Decisions on what, how much, where, and when to stock product across the extended global CP supply chain directly impact corporate profitability, positively or negatively.
Proforma IdeaPress has managed to remain competitive in the market for printed promotional items, even though its plants are in the U.S. and customer requirements can be extremely complex. Company co-owner Pratt Pande tells how it's done.
Most companies today are heavily outsourced and have suppliers spread out across the globe. Yet firms' knowledge of their suppliers and the environments they operate in is often limited and out-of-date, crippling their ability to successfully manage the dynamics of their supply base. This has introduced substantially more risk in global businesses.
According to a recent survey of more than 200 global finance executives, the use of business networks and the technologies underlying them is helping to transform procurement from a tactical function to a strategic contributor to company success. "Procurement has traditionally been recognized and rewarded solely on the basis of its cost-cutting ability," said Sam Knox, senior vice president and director of research at CFO Publishing. "But through the productive use of automated systems, the function has been able to move beyond simply meeting savings targets to help address larger, more-complex issues such as managing cash and capital, managing risks to business performance, and expanding into new markets or business lines."