Driving Supply Chain Innovation

Centers of Excellence:
Driving Supply Chain Innovation
welcom e
Competitive Advantage Achieved
in the new age of rapid globalization and frequent disruption, supply chain management professionals are hearing more about the benefits of improved collaboration with cross-functional partners. And while the concept of ensuring that all the entities that comprise a supply chain are working toward common goals may sound too good to be true, many operations have taken the necessary organizational and technological steps to establish corporate best practices to achieve this collaborative nirvana by establishing Supply Chain Centers of Excellence (CoE). A Supply Chain CoE represents a team of experts from each critical supply chain function assembled under one roof. Their mission is to improve collaboration and to learn from each other in an effort to deliver the greatest benefit possible through a collection of best practices that can spread throughout the entire organization. In this special edition titled Centers of Excellence: Driving Supply Chain Innovation, supply chain leaders go inside the inner-workings of a top CoE, learn the vital organizational steps necessary for establishing a CoE, and better understand the technology that compresses the distance between all critical supply chain entities. After digesting the benefits of a fully functional CoE, supply chain professionals will quickly realize that it represents the clear path to competitive advantage.
contents
LOral: Cultivating Operational Excellence Across the Supply Chain SCM World Survey Finds Supply Chain Managers Still Under Pressure to Deliver The 2013 Supply Chain Top 25: Learning from Leaders Setting the Table for Successful Supply Chain Management What Makes a Winning Procurement Organization? Key to Operational Excellence Supply Chain Visibility and Cost-to-Serve Analysis An Avnet Case Study
Editorial Staff
Michael A. Levans Group Editorial Director Bob Trebilcock Executive Editor Francis J. Quinn Editorial Advisor Patrick Burnson Executive Editor Sarah E. Petrie Managing Editor Bridget McCrea Contributing Editor, Technology Mike Roach Creative Director
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Brian Ceraolo President and Group Publisher Kenneth Moyes President and CEO EH Publishing, Inc.
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Michael A. Levans, Group Editorial Director. Peerless Media Comments? E-mail me at mlevans@peerlessmedia.com Follow me on Twitter: @mikeleva
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LOral: Cultivating Operational Excellence Across the Supply Chain

By Bridget McCrea
Through its Centers of Excellence, The LOral Group establishes itself as a global supply chain leader that can effectively establish corporate policies and achieve companywide goals.
s the worlds largest cosmetics and beauty product company, The LOral Group of Paris relies heavily on a high performing supply chain to distribute its popular products to the right place at the right time and in the right format. With an exclusive focus on beauty products and cosmetics, this innovator is not only a formidable force in the industry but also a strong role model for other organizations. Take LOrals supply chain expertise, for example. In 2013, technology research giant Gartner ranked LOral No.10 on the firms Top 15 supply chain organizations headquartered in Europe and No. 42 overall. Were definitely headed in the right direction, says Richard Markoff, LOrals corporate supply chain standards and audits director. Markoff credits LOrals commitment to establishing and leveraging Centers of Excellence (CoE) with helping to elevate the firms supply chain to world-class status. Introduced about 20 years ago, the CoEs are used throughout LOrals supply chain, production, sourcing, health and human resources, and financial operations. Centered on the creation of strong policy working groups that benefit all business units, CoEs work to establish current and future policies and corporate methodologies. Those policies and methodologies are leveraged across the entire company with the idea of sharing best practices and information in a way that benefits LOral as a whole. CoEs
represent the internal operations of the company, says Markoff, and ensure that all of their activities flow out of the mission of establishing both current and future policy. Common supply chain goals According to Markoff, CoEs ensure that all entities are working toward common, agreed-upon goals through good communication, solid training, and the implementation of information technology to support the effort. CoEs are part of our DNA here at LOral, says Markoff. Theyve helped position LOral as an industry leader and ensure that our role is well understood. The CoEs also help LOrals managers and leaders do more than just fight the daily fires involved with worldwide manufacturing and distribution. On the operational side, there are ongoing sales goals to meet, product launches to develop, and promotions to run, says Markoff. The CoEs help managers and employees take a step back and look at vision, strategy, and future aspirations in ways that they cant always do when theyre focused on completing daily tasks. Also charged with the day-to-day concerns while keeping an eye on long-term visions and goals, LOrals supply chain managers reap the benefits from the companys commitment to creating and using CoEs. On a concrete level, says Markoff, whenever a supply chain or logistics manager asks how something should be done or what tools they need to complete a particular task, he or she turns to
