The typical procurement organization invests heavily in supplier compliance but rarely reaps the value rewards. Compliance can often feel like a revolving door, with procurement teams evaluating the same risks and under-performing suppliers over and over again and never identifying the root causes or making real progress toward sustainability. Eventually, after a multi-year investment into a responsible sourcing program, procurement finds itself past the point of diminishing returns.
With supply chain collaboration becoming a hot topic for even the most independent, self-sufficient organizations, it's no wonder that more attention is being paid to the relationships between distributors and their suppliers.
Mid-sized manufacturers show continued optimism about revenues and employment, according to the 14th edition of the Purchasing and Manufacturing Survey from Prime Advantage, a buying consortium.
A survey of more than 750 U.S. manufacturers shows continued optimism about revenues and employment as well as increasing demand for flexibility and responsiveness in supply chains. Moreover, confidence in growing revenues extends into 2016.
Innovative online retail companies are learning how to compete with well-established companies by creatively managing their supply chain. By combining best practices and technological advancements, these companies are disrupting their competitors while maintaining lean inventories and cutting out the middleman to deliver lower prices to consumers.
For most of the past three decades, private equity firms and other investors have relied on two simple questions to assess the supply chains of the companies in which they've invested: Are our companies leveraging low-cost country supply sources and are they keeping supply chain costs in check? Deeper inquiries have always seemed unnecessary, so private equity firms and investors have focused on other aspects of the businesses they own to drive value.
On paper, one would think that integrating the supply chains for two maintenance organizations would be easy. Just look for areas where there is duplicated effort and inventory, rationalize those operations and realize the savings. But in practice, it's a very different matter.
Walmart has committed to investing $250bn in products that will support and create American jobs by 2023. Based on data from Boston Consulting Group, it is estimated that one million new U.S. jobs will be created through this initiative. Responding to feedback from its vendors that finding U.S. sources of supply was a challenge, Walmart plans to use ThomasNet's platform for product sourcing and supplier discovery.
Soft-skill traits such as emotional intelligence and communication have long been recognised as fundamental to business success and are now gaining recognition in procurement and supply.
There's been a great myth sweeping across the world of procurement. It's come about as procurement technology has grown widespread and companies are vying for customers to sign onto their solutions. The myth takes the form of an eraser, scrubbing away the lines between direct and indirect procurement.