He is a frequent speaker at major supply chain industry events and is currently the Editor in Chief of IndustryWeek, the leading magazine and resource for manufacturing management. This book is truly excellent. And to help companies overcome such challenges and increase value across the supply chain, we have listed down some of the supply chain best practices to follow for this year. Social responsibility is playing an increasingly significant role in best-inclass supply management organizations' decisions, not just when it comes to purchasing but also in regard to risk evaluation. Every company has such barriers—usually individuals or organizations that don't see or accept the value that a wellmanaged supply chain provides.
Achieving excellence in supply chain management is not that simple, is it? Some may be familiar while others may be new to your company. Although potential savings are often negotiated during the procurement process, they are rarely fully realized. The answer will vary for each company, but there are some practices that many leading companies are adopting now. An active governing council creates an opportunity for business unit leaders to provide the supply chain management leadership with information regarding future strategies and projects. It's better to first acquire some understanding and experience around supply chain to effectively connect with author's findings and views. Identify areas where technology can help improve and streamline processes. Best-in-class companies work closely with suppliers long after a deal has been signed.
Companies should, in fact, analyze the efficacy of processes that need improvement and then implement technologies that can address those needs. We are the preferred procurement market intelligence partner for 120+ Fortune 500 firms and other leading companies across numerous industries. It will not be easy, however, to convince your company's executive leadership to truly prioritize value over price. With appropriate technology in place, detailed reporting data will be more accessible and accurate to better inform the supply chain council for performance measures as well as strategic planning. This list does, however, provide some ideas and perhaps a roadmap for a supply chain organization that is striving to be viewed as valued and relevant to its parent company. Implement them all and you will have a strong foundation for supply chain excellence. Packed with abundant anecdotes, interviews, case studies, research, and analysis, Supply Chain Management Best Practices offers a comprehensive and unflinching look at the development of supply chain management.
Your objectives should include mechanism s to maintain the health of your relationship, goals for continuing improvement and value, performance measurement and a platform for conflict resolution. This type of presentation is usually This very easy to read book describes many important facets of Supply Chain Management for the general reader. A governing council can prevent that from happening by providing constant, consistent validation that the supply chain strategy directly correlates with the corporate strategy. Best-in-class organizations do not stop there, however. This type of presentation is usually reserved for textbooks, and do have its place. Collaboration is at the heart.
They recognize the importance of an efficient purchase-to-pay process and have adopted strategies and mechanisms to get the greatest benefits from technology. In order to effectively implement these drivers of success, executives at all points in the supply chain must engage in focused planning and process implementation measures. Your supply chain council and leadership team members should be constantly reviewing procedures and policies to ensure compliance, efficiency, and currency. Some of these practices may be simple, straightforward, and familiar. The migration of the contract management function to the supply chain organization also allows the supply chain leader to more effectively leverage the company's spend, particularly in the area of services, where there is a great opportunity for cost reduction and risk mitigation.
Social responsibility consists of a framework of measurable corporate policies and procedures that result in behavior designed to benefit the workplace, the individual, the organization, and the community. That may seem self-evident, but I have seen more than a few companies buy first and figure things out later. Too many companies select software they hope will make them more efficient, and they structure their workflows and processes around that chosen technology. This press release features multimedia. Supply chain organizations should therefore constantly review their inventory quantities and strive to keep them at an optimal level. This makes good sense when you consider that acquisition costs account for only 25 to 40 percent of the total cost for most products and services.
Reportedly, this combination leads to more harmony between strategy and implementation, while also resulting in the best service. To optimize your supply chain inventory, include forecasting and demand planning. We often see supply chain organizations struggling for recognition because their objectives and strategies differ from their companies' stated objectives and strategies. Supply chain best practices that every category manager should keep an eye on this year: Best practice 1: Align supply chain responsibilities Having a siloed business process can sometimes be harmful since the decision-making process is divided among people. I was quite surprised at how informative it was, and was unlike some other logistics books I have read which were either too prescriptive or too wordy. Ideally the council should hold regularly scheduled meetings.
Finally, the council provides an effective forum for cross-functional communication. Most organizations these days find that a centralized strategy, implemented by specialized managers in their various business units is the most optimal approach. Best-in-class companies hire supply chain managers who have strong communication and relationship management skills both internally and externally , the ability to think strategically, and a focus on value creation. Under pressure to contain costs and produce results despite challenging circumstances, you and many other supply chain managers must transform rather than simply improve your operation. The global economic downturn means that more chief financial officers have put inventory on their radar screens, and their financial teams are constantly looking for new ways to improve the bottom line and reduce working capital.