Sourcing the Twelve Days of Christmas

| 0 Comments

 

12DaysOfChristmas.jpgOn the first day of Christmas my true love gave to me... a purchasing headache.


The Twelve Days of Christmas is an English Christmas carol, in which a series of increasingly grand gifts is given on each of the twelve days of Christmas.


As any “true love” knows, the Twelve Days of Christmas is always a nightmare for a professional buyer, says James Marland, Network Growth VP at SAP Business Networks, in December’s SmartProcurement.


As we work through the purchase requisition, already we see that the requestor has tried to combine two different commodities, when they obviously come from different suppliers. The Partridge and Pear Tree must be split into two separate lines.


A lotting strategy is needed to focus the spend on a smaller number of suppliers, and this would make sense to combine the avian line items into a single lot: Partridge, French Hens, Calling Birds and Turtle Doves. Combining lines into lots simplifies the purchasing process and encourages suppliers to compete aggressively. In addition, this gives a rare opportunity to use the first UNSPSC code 10 (“Live animals”).


The request for five Gold Rings is more problematic since the price of gold is likely to fluctuate over the period: so the supplier should consider index-linking their price to the London Metal Exchange spot price. The Swans and Geese should have performance-based contracts to hold the supplier accountable if they do not “a-lay”, or “a-swim” to the expected standard.


It is possible that the Ladies could also be encouraged to be Maids if sufficiently skilled labour could be sourced. It might be worth posting an RFP for Dairy Workers with appropriate Ballroom skills. The good news is that these enterprises are likely to be women-owned, so this will increase our supplier diversity.


A total of 21 Pipers and Drummers seems a little excessive. As purchasing agents know, requesters often have little idea of the quantities needed when a request is placed. We could suggest that a smaller number could be sourced initially, and the quantities increased later in the contract. Also, it is likely that the musicians will need to know more details from the requestor, so some form of on-line collaboration would be helpful here.


Twelve Lords-a-Leaping is probably the most challenging line item on this requisition. Lords can be sourced only from the UK, and are therefore subject to EU labour regulations regarding the amount of leaping allowed per week. In addition, with leaping not being covered by our workers compensation insurance, a review of the supplier’s safety certificate is suggested.

 

JamesMarland_Ariba.pngIf 2014 has many more purchase requisitions like this, then it is probably time to review some of the additional capabilities of Ariba such as supplier discovery, collaborative sourcing, performance management and services procurement.
 

Leave a comment


SmartProcurement Newsletter
X

Please enter your details below to receive the SmartProcurement Newsletter for FREE on a regular basis.

As part of the SmartProcurement Newsletter you will be receiving World Class Procurement News, Tools, Tips, Tactics, Procurement Training updates, Upcoming Events, and the latest Procurement Career Openings.

* Email Address:
* Title:
* First Name:
* Surname:
* Company:
  Position:
* Country:
* Public / Private:

 

Career opportunites

Purchasing and Supply Manager

  • <500 000 >500 000 Gauteng Permanent Procurement Management Supply Chain
Purchasing and Supply ManagerThe CSIR has a vacancy ...More

Senior Manager Public Sector

  • >500 000 Gauteng Permanent Procurement Management Projects / Category Management
 Senior Manager Public SectorTotal Cost to Company: R1.1mil ...More

Senior Manager: Mining

  • >500 000 Gauteng Industrial Engineer Permanent Projects / Category Management
Senior Manager: MiningTotal Cost to Company: R900k – ...More

SUPPLY CHAIN MANAGER

  • >500 000 Gauteng Permanent Procurement Management Supply Chain
SUPPLY CHAIN MANAGER(Total Cost to Company R750k – ...More

Master Data Management Advisor

  • >500 000 Gauteng Permanent Procurement Management Projects / Category Management
 MASTER DATA MANAGEMENT ADVISOR(Total Cost to Company R750k ...More

PRO - Performance Reporting

  • >500 000 Permanent Procurement Consultant Procurement Management Projects / Category Management
PRO - Performance ReportingTotal Cost to Company: R800k ...More

PRO - Risk & Governance

  • >500 000 Gauteng Permanent Procurement Management Projects / Category Management
PRO - Risk & GovernanceTotal Cost to Company: ...More

Supply Chain Site Manager

  • >500 000 Gauteng Permanent Procurement Management Supply Chain
Supply Chain Site ManagerTotal Cost to Company R1mil ...More

Chief Financial Officer

  • >500 000 Gauteng Permanent Procurement Officer / Specialist
Chief Financial OfficerTotal Cost to Company R1.5mil – ...More

Process Engineer- WMS

  • <500 000 >500 000 Industrial Engineer Permanent Projects / Category Management Western Cape
Process Engineer- WMS(Total Cost to Company R350K – ...More

Forecast Analyst

  • <500 000 Analyst Permanent Procurement Management Western Cape
Forecast Analyst(Total Cost to Company R350K – R500K) Location: ...More

Group Category Manager: Indirects

  • >500 000 Permanent Procurement Management Projects / Category Management Western Cape
Group Category Manager: Indirects(Total Cost to Company R700K ...More

Group Category Specialist: Chemical

  • >500 000 Gauteng Permanent Procurement Officer / Specialist Strategic Sourcing
Group Category Specialist: Chemical(Total Cost to Company R700K ...More

Sourcing Specialist - 3rd party

  • >500 000 Gauteng Permanent Procurement Officer / Specialist Strategic Sourcing
Sourcing Specialist - 3rd partyTotal Cost to Company ...More

Global Procurement Lead (Processing)

  • >500 000 Gauteng Permanent Procurement Management Supply Chain
 Global Procurement Lead (Processing)Location: JohannesburgTotal Cost to Company ...More

Global Supplier Performance Manager

  • >500 000 Gauteng Permanent Procurement Management Supply Chain
Global Supplier Performance Manager Location: Johannesburg  Cost to ...More

Group Customer Service Lead

  • <500 000 >500 000 Analyst Gauteng Permanent Procurement Officer / Specialist
Group Customer Service Lead  Location: Johannesburg As the ...More

Business Intelligence Manager

  • <500 000 >500 000 Gauteng Permanent Procurement Management Supplier / Business Development
Business Intelligence Manager Location: JohannesburgLead the development, implementation, optimization ...More

Group Procurement Manager

  • <500 000 >500 000 Gauteng Permanent Procurement Management
Group Procurement Manager Location: Johannesburg  A Global Organization ...More

Commodity Manager Packaging

  • >500 000 Commodities Gauteng Permanent Projects / Category Management
Commodity Manager Packaging  Location: Johannesburg Salary: R850k– R1.1mil ...More