ISM Silicon Valley

It shouldn’t be inferred that Unilever are somehow the first company to put ‘green standards’ this high on the agenda – they’re not. Neither do their ambitious targets necessarily mark them out; I suspect I’m not the only one who’s had a chuckle at some of the rather ludicrous ‘zero carbon emissions by 2015’ that others have touted.

One of the biggest challenges for the CPO is how to tap into supplier innovations and bring supplier development strategies closer to sales and, as a result, the customer. This particular responsibility isn’t one of “buying” but of strategic development. In short, CPOs must beat the competition to the next “big thing” coming out of the supplier network and beyond.

While it is clear that there are various sources of complexity and obstacles for supply chain executives to overcome, IBM points out that there are three new rules, which will be required to topple these hurdles throughout the next decade, including: 1-Know the customer as well as yourself. Smooth volatility with predictive demand; 2-See what others do not. Unveil responsibility with collaborative insight; and 3-Exploit global efficiencies. Enhance value with dynamic optimization.

A recent KPMG International survey, “Global Manufacturing Outlook – Relationships, Risk and Reach” of 200 senior-level executives from North America, Western Europe and Asia-Pacific on supply chains dynamics as a result of prevailing economic uncertainty, shows that 66% feel cost is the leading consideration of their supply chain models, but 63% agreed that more attention should be paid to non-financial elements of the supply chain and 38% said that an acute focus on cost has harmed relationships with suppliers.

While the market has grown exponentially, and a 30% increased expenditure last year is eye-opening, the nature of these engagements doesn't give us confidence that this market will sustain its growth trajectory unless customers think beyond short-term labor arbitrage, and service providers introduce significant process and technology enhancements to the early adopters to help them optimize their delivery.  This "lift and shift" model could well result in customers losing more than they save.

Develop a Code of Conduct that includes Green. Be clear with what you are looking for in a supplier. Many industry trade groups have codes of conduct that spell out expected behaviors in terms of labor, products, GHG emissions and handling of waste. Point to those, or develop your own, but make it clear that it is more than a pamphlet; it is the way you do business and you expect your suppliers to do business.

Reward good behavior. Keeping tabs on your suppliers, either by encouraging them to respond to the Carbon Disclosure Project (CDP) or through other audit mechanisms. That way you can see which suppliers have made a commitment to operating more sustainably. Reward that good behavior with a larger share of your business.

One of the top challenges supply chain executives list in any survey is lack of visibility.  Whether it is the status of orders, location of shipments or quantity of inventory, managers struggle to have the latest information about goods in the supply chain.  The lack of visibility contributes to a significant amount of inefficiency and waste.  Assuming the worst, most organizations stock buffer inventories to overcompensate for any potential supply shortages they may be unaware of.  The result is that more inventory than necessary is in the supply chain tying up working capital and inflating corporate balance sheets.

top performing companies have experienced significant improvement when it comes to collaborative processes. However filtering the results based on those companies that have implemented Software as a Service (SaaS) solutions for collaboration, reveals that these subset of companies have greater collaboration capabilities than lower performing companies. 

top performing companies have experienced significant improvement when it comes to collaborative processes. However filtering the results based on those companies that have implemented Software as a Service (SaaS) solutions for collaboration, reveals that these subset of companies have greater collaboration capabilities than lower performing companies. 

Mobiata, the mobile app developer, is based in Ann Arbor, Michigan and its headquarters will likely remain there, despite Expedia's purchase of the company. But the rise in the company's shares after news of the acquisition by Expedia surfaced indicates that high hopes are attached to the deal.

The objective of strategic purchasing is to manage suppliers to reduce cost of materials and engage them in downstream processes and also to reduce the cost of purchasing. The implementation of IT in purchasing enables automation of many of the processes such as bid management and evaluation, order management and payment processes such as handling of invoices. The automation reduces errors in the purchase to pay cycle and increases process efficiency.

In the wake of constant demand and supply market changes driven by recent economic crises, procurement and supply chain professionals are facing higher expectations from management to drive down costs. But a myopic focus on cost savings can have an impact on supply and supplier risk, and can result in the unintended consequence of diluting the total value delivered from that supplier relationship. The key, therefore, is to balance supplier risk with reward to obtain the greatest benefit from suppliers while minimizing risks.

Supplier risk can happen anywhere, anytime and with any supplier, but D&B Supply Management Solutions (D&B SMS) has debuted a new solution aimed at giving procurement, finance and vendor management professionals "anytime, anywhere" access to supplier status and alerts from their mobile devices.