Matt Miller’s Post

K2 Sourcing economic indicators for procurement report of US July PPI, based on data from the BLS (https://lnkd.in/gW4dSskq) In July 2024, the U.S. Producer Price Index (PPI) for final demand increased by 0.1% from the previous month, showing a year-over-year rise of 2.2%. This slight increase was driven by a mix of rising and falling prices across various commodities and services. Commodities that saw price increases: Energy: The energy sector saw a 1.9% increase, with gasoline prices rising by 2.8%, diesel fuel by 12.9%, jet fuel by 7.1%, and home heating oil by 9.6%. Food: Food prices increased by 0.6%, with notable jumps in fresh fruits and melons (up 10.3%) and meats (up 4.5%). Industrial chemicals: Prices for industrial chemicals rose by 2.4%. Portfolio management services: Increased by 2.3%, reflecting rising costs in financial services. Commodities that saw price decreases: Final Demand Trade Services: This index dropped by 1.3%, which likely reflects reduced margins in business-to-business (B2B) sectors such as Maintenance, Repair, and Operations (MRO), office supplies, and IT consumables. Companies in these sectors, like Grainger and McMaster-Carr, may be experiencing margin pressures due to increased competition, changes in supply chain costs, or shifts in demand. Fresh and dry vegetables: Prices dropped significantly by 5.4%. Steel mill products: Declined alongside residential electric power, which decreased by 1.1%. Final demand services: This sector saw a decrease of 0.2%, with trade services dropping by 1.3%. Specifically, machinery and vehicle wholesaling fell by 4.1%, and retailing of food, alcohol, and automobiles also declined. The price changes are reflective of the continuing slowdown of industrials, with the exception of the energy and food segment, as shown in ISM purchasing managers index. #Procurement #strategicsourcing Follow K2 Sourcing updates on https://lnkd.in/gxpUChT6

Happy Monday! Outdated procurement systems can dramatically hamper your effectiveness in an organization. So can outdated data. With Graphite, suppliers keep the data up to date for you. DM us to learn more. #procurement #mondaymeme

In today’s volatile commodity markets, achieving fair pricing is more challenging than ever. Enter the spend digital twin — a game-changing tool that provides procurement teams with real-time insights into cost drivers, allowing them to negotiate fair prices with suppliers. By analysing the entire spend and understanding the impact of market changes, companies can regain buying power and drive smarter procurement decisions. #Procurement #DigitalTwins #CostManagement #Volatility #SupplyChain #Innovation #BusinessStrategy Learn more: https://lnkd.in/gQ2Mcjcv

Enhance your purchasing power with a spend digital twin. A spend digital twin could revolutionize procurement by handing negotiation power back to buyers. This tool can help you gain valuable insights and enhance your negotiation strategies, ultimately driving better outcomes for your business. Discover more about spend digital twins in our latest article: https://mck.co/3XIa2sj

𝗧𝗵𝗲 𝗴𝗹𝗼𝗯𝗮𝗹 𝘀𝘂𝗽𝗽𝗹𝗶𝗲𝗿 𝗺𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝗺𝗮𝗿𝗸𝗲𝘁 𝘀𝗶𝘇𝗲 𝗶𝘀 𝗲𝘅𝗽𝗲𝗰𝘁𝗲𝗱 𝘁𝗼 𝗿𝗲𝗮𝗰𝗵 𝗨𝗦𝗗 𝟭.𝟮𝟴 𝗯𝗶𝗹𝗹𝗶𝗼𝗻 𝗯𝘆 𝟮𝟬𝟯𝟮 𝗮𝗻𝗱 𝗶𝘀 𝗲𝘅𝗽𝗲𝗰𝘁𝗲𝗱 𝘁𝗼 𝗴𝗿𝗼𝘄 𝗮𝘁 𝗮 𝗖𝗔𝗚𝗥 𝗼𝗳 𝟵.𝟳% 𝗱𝘂𝗿𝗶𝗻𝗴 𝘁𝗵𝗲 𝗳𝗼𝗿𝗲𝗰𝗮𝘀𝘁 𝗽𝗲𝗿𝗶𝗼𝗱. 𝙁𝙤𝙧 𝙈𝙤𝙧𝙚 𝙍𝙚𝙥𝙤𝙧𝙩 𝘿𝙚𝙩𝙖𝙞𝙡𝙨, 𝙑𝙞𝙨𝙞𝙩: https://lnkd.in/drYxaNyT The growth of #supplier_management is attributable to the rising production processes in various industries to cater to rising consumer demand, in a way driving the demand for raw materials and other required inputs on time to continue daily business operations. #SupplierManagement #ProcurementTech #SupplyChainSolutions #VendorManagement #BusinessPartnerships #SupplyChainOptimization #polaris Polaris Market Research & Consulting

