Is IT for procurement?

IT has been (let’s just go out and say this) taking over the world for quite some time, and the benefits are vast and limitations endless. We have cloud computing, complicated algorithms for search engines, countless social media platforms, complex IT databases, the list goes on.

At some point, will procurement start to get entrenched – or to put it gently, influenced by the prowess of IT?

I say, procurement IS already influenced by IT.

A recent study from Gartner believes software applications can be beneficial or even crucial for procurement. The research suggests electronic procurement and sourcing applications can support organisations in saving money.

Of course, some companies have already leveraged the use of IT and reaped results.

But the report doesn’t stop there. It goes on to say that procurement technology programmes, when made mandatory, can be more effective than those allowed to be optional.

I ponder about this for a moment. Some of us welcome change, while some of us stick to the old Microsoft Word 2002 for all eternity because it is familiar. Some embrace the changing face of technology and adapt accordingly, while some linger behind and cling onto what’s safe.

So here’s something to think about on your end. Perhaps procurement could give IT a chance (if your company hasn’t) and adopt a system. It’s all about taking chances, and who knows, Gartner may be right and it will revolutionise the way we do business.

What do you think?

Fly me into the ash cloud

While bigger airlines today are coming up with different ideas on how to equip their planes with in-flight WiFi, one small low-cost airline is testing new technology to help detect ash clouds within 100 kilometres in range.

This is after Europe’s infamous case of airspace closures as a result of an Icelandic volcano eruption.

Why the need for that? For starters, Eyjafjallajokull has yet to cease erupting, al beit with less significant and disruptive consequences. However, ash cloud issues won’t disappear anytime soon, especially through the rest of the summer and into autumn. We can’t also assume that other volcanoes, dormant or active, won’t follow suit, especially when the earth’s climate is shifting so rapidly.

EasyJet is a British-based airline which ranks only slightly above its rival, Ryanair. However, it is spending almost US$1.5 million to equip its planes with AVOID, the “Airborne Volcanic Object Identifier and Detector”. The gadget works similar to weather detection systems for thunderstorms, but it is specifically targeted to ash clouds.

AVOID works best with many airlines using it up in the air, and it will not be useful unless other airlines are willing to take on this gadget. But a big thumbs-up to EasyJet. If I had to make a choice, I’ll sacrifice that bit of WiFi goodness for a safe journey anytime.

via

Product recalls: The Tweet Age

We are constantly reminded of the need to get up to speed with changing technology. News is gradually shifting onto online platforms, while companies are jumping on the Twitter bandwagon to promote their goods or services. The latest you’ve heard, though, are product recalls.

A report released by the Australia Competition and Consumer Commission has advocated the use of social media platforms to facilitate product recalls. According to the regulator, there has been more than 10,000 product recalls in Australia in the last 23 years. However, the overall average return rate of recalled goods was only 56.75%.

Now that everything is going digital, recalls through print and other traditional mediums may no longer be sufficient. The use of Twitter or Facebook, for example, may be more prolific than we think.

I believe the convenience of utilising social media is often underestimated. With the newer generation gaining prominence in today’s world, it is almost crucial that members of the supply chain start re-examining the demographics and needs of their consumers.

Bluntly put, product recalls won’t go down with a snap of the finger. Reach out with social media.

To fly or not to fly

The IATA was recently displeased with Europe's decision to make airspace closure measures based on theoretical models rather than facts.

According to a recent press release, IATA reported that there had been countries which allowed flights in the "unsafe" fly zones, and post-flight inspections have deemed it safe to fly.

Considering it from Europe's point of view, prevention is better than cure. After all, the safety and lives of thousands lie in their hands. On the other hand, business for airline and cargo carriers have dwindled and airports are left with many passengers stranded.

In my opinion, I would say it is perhaps a good call for Europe to have closed airspace the first time Eyjafjallajökull spewed volcanic ash. During the virgin eruption, there was no way to determine if flights that were allowed could go wrong, and the only plausible solution was to halt them to prevent any mishaps. However, I believe the following airspace closures could have been better managed and yes, as IATA would say, not close airspace simply based on theoretical assumptions.

What is your take on this?

Pressures on CSCOs increase as the economy recovers

Singapore - 3M's Snr VP of corporate supply chain operations John Woodworth tells us what he thinks CSCOs need to keep an eye on as the world embarks on the path of recovery.

Hear what he has to say in this video.

http://www.youtube.com/user/procurementasia

The cargo smuggling chapter continues

In latest local news, the Immigration and Checkpoints Authority uncovered 3,360 cartons of cigarettes at the Woodlands checkpoint. The contraband was found in a Malaysia-registered lorry transporting ladies shoes and pharmaceutical items. Upon closer inspection, 56 unlabelled shoe boxes contained the loot.

I can’t help but wonder if smugglers today had a collective brainwave to hide their goods amid products relating to women, the biggest consumer market around. I don’t know about you, but cocaine in flowers and now contraband cigarettes in shoe boxes? Perhaps it is time to be extra vigilant, especially if your shipments involve feminine products.


What should shipping managers (of all cargoes) do to prevent their goods from being tampered with?

The offensive airline manual

Have you heard? Air New Zealand has apologised to the Tongan community for profiling them in the cabin crew manual as passengers who tend to overindulge in alcohol on long-haul flights. Quoting Times Online, the manual wrote that South Pacific islanders had the tendency to “drink the bar dry”.

Written in 2008, the manual also contained profiles of other nationalities. Chinese customers were said to be “extremely demanding”, while Japanese passengers expected water and reading material during mealtimes. Koreans were perceived to expect good manners and patience from cabin crew, and Samoans “greatly appreciated rugs”.

Needless to say, this manual sparked some anger amongst Tongans. Tevita Finau, a Tongan community leader based in Wellington, was offended by the implication and found it untrue. The airline promptly apologised to the Tongan community, assuring that an updated training manual currently in use did not mention “cultural components”.

Whether we want to admit it or not, profiling is common and I believe it helps give the cabin crew a rough gauge of certain nationalities so as to manage their expectations. Of course, putting such cultural idiosyncrasies in an airline manual can be pretty sensitive. Unless you intend to circulate the manual internally (and apparently not for Air New Zealand, because how did we find out?), perhaps we should all think twice before we put it down on paper, lest we offend.