Supply Excellence — Global Supply Management: A First Look at an Exclusive Study

Global Supply Management: A First Look at an Exclusive Study

October 10th, 2007 · by Tim Minahan · No Comments · LCCS and trade, best practices, skills rectruitment and development, supply management

One of the things you missed here at Procuri Empower 2007 was the release of a new study from Supply and Demand Chain Executive magazine into globalization and its impact on supply and contract management strategies and performance. Based on a survey of over 120 purchasing, supply chain, and business professionals, the study – Global Supply Management: Strategies for Success in the New World Economy – raises an alarm about the mismatch between global sourcing and supply chain strategies and the ability of most companies to effectively execute and manage these good intentions.

For example, the percentage of total spend purchased from suppliers in emerging markets will increase 130% by 2010, despite rising risks and challenges of sourcing from those regions. Even more alarming is that a majority of purchasing and supply chain managers acknowledge that their organizations are ill-equipped to select and manage suppliers abroad.

“[Study] respondents recognize that achieving their global supply goals will require them to overcome challenges with recruiting and retaining top talent, developing new organizational structures, and securing budget and executive support for automation and supply initiatives,” writes report author and Supply and Demand Chain Executive magazine Editor-in-Chief Andy Reese.

In addition to these internal issues, the study uncovered a number of external challenges complicating global supply management initiatives, including “managing language and cultural differences, identifying qualified suppliers and ensuring supplier quality.” The latter quality problem has been in the spotlight lately following a number of high profile recalls on food and consumer goods from China. (An issue that SpendMatters has covered ad nauseum.)

I will delve into this new Global Supply Management study in more detail in the coming week. In the interim, download a complimentary copy of the complete study here.

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