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Yesterday, I shared the top challenges facing supply management executives, as reported by the nearly 300 supply and business executive attendees at Empower 2006. Topping the list were continued pressures to reduce supply costs, new scrutiny for better compliance, and heightened supply risks.
The below table (click to enlarge) reveals the Top Five Supply Management Strategies executives said their companies would implement within the next two years. The table also lists the issues driving these strategies and the most likely approaches supply management executives will use to overcome these issues and improve supply costs and performance.
In the coming weeks, Supply Excellence will examine each of these strategies in more detail and review real-world examples of these strategies in action.
10 responses so far ↓
1 Supply Excellence » Top Supply Strategy #2: A Compliance Tale // Oct 20, 2006 at 8:25 am
[...] The first phase of supply management improvements focused on developing new processes and deploying Web-based tools to automate existing processes and to identify cost savings. The next phase of supply management – in which we currently live – is all about compliance. That’s why imposing policy, process, and system changes to ensure compliance is the second most common supply management strategy, as reported by the nearly 300 supply management and business executives attending Empower 2006. (View the complete Top 5 Supply Strategies list.) [...]
2 Luke Obiri // Oct 25, 2006 at 12:57 am
Well researched papers. The knowledge obtained from the papers will assist practitioners in executing their responsibilities.
Regards,
Obiri
3 Tim Minahan // Oct 25, 2006 at 2:09 pm
Thank you Obiri. I am merely a conduit to foster the exchange of supply mangaement best practices between enterprises like your own. If you find the techniques and strategies shared in these pages useful, then I am suceeding with the original charter of SupplyExcellence.
Please do pass the word along to your colleagues and peers. Encourage them to visit Supply Excellence. And to actively participate in the dialogue.
4 Supply Excellence » // Oct 26, 2006 at 9:50 am
[...] Supplier performance management has been the elusive brass ring of the supply management discipline. Long recognized as vital to supply management success, a consistent and efficient method to measure and manage supplier performance can help companies focus resources, identify performance glitches, develop strategies for supply chain improvements, and determine the total cost of ownership (TCO) of supply relationships, products, and entire supply chains. But launching and sustaining a performance management program has often taken a back seat to other supply approaches – such as strategic sourcing – that involve fewer stakeholders and have a more immediate and measurable impact on the bottom line. In short, many supply management organizations have shied away from supplier performance management programs because of the challenges in defining common metrics, systems, and reporting across multiple stakeholders and businesses. However, with compliance and risk management high on executive agendas – and pervasive unstable economic and supply markets – measuring and managing supply performance has become a priority. It ranks number four on the list of Top Supply Strategies that will be employed within the next two years, according to the 300 supply management and business executives attending Empower 2006. Case in point: executive and regulatory pressures for enhanced supplier visibility, risk management, supplier diversity, and continuous improvements prompted one of the nation’s oldest and largest manufacturers to launch a formal supplier performance management program earlier this year. In his presentation at Empower 2006, the company’s head of procurement operations said the program is based on two pillars: [...]
5 Supply Excellence » Supply Risk Antidote: Go Local? // Nov 2, 2006 at 12:23 pm
[...] You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your ownsite. [...]
6 Supply Excellence » If Opportunity Doesn’t Knock, Build Your Own Door // Nov 16, 2006 at 10:40 am
[...] But the moral of this story is aimed not at senior executives but at the rank and file supply managers. The opportunity for moving up the corporate ladder is no secret. It’s technology. Technology is an increasingly critical component of supply management transformation. (Evidence: automation underlies four of the Top 5 Supply Management Strategies outlined by executives for the next two years.) Most companies are looking to invest in supply management automation, but often lack employees that both understand supply strategy as well as the technologies available to enable it. My advice (for what it’s worth): Volunteer to take charge of your company’s e-supply initiatives. There is no more secure role within the supply field than e-supply management program manager. A fact illustrated by Aberdeen Group’s CPO’s Agenda study and a more recent report from ISM.If there is no existing job description for this e-supply program manager role, create one. Ensure that the role has responsibility for assessing existing infrastructure, defining solution requirements in support of supply management processes and goals, leading the cross-functional solution selection team, and heading up training and deployment. To make matters interesting, consider tying your performance bonus to user adoption and total spend managed via these online tools [...]
7 Supply Excellence » Tale of Three CPOs: Coors Brewing Company // Nov 21, 2006 at 3:34 pm
[...] Schnur was questioned as to how Coors was organizing to improve spend visibility and compliance — the leading strategies identified in Supply Excellence’s Top 5 Supply Strategies study. Here are some of the excerpts from the interview: [...]
8 Supply Excellence » Podcast Exclusive: Supply Excellence Meets Spend Matters // Nov 27, 2006 at 5:35 pm
[...] Episode one also delves into the most common pitfalls of supplier performance scorecarding, reveals today’s Top 5 Supply Strategies, and examines the skills and challenges of becoming (and remaining) a Chief Procurement Officer (CPO). As you might expect, the innagural SupplyNow broadcast concludes with a verbal jarring of the differences between spend and supply management. [...]
9 Supply Excellence » Top 5 Supply Strategies Goes Interactive // Nov 30, 2006 at 5:31 pm
[...] For the past month, I have been reporting on the Top 5 Supply Strategies enterprises have prioritized for the next two years. The findings were the result of a September 2006 survey of the top challenges and initiatives of 300 supply management and business executives from around the globe. Color commentary was added based on interviews I conducted with survey participants. [...]
10 Supply Excellence » Supply Excellence Turns One // May 1, 2007 at 2:25 pm
[...] 10. Research Redux: Top Five Supply Management Strategies [...]
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