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7 KPIs Your Procurement Team May Be Ignoring!

Supply Chain Game Changer

Procurement bridges the gap between product, internal stakeholders and customers. In order to support the weight of internal and external expectations, Procurement teams must be prepared to perform as a key value adder within an organization. A Procurement strategy should be structured with a clearly defined set of goals and an overarching vision. Success is a product of the work done in the present. Success is a product of the work done in the present.

Building a Triple A Supply Chain: Ten Tactics That Work

Supply Chain Shaman

We consistently see that companies focused on functional excellence–a focus within a functional silo like manufacturing, transportation or distribution– or singular metrics– like inventory or costs– underperform against their peer groups. In our monthly webinar last Wednesday, I presented these results. During the webinar, a respondent asked me to not present just the facts but to give advice. Reward teams for cross-functional metrics.

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Why Agile Procurement is Essential for CPOs in 2020

Jaggaer

His insights are numerous, and can all be heard in his full podcast episode, but among them is his main focus in 2020, the opportunity presented by agile procurement. Bartolini’s view of modern procurement is one of an industry at a crossroads. While digitalization has dramatically increased procurement performance over the last decade, the function is beginning to approach a plateau. “We’re way that procurement organizations are?organizing sourcing?and

How Many Slaves Are in Your Supply Chain?

Talking Logistics

Coincidentally, at the Ariba LIVE 2013 conference yesterday, I attended a presentation by Justin Dillon, Founder and CEO of Made in a Free World , a nonprofit group that is “building a coalition of consumers, businesses, and governments to disrupt the system of slavery.” The collapse of the garment factory in Bangladesh last week , which killed at least 705 workers and injured thousands of others, has put a spotlight on a problem that plagues many supply chains: the use of slave labor.

Why Financial Reengineering Does Not Equal Supply Chain Improvement

Supply Chain Shaman

Financial reengineering focuses on the optimization of short-term results that are usually based on a functional analysis of source, make, or deliver. Few consultants understand the interrelationships between source, make and deliver. Snow fell last night as I worked on my last Supply Chain Metrics That Matter report. Ironically, most companies are very entrapped in measuring and rewarding functional metrics which degrades overall improvement.

Assessing the True Return of Procurement Transformation on Total Shareholder Return: A Tough Proposition

NC State SCRC

In my earlier book with Gerard Chick on “ The Procurement Value Proposition “, we advance the notion that buildoing a business case for investing in people, process, and technology improvement in procurement is key. Many procurement assessments developed by consultants seek to provide an answer to the question “how far along are you relative to your peers in your procurement transformation journey”, and “which processes are lagging compared to your peers?”

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How Does Procurement Create Value? Insights from CPO Speakers at Zycus Horizons Conference

Supply Chain View from the Field

In addition to the procurement executives, I also got to meet Captain Dick Phillips, the captain of note in the film “Captain Phillips” We had a chance to talk about his experience, and he also presented to the group about the incredible experience he went through. Chris Sawchuck from the Hackett Group interviewed three heads of procurement from three large companies, and asked an important question. Does procurement add to top line revenue.

Purchase Price Variance (PPV)! A Profit or Loss Opportunity?

Supply Chain Game Changer

Featuring Our 12 Best Procurement Articles! Purchase Price Variance, or PPV, is a common term in the realm of Purchasing/Procurement and Finance. For some, PPV is a mechanical metric only, measured and reported on but without any further attention paid to it. Subscribe Here!

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Manufacturing Gains From Machine Learning

IQMS

Source: Smartening up with Artificial Intelligence (AI) – What’s in it for Germany and its Industrial Sector? (52 Source: Technology and Innovation for the Future of Production: Accelerating Value Creation (38 pp., Source: Digital Factories 2020: Shaping the future of manufacturing (48 pp., Source: Smartening up with Artificial Intelligence (AI) – What’s in it for Germany and its Industrial Sector? (52 Source: Leveraging AI for Industrial IoT (27 pp.,

Where Will Companies Find Their Future I.T. Expertise?

Supply Chain Brain

It’s the model under which companies draw on talent from multiple sources, including in-house staff, outsourced services providers, and freelancers. Talent today comes from the source that meets a company’s needs of the moment. As with any supply chain, it all begins with the source. Such tools can account for the many constraints and opportunities that present themselves to executives seeking the best possible I.T.

The Great Gap Year of 2020

Bristlecone

Given the realities of the post-pandemic world, the pressure is mounting to redesign the supply chain, define new practices and operational metrics, and cope with the competition from new channels of doing business or doing business with. Is this multi-sourcing?

Manage and Share Your Sourcing Data Effortlessly with ASO: Data Warehouse

Jaggaer

You already know that accurate data is vitally important to your procurement team. According to JAGGAER’s 2018 Digital Procurement Report , technologies related to data analysis are the most valued and desired pieces of technology among respondents. One small mistake in examining or presenting data points within your sourcing activity could cost you. Businesses need a strategic approach to managing their sourcing data. Sourcing

Supply Chain Scams and Fraud!

