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Supply chain management is adopting cost cutting, optimization, speed of deployment, agility and real-time process information and automation, with 21st century software leading the way—and as the economy begins to rebound, companies are starting to spend on software again.

“Companies are going to stay focused on lowering the costs of doing global business at the same time that they expand their sources of supply and volume of product—and they’re going to use software to do it,” says Collins. “We’re also seeing emerging market companies in countries like India, China, and Brazil that are beginning to bring product into consumer markets from outside suppliers. Regardless of where companies are operating, they are rethinking how their supply chains work. Some are opting to go to regional supply chain depots to hold parts. In this way, they can position more inventory closer to customers, and have fewer shipments. This all depends on the nature of the product and the cost of freight.”

Economic uncertainty, fluctuating fuel prices, increased safety and social regulation, escalating customer expectations, globalization, improved technologies, labor and equipment shortages, a changing transportation service industry…today’s managers are faced with an array of challenges and opportunities that contrast dramatically with those of a decade ago.

Regardless of external conditions, however, managers must encourage their firms to avoid the temptation of making transportation decisions with an eye toward short-term gain. Rather, they need to view the total cost and total value provided by the function not only in relation to operating expenses but also in terms of the impact on customer service and inventory reduction. The influence on total economic value added is significant.

Comprehensive supply-chain risk management plays an important strategic role in the operation of successful businesses, protecting their most valuable assets while creating a unified, high-performance risk mitigation model.

"We are finding new unexpected entrepreneurs entering the procurement arena," said Brian Tippens, HP's director of Supplier Diversity. "They include a large number of female and minority veterans back from the Iraq war unable to find employment and recent graduates in the same boat. Business Matchmaking is providing a uniquely effective and efficient means for reaching out to help them get started and to grow." Dave Sutton, a procurement director for the US Department of Justice, calls the Business Matchmaking events "outstanding." He added "Their exceptional ability to organize events, get the right people and produce the desired results is well proven." Peggy Williams of the US State Department agrees calling Business Matchmaking "premier events, well organized and well attended and their entire operation is world-class."

Worldwide industrial services company Harsco Corporation (NYSE: HSC) has selected IBM (NYSE: IBM) as its consulting partner for a business transformation initiative designed to create significant operating and cost efficiencies throughout Harsco's global supply chain, the companies announced today. 

"The intelligent supply chain of the future aligns perfectly with our One Harsco objectives for creating long-term strategic advantage as a more globally integrated and optimized enterprise," said Harsco Chairman and CEO Salvatore D. Fazzolari. "Working with IBM gives us access to one of the premier leaders in this field. Moreover, when completed at the end of 2010, we expect this project to improve our Return on Invested Capital and also contribute to Harsco's Economic Value Added (EVA®) growth." 

Ketera, provider of the online Ketera Network business community, today announced that Epiphany Supply Chain Solutions, a provider of procurement and supply chain related services, has selected the Ketera Network as the platform to manage transactions for its no-membership-fee Group Purchasing Organization (GPO). The Ketera Network will enable the Epiphany Buying Portal to manage purchasing transactions of mid-sized businesses and is expected to be operational in January 2010.

The Epiphany Buying Portal on the Ketera Network is an online procurement site that provides pre-negotiated advantageous pricing for a selected group of categories to its GPO customers based on aggregated buying volume with certain suppliers.

The Real Meaning of Supply Chain Management

It’s not just about logistics and purchasing. The supply chain consists of a broad network of partners who interact at every level of their organizations, says Douglas M. Lambert, director of the Global Supply Chain Forum at Ohio State University.

It’s more than just a question of semantics. The failure to give the term “supply chain” a broad enough definition can cause a company to adopt a short-sighted approach to its operations. “In our view,” says Lambert, “the supply chain is a network of companies that comprises your suppliers, their suppliers, customers of your company and their customers, if they exist.”