Time is up for short-term thinking in capitalism

Time is up for short-term thinking in capitalism

By Al Gore and David Blood

Published: November 26 2009 20:53 | Last updated: November 26 2009 20:53

Why do investors and business leaders continue to focus on the short-term and ignore the fact that businesses that think long-term end up more competitive and profitable? Behavioural economists believe they have the answer: our brains are hard-wired to think short-term because evolution has rewarded serial short-term successes such as avoiding predators and other dangers that faced our ancestors. Their survival ensured our existence – but predisposed us to the same kind of short-term thinking. As a result, even though our world is very different from theirs, long-term decision-making remains the exception, not the rule.

The global financial crisis had its origins in short-term, unsustainable strategies and actions. Before the crisis and since, we (and others) have called for a more long-term and responsible form of capitalism – what we call “sustainable capitalism”. Yet despite our collective best efforts, one year on, the capital markets seem to be reverting to business as usual.

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Change

Change has a considerable psychological impact on the human mind. To the fearful it is threatening because it means that things may get worse. To the hopeful it is encouraging because things may get better. To the confident it is inspiring because the challenge exists to make things better.

Author - King Whitney Jr.

As I complete what is less than 4 weeks of 2009 I reflect on the need for change. I have spoken with individual buyers of branded merchandise and discussed the changes they feel are necessary to adapt and progress in 2010. All have confirmed it will be a time that will involve considerable change as it relates to promotional spend management.

I too feel the need for change. We have implemented a platform that will encourage brands of all sizes to work together and bring upon a new change in how promotional products are purchased. A change never seen. A change that is sure to cause a ripple that have a great impact on promotional spend management.

Please take a moment and comment the changes you and/or your company will be managing this change. I appreciate your time and look forward to the reply.

Best Forward,

Mike Kaczmarek

IMPORTANT: Details you need to know while doing business with Promo Buying Group in 2010

Good Morning,

I thank you for viewing. This year has been nothing short of WOW! I have been talking to hundreds of companies throughout this country and the world. Buyers of Promotional and branded solutions have detailed the challenges they are facing in this economy and as it relates to their promotional and branding spend. In 2010 we will be rolling out a program that allows benefits to the entire supply chain of promotional and print spend management. This may sound familiar, to some, for we have put some awareness out mid year. We are calling it PBGDirect and it WILL be the only way one can do business with Promo Buying Group.

PBGDirect offers a great deal of benefits. The program will run off the picnicraid.com platform and extend and guarantee savings upwards of 65%-73% depending on product & total quantity purchased. As we conclude this year I ask you to take a moment and contact me so we can analyze the immediate positive impact this will on your budget resources in 2010 and beyond. This savings will provide your "savings floor". The ceiling will stretch as far as the number of buyers purchasing a given product and the number of products actually purchased. That being said it is beneficial to tell others you know about the tool so we can add more "Ants" to the picnic. I am aware there will be questions and I am available at any time to discuss. My advice is to forward questions through email, this blog or Linkedin for I am certain there will be a great deal of interest, therefore phone calls.

In closing I ask you to consider some valuable points and reflect on those challenges you faced this year with your personal budgets and the time I feel was used inefficiently looking for the best product and best deal. Consider...

• How much time you expended managing bids & vendor quotes looking for the "Cheapest price"?
• How Wal-Mart model works - Many of you have to prove your pricing to Wal-Mart or confirm to their pricing model. Many of us buy products there. If I am correct it is based on volume purchasing. You deserve someone working for you in this manner
• Do you shop sales? Shop at Costco? Sam Club? If so this will provide the same and more value.
• The benefits of having a personal Relationship Manager there to assist you when needed. No chasing or leaving vmails
• Other uses for the savings. God willing we can invite our friends, family and neighbors back to work and watch our brands thrive once again.

I have much work to do to prepare. I thank you for your time, loyalty and I am excited to work with you in 2010 and beyond. Together we can and will change the most important component of your brands presence and just as important put your community, as well as mine, back to work.

Although it speaks to Supply Management I thought this article was valuable. I am confident that if the buyers of Promotional and branded merchandise followed some of the highlights the Marketing budget would NOT be one of the first areas to be scaled back. Take a moment and read. I look forward to your thoughts.

