ISM Silicon Valley

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.

When I was a very young journalist, full of bravado and barely concealed insecurity, Ed Kosner, editor of Newsweek, hired me to do a job I wasn't sure I was capable of doing. Thrown into deep water, I had no choice but to swim. But I also knew he wouldn't let me drown. His confidence buoyed me.

The more leaders make us feel valued, in spite of our imperfections, the less energy we will spend asserting, defending and restoring our value, and the more energy we have available to create value.

As supply management professionals, we attend conferences on gaining a seat at the executive table. We read articles about how the procurement team can become a trusted business partner within the company. As supply management leaders, we train our teams on strategic thinking, emotional intelligence and cross-cultural management.

Reporting the right metrics, in the right way, has contributed to securing supply management's seat at the table. At Sodexo, we hold two spots on the executive team, and supply reports directly to the CEO. We have seats on the marketing council and CSR steering committee, as well as on numerous other task forces within the company.

In 2002, questions were raised about the ethical nature of group purchasing organizations (GPOs) after it was found that they were taking part in anticompetitive business practices, including excessively high contract fees. However, a review conducted by the U.S. Government Accountability Office (GAO) shows improved transparency within the system.

Within the current review, GPOs reported that they received contract administrative fees that ranged from 0.09 percent to 10 percent of the product's purchasing price. Two of the GPOs reported that contract administrative fees in 2008 were over 3 percent of the purchasing price. Combined, the six GPOs collected $1.7 billion in contract administrative fees in 2008 and $320 million in other revenue. Additionally, 53 percent of GPOs' total revenue was distributed in 2008, which totaled about $1.1 billion

The Supply Chain Management Center at the University of Maryland's Robert H. Smith School of Business is bringing together top industry and government leaders to address inefficiencies in today's supply chain and come up with innovative ways to manage risk. The center spearheaded a recently released book, "X-Treme Supply Chain Management: A Guide to Mastering Business Volatility," and yesterday hosted an executive roundtable discussion among senior government and business leaders on the implications of the global economic crisis for supply chain management.

Edited by Boyson, center co-director Professor Thomas Corsi and senior fellow Lisa Harrington, the book is a collaboration with CSCMP and co-contributors from some of the industry's leading corporations and organizations. The book also includes a companion tool kit, developed by Smith's Supply Chain Management Center and Interactive Learning Solutions Inc., that provides practitioners with simulations and spreadsheets to manage volatility in their supply chains. Sterling Commerce, an IBM company, is the project's technology sponsor and a co-contributor. Published by Routledge, the book was introduced on the West Coast last week at CSCMP's annual global conference in San Diego.

SEO can help procurement managers track demand for products. For those not familiar with Google Insights for Search let me introduce you to the tool, using Intel as an example.

A combination of keyword research, competitors' ranking status in queries, and understanding consumer buying habits can give purchasing agents insight into demand for their companies' products.

Press room Press releases IBM Announces New Energy-Management, Sustainability Solutions for Smarter Enterprises

IBM (NYSE: IBM) today added new software and services to its expanding portfolio of solutions aimed at creating sustainable enterprises and smarter urban infrastructures. The new offerings, piloted in-house by IBM, help owners and managers of commercial buildings leverage the latest efficiency technologies and compliance systems to deliver economic, operational and environmental benefits.

IBM also announced that Autodesk has joined its industry alliance, Green Sigma Coalition, a move that can help the group improve buildings’ sustainability from blueprints to daily operations. Additionally, IBM announced an expanded relationship with Schneider Electric, global specialist in energy management, to deliver new combined offerings that monitor and reduce energy use to make buildings smarter.

Accenture (NYSE:ACN) has launched a global Risk Management consulting service line to help companies better identify, manage and mitigate risks and make greater strategic use of risk data and information to support their decision-making processes.  The new service line expands Accenture’s risk-related services as market demand continues to increase in response to recent turbulence in the global economy

“Risk is rapidly moving out of the back office, and management must balance the need to create value with the need to protect shareholders.  As a result, companies must break down organizational silos and integrate risk management across the enterprise in order to succeed.”

Social networks have become a critical, but underutilized, aspect of the marketing process, according to Gartner, Inc. Gartner analysts have examined the way social networks shape consumer buying behavior.

Gartner believes that it is essential for device vendors, application developers/publishers and communications service providers to understand how the different roles react to marketing information. For example, Self-Sufficients are not particularly swayed by the usual sources of marketing information, nor do Mavens typically act on the information that is their stock in trade. However, Salesmen, Seek

and Connectors tend to act on marketing messages and are receptive to them.

Do you want to lower costs while improving the performance of your supply chain? If so, we are supply chain experts who partner with manufacturers to accelerate revenues through innovative and effective solutions. The Elemica difference is our dedication to replacing obsolete supply chain structures with operational efficiency, allowing a collection of companies to operate as a whole

Do you want to lower costs while improving the performance of your supply chain? If so, we are supply chain experts who partner with manufacturers to accelerate revenues through innovative and effective solutions. The Elemica difference is our dedication

Since its genesis in 1985, Foxfire has expanded to become a leading supplier of manufacturing, warehousing software, and supply chain execution systems. Foxfire's worldwide headquarters is located in Greenville, SC and has offices throughout the US. Foxfire also has a research and development center located near Clemson, South Carolina, leveraging the resources and talent pool of Clemson University's world-class institute of higher learning. Foxfire's customer base reaches across the United States, Canada, and Latin America, and we are currently expanding into other world markets rapidly through a network of distribution partners

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.”