Source One's series for keeping up with the most recent highlights in procurement, strategic sourcing, and supply chain news week-to-week. Check in with us every Monday to stay up to date with the latest supply management news.
"The typical sourcing cycle begins," Heinzmann writes, "by searching for and evaluating suppliers on two key criteria: Capability and Price." While this is the most popular process, Heinzmann suggests it may not be the most effective. Evaluating suppliers based solely on these factors fails to provide a truly comprehensive picture of their capabilities. Procurement can better understand its suppliers and - ultimately - make more strategic business decisions by emphasizing contract compliance and moving the contracting process from the end of the sourcing cycle to the beginning. The move will accelerate the pace of the entire sourcing cycle and encourage better relationships between Procurement and Legal teams.
The Doctor continues his series on rampant supply chain fraud by examining a number of suspicious activities and outlining the steps an effecting platform could take to combat them. Lost returns, for example, might affect the bottom line of a company that leverages an outdated tool. In this instances, someone will mark products as defective and ensure they go missing before credit is received. A next-level platform will calculate average defect rates and average return success to assess whether or not fraudulent activities are taking place. Advances solutions could also point our abnormal vendor selection, unusual payment patterns, and fixed asset fraud before these behaviors mature into serious cause for concern.
Walmart, Sam's Club Implement Food Safety Blockchain
ThomasNet, Nicole Garman, 11/12/2018
Garman reports on Walmart's recent efforts to promote food traceability and protect the safety of its customers. Joining IBM's blockchain-empowered Food Trust, the company expects each of its leafy greens suppliers to provide farm to shelf visibility by September of next year. Before experimenting with IBM's solution, it took Walmart stores a full week to trace their produce back to the farm level. The retail giant can now do so in a matter of seconds. Walmart and its Food Trust partners hope emerging tools will ensure the next contamination is stifled before it can become deadly. This summer's E. coli outbreak proved particularly harmful and seems to have inspired Walmart's ambitious plans.