OEMs' insistence on more and more cost reductions has caused painful friction in the relationship, according to the annual Global OEM-Supplier Relations Study conducted by IHS Automotive. The survey allows automotive suppliers to rate car makers on a variety of matters, including technology sourcing, profit-impacting factors, quality management and intellectual property protection matters.
Compliance is at a tipping point. The role of the chief compliance officer has gained more prominence over the last decade and is evolving rapidly. Today's CCOs are in a position similar to that of CFOs 15 years ago, and face a similar opportunity and challenge: how to become a more strategic partner in the organization, a vital member of the C-suite.
Companies across all industries depend more and more on analytics and insights to run their businesses profitably. But, attracting, managing and retaining talented personnel to execute on those strategies remains a challenge.
Integrated business planning is a process that does exactly what its name implies-it brings together fragmented strands of strategic, financial and operational planning and performance management.
As the manufacturing industry spins its web across the world more and more, the network connecting businesses and their partners become much more complex. One of these areas most impacted is a company's supply chain, the main catalyst of one's ability to produce and distribute their products as efficiently and to as large and diverse of a customer base as possible. While this broadening supply chain ability certainly brings along many benefits, the ability to manage risk, particularly in the area of quality, becomes quite challenging.
Over the last few years, the conventional wisdom has coalesced around a view that success in emerging markets is primarily a function of outstanding execution - speed, opportunism, tenacity, and guile - instead of a well-thought-out strategy supported by a set of winning and difficult-to-replicate organizational capabilities. In other words, street smarts are supposed to beat MBA smarts every time.
Companies today are awash in a sea of data. Each individual link of the supply chain yields bits of information that are critical to meeting customer demand and optimizing business processes. Unfortunately, they are seldom utilized in a holistic manner. Analytics can't deliver their true value unless the data is assembled in meaningful patterns, and embedded deep within the organization.
Traditional management approaches must be replaced or at least altered to reflect the evolving business market, said Kim Doyle, a senior manager at Plante Moran, a consulting firm.
A global survey of CFOs and supply chain leaders by professional services organization EY finds that companies with evidence of strong "business partnering" between the CFO and the supply chain leaders report better results than those with a more traditional finance model in place.