The Supply Chain Bloggers Council: Self-Governance through Collaboration and Cooperation

Supply Chain Bloggers Council – An Introduction

As a result of the continuing high rate of e-procurement initiative failures (which is somewhere between 70% and 85%), as well as the recognition of the important role supply chain practice plays in the health of an organization, purchasing professionals want more “substance” and less “sizzle” in terms of market intelligence.  In short, they want to know how to make it work!

This increases the onus on the blogging community as a whole to thoroughly research and responsibly inform a readership base that is becoming increasingly hungry for knowledge and facts.

It is in this spirit of responsibility that the Supply Chain Bloggers (SCB) Council was formed in January 2008.

Adhering to the highest standards of ethical conduct in the research and dissemination of information throughout the entire blogosphere, the SCB logo is our seal of assurance to the reader that these standards have been, and are continuing to be met on a consistent basis.

Self-Governance through Collaboration and Cooperation

In the Supply Chain blogging community our primary objective is to establish an effective means of self-governance whereby the proper checks and balances are put in place to ensure that both the SCB brand and its mandate are held to the highest standards possible.

This is accomplished through a regular review and assessment of all member sites and posts by the Founding Governors in key areas that include, but are not limited to:

1)    The cross verification of purported facts, assertions, and statements made by the blog’s author,

2)    An assurance of responsible journalism in terms of providing a fair and non-malicious opinion or commentary (and the inclusion of disclaimers when appropriate), and

3)    The provision of a fair and reasonable opportunity for the blog’s readership to submit a relevant and non-malicious response to any post.

The above referenced “key points” can be modified and/or expanded upon through a 60% Founding Governor majority vote.

Process of Review

Any one of the Founding Governors can submit for review to the Council a post or posts which in that Governor’s opinion represents a violation of the prescribed SCB Council standards.  It is acknowledged that the submitting Governor’s conduct must be both fair and reasonable in making a submission, and that said submission be provided in writing (electronic or hard copy) to the other Council members as well as to the blog in question author.

The format for the written submission must clearly identify the area of violation in terms of the SCB Council’s published standards, and a prescribed possible remedy or remedies.

The Council shall review the submission in an expeditious manner and render a decision within 10 business days from the date in which it was originally filed.

For a blog’s author to be found in violation of established SCB Council standards, a vote of majority of 60% must be rendered by the Founding Governors.  If said majority is not achieved, the submission will be dismissed and the author of the blog in question informed in writing.  Alternatively, if the author of the blog in question is deemed to have violated established SCB Council standards, through a vote of majority, said author will then be given 7 days in which to contest or accept and remedy the Council’s finding of a violation.

Violation Penalties

Once it has been determined by a vote of majority that a blog’s author has in fact violated the established standards of the SCB Council, penalties can be administered in accordance with the following prescribed guidelines;

1)    A recommendation for resolution whereby the blog’s author can avoid suspension through mechanisms such as correcting the offending post and/or printing a retraction in the blog should circumstances warrant it,

2)    A temporary suspension of membership whereby the blog’s author must refrain from displaying the SCB Council logo or any facsimile that would suggest a membership in good standing designation and,

3)    Permanent suspension of membership rights and privileges.

The Founding Governors

David Bush, Editor of e-Sourcing Forum/Chief Executive Officer – Founder of Iasta – http://www.linkedin.com/pub/0/494/246 

Michael Lamoreux, Editor of Sourcing Innovation/President of ToP KaTS Consulting – http://www.linkedin.com/in/sourcingdoctor 

Eric Strovink, CEO BIQ LLC – http://www.linkedin.com/pub/0/76/7a0

Jason Busch, Editor of Spend Matters/Managing Director Azul Partners, Inc. – http://www.linkedin.com/pub/0/75/960 

Jon W. Hansen, Editor of Procurement Insights/Chief Architect Hansen Consulting and Seminars Inc. – http://www.linkedin.com/in/jwhansen 

Membership Inquiries

To inquire about membership in the group, please send an e-mail to procureinsights@rogers.com with “SCB” in the subject line.

