Analyst Insight: We have entered an era of radically changed weather patterns which will have a much more pivotal and dominant impact on commodity prices. Smart commodity managers will increasingly draw on weather expertise and weather related-instruments when formulating their hedging strategies.
Analyst Insight: Not sensing the upturn in the economy is almost as bad as being hit with the downturn. Value chains have slashed inventories in their effort to remain cash-positive. Some are already scrambling as their sales pick up but their inventory coffers are empty. It's not surprising that sales and operations planning initiatives have grown in importance.
Analyst Insight: While traditional supply chain processes focus on efficient transactions, value chain networks are built on effective relationships. The difference is not trivial, challenging deep-seated traditional supply chain paradigms. With 70 percent to 80 percent of a product's components sourced externally vs. made in house, supplier relationship management is critical to value chain success.
Analyst Insight: The number one strategy for sourcing and procurement executives is taking costs out. But that requires an enterprise view of procurement and sourcing resources, including spend, business process, supplier contracts, organizational structure, and employees. Leading organizations have accelerated their strategic cost-reduction activities to ensure immediate sourcing and procurement ROI.
Analyst Insight: Product and engineering design focuses more on the technical feasibility of a product, and strategic sourcing works more on the commercial feasibility of materials of the same product. The two together are what product development is about. Product lifecycle management (PLM) comprises the management approach and the technology used to increase the dynamic between the two feasibilities.
Analyst Insight: Leading companies have a portfolio of true end-to-end supply chain metrics, use those metrics in key processes such as S&OP, supplement the metrics with customer and supplier dashboards, and have an open attitude and metrics culture that drives them through an upward spiral of increasingly higher levels of performance. Most importantly: they understand they cannot be good at everything, and they consciously manage tradeoffs.
Analyst Insight: Before investing in new programs for procurement or other functional areas, organizations must evaluate each program thoroughly as implementation can be a time-consuming and expensive process. However, in many cases the long-term benefits may compensate for the short-term pain.
The latest news, analysis, trends and solutions regarding sourcing, procurement and supplier relationship management (SRM) and their impact on supply chain management. New technologies in sourcing and procurement are transforming the way companies do business - and allowing them to stay ahead of the competition in their industries. As these solutions continue to evolve, businesses are discovering new ways to increase efficiency, cut costs and build more strategic partnerships. Learn how companies around the world are using sourcing, procurement and SRM solutions for supply chain optimization.
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