Comments on: Quick and dirty financial model: Efficient RFT processes v. contract management: Part 1 http://blog.hudgeon.com/2006/04/21/quick-and-dirty-financial-model-efficient-rft-processes-v-good-contract-management/ Procurement, spend analysis and vendor management Sun, 19 Jul 2009 03:30:19 +0000 http://wordpress.com/ hourly 1 By: Nena http://blog.hudgeon.com/2006/04/21/quick-and-dirty-financial-model-efficient-rft-processes-v-good-contract-management/#comment-238 Nena Wed, 12 Jul 2006 19:46:04 +0000 https://hudgeon.wordpress.com/2006/04/21/quick-and-dirty-financial-model-efficient-rft-processes-v-good-contract-management/#comment-238 Does anyone know where I can find information on how to set up a vendor management office? What I mean is "what are the actual steps you would take" I am sure step 1 is identify vendors that will be part of this new initiative, Thanks for the help. Does anyone know where I can find information on how to set up a vendor management office? What I mean is “what are the actual steps you would take” I am sure step 1 is identify vendors that will be part of this new initiative, Thanks for the help.

]]> By: Vendor Management » Efficient RFT process v. contract management: Part 2 http://blog.hudgeon.com/2006/04/21/quick-and-dirty-financial-model-efficient-rft-processes-v-good-contract-management/#comment-15 Vendor Management » Efficient RFT process v. contract management: Part 2 Sat, 29 Apr 2006 02:34:53 +0000 https://hudgeon.wordpress.com/2006/04/21/quick-and-dirty-financial-model-efficient-rft-processes-v-good-contract-management/#comment-15 [...] I've received quite a few requests for the spreadsheet shown in the post below. Many of the emails told stories of working with procurement departments with compulsory go-to-market policies. The following is from Steve Murphy talking about his experiences with a previous employer: I have worked in procurement organizations that were audited to insure that large contracts were bid every other year and all contracts every three years. The annual audits did not analyze effectiveness just performance against policy. Some of the groups could have been categorized as under-resourced. Most were focused on the daily requisition queue and never looked up to see if there was a better way to get things done. [...] [...] I've received quite a few requests for the spreadsheet shown in the post below. Many of the emails told stories of working with procurement departments with compulsory go-to-market policies. The following is from Steve Murphy talking about his experiences with a previous employer: I have worked in procurement organizations that were audited to insure that large contracts were bid every other year and all contracts every three years. The annual audits did not analyze effectiveness just performance against policy. Some of the groups could have been categorized as under-resourced. Most were focused on the daily requisition queue and never looked up to see if there was a better way to get things done. [...]

]]> By: hudgeon http://blog.hudgeon.com/2006/04/21/quick-and-dirty-financial-model-efficient-rft-processes-v-good-contract-management/#comment-14 hudgeon Fri, 28 Apr 2006 10:38:02 +0000 https://hudgeon.wordpress.com/2006/04/21/quick-and-dirty-financial-model-efficient-rft-processes-v-good-contract-management/#comment-14 Hi Matthew; You're right. It's critical to separate tactical purchasing from strategic sourcing. The two activities require entirely different approaches. Purchasing is all about the "now" whilst sourcing is about the "then". When combined, the immediacy of tactical purchasing tends to overwhelm the remoteness of strategic sourcing. By the way, it's Doug, not Dave ;) Hi Matthew; You’re right. It’s critical to separate tactical purchasing from strategic sourcing. The two activities require entirely different approaches. Purchasing is all about the “now” whilst sourcing is about the “then”. When combined, the immediacy of tactical purchasing tends to overwhelm the remoteness of strategic sourcing. By the way, it’s Doug, not Dave ;)

]]> By: Matthew W. Grant http://blog.hudgeon.com/2006/04/21/quick-and-dirty-financial-model-efficient-rft-processes-v-good-contract-management/#comment-13 Matthew W. Grant Thu, 27 Apr 2006 23:29:00 +0000 https://hudgeon.wordpress.com/2006/04/21/quick-and-dirty-financial-model-efficient-rft-processes-v-good-contract-management/#comment-13 Hi Dave, This is an interesting model you created. I did a post on PurchaseRealm to alert my readers that you came up with this. It is so easy for Buyers to just allow those contracts to renew or just go month to month. (Thank goodness for auto-renewal clauses, right?) You've made a good case as to why that is not the best option. One solution to being overwhelmed by the day-to-day volume of work problem would be to have some Buyers who are responsible at the contract level while others are responsible on the tactical level. That way, the contract would be seen as equally important, rather than a chore lower on the priority list. Hi Dave,

This is an interesting model you created. I did a post on PurchaseRealm to alert my readers that you came up with this.

It is so easy for Buyers to just allow those contracts to renew or just go month to month. (Thank goodness for auto-renewal clauses, right?) You’ve made a good case as to why that is not the best option.

One solution to being overwhelmed by the day-to-day volume of work problem would be to have some Buyers who are responsible at the contract level while others are responsible on the tactical level. That way, the contract would be seen as equally important, rather than a chore lower on the priority list.

]]> By: PurchaseRealm http://blog.hudgeon.com/2006/04/21/quick-and-dirty-financial-model-efficient-rft-processes-v-good-contract-management/#comment-12 PurchaseRealm Thu, 27 Apr 2006 23:22:52 +0000 https://hudgeon.wordpress.com/2006/04/21/quick-and-dirty-financial-model-efficient-rft-processes-v-good-contract-management/#comment-12 <strong>Re-Bid Or Just Renew Contracts?</strong> I found an interesting post that I want to share.  Dave Hudgeon, a vendor management consultant in Australia, writes a blog called appropriately enough, Vendor Management. He recently worked up a simulation to show the possible safvings defference... Re-Bid Or Just Renew Contracts?

I found an interesting post that I want to share.  Dave Hudgeon, a vendor management consultant in Australia, writes a blog called appropriately enough, Vendor Management. He recently worked up a simulation to show the possible safvings defference…

]]>