GEP is the global leader in unified procurement and supply chain solutions

The third quarter of 2017 was unlike any in the recent years. The previous quarter looked pale in comparison to the earlier few, where numerous high dollar value (and unexpected) acquisitions grabbed headlines alongside protectionism measures that evoked mixed feelings. Nonetheless, there were key events unfolding in the background which have likely implications for IT category managers and have been detailed in this current edition from GEP.

Paradigm Shifts

This is a question that we ask ourselves all the time at GEP. We have to know what “good” looks like, because our clients are also asking us this question and, critically for us, paying us to give them the answer.

Of course, there isn’t just one “good.” There are lots of “goods” that apply to the many programs and processes that are the key components of the procurement function.

The world of marketing is undergoing tremendous transformation. In the past quarter, we have witnessed the clarion call of advertisers to increase efficiency of advertising and media buying agencies, and address issues of transparency. The situation worsened this year with charges being leveled against production houses (like media buying agencies were accused in 2016 by ANA’s Media Transparency Initiative Report) for non-transparent practices.

The logistics sector has witnessed some sweeping changes in the sea and road freight sector. Overcapacity in the sea freight market has impacted profits of the ocean liners. Another reason impacting profits is the freight forwarders, who often commit to specific requirement to the liners, only to cancel (sometimes) at the last moment. This forces the shipping liners to dispose the freed capacity at breakeven cost, or at a loss.

Apart from the usual volatility concerns plaguing the chemical industry every now and then, Q3 2017 witnessed one of the deadliest hurricanes in U.S. history. Not only did this paralyze normal life but also impacted the chemical industry to a large extent. The short-term damage looks massive and this will affect both the domestic and global markets.