Analyst Insight: The sales and operations planning process has fairly deep roots in most companies. Research by SCM World shows that many have been able to extend the process across most internal functions. However, few companies have extended the process externally to trading partners. The incentive structure of buyers and sellers tends to set these groups at cross-purposes. Flexibility pricing can shift the incentives in a direction that forces companies to negotiate the value of flexibility. - Barry Blake, Vice President, Research, SCM World
Firms can manage their sourcing better by developing relationships not only with their suppliers but with their suppliers' suppliers, according to two papers co-written by a University of Illinois supply chain management expert.
In today's environment of Big Data and analytics, effective supply chain decision-making is only as good as the data influencing the decisions. Drawing actionable conclusions based on the best information possible is critical to maintaining a supply chain that is efficient and effective, but also acts as a continual driver of strategic and competitive advantage. But how can your organization ensure that the data used to draw conclusions and make decisions regarding the supply chain is clean, relevant and accurate?
Corporations in the U.S. and Europe will move an additional 750,000 jobs in IT, finance and other business services to India and other low-cost geographies by 2016, according to new research from The Hackett Group. But levels of additional offshoring in these areas will begin to decline by 2014, and in the next 8 to 10 years the flow of jobs offshore is likely to cease, as companies simply run out of business services jobs suitable for moving to low-cost countries.