Membership Acceptance Guidelines

Please note that, at minimum, the following conditions MUST be satisfied for you to be formally considered for membership in the Supply Chain Bloggers Council:

1)    A track record of thought leadership in the sourcing, procurement, and supply chain space – including regular blog posts either on your own blog or a shared blog for at least six months.

2)    A commitment to ideas for ideas’ sake – not simply for the purposes of marketing or promotion of the company(s) or organization(s) you represent.

3)    An established reputation in the marketplace.

Thank you,

The Founding Governors

The SCB Logo

Measuring Buyer and Seller Performace (A PI Q and A)

Member Question:

What methods are available to measure purchasing performance for both buyers and sellers?

My Response:

The challenges associated with quantifying (re measuring) performance extend beyond the mechanisms for capturing the data to include its timely application relative to ongoing real-world decision making.

Specifically, is the current methodology capable of incorporating centrally established acquisition guidelines or parameters (i.e. price, quality, delivery performance, terms offered etc.) into front line buying decisions without negatively impacting operational capacity and performance.

Leveraging one of an increasing number of web-based applications that are now becoming available through a variety of SaaS vendors, here is how it would work:

The buyer submits a request which is sent to registered suppliers via the Internet. Within a pre-determined time period, suppliers wishing to participate in the “bid” process respond online; simultaneously, the tool queries the data tables of different couriers to determine the best shipping option taking into account rates, geographic cut-off times, and past performance.

Once supplier “bids” have been received and the opportunity closed, the tool assists the buyer in selecting the best possible supplier for the requested item; this is accomplished within a matter of seconds through the utilization of advanced algorithms, which compare a supplier’s price against those of competing bidders, as well as “best value” parameters such as delivery and quality performance.  (Note: with each and every purchase, the “intelligent” data base is automatically updated as part of the transactional process – no manual entry required.  As a result, the data pools by which the algorithms make their recommendations are always reflective of the most current information.)

The tool then provides the buyer with a list of possible sellers, ranked in accordance with purchasing guidelines established by the company’s management. The buyer can then purchase the item(s) from the recommended supplier, or with an explanation (which is recorded and tracked), chose a lower ranked supplier. In either instance, the order is processed quickly, and in accordance with pre-defined standards.  Furthermore, the tool’s web services component enable a somewhat easy integration with existing back-end ERP systems.

The sole caveat is that the process be linked to a firm understanding of the commodity characteristics of the goods that are being procured.  In essence, the company has to know the characteristics (re dynamic flux or historic flat line) that define the commodities being purchased to ensure a proper technological alignment.

Here is a link to part 7 of a 7 parts series I wrote titled Dangerous Supply Chain Myths (http://procureinsights.wordpress.com/2007/07/04/dangerous-supply-chain-myths-part-7/).  It touches on both the emergence of the Metaprise in terms of technology as well as quantifying the impact that commodity characteristics have on identifying and measuring realistic buying parameters.

I have also included links (see Reference Links at the conclusion of this post) to supplemental reading on commodity characteristics as well as the impact Double Marginalization has on developing a effective supply chain practice (which of course is the whole reason behind measuring purchasing performance).

I can also provide upon request a graphical outline of past commodity characteristic analyses that were gathered and studied over a period of 14 years.  This research was partially funded by the Government of Canada’s Scientific Research and Experimental Development (SR&ED) Program.  Just drop me a note at procureinsights@rogers.com.

Reference Links:

Double Marginalization and the Decentralized Supply Chain: http://procureinsights.wordpress.com/2007/08/09/double-marginalization-and-the-decentralized-supply-chain/

Double Marginalization and the Point of Ideal Price Viability: http://procureinsights.wordpress.com/2007/08/10/double-marginalization-and-the-point-of-ideal-price-viability/

(Supplemental Material) Double Marginalization and the Point of Ideal Price Viability: http://procureinsights.wordpress.com/2007/08/23/supplemental-material-double-marginalization-and-the-point-of-ideal-price-viability/