Académique Documents
Professionnel Documents
Culture Documents
9-10
12
13
Contact Us:
www.NextLevelPurchasing.com
Email: info@nextlevelpurchasing.com
Phone: 1-412-294-1990
Fax : 1-412-294-1992
Mail your correspondence to Next Level Purchasing, P.O. Box 1360,
Moon Township, PA 15108, USA
Leading-Edge Supply Management is published monthly by Next Level Purchasing Association as a free
benefit to association members. If you've received a copy of this magazine from someone rather than
downloading it directly from the Next Level Purchasing Association, you can sign up for a free association
membership to have access to this and other free benefits.
Just visit http://www.NextLevelPurchasing.com/nlpamag and submit your name and email address to join
the Next Level Purchasing Association. Reproduction of this magazine in whole or in part without written
permission by Next Level Purchasing is strictly prohibited.
13
Certification and
Training Spotlight
March 2016 Recipients of the SPSM Certification
Jorge A., Sr. Mgr. Global Procurement, Tennessee, United States
Santosh A., Process Developer, Bangalore, India
Nohad A., Sales Manager, Georgia, United States
Becky B., Purchasing Manager, Texas, United States
Lori B., Supervisor, Equipment & Supply, Alberta, Canada
Mickie C., Buyer II, Purchasing, Wyoming, United States
Whitney C., Dir. of Strategic Sourcing, Mass., United States
Yvette C., Buyer, New Jersey, United States
Roger D., Purchasing Manager, New Mexico, United States
Roop D., Process Developer, Bangalore, India
Nicole D., Procurement Professional, Wyoming, United States
Eva D., International Sourcing Support, Pezinok, Slovakia
Karen F., Buyer, New York, United States
Margarita G., Contract Administrator, Texas, United States
Sandhya G., Procurement Professional, Faridabad, India
Nicole G., Inside Sales/Sales Support, British Columbia, Canada
Gina G., Senior Buyer, New Mexico, United States
Christy H., Planner/Team Lead, Indiana, United States
Karthik H., Process Developer, Bangalore, India
Peter I., Chief Accounting Officer, Benin City, Nigeria
Karen K., Procurement Specialist, Maryland, United States
Register Now
To register, login to the association and navigate to the Webinars tab. There youll find a registration
link, be sure to enter a valid email address as attendance details will be sent to you by email.
Registrations may be limited.
Slides of this presentation will be made available to all NLPA Premium Members at least 30 minutes prior to the webinar. If youre not
yet a Premium Member, learn more here: http://www.nextlevelpurchasing.com/registration-premium.php.
Options For
Staying
Certified As
An SPSM
by Charles Dominick, SPSM, SPSM2, SPSM3
To keep a certification like the SPSM as prestigious as it is, the holders of that certification must be recognized as those who
are at the top of their field and well-versed in the most current of best practices. Thats why your original SPSM Certification
has an expiration date and provides for a way to maintain your certification indefinitely.
The SPSM Certification is valid for a period of four years. It can be renewed for an unlimited number of additional four year
periods through a process called Recertification.
Recertification requires you to earn 32 Continuing Education Hours (CEHs) in purchasing and supply management topics from
approved sources and submit an application. Recertification is designed to maintain both your skills as well as your SPSM
credentials.
As an alternative to Recertification, you can choose to earn higher levels of certification, such as the SPSM2, SPSM3, and
soon-to-be-released SPSM4. Each of these certifications involves completing four specific online procurement courses for the
same number of CEHs you would need to earn for recertification: 32. Theres also one exam and an application for each
higher level of certification.
Each higher-level certification adds four years onto the time you are certified. And keeping your highest-level certification valid
keeps all lower-level certifications in the SPSM Family valid. You do not need to worry about Recertification for each
certification separately.
For example, if you earn the SPSM Certification in 2016, it will expire in 2020. If you earn the SPSM2 Certification before your
SPSM Certification expires, both certifications will be valid for four years past your original expiration date in this example,
2024. If you earn the SPSM3 before your SPSM2 expires, your expiration date for all three of those certifications will be four
years later, 2028.
The advantage of choosing advanced levels of certification are that you get additional credentials to add after your name
SPSM2, SPSM3, and SPSM4 and you get to further distinguish yourself from the rest of the procurement world. The higher
the level of certification, the fewer people have attained it, thereby making you part of a very exclusive crowd of elite
procurement professionals.
However, if thats more ambitious of a certification plan than youd like, then you can simply choose the Recertification route
to ensure that you remain certified.
April 2016 Page 5
The source also noted that two of the top concerns supply chain professionals have about big data analytics are security and
financial investment. However, it is important that businesses identify where exactly the installation of innovative technologies
will be most effective and profitable.
(Continued on page 12)
Page 6 Volume 6, Issue 4
In procurement, you work hard to negotiate cost savings and build profitable supplier relationships. But, if improperly
managed, your accounts payable (A/P) department can unintentionally sabotage much of the good work that you do. Here are
three ways that A/P can sabotage procurement successes:
1) By not paying suppliers on time. Other than maybe being rude to supplier executives, there is nothing that causes more
strain on a supplier relationship than paying them late. Cash is the lifeblood of your suppliers' business. By extending
payment terms to your organization, your suppliers trust that you will pay them on time. When A/P fails to send payment to
suppliers on time, suppliers may reconsider how closely they partner with you, require your organization to pay cash-ondelivery, or even refuse to do business with you any longer.
