Directworks

Companies that succeed over the long term tend to focus on both “performance” and “health,” with heavy emphasis on upfront training in new tools, processes, and approaches so they can build up a cadre of experienced managers who can sustain this effort far into the future.

At many companies, there is a divide between procurement and supply chain operations that robs the organization of vital efficiencies. Companies that have recognized that gap and worked hard to close it now see sizeable financial benefits along with qualitative wins such as supplier-integrated contracts and streamlined processes.

Experts point to certain key traits of procurement excellence, including an overall strategic orientation, alignment with business objectives, a risk management role, and an ability to collaborate both internally and externally. Here are some insights on developing these capabilities.

Procurement leaders attending the CPO Roundtable noted they need continued transformation, short time to value, educated and trained employees, and competitive advantage delivered in their corporations' balance sheets and income statements.

Is the inbound direct materials supply chain getting the attention it deserves? How can these crippling parts shortages occur? Why is there not greater visibility into this segment of the supply chain?

For manufacturers, supplier relationship management has been proven to have a direct impact on shareholder value. Best-in-class OEMs understand that generating shareholder value requires that they outshine the competition at managing their suppliers.