Is Public-Sector Procurement Ready for the Cloud?
Posted by Saul in SCA Newsletter on February 20, 2012
Cloud-based solutions are being aggressively adopted throughout the private sector. But what about the public sector, specifically in terms of public-sector procurement?
To find out more about the state of Cloud-based solutions within the public sector, Michael Koploy, ERP Analayst at Software Advice, caught up with government IT expert Alan Webber of Altimeter Group. Webber believes that security, data ownership and perceived control are all deterrents to public-sector groups deploying Cloud-based solutions, but that the public sector will likely follow the private sector in deploying these systems–it will just take time.
Koploy asserts that procurement is one area of the public sector where the Cloud can be embraced. He feels that vendors can do the following to improve their eprocurement solutions for the government:
(1) Deployment via “Private Clouds”: The ownership infrastructure ownership is shifted to the user–perfect for public-sector groups worried about their data security.
(2) Specialization for the Public Sector: While some vendors already do this well, many others can focus on the adjusting the functionality of their procurement systems to match the needs and peculiarities of public-sector procurement.
Koploy also spoke with Mary Scott Nabers, a public-sector procurement expert on trends that could lead government groups to the Cloud. Nabers feels that there are two trends that will lead to more public-sector groups to the Cloud:
(1) Increasing Number of P3s: Nabers believes that the importance of public-private partnerships is going to reach a crescendo soon. These new groups will need software solutions, and because of budget-constraints, subscription-based programs hosted in the Cloud may be the only options.
(2) Popularity of Software Buying Groups: Because these solutions are often accessible through any computer’s web-browser, local groups can band together to purchase them. One example of this that is becoming popular is with school districts.
For more on Koploy’s discussions with Webber and Nabers, check out the original post: State of the Union: Public Sector and the Cloud.
What are the Hottest Jobs in the Supply Chain?
Posted by SCA in SCA Newsletter on February 20, 2012
In a February 1 report, Wanted Analytics found that almost 50,000 supply chain jobs were posted in the previous 90 days–an increase of 24 percent over the same period the year prior.
Jobs are up, but which jobs are in the highest demand? Michael Koploy, an ERP Analyst that specializes in WMS systems for Software Advice, interviewed other industry experts to find the fastest growing jobs in logistics and the supply chain. Here are his top 5 along with some of the skills and certifications that these professionals need to find success:
1. Demand Planner: Many of these professionals have experience with various ERP systems, such as Oracle and SAP, are Six Sigma Black Belts and have obtained advanced certifications such as the CSCP through APICS.
2. Procurement Manager: A background in marketing, sales and supply chain operations are all important in this role, as the person must be both an analytical-thinker and a negotiator. Many professionals have obtained certifications through groups such as the ISM (CPSM) or Next Level Purchasing (SPSM).
3. Distribution Center Supervisor: These individuals are essential in running an efficient logistics operation. They must possess the ability to not only communicate with both in-bound and out-bound transportation units but also a crew of warehouse workers. While advanced degrees in supply chain management or certifications are not absolutely necessary for career success, a grounding in the supply chain is beneficial.
4. 3PL Business Development Manager: More and more companies are outsourcing their logistics operations, leading to an increasing importance within 3PLs to efficiently manage communication between clients. A background in account management, sales and finance are all very helpful–and an understanding of the supply chain is great for relating to clients, as well.
5. Supply Chain Analyst: Many consulting firms, from those that specialize in supply chain management to the Big Four accounting firms are always looking for more supply chain talent. This is a hot destination for many supply chain undergraduates, as well as newly-minted MBAs. These professionals are exceptionally hard workers and often earlier in their career–ready to to do their time to become the next leaders within the supply chain.
For more on these positions, check out Michael Koploy’s report: Top 5 Fastest-Growing Jobs in Logistics.
Biggest Risks in Enterprise Software Evaluation
Posted by SCA in SCA Newsletter on February 5, 2012
Large scale software evaluations can take months if not years and include many stakeholders. Project risks can go unnoticed causing delays, quality degradation, or in some cases inability to make a decision at all on a purchase. Although each project and approach is unique, we’ve listed a few tactics for getting around these obstacles and would love to hear how you handle these situations. Read the rest of this entry »
Supply Chain Year in Review
Posted by SCA in SCA Newsletter on January 25, 2012
What were the key themes, trends and issues in the Supply Chain in 2012?
This week, we are going to take a look at those areas with a fairly broad brush, followed by a more detailed month by month review of key events in 2011. So let’s go.
For the fourth straight year, I would have to say the economy was once again the main supply chain theme of the year. The lack of relative clarity on the economy’s direction – let alone signs of a strong economic recovery – continued to weigh on supply chain strategy and investment. The US economy was modestly strong at best, and there were several periods, notably around mid-year, when threats of a “double dip” recession seemed to loom large. GDP growth was .4% in Q1, 1.3% in Q2, and 2% in Q3, though there are signs the economy is now picking up, and many expects Q4 GDP to be stronger than these weak numbers in what is supposed to be a recovery. Read the rest of this entry »
Happy Holidays and a Successful 2012!
Posted by Saul in Latest SCA News on December 24, 2011
I would like to take this opportunity to wish all of our readers Merry Christmas and Happy Holidays to you and your families. May 2012 bring you all health, happiness and much success. Have a safe and joyous holiday season, see you in the New Year!!
