McKinsey recently published the results of its global survey on managing global supply chains. To boil down a seven-page article: they aren’t managing the risk. Or to quote the article: “relatively few respondents…say that their companies are translating the importance they place on these [risk] factors into corporate action.” Are we surprised at this [...]
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Many companies are concerned about suppliers who are larger than they are. How do you get a 500-pound gorilla to cooperate with you? Can you actually use the term “manage” in relation to a big supplier company? Actually, can you ever really manage even small suppliers? Not really. You can try to manage and [...] My new book, Supplier Evaluation and Performance Excellence: A Guide to Meaningful Metrics and Successful Results, has just been published this week. This is my first experience as a book author (although I did publish a shorter e-book in 1999 on Improving Company Performance Through Supply Chain Management Practices). The book is available through [...] A lean supply chain is a dynamic ecosystem comprised of processes, products and firms that work together smoothly to deliver products and services and add value to the entire network as they meet customer requirements in a cost-effective manner. Given that most firms have limited resources and limited [...] Let’s look at some more supplier business practices that can have an impact on customers. One of them is in product design. If a customer firm’s supplier is providing a part or assembly and decides to outsource some of the design to its suppliers, the supplier better have a good understanding of its own [...] Sub-tier risks can come from controllable to completely uncontrollable sources. The goal is to identify those areas where there is an opportunity for control and put processes in place to manage them and to develop contingency plans for dealing with the uncontrollable. Uncontrollable factors can include geo-political strife and natural disasters. A semi-controllable factor can be commodity prices. [...] Recently, there has been a lot written about Boeing’s fastener shortage (WSJ article, subscription required) and how it could set back the introduction of the Dreamliner. (Update on 10/11/2007: The fastener shortage along with other material shortages at suppliers HAS officially set back the introduction of the Dreamliner, and Boeing’s stock has been taking the hit). [...] Remember the song by Sting’s rock group, The Police, “I’ll Be Watching You?” It’s applicable to supplier performance management, too. Before you roll you eyeballs and shake your head in disbelief, think about some of the lyrics: “Every move you make Every vow you break Every smile you fake Every claim you stake I’ll [...] When people who manage suppliers are asked about what they think is the most important predictor of a supplier’s performance, many mention on-time delivery, incoming quality, and/or financial condition. A supplier assessment team leader at a large mid-west manufacturing company gave a very insightful response — leadership. When he visits a [...] Supplier risk is a hot topic. Everyone is talking about it, writing about it, speaking about it — but how many firms are actually actively working to mitigate or reduce supplier risk? and in what manner? According to Aberdeen Group’s survey of 210 companies, Supply Risk Increasing As the Market Stands Still, about 49% of firms [...] |
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