Suppliers existing on already thin margins are fearful of being beaten down on price by powerful buyers. So why would they embrace reserve auctions, which end up awarding contracts to the cheapest bidder?
Too many companies are still plagued by a "siloed" mentality which keeps various functions from collaborating fully on demand planning. But Arnold Mark Wells, principal of End-to-End Analytics, sees reason for hope.
The maker of sophisticated medical equipment had reached a "plateau" in its efforts to boost customer service and optimize costly inventory within its global operation. Then it found a way to climb higher.
The enterprise wants procurement to enable global growth scenarios in 2012 while also continuing to protect supply and lower input costs, according to research conducted for The Hackett Group's annual Key Issues Study.