Warm regards,
Saul Cadoch
S. Cadoch Associates Inc.
The Effects of Improved Visibility within the Supply Chain
Posted by SCA in Latest SCA News on December 10, 2011
In May 2011, Capgemini found that 45 percent of supply chain executives named supply chain visibility as their main goal for 2011. Holding back many supply chain managers, however, is reliance on spreadsheet programs such as Microsoft Excel and older, legacy software systems that have difficulty communicating inventory information throughout the supply chain.
The problem with these collection methods is that inventory data is more likely to be delayed, disconnected and error prone. This results in lost inventory information and inventory data that is inaccurate. To counteract this, supply chain managers should invest in a network of supply chain solutions that can communicate inventory information quickly and efficiently. Users can access the network via a “supply chain hub” – a centralized access point that allows other supply chain members to access vital inventory data.
Michael Koploy, manager of WMS Guide, discusses this topic in his blog post titled: “Today’s Supply Chain Secret Sauce: More Visibility, Fewer Silos.” The post describes how better visibility can result in more accurate spend analysis, improved policies on inventory storage and improved communicate during the logistics and transportation process.
Improve Supplier Performance Management with Four Strategies
Posted by SCA in General Discussion, Latest SCA News, SCA Newsletter on December 10, 2011
Effective supplier performance management is more than just the best KPIs. In fact, many performance management and scorecard initiatives with the supply chain because they do not measure the correct data, collect it accurately, and communicate it both with suppliers and internally. To help shore up your supplier relationship management program, here are four strategies to focus on when reevaluating how you measure supplier performance with scorecards.
1. Align business initiatives with scorecards
To figure out which KPIs and which suppliers to focus on, meet first with the executive team to determine what the main goals of the business are. Find out where improved performance will actually improve the business’ bottom line. Then, you can take a step back and develop scorecards that will benefit your business.
2. Establish how you will evaluate performance and communicate
The next step is to determine your thresholds for both excellent and poor performance. Before working with suppliers to improve their performance, you must internally set what your standards are going to be. When will suppliers be rewarded? When will you disengage with poor performers? Decide this before you begin working with suppliers.
3. Communicate with suppliers
From initial contact to the SLA to contract re-regotiations, performance mangers need to communicate the performance expectations of their suppliers. Communicate and open dialogue will help both sides – suppliers will know what to expect and where they need to improve to succeed, and performance managers will learn what’s working for suppliers and what’s not.
4. Communicate internally
Performance scorecard results are useful for other supply chain departments, but they need access to this information to be able to take advantage of this data. Internal visibility will allow for collaboration between performance managers, inventory managers and risk assessment managers as they attempt to decrease the supply base’s susceptibility to natural and financial disaster.
For more on this discussion, check out this blog post: Four Best Practices to Improve Supplier Performance Scorecarding.
The 10 Dimensions of Supply Chain Excellence
Posted by SCA in SCA Newsletter on September 19, 2011
What makes a great supply chain?
I actually get asked that question quite a lot, which forces me to ponder the answer I offer every time. As with most things, my thinking on the subject has evolved over the years. I have addressed the topic one way or another a couple of times before, but am going to present a more complete framework here in 2011.
AMR Research, now part of Gartner, started a supply chain “top 25″ sometime in the past decade, and can be commended for trying to bring a somewhat objective approach to those rankings, with a large part of scoring being based on metrics around inventory turns, revenue growth and other available financial data for public companies. There are, however, some subjective components to the scoring too.
But as fun as that Gartner top 25 can be to stir some debate, the reality is of course that there is no real way to determine which companies have the best supply chains. That said, I think one can develop some pretty reasonable frameworks for at least doing some internal and cross-company evaluations relative to supply chain excellence. Read the rest of this entry »
The Post-Tsunami Supply Chain All-Stars
Posted by SCA in SCA Newsletter on August 1, 2011
Lean manufacturing has been the standard in Japan – and across the world – since Toyota and other Japanese manufactures mastered Toyotism in the 1980s. This methodology focuses on mastering repeating processes, improving the flow of production, and empirically analyzing results to reduce inefficiencies.
But, when disaster strikes, how does one react? Japan was unfortunately asked this question in March, after being devastated by a massive earthquake and Tsunami. How were some of the biggest manufacturers and supply chains able to recover from the disaster?
A new article from Software Advice (click here) analyzes who are some of the post-tsunami supply chain all-stars, and how they did recovered. Some were pre-emptive: they had been affected by disaster in the recent past, and had effective action-plans. Others worked together, sharing secrets with competitors in order to help suppliers get up and running as soon as possible. And one in particular – Apple – was able to leverage its stranglehold on the supply chain and come out relatively unscathed. These companies are a testament to disaster readiness, as well as proof that quick-thinking and action can prove effective in repairing the broken links of a supply chain.
Today, businesses must take a closer look at their value chains and determine the weakest points – these are where calamity will hurt the most, and should be the first points of action. In the future, these instances of success will become great case studies on how to recover from horrible natural disasters quickly and effectively.
For more, check out: The Post-Tsunami Supply Chain All-Stars | Who Recovered the Fastest and How?
Back to the Basics for Supplier Relationship Management
Posted by SCA in SCA Newsletter on August 1, 2011
Many modern supply chains are managed by automated procurement software systems that assist with the organization and execution of complex transactions. What they don’t do, however, is replace the need to develop critical relationships between buyers and suppliers.
Ariba’s Justin Fogarty moderated a conference call in June revolving around this question from the Strategic Sourcing & Procurement LinkedIn group: “True or False: Do penalties improve supplier performance?”
The main thing to take away from this call was that operations professionals need to put an emphasis back on improving these relationships. Find more takeaways at the article below:
Read the full article at: http://www.softwareadvice.com/articles/scm/back-to-the-basics-for-supplier-management
