The U.S. General Services Administration announced early last week it looking for a supply chain solution as part of a pilot program aimed at helping federal procurement professionals authenticate IT and communication products in the government’s supply chain. The independent organization that supports federal agencies issued an RFI May 9 to gather information about the development of a supply chain solution and interface that would prevent counterfeit IT components from entering the federal supply chain.
Category Archives: Supply Chain
Salaries for supply chain management professionals were up in 2015 compared with 2014, according to ISM’s 2016 Salary Survey. Average overall compensation grew 7.9% last year, reaching $109,961, compared with the average $101,944 supply chain and procurement professionals were making a year earlier. More supply chain managers are also making $100,000 or more than in previous years, with 44% compared to 38% in 2014.
Spend Matters welcomes this guest post from Adam Cleveland, director of digital marketing at Ivalua.
There’s no doubt the aeronautics industry is booming. Resilient growth within the air traffic and defense sectors — alongside the recent enactment of the Rafale Contract in Egypt — has helped the industry soar to new heights. Nevertheless, the modern aeronautics industry still faces many stringent challenges, from sales limits to aging business models.
Category management is about segmenting supply markets to optimally formulate sourcing and supplier management processes to drive savings and other financial rewards. But what about managing the other side of reward — risk? Well, category management can do that too, and to illustrate this, consider the Kraljic Matrix, circa 1983, which plots supply categories against two dimensions: supply impact and supply complexity.
A few weeks ago, we published a four-part series focused on how maintenance, repair and operations (MRO) is a significant — yet often overlooked — business function in the supply chain. Authored by Michael Lamoureux, research analyst, and Pierre Mitchell, chief research officer, the series explores how this ignored category is abundant with possibilities for cost savings and overall supply chain improvements, especially when using a managed service provider model that works in the product supply chain in your approach.
Supply chain risk management (SCRM) is becoming a top priority in procurement, as organizations lose millions because of cost volatility, supply disruption, non-compliance fines and incidents that cause damage to the organizational brand and reputation. Bribes to shady government officials, salmonella in the spinach and forced labor in the supply chain can all result in brand-damaging headlines that can cost an organization tens of millions in sales and hundred of millions in brand damage. And while reputation may only be important for name brands, cost volatility and supply disruption affect all manufacturers.
Nissan car sales have taken a dive in Japan after its supplier, Mitsubishi Motors, admitted to manipulating fuel economy test data for the last 25 years on some of its vehicles. While Nissan ultimately discovered the fuel efficiency discrepancies in the cars Mitsubishi supplied, the story serves as an example of what companies should be doing to manage potential risks in their supply chain.
Procurement organizations are not prioritizing supply chain risk management today, leaving companies unprepared to respond to disruptions, according to a new report from A.T. Kearney and Rapid Ratings. The joint report, titled “Is Your Luck Running Out? Managing Supply Risk in Uncertain Times,” points to data from a 2014 A.T. Kearney study showing an overall lack of risk management practices among procurement organizations.
Time still remains to join us tomorrow at 10 a.m. CDT for Are You Acting or Reacting? Lessons in Global Supply Chain Risk from IBM. Sponsored by Resilinc, this presentation will feature Lou Ferretti, project executive, product environmental compliance and supply chain social responsibility at IBM, as he covers risk and just why it is considered one of six mega trends that have an impact on shaping the global economy both today and moving forward.
Should companies be focusing efforts on sourcing and producing American-made goods? A new survey of American shoppers points to no, at least if it means the cost of doing so will hike up the price of the end product. As much as shoppers say they are interested in where and how the products they buy are made, a new poll by The Associated Press and GFK shows there may be a limit for how much conscious consumers care.
Spend Matters welcomes this guest post from Helen Sabell, of the College for Adult Learning.
An outstanding supply chain professional will shape the function of a business. A pioneer of the supply chain will do that and more, driving real change in the wider industry. Logistics and supply chain is a rapidly growing sector that must be led by innovative thinkers in order to compete with international advancements.
IBM's Business Value Institute has recognized "risk" as one of the six mega trends having an impact on shaping the global economy both today and in the future. Are you prepared? Even more, how are you prepared? Join us Wednesday, May 4, at 10 a.m. CDT, for Are You Acting or Reacting? Lessons in Global Supply Chain Risk from IBM.