“I found the presentations to be both entertaining and informative. I appreciated the opportunity to reconnect with the other members and also to meet some new potential members.”  – Innovation ’12 Attendee

Here’s a snapshot of what we learned…

Finance and Procurement: A Great Collaboration
Jim Buhr, Bashas’ Inc.

There are many pressures faced by CFOs and CPOs today, yet their top initiative is the same – control costs. This can be accomplished by:

• Getting both departments on board and creating a collaborative environment
• Making e-auctions an integral part of the procurement process
• Automating what you can and controlling what you can’t

Pricing Risks – Be Prepared for the Next Round of Commodity Price Swings
Laura Hodges, IHS Global

There were many changes over the past decade impacting profitability, purchasing power, and purchasing’s role. Laura Hodges raised the need to be prepared and track commodity prices and the underlying factors that drive them up or down.  For example, emerging markets like China have influenced the commodity markets volatility through:

• Increased production of commodities and finished goods (a.k.a the world’s factory)
• A rising role in commodities markets
• The government’s intervention in markets
• Yuan to Dollar conversion
• Growing influence of Shanghai Futures Exchange

Savings Metrics: Measuring Total Organizational Impact
Bryan Rothmeyer and Brian Olin, Family Dollar

What are “Savings”? Family Dollar describes savings as a lower total cost of ownership/acquisition than previously paid. In order to accurately measure savings within your organization work with your stakeholders and finance department to determine saving goals, new areas of spend, areas of opportunity via spend analytics, and agreed upon measurements to calculate savings. When calculating savings take into consideration:

• Savings (i.e. bottom line savings or spent savings)
• Avoidance as price increase mitigation
• Rebates  (i.e. recycling, signing bonuses, and volume/spend thresholds)
• Refunds (i.e. unused hours)
• Operational efficiencies  gained via process improvement, supplier consolidation, workforce reduction, and reduced paper handling
• Early payment discounts
• Extended payment terms

“It was very beneficial for me to meet folks in the industry and learn the best practices they are using.” – Innovation Attendee

Want to know more? Simple, contact an Intesource account manager today!

Intesource’s annual Innovation e-Sourcing Conference, to be held in Las Vegas, NV March 4-6, focuses on many topics dealing with the challenges involved in sourcing. The conference has a packed agenda, covering topics such as adoption, savings metrics, and running complex and creative events. A few topics you’ll experience at Innovation ’12 include:

Strategic Sourcing: Creating Value in the Retail Supply Chain              Presenter: Michael R. Griswold, Research Vice President, Gartner, Inc.

Today’s volatile retail environment requires a retailer’s undivided attention on improving productivity, reducing operating costs, and improving on-shelf availability.  To deliver sustainable business value, organizations must ensure alignment across their business, supply chain and sourcing strategies.  The session will focus on:

• Identifying the role of the supply chain in supporting the business and sourcing strategies
• How to determine your strategic sourcing maturity
• What’s the role of technology in the strategic sourcing process
• Building a business case for investing in your current sourcing processes
• How do leading organizations view the people, process, and technology aspects of strategic sourcing

Pricing Risks: Be Prepared for the Next Round of Commodity Price Swings Presenter: Laura Hodges, Director, Pricing and Purchasing Services, HIS Global Insight

Commodity prices are not only higher but also more volatile – a deadly combination for purchasing managers. This presentation will provide a solid understanding of the pricing risks facing today’s commodity markets and how to be better prepared for this volatility. The primary drivers of price escalation will be identified and will highlight which signposts should be tracked to better anticipate commodity price movements.

 View complete agenda at http://intesource.com/conferences.aspx.

Innovation ’12 is Intesource’s annual user conference and information exchange for sourcing and procurement professionals. The conference will take place on March 4-6, 2012 at the Bellagio in Las Vegas. Innovation ’12 is designed for Intesource customers and prospects looking to expand and evolve their current programs. Click here for more information about Innovation ’12.

Procurement’s primary function during the economic downturn was to cut costs and deliver more savings. But times are changing yet again; there’s a need to expand procurement’s function to align across the entire business. How do you create a cultural change to instill a long-term strategic sourcing approach while simultaneously convincing the entire organization to join in?

Cut the savings habit by Nick Martindale says to provide a clear link between delivered savings and the bottom line. Gain executive support. Link with other business strategies, not just cost – such as risk management, contract management, and response to market changes. Think it’s easier said than done? Start thinking outside the box:

1. Be innovative. Differentiate your sourcing approach (i.e. complex categories) or collaborate with suppliers (i.e. product specifications or new product/business differentiators).
2. Bird’s eye view. Use your broad industry perspective to your advantage. Look beyond the products suppliers provide to their financial stability to how your relationship improves your company.

Intesource customers and industry experts will cover these topics and more through presentations and one-on-one conversations at Innovation ’12:

• Keynote presentations about commodity trends, the CFO’s perspective, and the collaboration between finance and procurement
• Breakout sessions on savings metrics, e-sourcing process implementation, forward auctions, enterprise-wide procurement, and more
• Networking opportunities to discuss everything from complex categories and product specifications to cultural changes and executive buy-in

More information about Innovation ’12 is available here: http://intesource.com/conferences.aspx.