your promotion? What other reasons could there be for not responding to you?
How Wells Fargo’s Work Culture May Have Cleared The Way For Scandal
The key ingredients that foster a hostile work environment, according to Faas, are unreasonable expectations put on employees, an acceptance of questionable practices, and reluctance to complain out of fear of retaliation. “If what we hear in the media about the treatment of whistleblowers is true, Wells Fargo has a much bigger issue than the fraudulent accounts—they have a culture of fear,” he says. “If this is validated, it puts to question the credibility of their leadership’s response.”
New Ernst & Young Report: Supply Chain Data “Overwhelms” Businesses, Stunting Automation, Efficiency
Managing the data growth dilemma: The growing tsunami of data is both a boon and bane to businesses in the digital age. Limitless oceans of data, often reflecting customer experience as it happens, have the potential to remake supply chains and business models. These models can and should be more efficient, productive, flexible and responsive. But right now, data is a mess. The current period of hyper data growth leaves most companies in a position where their ability to uncover business insights is effectively hidden within an increasingly complex and often unfathomable amount of data.
Supply Risk and Compliance are Disconnected — That’s a Problem and an Opportunity
So, you’re stuck in the supply risk swamp and bogged down by compliance regimes. And you know there is waste everywhere and opportunity all around. So, as a supply professional, what should you do? You need to align risk management and compliance management with not just each other but with performance management (including continuous improvement) — and tie them all into your value chain processes. As those processes go upstream and external, this is where procurement and supply chain groups feel this problem — and need for alignment — more than anyone in the enterprise.