The global macroeconomy and supply markets: Why procurement departments need to have a precise overview of where the economy is situated in the macroeconomic cycle
The global macroeconomy and supply markets, not only commodity markets, are cyclical, which is why procurement departments need to have a precise overview of where the economy is situated in the macroeconomic cycle. They need to understand how supply markets are affected by the macroeconomy. At the moment we find ourselves in an economic boom and there are several indicators pointing towards a slowing of the economy, perhaps even a recession. What will the economy look like on the other side of the boom and which procurement initiatives makes sense during different phases of the macroeconomy boom-bust cycle? Most procurement organizations applies the same strategies, processes and initiatives during different macro-economic cycles – is this smart or just really stupid?
The presentation will give insight to:
The PMI – Purchasing Mangers Index
Geography and sector
PMI boom and bust cycles
How to use the PMI actively in procurement
How do we know where we are situated in the macroeconomic cycle?
What is the effect of the macroeconomy on procurement and power and dependencies between the supplier and the buying company?
Which actions and decisions make sense in the different macroeconomic phases – is procurement just procurement, or do we need to adjust to the Macro cycles?
Elements of Category management, so much more than just sourcing and competitive tendering
When to use competition and when not to
How to handle price increase warnings from supplies using facts
How do we cope with the annoying letters/emails telling us they will increase their prices in next year?
The concept of fact based negotiations
Opening up the supplier’s tacit knowledge, eg. Cost break downs, interests etc.
Whiteout data – you are just another person with an opinion
Søren Vammen is the CEO of Kairos Commodities and The Danish Purchasing and Logistics Forum. Søren has more than 20 years of experience in supply management and has been involved in several European companies’ supply management practice.