After a spike more than a decade ago catalyzed by a buying spree of ERP, supply chain, web front ends and so on, one would think that a market like integration would be a no-grow or go-away market. But quite to the contrary, the tool suites, the delivery options, and sales of even traditional elements continue to grow. Why is this?
Analyst Insight: Supplier relationships and the management of them are critical to business. The strength of the relationship is two vs. one, transparency, collaboration and innovation. Real value is extracted when buyers and suppliers work together. Not surprisingly, businesses focused on supplier relationship management (SRM) lead their peers five to one in terms of value derived from their supply base. - Mickey North Rizza, VP of Strategic Services, BravoSolution
Surging growth in emerging markets and constantly changing international trade regulations are testing the ability of aviation and defense companies to manage compliance on a global scale.
Inventory information sharing is time-consuming and often results in visibility levels between "average" and "none," according to a report from Gatepoint Research.
Analyst Insight: No matter what "expert" you ask – all will point to the fact that SRM is on the rise. This growing realization that buyers and suppliers must work together to achieve success in today's complex and volatile economic climate is a welcome sea change in thinking that only will continue. A key to getting SRM right? Make sure you are putting in mechanisms to manage the business with the supplier – not just to manage the supplier. – Kate Vitasek, Faculty for the University of Tennessee's Center for Graduate Executive Education programs.
Analyst Insight: A major reason the majority of start-ups and mergers are destined to fail is that companies are not aligned when it comes to determining the nature of their business, what they want to achieve and how they will achieve it. Misalignment can happen both internally and externally and almost always translates into frustration and failure. – Kate Vitasek, Faculty, University of Tennessee's Center for Graduate Executive Education programs.
Gas and electric utilities may have a number of unique operating characteristics, but they share with other industries the need to emphasize customer service, operate safely, create a reliable supply chain and reward shareholders. PG&E's pursuit of those goals led it to integrate formal sales and operations planning (S&OP) into the organization.
In "truly collaborative" trading relationships, targeted operational metrics, such as inventory days, total landed cost, and cash-to-cash cycles, can be expected to improve by 50 percent over those without collaborative execution capabilities, according to a joint research project of E2open and SCM World.