Design the future of your Supplier Relationship Management - Lifetime Support by SAP
SAP Supplier Relationship Management This year, SAPPHIRE will feature a valuable new addition – a solution demo theater. Here, you can. At Sapphire, I'm presenting at an SAP "micro forum" on the latest in advances ( and adoption) and supplier relationship management. Kraft Foods Builds Supplier Relationship Management Bridge - Download as PDF Apple's Sapphire Supplier- A Textbook Example of Supplier Relationships .
Shortly after, in fact a few days later, the first sapphire boule came out of the furnaces, and it was badly cracked, and deemed unusable. Soon, it became clear that the manufacturing problems were more than a single batch, and that there were major problems with the process itself.
At this stage, there should have been daily onsite meetings, so that Apple and the supplier could work on the technical issues together, and identify the source of the problems.
They struggled with quality, production planning, and failed to meet deadlines. Rather than have regular communications, Apple failed to conduct due diligence and project planning.
GT, fearing that Apple would leave them stranded, continued to try to work through the problems on their own, and continued to experience difficulty. This is a textbook case, in that it demonstrates the importance of managing strategic relationships through careful performance measurement, human interaction, joint problem solving, and project management. It also demonstrates the critical nature of joint technology development. Apple was essentially funding the project, but not providing the human capital and knowledge required to make the technology viable.
GT was afraid to ask for help, and preferred to clam up and continue to work on their own. In the end, both parties failed to do what was needed to manage the relationship. The company has suffered major operating losses.
In part two we'll look at a promising new approach to solving the problem without breaking the bank. Part 2 -- A Case for Co-managing -- A new approach offers the potential to manage risk across your entire supply base without breaking the bank. Your most highly paid resources can focus on strategic high-value work, while tactical tasks are co-managed by a third party.
Parts Supply Chain Orchestration: Part One -- For some companies, managing only their immediate suppliers is not sufficient. Brand owners whose reputation and competitiveness is on the line for the performance and social compliance of the whole chain are increasingly taking on the role of Supply Chain Orchestrator, coordinating key activities across multiple tiers of their supply chain.
Part Two -- One important way that Supply Chain Orchestrators manage multiple tiers is sourcing and buying on behalf of their suppliers. Learn how and why that is done. Part Three - Multi-Tier Procurement -- Throughout much of its history, Ford was a vertically integrated company, owning its supply chain assets all the way back to raw materials facilities such as steel mills and rubber plantations.
And although they have transitioned to a highly-tiered virtual enterprise model, Ford has sought to "have their cake and eat it too," maintaining or regaining some of the benefits of their original vertically integrated model.
Here we examine another aspect of Ford's attempt to get vertical integration benefits from a multi-tier supply chain - specifically, how they buy steel on behalf of their entire supply chain. Sourcing in Times of Uncertainty -- Sourcing and procurement professionals are used to dealing with large swings in demand and supply.
But the highs and lows created by the recent bubble and recession were difficult for even the most adept sourcing practitioners. There are some best practices and innovations that can help deal with not just uncertainty in demand and supply, but supplier failures, commodity price volatility, and supply chain risk. Buying Results -- One of the most important developments in supplier relationships is outcome sourcing - moving from buying things to buying results or outcomes.
This two-part article describes Outcome Sourcing in actual use, and how you can use it to motivate and tap the innovative power of your supply base. Larger Cost Savings Come from Total Cost Sourcing -- Sourcing and procurement spend-reduction strategies are frequently a central part of business cost-cutting initiatives. Most buyers understand that the lowest price option does not always yield the lowest total cost.
But buyers' performance metrics e.
ChainLink Research : Research :Sourcing and Procurement / Supplier Relationship Management
PPVcorporate policies, and lack of complete or accurate data often frustrate efforts to do true total cost sourcing. This two-part series explores how to overcome these obstacles. Supplier Performance Management -- How two top performing companies rate their suppliers, initiate and manage corrective action, and manage supplier performance across divisional boundaries.
Negotiating, Creating, and Monitoring Compliance -- Skillful contract negotiation and management are vital to realizing a company's spend management and supplier performance goals. Here we explore how to negotiate better agreements with your suppliers, effectively manage contracts, and monitor compliance.
All You Ever Wanted to Know (and More) about Procurement at SAPPHIRE NOW | SAP Blogs
Broadening the Scope of Reverse Auctions -- Reverse auctions can generate double-digit savings year after year. Companies can build on those savings, including things that might normally not be considered auctionable, by defining completely and exactly how they want to be served. Local Sourcing and Procurement Governance Models -- Large or divisionalized companies face the conundrum of how much power and decision-making to give to a centralized sourcing group vs. The right decision is definitely not one-size-fits-all.
We explore some successful models that have been deployed. A solid education program is one key strategy to sustain supplier relationships and maintain human expertise through periods of organizational flux. Contract and Supplier Management Lessons -- Distilled insights from ChainLink's recent research on managing contracts, supplier performance, and reverse auctions. How a Legal Department Can Add Value -- Cisco's legal department has taken steps to move from being a gatekeeper slowing things down to being a business enabler of faster cycle times for contract approvals and greater operational efficiencies.
Read how they did it. Managing Supply Risk - Quantifying and Predicting Supplier Risk -- How companies ensure continuous affordable supply by measuring supplier risk and anticipating potential supplier problems. Early warning gives companies a much broader range of options to deal with potential problems in a systematic way. PrimeRevenue Partnership Delivers New Supply Chain Finance Capabilities for Ariba -- Ariba's recently announced partnership with PrimeRevenue provides customers with a multi-funder supply chain finance capability, integrated into the Ariba platform.
Here we discuss the fit and some of the reasoning behind the deal. Panjiva Announces Global Search -- Panjiva launched 'Global Search' for its existing supplier search capabilities, providing additional supplier information for millions of suppliers worldwide.
Supplier Risk and Compliance Management in Practice: Part One -- The ability to manage supplier risk and compliance has become a critical competence for organizations.
Our research shows why and how to manage and reduce supplier risk--what actually works in practice. Baker Hughes Automates Procure-to-Pay: Part One -- How this major oilfield service firm automates the interactions with its suppliers. Part Two -- Read how this major oil field service firm ramped up to high volumes of spend under its automated procure-to-pay system automating its interactions with suppliers.
SAP SRM – Supplier Relationship Management
Here are some highlights from the show. Part One -- Highlights from the SAP Insider conference on interesting and innovative new developments in their procurement and supply chain capabilities. Part Two -- New developments in SAP's procurement portfolio, an inspiring use of their technology in rural South Africa, and Services Procurement-related enhancements, and more.