Value Chain

Yesterday Toyota announced that it is recalling 110,000 Tundra trucks built in 2000-2003 due to rust on the frames that is causing the spare tire to break off. Toyota is blaming a supplier, Dana Corporation, manufacturer of the cross member that holds the tire to the bottom of the truck, for the problem, and Dana is [...]

Firing the customer is something taught in business schools and often mentioned as an approach for small companies to get rid of problem customers. The subject came up again recently in a WSJ article that reported on small businesses, who, despite the recession, are deciding to shed their high-maintenance and unprofitable customers.  
It’s a popular slogan: “Sometimes [...]

I read today’s WSJ article about how customers are using their suppliers to improve their own cash flow: Big Firms Are Quick to Collect, Slow to Pay  and thought, same old, same old. I addressed this phenomenon in an early blog post: Another Kind of Banker – Your Supplier?  This situation has been going on [...]

Supply managers and buyers have always had the challenge not just of finding suppliers but finding suppliers who are both high-performing and “best value”. Numerous supplier evaluation and supplier performance management software solutions are now available, where ten years ago very few options existed. Most options that I’m aware of are either SaaS (software as [...]

Many firms are aware that they are dealing with too many suppliers. So they figure that the first thing they need to do is reduce the number of suppliers. The benefits of a smaller supply base lie in the area of reduced costs: lower prices by leveraging volume with fewer suppliers, fewer transactions to manage, [...]

In a survey of  223 procurement, supply chain and supplier relationship management by the consultancy, State of Flux, almost two-thirds said that they did not have a definition of Supplier Relatinonship Management (SRM) in their companies.  The conclusion of Alan Day, Managing Director of State of Flux, a supply chain consultancy in the UK, was [...]

In a recent poll conducted by Supply Management, more than half of buyers (55%) have experienced problems introducing suppliers to e-procurement systems. But the other 45% did not. What was the difference? How the new technology was communicated to suppliers. While some buyers used carrots and others used sticks, which typically worked if nothing else [...]

Companies have typically viewed suppliers as a source of cost that needs to be reduced, as supplier costs directly impact the bottom line. And it’s a given that procurement is always under pressure to fulfill the cost reduction mission. But in the process of viewing suppliers as big dollar signs that need to be squeezed, [...]

Recently I wrote about suppliers who charge their customers to conduct an on-site audit. The desire to charge stems from the fact that site visits are time-consuming and resource-intense for suppliers. Many suppliers have to host multiple site visits and particularly the smaller suppliers, find them disruptive to their business. A solution has been suggested [...]

In an interview in the IFPSM ezine, Bernt Ejbyfeldt, senior vice president of purchasing at Volvo Car Corporation, was asked whether Volvo planned to provide financial assistance to help its struggling suppliers. Ejbyfeldt said that Volvo wasn’t in a financial position to make loans to help its suppliers. So he suggested that suppliers help themselves [...]