Procurement Transformation Blog | Capgemini

Author Archives: Doug Cottington

About Doug Cottington

Doug is a Sourcing Manager within the Capgemini Procurement Services BPO organization. He has been purchasing direct and indirect materials for the last six years, first working for an eSourcing provider where he provided purchasing support to Brazilian retailers and then a US based fortune 50 retailer where he worked with nearly every spend category. Currently Doug is working in a procurement BPO engagement for a top CPG company in the US.

Calculating The Payment Term Benefit From The Cost Of Capital

While negotiating product X supplier A offered net 75 payment terms, supplier B offered net 60, and supplier C offered 2% 30 net 60.  It is clear that net 75 is preferred over net 60, but is 2% 30 better than net 75?  Why are extended payment terms preferred over standard payment terms and how to account for these differences when evaluating suppliers will be reviewed and shared in this entry.  To be able to …

Continue reading

| Posted on December 8, 2011 by Doug Cottington in Operational procurement, Sourcing | 1 Comment

Dutch Auction

This article describes what a Dutch auction is, what valid reasons are for deploying this method and what  technical setup it takes to make it work Some of the best auction graphs will only have a single dot; this solitary bid on the graph demonstrates a previously unknown opportunity in a flawlessly executed Dutch Negotiation.  This article may be a point of review for many readers as reverse Dutch auction functionality is a common feature …

Continue reading

| Posted on October 11, 2011 by Doug Cottington in Sourcing Tagged , | | Leave a comment