Invoicing & Payment,
Spend Analysis & Benchmarking,
Supplier Relationship Management,
B2B Social Media: Online Supply Communities, Open Innovation, SM B2B Marketing, SM Customer Driven Support
Industry Groups: Construction, Defence & Aerospace, Education, Financial Services, Healthcare, Manufacturing & Automotive, Public Sector, Resources, Retail & CPG/FMCG, Utilities
Categories / Commodities: Business Travel, Capital Equipment, Construction & Building, Electronic & High Tech, Fuels & Lubricants, Managed Print Services, Marketing & Advertising, Metals & Minerals, Office Suppliers, Services Procurement, Supply Chain Management, Transport & Logistics
Procurement People: Careers, Leadership, People on the move, Talent Management
Leading company procurement organizations reap double the measurable cost reduction versus other companies, while also driving competitive advantage through supplier-driven innovation and risk management. While procurement organizations for leading companies have continued their upward trajectory, most companies only sustained the gains they made between 2008 and 2011.
These findings were reported in a study released today by A.T. Kearney titled “Procurement Powered Business Performance: Assessment of Excellence in Procurement (AEP) Study 2014.” This year’s AEP is the eighth edition in a series that started in 1992.
.(Read Full Article)
As a two-year grace period soon expires, thousands of U.S. corporations are still scrambling to overcome severe obstacles to gather and authenticate a complex web of supply chain information to meet conflict minerals reporting requirements.
“In our analysis of Securities and Exchange Commission filings this year and through our detailed ongoing observations, far too many companies are severely lagging in getting commitments from suppliers to provide detailed information,” said Jess Kraus, CEO of Source Intelligence. “This is a huge obstacle, especially since we are fast approaching a key stage in Dodd-Frank – audited and verifiable reports on source materials.”(Read Full Article)
It seems as if this represents a real change from it being a privilege to do business with Unilever to it being a privilege for Unilever to do business with suppliers, especially those who share your values and commitments.
Read this inspiring interview with CPO Dhaval Buch where he discusses Unilever’s strategic approach to supplier relationship management and it’s Sustainable Living Plan.
Drawing from the results of a quantitative research study conducted by Spend Matters and the Institute of Supply Management, this two-part report discusses why meeting demand requires Supply Management 2.0: fluid collaboration between companies and their external network partners in a multi-tier and multilevel fashion that orchestrates both process and information silos.(Read Full Article)
We never used to think that much about risk in supply chains. Those were the days when most manufacturing was domestic or products were purchased from one or two international factories that we monitored closely. But oh, have things changed!
Now risk management is an important function within most supply chain organizations. Global supply chains have become longer, stretching worldwide; and with every stretched link comes the potential for a weak spot and additional risk of failure.
As a result, managing risk of failure in supply chains has become a hot topic. With events like 9-11, the Japanese tsunami, the ...(Read Full Article)
Global air freight markets showed a strong increase in air cargo in July, with the Asia Pacific continuing to lead the way.
According to the The International Air Transport Association (IATA) Asia-Pacific airlines showed their strongest rise in air cargo volumes since the start of 2013, increasing 7.1% compared to a year ago. The fortunes of the region’s carriers are tied to the strength of major economies such as China, Japan and South Korea, which are expanding again after a slowdown at the start of the year. Capacity grew 4.0%.(Read Full Article)
World-class procurement organizations outperform their peers by striving to providing unique value beyond cost reduction, including becoming a trusted advisor to the business, driving supplier innovation, and focusing on risk management, according to new research from The Hackett Group, Inc.(Read Full Article)
According to The Hackett Group’s research, world-class procurement organizations now operate at nearly 20 percent lower cost as a percentage of spend than typical companies. They also have 27 percent fewer employees.
World-class procurement organizations now generate purchased cost savings equal to more than 9x the cost of procurement, according to The Hackett Group’s research.
Between January and May of this year, SCM World fielded a six-question survey in order to understand the supply chain community’s perception of global third party logistics providers (3PLs). Barry Blake is Vice President of Research at SCM World, says there were few surprises in their findings…with one exception.
“The disconnect between 3PL performance levels and their reluctance to embrace new technologies was something we hoped would change by now,” he says.
The results are in, with 557 respondents globally, and the story emerging from the data is compelling – third-party logistics providers are seen as fast and fairly ...(Read Full Article)
For the quarter, PwC said there were 51 transportation and logistics transactions values at $50 million or more for a total of $20 billion, which was ahead of 38 deals for a cumulative $16.2 billion recorded during the first quarter and the 39 deals valued at a cumulative $16.b billion in the second quarter of 2013.(Read Full Article)
AsiaInspection, a global provider of quality control services for businesses importing from Asia, Africa, Southern Europe, and Latin America, maintains that supply chain managers should pay more attention to risk irrespective of region.
The Hong Kong-based consultancy has just released its 2014 Q2 Barometer, a quarterly synopsis on outsourced manufacturing and quality control indicating that supply chain transparency is far from adequate nearly everywhere in the emerging markets matrix.(Read Full Article)
The market for supply chain management (SCM) software, maintenance and services posted another year of solid growth, generating $8.944 billion in 2013, including applications for procurement software. That represented a nearly 7.4% increase over 2012 revenues, according to Chad Eschinger, vice president of supply chain with research firm Gartner (gartner.com).(Read Full Article)
The old assumptions driving supply chain design and strategy were focused on achieving the lowest possible cost of goods and the most efficient distribution to stores. Today, a new model is emerging, not driven by enterprise technology or supply chain innovations - but by customers. In the omnichannel retail world, almost every single store-driven assumption about supply chain is being challenged and getting replaced by a digital-driven future.(Read Full Article)
It makes no sense to waste your time and valuable resources on unprofitable and unreasonable customers.