2) By deducting early payment discounts when not paying early. Suppliers offer early payment discounts like a 2% discount
if an invoice is paid in 10 days rather than 45 for the benefit of improved cash flow. If your A/P department still deducts
the discount after they are eligible to do so, it is absolutely unethical. In fact, I'd consider it a veritable criminal offense,
akin to stealing money from someone that's supposed to be your business partner.
3) By paying invoices that have higher prices than your contract or purchase order. Some A/P departments have a policy that
allows them to pay invoice amounts that don't match the purchase order or contract, but are within a threshold. I've seen
thresholds as high as 5%. So, imagine negotiating a 5% cost savings but never having it hit the bottom line because A/P
pays invoices that are 5% too high.
These problems can be prevented through good collaboration between procurement and A/P. Discuss these specific issues
with the head of A/P and come up with a strategy to make sure that they don't arise in your organization.
How Procurement Can Be Sabotaged By A/P by Charles Dominick, SPSM, SPSM2, SPSM3 was originally published in Editions 346 of PurchTips.
April 2016 Page 7
D o Yo u U s e E m ot io n s I n N e got i a t io n O r On ly Fa c t s ?
More and more procurement departments are becoming parts of the
finance organization. Some procurement heads report directly to their
Chief Financial Officers. While generally good, one of the downsides is that
many procurement professionals are taking on the personality of beancounting robots.
This has led to the proliferation of "fact-based negotiations." This is where
some procurement negotiators focus on one, and only one, approach to
negotiating: proving to the supplier what their costs should be so that the
supplier will charge a lower price. They focus 100% on the science of
negotiating and 0% on the art of negotiating.
Why To Hate Fact-Based Negotiation, Part I by Charles Dominick, SPSM, SPSM2, SPSM3 was originally published in Edition 347 of PurchTips.
Page 8 Volume 6, Issue 4
In addition to reporting on the indices published by the United States Bureau of Labor Statistics, Leading-Edge Supply
Management is proud to report on an independent index - the MMI metals price index. The MMI is a set of 10 indices, created
by Metal Miner, that track price changes in global metal markets. This month, well feature the March 2016 Rare Earths MMI.
What makes the MMI different than other indices that are already out there? A few things. For one, the MMI takes into
account global price fluctuations, not just domestic ones. For another, the MMI has a few industry-specific indices as Metal
Miner sees differences in how prices fluctuation between industries. For a third, the MMI is accompanied by analysis direct
from the source Metal Miner.
So, without further ado, here are the results for the March 2016 Rare Earths MMI as well as Metal Miners analysis.
The Rare Earths MMI collects and weights 14 global rare earth metal price points to provide a unique view into rare earth
metal price trends over a 30-day period.
NOTE: Next Level Purchasing is exploring the possibility of making actual metals price points available as an inexpensive service. If you might be interested
in such a service, please contact Kara Uhrlen, Business Development Manager, at kuhrlen@nextlevelpurchasing.com or +1-412-294-1990 to help us
determine the level of interest and how rapidly we should pursue this option.
in Bullet Points
Although a certain degree of flexibility and patience is needed following the adoption of automated systems and new solutions,
there should also be a return on investment that benefits the company in the long run. Many industry experts have warned
against supply chain managers jumping too quickly at the opportunity to implement a modern strategy into the business model
before first understanding that possible effects it may have on profits.
As Lexmark explained in its white paper, developing and enforcing a new, automated process involves IT divisions, which
makes it all too easy for some companies to consider the adoption digital processes a low priority and focus on other day-today tasks. Unfortunately, it isn't uncommon for the projects to be forgotten about altogether. To avoid this, it would be wise for
managers to consult with supply chain solutions specialists that have the knowledge and experience needed to ensure the
best, most cost-effective strategies are used.
Page 12 Volume 6, Issue 4
Miscellaneous and ancillary fees A contract may stipulate the exact costs for services/products but may not clearly identify
other costs such as install, training, management fees, etc. Make sure you have these type of charges documented in writing.
You should understand the complete financial obligation in advance especially for budgeting purposes and to guide you in
negotiations of the contract.
Contract Length Technology has evolved more rapidly in the past several years and continues to change, getting better and
cheaper in many cases. Typical telecom contracts are anywhere from 2-5 years and it is best not to extend contracts past this
period to allow for market condition shifts.
There is a lot to think about when contracting for telecom services and although I have provided a few areas for consideration,
there are countless other clauses and terms that should be reviewed. The key is allowing yourself enough time to develop a
cost competitive contract that is fair and equal for all parties involved. Preparing well in advance allows for more flexibility
when it comes to migrating or changing services. Dont simply accept the first offer and assume it is the best. An initial
proposal or contract should be considered a draft and there is always room for improvement and change.