It’s spring, and ‘tis the season for sustainability and corporate social responsibility reports. As there’s been a glut of them out lately, with the majority running dangerously close to novella-length, Spend Matters read them so that you don’t have to. Here’s a roundup of the latest reports, plus the best, fanciest chart they had to offer.
The Supply Chain Category
Nowadays one doesn’t have to be a coffee snob to appreciate a single-origin brew, not when even Starbucks is bandying around words like terroir. The same goes for so-called bean-to-bar chocolate. For years now, businesses and consumers have pored over the provenances of foodstuffs with a fervor that used to be limited to wine. Seafood may be getting there, too, albeit slowly. Imagine ordering from a menu where each seafood dish comes with a note on where it came from.
The median salary of supply chain managers/directors dropped to $117,000 from $129,000 last year, according to Logistics Management’s latest annual survey of logistics and supply chain salaries. The survey results are based on 687 qualified respondents, 55 of which were supply chain managers/directors. Median salaries for employees whose primary job function is supply chain management fell to $110,000 from $120,000 in 2016.
ISM/ThomasNet “30 Under 30” Winner Michaela Romanias on the Importance of Resilience and Taking Initiative
This month, we are running Q&As with a few of the winners of this year’s ISM/Thomasnet.com 30 Under 30 Rising Supply Chain Stars Recognition Program, which puts the spotlight on the some of the most talented young people working in supply chain. Today’s Q&A is with Michaela Romanias, an asset scheduler at DuPont who graduated from Pennsylvania State University in 2012 with a degree in supply chain and information systems. In between juggling big responsibilities at work and planning for her early April wedding, Romanias managed to find time to talk to us about how a school assignment led her to study supply chain, what she wishes she knew at the beginning of her career, and the millennial question.
Earlier this month, the Institute for Supply Management (ISM) and Thomasnet.com announced the winners of their third annual 30 Under 30 Rising Supply Chain Stars Recognition Program. This year’s Megawatt Winner title went to Dan Kaskinen for his work in reducing efficiency, standardizing processes and realizing $3 million in savings at Sonic Automotive, where he worked as a strategic sourcing manager until February. (Kaskinen has since moved into another strategic sourcing role at Premier Inc.) Kaskinen participated in a Q&A with Spend Matters recently to talk about the appeal of working in supply chain (hint: the key word is exposure), career zigzags, disruptive tech and more. A voracious reader, Kaskinen also shared with us the one book that has had the biggest effect on his career.
Should There be a Chief Procurement Information Officer (CPIO) or Chief Supply Chain Information Officer (CSCIO)?
If you do an exact web search on the terms in the title, you will get zero results. Zero. If you do a similar exact search on “chief medical information officer” (CMIO), however, you will get more than 100,000 results. The need for such a person in procurement and supply chain, however, is clear. Since procurement and supply chain organizations are becoming “procurement as a service” (PRaaS) providers that need some level of autonomy to construct the world-class services that support the business, there needs to be an effective operating model between IT and procurement — and someone leading that effort.
Last Friday, Spend Matters Founder Jason Busch and Chief Research Officer Pierre Mitchell teamed up to present the webinar Risk and Compliance Management: Embedding Risk Management in Procurement and Supply Chain. Busch and Mitchell began with a segmentation of the types of supplier and supply chain risk and compliance management technologies out there, before moving into the topics of how to embed these technologies throughout your procurement and supply chain functions. They discussed the best ways to create linkages with other areas of procurement technologies, as well as how to create a procurement culture that is risk-aware.
Spend Matters welcomes this guest post from Dr. Marcell Vollmer, chief digital officer at SAP Ariba.
The physical and digital worlds have officially collided. In the old days, we’d get the morning paper delivered to our doorsteps and read it on the way to work while drinking the coffee we made upon waking up. Today, the news we care about is automatically delivered to our mobile devices and we scan it while enjoying the beverage that we ordered via mobile app to have ready and waiting for us when we arrive. We used to attend events after work to expand our professional networks. Now we link to our peers — and their peers — around the world online in real time.
Today is International Women’s Day, and the United Nations has selected “Women in the Changing World of Work: Planet 50-5o by 2030” as this year’s theme. The idea, as you can probably tell, is to push towards a 50/50 balance in men and women’s economic empowerment. Procurement and supply chain remain a male-dominated profession. So in honor of International Women’s Day, I asked women holding mid-level to senior roles in this field for a few pieces of career advice for their fellow female procurement professionals. Here's what they had to say.
In 2012, AGCO stood at a crossroad. The agricultural equipment manufacturer faced stiff opposition from competitors, and knew that to extend its global reach, the company would need to transform the way it operated. The key to this transformation was a reimagined supply management function. The former AGCO purchasing organization ran a decentralized, regional and brand-oriented procurement model that had proven sufficient for those needs. But to become the operating company management envisioned, AGCO knew it needed to establish a single, global procurement organization, based on a global commodity management approach and setup, a strategic procurement philosophy and the technology platforms necessary for a streamlined supply chain.
A few months into any new year, many people’s New Year’s resolutions start to unravel. Psychologists can offer numerous reasons why you have (yet again) failed to maintain that new diet, but when it comes down to it, there’s really one explanation: accountability. Whether you’re trying to cut carbs or make it to the gym, your chances of sticking to a new habit increase greatly if you don’t take on the challenge alone. In the business world, if you’re trying to get adoption of new approaches and tools, you may become dismayed when end users don’t adopt a new tool that you know will create value. In procurement, take the example of strategic sourcing. Many large organizations buy a new e-sourcing solution, but don’t get adoption. The reason? A shared tool doesn’t imply a shared commitment to continuous improvement.
Spend Matters welcomes this guest post by Jean Sweeny, chief sustainability officer at 3M.
Imagine a world where every life is improved – where natural resources are readily available, people have access to education and opportunity and communities are safe, healthy, connected and thriving. This utopia isn’t just positive for the people of the world, but it’s these types of environments that also drive business by fostering innovation.