Healthcare providers are playing catch-up, but they're beginning to incorporate operations forecasts in their supply chains, says Marie Fournier, director of marketing and business development with Tecsys.
Boeing suppliers are developing "a sense of acceptance" that the manufacturer's push for a 15 percent reduction in supply chain costs won't ease up even as the economy improves, an informal survey of several major suppliers by Canaccord Genuity finds. Whether the push will succeed remains to be seen.
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.
Analyst Insight: The true value of supplier relationship management is not what you think. It isn't just about managing a bi-directional relationship between the buyer and supplier – it's about managing the extended supply network (customers' customers and suppliers' suppliers). In today's business, the best network of relationships achieves optimal results; thus, managing the supplier relationship is not only critical to success, it's mandatory if full value is to be extracted for both the buyer and the supplier. – Mickey North Rizza, BravoSolution
Analyst Insight: There needs to be a clear line of sight between what is in the contract (and the contractual obligations of both parties), the performance metrics or KPIs, and the relationship, including a 360º perception of the relationship. However in practice this is rarely the case. – Alan Day, Chairman & Founder, State of Flux
Analyst Insight: Alignment is the number one strategy to increase business value. Alignment is realized when the business strategy, functions, employees, business processes and technology are optimized for growth and profitability resulting in substantial shareholder returns. Procurement’s opportunity for excellence begins with alignment to the business and the broader enterprise strategy. – Mickey North Rizza, BravoSolution
Sue Montgomery, senior business analyst with March Networks, talks about the challenges her company faces in gaining full visibility of supply and demand, and in dealing with increasing supply-chain volatility.
Dell Inc. looks to the emerging concept of vested outsourcing, in a partnership with Genco, to improve the high-tech giant's global supply chain and level of customer service. Dell executive director Robert McIntosh shares the details.
Champ Cargosystems, a provider of integrated air-cargo services, has launched an airfreight community platform. Dubbed CargoUpdate, the tool was designed to enhance communications between airlines and freight forwarders.