Supply Chain Game Changer

Source: bestbusinesscircle.com. As stated by Wikipedia : he Fraud Triangle describes three factors that are present in every situation of fraud: Motive (or pressure) – the need for committing fraud (need for money, etc.); Subscribe Here! Email Address.

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Spectra Energy Supplier Forum: Driving Collaborative Project Management

Supply Chain View from the Field

This was followed by a presentation Reggie Hedgebeth, Senior Counsel, of the major growth objectives that lie ahead for Union Gas. These presentations led to the discussion of the theme for the meeting on Focused Performance, which entailed the need to drive out inefficiencies from current operations modes. What are the opportunities in the sourcing process to improve planning?

How To Differentiate With A Supplier Relationship Management (SRM) Program!

Supply Chain Game Changer

In some cases, purely transactional suppliers in regional or out-sourced models may be placed below the level of “approved” in this model. It is critical that this type of program be aligned across the entire corporate enterprise to present a single face to the suppliers. All levels of the organization must be involved, from the procurement person responsible for the supplier up through the CEO, depending on the value of the supplier. Subscribe Here! Email Address.

Strategic Supplier Relationship Management – Do’s and Don’ts

Supply Chain Game Changer

Shortly after I joined the Commodity/Category Management Procurement organization I was invited to attend the annual Strategic Supplier Awards event. Prior to joining the Procurement team I had neither understood nor appreciated the importance of Supplier Relationship management. suppliermanagement #procurement #purchasing. Procurement Supply Chain Management Purchasing Supplier ManagementSubscribe Here! Email Address. Subscribe to Supply Chain Game Changer.

Seasoned Leadership in Action? ? An Interview with Joe Carson, CEO Spend Strategies, LLC!

Supply Chain Game Changer

As an experienced business professional, he has served in diverse roles ranging from Marketing and Strategy, to Procurement and Supply Chain. Past leadership titles include Chief Procurement Officer at both Lucent Technologies and Micron Technologies, in addition to other leadership positions as Vice-President Supply Chain Management, Operational Excellence Executive, and Chief Strategy Officer. Creating clear and compelling presentations. Subscribe Here! Email Address.

SCRC Student Project Lineup Off to a Great Start…

Supply Chain View from the Field

Students will learn core processes around initial exploration and assessment of supply chain relationships, establishing metrics/expectations for the relationship, crafting and managing contracts, and sustaining continuous performance improvement in sourcing, logistics and operations. Supply chain risk is an important subject in today’s environment, and a set of risk tools is presented and applied.

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A “Swiss Army Knife” of Supply Chain Talent Requirements: Views from a Former Wolfpack Student

NC State SCRC

Relationship management, data modeling, problem solving, sourcing analysis, negotiation, data-driven decision-making, metrics development, forecasting, process flow, BOM understanding, MRP/production schedule, Pareto analysis, and information presentations are all key skills that he applies in his CPO role. In supply chain, you can focus in procurement, sourcing, inventory control, logistics, and other off-shoots that occur on a daily basis.

7 Essential Attributes of Strategic Supplier Partnerships!

Supply Chain Game Changer

Whether the phrase refers to sourcing, procurement, relationships, or other matters, its use is prevalent. The baseline metrics for performance of a partner are the same operational parameters used for other suppliers. One example is in the world of out-sourced software development. Corporate values are the “persona” that is presented on a daily basis by the company(ies) and how it engages in and around itself. Subscribe Here! Email Address.

Data is the Real Gold At the End of the Rainbow for Contract and Spend Management Systems

NC State SCRC

Contract analytics can provide a summary view on performance and pricing deviations, risks, statistics (expiry, renewal and pending), procurement and sales metrics. In a presentation at the EMPOWER conference held in Orlando, a large utility shared how procurement had used the decision-making algorithm embedded in the Emptoris suite of tools to guide users into the appropriate contractual mechanism. This is a key component of the sourcing initiative.

The Case for Less Silos, More Intelligence in Supply Chain Management

Talking Logistics

Source: “The Case for Less Silos, More Intelligence in Supply Chain Management,” webcast presentation by Adrian Gonzalez, Adelante SCM. Logistics, Manufacturing, Procurement, Sales and Marketing — these functional groups, for the most part, continue to operate independently from each other, each driven by their own objectives and metrics. Break down your supply chain functional silos. This advice is not new.

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3 Requirements for Meaningful & Useful Data in Transportation & Business

Cerasis

It is important to know who is providing the source data used to develop your KPIs. If you are using components of source data outside of either you or your provider’s control, what are the means of auditing its accuracy? In order to be truly accurate long term, the source data should be available for you or your provider to directly scrutinize. Is the data presented as useful to make better business decisions or improve business practices?