My students were desperate for strategies and tactics to help them out of these “price reduction only” discussions with their customers and broaden the conversations. We worked hard to develop some effective strategies for negotiating with buyers and bullies who focus on price only. These include:
1. Every time a customer asks for another price reduction, suggest trading for something in return. Ask for something of value back such as move volume, another division, another project. Never concede, always trade.(Read Full Article)
2. Keep opening the ...
Thanks to an increasingly complex global marketplace, today’s Chief Procurement and Supply Chain Officers employ as broad an array of skills as ever before. From the mastery of evolving technology to the sophisticated analysis of data, the universe of job requirements for these senior executives seems to grow each year.(Read Full Article)
The 2014 FM Global Resilience Index released today finds Norway, Switzerland and Canada top the list of nations most resilient to supply chain disruption, one of the leading causes of business volatility. The first-of-its-kind Index, commissioned by FM Global, one of the world’s largest commercial property insurers, is an online, data-driven tool and repository ranking the business resilience of 130 countries. More than a year in development, the Index is designed to help executives better assess and manage supply chain risk.(Read Full Article)
Supplier Relationship Management (SRM) may be staging a comeback, as companies seek new ways of mitigating risk and controlling costs.
According to a new report by Source One Management Services, LLC, supply chain managers are again realizing the value of extending the value relationship.
“Suppliers can be neglected during the course of their contracts,” says Brad Carlson, director of Source One’s Supplier Management practice. “And though some companies have an informal supplier management process, it usually lacks the formality and processes to drive success.
.(Read Full Article)
Most supply chains move in one direction: New products move from manufacturing to a customer. Increasingly, those products are coming back into the supply chain, either as returns for repair under warranty work or to be remanufactured for reuse. In fact, new research from the nonprofit organization APICS Foundation, finds that remanufacturing serves a broad array of strategic interests for companies, provides considerable career advancement potential for individuals and has become instrumental in furthering sustainability initiatives.
“Remanufacturing was once considered a niche process,” says Jonathan Thatcher, director of research, APICS Foundation. “Today it is becoming a mainstream practice.”
The findings ...(Read Full Article)
You may know who your supplier is, but the chances are that you have no idea who your supplier’s supplier is.
The European Horsemeat scandal and the Rana Plaza clothing factory collapse in Bangladesh are just two recent examples of companies not knowing the sources of the products they sell with disastrous consequences. These “known unknowns”, in “Rumsfeldian” terminology, are the direct consequence of the splitting up and subcontracting of manufacturing on a global scale through a series of intermediaries and agents.(Read Full Article)
The Institute for Supply Management (ISM) released its 2014 Salary Survey that revealed a decrease in salary for the average professional, and the fact that compensation was the most important factor for job candidates evaluating job opportunities in the supply chain industry.
ISM’s Ninth Annual Salary Survey finds that the average base compensation for all participating supply management professionals was $101,608 in U.S. dollars, a decrease of 2 percent compared to the average for 2012 ($103,793)(Read Full Article)
BSR recently launched “Transitioning to Low-Carbon Fuel: A Business Guide for Sustainable Trucking in North America.”
According to Edward Cameron, director, partnership and research, the report is designed to help fleet operators and their value chain partners comply with new and future regulations.
“Value chain partners include energy producers, vehicle manufacturers, retailers that place shipments, and investors,” he says. “All want to develop impactful yet practical strategies that will accelerate the transition to low-carbon fuels, improve the sustainability impacts of all fuels, and advance dialogue and understanding about our shared challenges.”
This guide addresses five key challenges that have hindered ...(Read Full Article)
At the 6th European Logistics Summit in Brussels last month, Charlie Dobbie, Executive Vice President for Global Network Operations at DHL Express presented European Commissioner for the Environment Janez Potocnik with key recommendations to ensure comparable, simple and valuable environmental and carbon reporting for the logistics sector. Speaking on behalf of the Alliance for European Logistics (AEL), Dobbie called for the promotion of a consistent global standard for carbon calculation and reporting in the transport of goods, ensuring Europe’s approach is fully aligned within existing international frameworks
.(Read Full Article)
Five elements of a resilient supply chain
Supply chain managers tend to rely heavily on data to support decision-making processes. Data proves helpful in planning for risk but is insufficient in light of the massive number of scenarios that could disrupt a supply chain. Developing a plan to deal with so many unknowns requires a slightly different set of priorities. There are five key elements that distinguish a resilient supply chain:
1. Prepared: Designing a supply chain that is prepared for a catastrophic disruption involves understanding the risks, maintaining deep visibility into the supply chain resources, and developing operational readiness ...(Read Full Article)
Procurement leaders are expanding their priorities for 2014, moving beyond a historic emphasis on reducing purchase costs and adding focus on expanding and deepening the scope of spend influence as well as supporting supplier-led product innovation, according to 2014 Procurement Key Issues research from The Hackett Group, Inc.
The Hackett Group’s research reveals a major change in procurement’s priorities from last year, when cost reduction/avoidance was their number one concern. For 2014, the highest-ranked issue is expanding the scope of procurement’s spend influence. Over three quarters of the executives placed this first in their priority ranking.(Read Full Article)
Ten to 20 years ago, the supply chain leader in most companies held a title such as “vice president of logistics.” It was a largely functional role that relied on technical proficiency in discrete areas: knowledge of shipping routes, familiarity with warehousing equipment and distribution-center locations and footprints, and a solid grasp of freight rates and fuel costs. (S)he reported to the chief operating officer or chief financial officer, had few prospects of advancing further, and had no exposure to the executive committee. The way companies need to think of the modern supply chain executive has changed dramatically.(Read Full Article)