Discover a new era of spend management with 🦈 SourcingShark's cutting-edge Commodity Dashboard. Gain precise #insights into market trends, #compare parts prices to commodity indexes, and #track vital KPIs like total spend, supplier counts, and potential savings. Elevate your financial and sourcing strategies with #SourcingShark. 🔗 Learn more at: www.SourcingInsights.com #Procurement #SpendAnalytics #Solutions #SourcingStrategy #DataVisibility #SupplyChain #RiskManagement #Contracts #SpendVisibility

Stick to Market Standards - The Art of Seamless Sourcing When shaping your procurement strategies, tapping into the existing market norms can prove to be a goldmine for cost optimization. The rationale is straightforward: acquire what suppliers are already producing and selling extensively to their clientele. This doesn’t mean compromising on quality or specific needs; rather, it’s about aligning your demands with the prevailing supply. Begin by engaging suppliers in a conversation about their standard operating parameters. This includes understanding their conventional specifications, optimal batch sizes, typical lead times, production cycles, and more. Tailoring your requirements to fit within these boundaries not only ensures smoother transactions but also can drive down costs significantly. For products and services that are more commoditized, this alignment can lead to exponential savings. For instance, areas such as IT, telecommunications, basic freight services, electrical components, and surface treatments stand out. These domains usually operate on standardized protocols and terms, and aligning with them can maximize cost efficiency. Furthermore, embracing market standards doesn’t just enhance financial outcomes. It fosters stronger supplier relationships, streamlines operations, and reduces the complexities associated with tailored requirements. In essence, when your sourcing mirrors the supply market’s rhythm, you position your organization for both immediate gains and long-term advantages. Free top 20 rapid cost reduction levers: https://hubs.la/Q02Mstvf0 💪 #sustainability #procurement CostBits CostAdvisory https://hubs.la/Q02MsrxB0

Stick to Market Standards - The Art of Seamless Sourcing When shaping your procurement strategies, tapping into the existing market norms can prove to be a goldmine for cost optimization. The rationale is straightforward: acquire what suppliers are already producing and selling extensively to their clientele. This doesn’t mean compromising on quality or specific needs; rather, it’s about aligning your demands with the prevailing supply. Begin by engaging suppliers in a conversation about their standard operating parameters. This includes understanding their conventional specifications, optimal batch sizes, typical lead times, production cycles, and more. Tailoring your requirements to fit within these boundaries not only ensures smoother transactions but also can drive down costs significantly. For products and services that are more commoditized, this alignment can lead to exponential savings. For instance, areas such as IT, telecommunications, basic freight services, electrical components, and surface treatments stand out. These domains usually operate on standardized protocols and terms, and aligning with them can maximize cost efficiency. Furthermore, embracing market standards doesn’t just enhance financial outcomes. It fosters stronger supplier relationships, streamlines operations, and reduces the complexities associated with tailored requirements. In essence, when your sourcing mirrors the supply market’s rhythm, you position your organization for both immediate gains and long-term advantages. Free top 20 rapid cost reduction levers: https://hubs.la/Q02MsrWc0 💪 #sustainability #procurement CostBits CostAdvisory https://hubs.la/Q02Mstbw0

🚀 Navigating the Maze: Solutions to Common Sourcing Challenges 🚀 In the dynamic world of procurement, sourcing challenges are a given, but they don't have to be roadblocks. From finding reliable suppliers to ensuring sustainability, the obstacles are varied but not insurmountable. Here are strategic solutions to some of the most common sourcing challenges faced by businesses today: Finding Reliable Suppliers: Utilize comprehensive supplier discovery platforms, attend industry networking events, and leverage recommendations from trusted business partners to broaden your supplier base. Cost Management: Adopt a total cost of ownership (TCO) model to understand all costs associated with procurement. Strategic negotiation and long-term supplier relationships can also help manage and reduce costs. Quality Assurance: Implement a stringent supplier qualification process, including regular audits and performance evaluations. Clear communication of your quality standards and expectations is key. Global Logistics and Compliance: Diversify your supplier base to mitigate risks associated with geopolitical issues or supply chain disruptions. Stay informed about international trade regulations and invest in compliance management tools. Sustainability and Ethics: Integrate sustainability criteria into your sourcing processes. Partner with suppliers who demonstrate a commitment to environmental and social responsibility. Technological Adaptation: Leverage the latest procurement technologies to enhance efficiency, from e-sourcing tools to blockchain for enhanced transparency and security. Building Strong Relationships: Foster open and collaborative relationships with your suppliers through regular communication, joint problem-solving, and shared goals. Each of these challenges presents an opportunity to refine and strengthen your sourcing strategy, turning potential weaknesses into competitive advantages. The key lies in proactive problem-solving, strategic planning, and leveraging the right tools and partnerships. 🔍 What sourcing challenges have you encountered, and how have you overcome them? #ProcurementChallenges #StrategicSourcing #SupplyChainManagement #ProcurementSolutions