1. Managing Today’s Supply Chain Trends, Leading Practices, and Risks Council of Supply Chain Management Professionals Grand Rapids, Michigan Roundtable
5. “It’s Everything” Company Suppliers Supplier’s Supplier Suppliers Customer Customer’s Customer Purchase Pay Typical Advanced View Supply Chain Management is the processes and activities that are involved in the identification, procurement, logistics, and management of Goods and Services within an organization, its suppliers, and its customers
6. What has changed, or is changing, in Supply Chain? Key Trends to Pay Attention To…
1. LOWER TOTAL COSTS OF BUSINESS Leverage the Spend and “Total Cost of Ownership” focus “ Total System Cost” focus 2. CREATE/GROW REVENUE Time to market Entry to market Fill voids and niches 3. SIMPLIFICATION OF PROCESSES/IMPROVED BUSINESS CONTROLS Reduced Cycle time to results Technology implemented for efficiency (internally & w/suppliers) Inventories monitored and managed (and reduced) Defined Policies and Procedures 4. IMPROVED BUSINESS/MARKETPLACE KNOWLEDGE Data available to support Management decisions Competitiveness continually monitored Capitalize on trends
Supply In manufacturing we have transitioned to a SELLERS market Increased concern regarding material availability--supply interruptions will be a major concern Increased concern for inflationary pressures Sourcing More thought around who is Best Supplier vs. Lowest Price Supplier (Increased focus on Total Cost of Ownership decision making) SCM Organizations are moving towards Category Management Two way Performance Metrics and Score-Carding: IMPERATIVE Global sourcing has issues with ability to deliver Logistics More intense focus on outsourcing to 3PL’s (third-party logistics organization) Improved and “up-and-coming” technology – bar-coding, pick-to-voice, pick-to-light, RFID Technology World class = visibility, speed, accuracy Process Order-to-cash Procure-to-Pay Better integration/speed for Design-to-Cash Lean (new “re-engineering”) Six-sigma (“new” tools) “ An honest consultant will tell you that they are trying to get you to do the same work they were trying to get you to do 30 years ago—they are just calling it something different” Organizations Supply Chains are achieving elevated role in the corporate hierarchy – IBM story More movement of operational / non SCM professionals through SCM leadership positions CEO’s turning to supply chain leaders for revenue generation and business improvements instead of just cost containment Compliance – is a stronger focus now that supply chains are truly global