Best Forward,

Mike

Procurement Aerobics for the Agile Organisation:

The pace at which a company, is able to adapt and evolve is dependent upon the number of new strategic options that it is able to generate and test. The agile organisation is therefore one that captures more than its fair share of new opportunities, successfully balances risk with reward and is in a state of constant renewal by redefining its “core business” in ways that open up new avenues for growth.

This definition supports procurement well in its drive to embed Supply Management as a core competency (SMCC) within the organisation. In agile terms CPO’s can distinguish between rigidity and agility within their own organisation:

Agile or Rigid?

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Key Decision Dates to Navigate the Beginning of your 2010 Branding Season

Whether you are an Promotional Buying veteran or newcomer, this is the time of year that you need to think about the impact of Chinese New Year on product delivery. The recognition that that world tilts off its axis for about 30 days can be an uneasy time for those of us in the Western Hemisphere. It never fails that the biggest clients always want to push up against the Chinese New Year and demand orders placed in December deliver before the end of February. We have always advocated on our client’s behalf to encourage the factory to rush the production or stop the workers from going home; however, it is a battle we have yet to win.

There seems to be an inevitable cycle of misunderstanding, frustration, and then remorse the purchase. In order to better equip you for the beginning of your 2010 branding season, we want to arm you with critical facts and important information about several key dates. You might want to print this out and put these dates and topical discussion points in your toolbox to battle the frustrations.

The annual frustration point to address is the February 14, 2010: Chinese New Year. Help yourself avoid remorse by being honest with your deadlines and work with your promotional partner as if they have a vested interest in your success. If you don’t feel that way, get away while you can. The other pain staking truth is yes, it is going to cost more. The amazing thing is it is beneficial to pay more for problem solvers. If you have an important business problem to solve or key objective to meet in Q1, we will approve the resources necessary to get the work done.

Before you get approval to enlist herculean resources, you should know more about Chinese New Year and critical dates. Picnicraid.com factories will be operating on the following holiday schedule:

• Saturday, January 30, 2010

The last of all the managers and employees will have left the factory to visit their families in different provinces far from the factory’s city.

• Saturday, February 14, 2010

February 14, 2010 marks the first day of the Chinese Year 4,707. You may have wondered why Chinese people live longer than other cultures. It’s because on the Chinese New Year, everyone becomes one year older. There is also an old Chinese secret you should know about. The New Year starts on a different day each year and is shorter than our 365-day year. So the year of the Tiger starts on February, 14 2010 and ends on February 2, 2011, while the following year of the Rabbit begins on February 3, 2011 and ends on January 27, 2012.

• Saturday, February 27, 2010

All of the factory employees, who are likely to return to the factory in 2010, have arrived and are ready to resume production. It’s helpful to know that the Chinese New Year has significant cultural and economic implications on the workers and the factories. A growing percentage of factory workers do not return to the factory after the holiday season every year. So while a majority of the factory is back in operation by the end of February, you can expect to see a slower production line because some of your workforce has not returned and some of the workforce will be new and inexperienced.

• Saturday, March 20, 2010

This is the expected sailing date for the first container leaving after the Chinese New Year holiday. When the factory closes its doors for a month they clean everything off the production line. In the perfect scenario your order molds, proofs, fabric, and proofs are all complete and sitting there ready to start production on February 27.

This Chinese New Year calendar can be a big frustration point for some; however, if you can communicate clearly the key decision dates below you will reclaim your prowess. Make quick decisions and get approvals back to you to achieve the following results:

Key Decision Dates

Decision Needed: Results Expected:

11/30/09 - Approval Ship 1/16/10 to arrive 2/12/10

1/31/10 - Approval Ship 3/20/10 to arrive 4/16/10

2/12/10 - Approval Ship 4/10/10 to arrive 5/7/10

While these key dates are helpful, it’s also good to have alternatives like a partial order delivery by air freight or an alternative product from our custom branding line. Let’s challenge ourselves and our team members to think creatively and provide positive energy into the process we know will consume many as the limitations prevail.

This information was prepared,in partnership, by an industry provider of custom plush; JIM SOCCI

If it works for office supplies, maintenance and other common shared services why not promotional products?

Today I read an article from www.stltoday.com. It discussed how "two (2) of the world’s biggest beverage companies, have agreed to jointly purchase certain goods and services." Take a moment to read through the article. When your company is ready to purchase branded promotional solutions visit picnicraid.com.

Anheuser-Busch InBev and PepsiCo ink joint purchasing agreement