Achieving Healthcare Transformation, Powered by Supply Chain

ivalua

Quite often there can be a general lack of spend and vendor management and strategic sourcing activities. Baylor, Scott & White (BSW) presents a great example of achieving digital transformation powered by supply chain. Ultimately, BSW was able to improve a key metric (Supply Expense as a % of Net Patient Revenue) and generate millions in savings. Perhaps explore a self-distribution model and more transactional automation with procure-to-pay solutions. .

2020 Requires Big Wings and Feet

Supply Chain Shaman

The presentations from the Summit are posted now on the Supply Chain Insights You Tube Channel. No metric should be measured in isolation, and functional metrics should be replaced with the balanced scorecard metrics shown in Figure 2. To maximize value—price to tangible book, functional metrics need to be reset to focus on reliability. 5 A Focus on Functional Metrics Throws the Supply Chain Out of Balance. It has been awhile.

Taking the Hill

Supply Chain Shaman

This week, at Supply Chain Insights LLC, we published our 11th report in the series titled Supply Chain Metrics That Matter. We do not believe that there is much value in putting all companies into a spreadsheet and shaking them up… or looking at singular metrics without analyzing the intricate trade-offs of the supply chain when viewed as a complex system. When companies look at singular metrics (labor costs or inventory), they have moved backwards.

Misnomer

Supply Chain Shaman

Let me give you an example: Last week, I gave a presentation at a global supply chain team meeting of 175 professionals. The team was organized around the functional silos of source, make and deliver. As I cleared my throat, and pushed my toes deep into my shoes, I bounded up the stairs to start the presentation. Today, 60% of sourcing organizations and 45% of manufacturing organizations report through the supply chain organization.” Misnomer (n): A wrong name.

SanDisk’s Story of Customer Segmentation Strategies Using Inventory Postponement

Supply Chain Shaman

Source: Dictionary.com. I find that in this world of the global multi-national that procurement processes have become convoluted and increasingly complex. (In In my opinion, we have made procurement increasingly complex without adding value. In my research, I find that the companies with the most progressive procurement processes also have the most advanced customer supply chain process evolution.)Without So, why did I ask SanDisk to present?

Using Data to Improve Supply Chain Operations

Material Handling and Logistics

It arrives from an array of sources, and it is presented in a variety of formats. The techniques require different degrees of sophistication, but even the relatively simple exercise of putting data from different sources in the same space and producing a visual representation can suggest strategies for transformation. After all, even the best and most reliable data points and metrics are meaningless unless they are somehow leveraged in decision-making.

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Let the Qs Begin

Supply Chain Shaman

There are three reasons why: Vertical excellence—having the best manufacturing, procurement or transportation function—has not worked. Aligned Metrics. To ensure the management of the complex system, the metrics of operating margin, inventory turns, ROIC, customer service, revenue, and forecast accuracy need to be managed together as a non-linear system. I then finished a forty-minute presentation, and prepared for questions.

CSR Leaders Work With UNGC To Drive Corporate Attention On Supply Chain Sustainability

EcoVadis

This workshop brought together Global Compact LEAD companies and other members convened to define and bring urgency to sustainable procurement, and to discuss how they can motivate and mobilize their companies to address this next frontier in Corporate Social Responsibility (CSR) progress. EcoVadis Senior Account Executive Daniel Perry was invited by UNGC to present, and has reported here on the discussions and outcomes of the workshop.

6 Common Supply Chain Mistakes and How to Resolve Them

AFFLINK

The cost of recovery from a disruption in procurement management depends on factors such as supply source, volume, manufacturing location and inventory. Supply chains that rely on a single source are now more likely to experience disruptions. The fundamental challenge in shipping for supply chain managers is the requirement to wait until all parts are present before shipping the product.

Collaboration and Visibility in the Supply Chain

Oracle SCM

One of the Supply Chain Management trends apparent at the Gartner Supply Chain Executive Conference in May was highlighted by several vendor/customer presentations focused on the value of Collaboration and Visibility projects. Often this data is rolled up organizationally, geographically or in distribution through performance metrics or key performance indicators (targets change with these roll ups). Tom McDonough , Sr. Director Product Marketing.

Exponential. Collaborative. Spark. Celebrate. Home. Sustain 2017 Inspires Sustainable Supply Chain Leadership

EcoVadis

For our 10 years anniversary, EcoVadis received the best gift ever: Hundreds of professionals in sustainable procurement, CSR and supply chain came together in Paris to share, network, learn and present at EcoVadis Sustain 2017, and our Rock-In-A Free World celebration in Paris this month. Throughout the two days the theme of collaboration was present. Similarly of the 2020 goals Ferrero has set for its sourcing, five are “100%” – as in sustainably sourced.

The Coming Age of Cognitive Supply Chains

Enterra Insights

” Alex Saric ( @alexsaric ), a procurement expert at Ivalua, told Eason, “There is a huge appetite to develop cognitive supply chains, which is only set to increase as more success stories come to light. Talk to others in the organization — from logistics and distribution experts to sourcing and procurement staff — to find the biggest needs across your supply network.” Over the past several decades, the world has become increasingly digital.