In this video, K2 Sourcing provides perspective on reverse auctions for procurement. If you take one thing away from this presentation, it is that a reverse auction is one of many tools to help automate the strategic sourcing and, ultimately, the category management process.
A more strategic approach is to find ways to eliminate wasteful costs in transportation. Transportation is the highest indirect cost for companies. And unlike direct materials or labor, there isn’t a good reason why the costs are so high. A lot of transportation spend goes into black holes. Inefficient transportation routes, unclear communication between parties and poorly negotiated contracts all create parts of the supply chain that essentially still run on faith.
What is the one thing that every company is focused on in this economy? Cost Savings.
The highly anticipated 2013 "State of Logistics" report, compiled by analyst Rosalyn Wilson and presented by Penske and the Council of Supply Chain Management Professionals (CSCMP), describes last year's logistics environment as uneven. After a slow start to 2013, mid-year shipments were strong before a very deep dive at the end of the year with not much movement in freight rates across the modes.