Sorry, but your login has failed. Please recheck your login information and resubmit. If your subscription has expired, renew here.
November 2010
Grace under pressure. Anyone working as a supply chain professional over the last couple of years knows what that phrase is all about. With the economy only recently beginning to rouse itself from the doldrums, supply chain folks are still being asked to find “just a few more” areas where costs can be cut. For a while there, the cost-cutting pressures were unrelenting. But for the most part—as our Annual Global Survey of Supply Chain Progress in this issue confirms—the supply chain came through. One of the key findings from this year’s survey is that absent the supply chain’s ability to control costs and streamline operations, companies… Browse this issue archive.Need Help? Contact customer service 847-559-7581 More options
Facing increased uncertainty in economic markets, organizations are increasingly aware of the need to closely monitor market conditions and respond appropriately through improved supply chain strategies. As more organizations seek to build sourcing strategies that capture cost savings opportunities, they are finding major shortfalls in the market intelligence and cost modeling capabilities that form the basis for effective strategies and negotiation. Further, they are discovering that the needed integration of market intelligence into operational decisions, including budgets, profit objectives, market pricing, technology insights, global expansion is generally not well executed.
The result is misalignment between demand and supply planning, and major gaps in operational performance and risk mitigation. To address this situation, organizations need to develop deep market intelligence, that will provide insights into core elements of market trends, commodity pricing, global capacity, government and regulatory changes that could impact global sourcing. They also need insight into economic trends that will impact their organization’s supply chain. Unfortunately, these capabilities seem to be lacking in most organizations, based on the results of a study we recently conducted among supply management executives. Our research is based on interviews with subject matter experts in a number of industries who have deployed or are in the process of deploying centers of excellence for supply market intelligence. In addition, we surveyed 89 global supply chain executives through the International Association of Commercial and Contract Management (IACCM).
This article explores the concept of supply market intelligence (SMI). We describe how companies are structuring their supply management organizations to optimally collect market data, identify best practices for synthesizing and deploying this information, and establishing metrics for measuring outcomes of SMI. Further, we discuss how some leaders are now beginning to extend the application of SMI to other strategic business decisions that lie outside the realm of contracting and category analysis—an activity that is positively impacting decisions in annual budgeting, customer markets, technology integration, and financial budgeting. We believe that the innovative application of SMI to these areas, though still in a nascent stage, will enable many organizations to achieve superior market performance and outcomes.
This complete article is available to subscribers
only. Click on Log In Now at the top of this article for full access. Or, Start your PLUS+ subscription for instant access. |
Not ready to subscribe, but need this article?
Buy the complete article now. Only $20.00. Instant PDF Download.
Access the complete issue of Supply Chain Management Review magazine featuring
this article including every word, chart and table exactly as it appeared in the magazine.
SC
MR
Sorry, but your login has failed. Please recheck your login information and resubmit. If your subscription has expired, renew here.
November 2010
Grace under pressure. Anyone working as a supply chain professional over the last couple of years knows what that phrase is all about. With the economy only recently beginning to rouse itself from the doldrums, supply… Browse this issue archive. Download a PDF file of the November 2010 issue.Download Article PDF |
Facing increased uncertainty in economic markets, organizations are increasingly aware of the need to closely monitor market conditions and respond appropriately through improved supply chain strategies. As more organizations seek to build sourcing strategies that capture cost savings opportunities, they are finding major shortfalls in the market intelligence and cost modeling capabilities that form the basis for effective strategies and negotiation. Further, they are discovering that the needed integration of market intelligence into operational decisions, including budgets, profit objectives, market pricing, technology insights, global expansion is generally not well executed.
The result is misalignment between demand and supply planning, and major gaps in operational performance and risk mitigation. To address this situation, organizations need to develop deep market intelligence, that will provide insights into core elements of market trends, commodity pricing, global capacity, government and regulatory changes that could impact global sourcing. They also need insight into economic trends that will impact their organization’s supply chain. Unfortunately, these capabilities seem to be lacking in most organizations, based on the results of a study we recently conducted among supply management executives. Our research is based on interviews with subject matter experts in a number of industries who have deployed or are in the process of deploying centers of excellence for supply market intelligence. In addition, we surveyed 89 global supply chain executives through the International Association of Commercial and Contract Management (IACCM).
This article explores the concept of supply market intelligence (SMI). We describe how companies are structuring their supply management organizations to optimally collect market data, identify best practices for synthesizing and deploying this information, and establishing metrics for measuring outcomes of SMI. Further, we discuss how some leaders are now beginning to extend the application of SMI to other strategic business decisions that lie outside the realm of contracting and category analysis—an activity that is positively impacting decisions in annual budgeting, customer markets, technology integration, and financial budgeting. We believe that the innovative application of SMI to these areas, though still in a nascent stage, will enable many organizations to achieve superior market performance and outcomes.
SUBSCRIBERS: Click here to download PDF of the full article. |
SC
MR
Latest Supply Chain News
- How CPG brands can deliver on supplier diversity promises
- How S&OP provides the answer to in-demand products
- AI, virtual reality is bringing experiential learning into the modern age
- Humanoid robots’ place in an intralogistics smart robot strategy
- Tips for CIOs to overcome technology talent acquisition troubles
- More News
Latest Podcast
Explore
Latest Supply Chain News
- How CPG brands can deliver on supplier diversity promises
- How S&OP provides the answer to in-demand products
- AI, virtual reality is bringing experiential learning into the modern age
- Humanoid robots’ place in an intralogistics smart robot strategy
- Tips for CIOs to overcome technology talent acquisition troubles
- There is still work to do to achieve supply chain stability
- More latest news