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the CoE. The CoE establishes policies on how supply chain managers can collaborate and work closely with their upstream vendors, and provides training, documentation, and other valuable resources, he says. In 2013, for example, Markoff and his team expanded an existing relationship with E2open, a provider of cloud-based solutions for collaborative execution across global trading networks, to improve operational efficiencies and service levels in North America. Utilizing the E2open Business Network, LOral now has a consolidated view of its global supply chain throughout North America and access to real-time collaboration with its partners. Through that business network, LOral and its trading partners gain a consolidated, shared view of global operations, plus the ability to collaboratively make decisions and resolve disruptions. Since implementing the solution, LOral has integrated and automated its supply chain planning and execution strategies in North America while also improving its responsiveness and service levels with supply-side segmentation and cost control. Markoff says that the initiative was rooted in the need to improve LOrals supplier collaboration tools. That goal, he says, fell on the shoulders of the CoE and would extend across the entire company once rolled out and implemented. We worked closely with E2open to get the collaboration tools up and running in our North American factories, Markoff explains, which gain the benefit of the technology plus the CoEs support whenever they need it. Faster, efcient supply chains Focused on creating a demand-driven value network based on truly global sales and operations planning (S&OP), LOral wants to achieve complete end-toend supply chain visibility from its factories to its end usersand every stop in between. This initiative is currently underway in North America and is now being rolled out in Europe. Markoff says the manufacturers CoEs and E2opens technology will both play key roles in achieving those goals. Markoff sees vendor collaboration as a key component of end-to-end supply chain visibility. We quickly realizedon our own and through feedback from LOrals business groupsthat
a transparent, global supply chain would be limited if it only included our own company, says Markoff. We knew we needed to extend that vision out to our vendors if we wanted to achieve a faster and more efficient supply chain. By taking a collaborative approach, LOral has also been able to speed up its decision making, get more accurate snapshots of vendor inventory We worked closely with levels, and connect its E2open to get the collaboration 2,000+ vendors in its 24/7 tools up and running in our North cloud-based business netAmerican factories, which gain work. The latter point has been particularly useful for the benet of the technology plus LOral as a global integra- the CoEs support whenever they tion is made up of many need it. different pieces and parts. Richard Markoff, corporate supply chain We have a difficult standards and audits director, LOral enough time integrating our own departments, Markoff points out. Imagine having to get that initiative rolled out across 2,000+ vendors without the help of technology. It would be nearly impossible. Living Proof When Markoff began investigating collaborative business networks for its CoEs, he wasnt interested in building the solutions business case around better service or lower inventory levels. I felt that those benefits would be difficult to prove, Markoff says. Instead, he focused on higher team productivity levels and better problem-solving capabilities. We want supply chain teams that can add value and solve problems before they happen, he says. To get there, they need tools that help information flow freely and alerts that keep them informed about whats going on. Through its collaborative business network, Markoff says the CoE turned an IT-based project into a company-wide vision for the future. He likes to joke that the solution proved itself as a worldwide collaboration tool pretty early in the game: Markoff sponsored the Arkansas-based pilot from LOrals Paris headquarters with a New Jersey-based project manager and an IT vendor located in California. Despite the geographical distance among us, we made it work successfully, Markoff says. That was the living proof. 5
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Richer perspectives At LOral, CoEs are more than just think tanks or policy makers that operate as individual silos an approach that many companies tend to take when setting up such initiatives. We try not to fall into the trap that Ive seen other firms fall into, says Markoff. In most cases, they arent sure where to position their CoEs within their own corporate structures. To operate at an optimal level, for example, Markoff says CoEs should be part of the normal and natural career path for individuals who want to explore supply chain, production, or quality opportunities.
The Technology That Drives Successful COEs
hen Rich Becks ponders why some Centers of Excellence (CoEs) succeed and others dont, he sees a common denominator among the latter. Companies usually set up CoEs for the right reasons and pick the right people to run them, but they dont always have the correct technology pieces in place, says Becks, general manager of high technology for E2open. Becks says that companies should seek out technologies that allow them to gain consensus across trading partners and customers, for example, and help organizations compress the distance between those different entities. The more the technology can organize data and create an environment of sharing for all parties, says Becks, the more successful the CoE will be. Many times, Becks says firms invest in technology that automates the collection of data with the goal of moving that information as quickly as possible from one entity to the next. Along the way, much of that data and its related functionality can be lost. Data accuracy is also compromised, he says, with team members receiving different views of the pertinent information. To close those gaps, Becks says E2opens solution shares accurate, common data in real-time across all supply chain partners. We wire up the whole supply chain and allow users to access the related data in a real-time, accurate format, says Becks, who calls global manufacturing and distribution the ultimate team sport that require synchronization and cohesiveness to operate successfully. Centers of Excellence are no different, Becks points out, and should be approached from a standpoint of common vision and shared goals. As part of its charter, the CoE must communicate its consensus about what works and what doesnt work to the company as a whole, says Becks. By following this guidance and including the appropriate technology in the equation, organizations will be well braced to take full advantage of their CoE initiatives.
Bridget McCrea is a Contributing Editor to Supply Chain Management Review
The Centers should also include diverse representation from across the company. At LOrals CoE in Paris, for example, Markoff strives to include representation from both Asia and the U.S. in order to make the Center relevant and credible for a broader swath of users. The CoE representatives should also be switched out regularly. We dont want people staying too long, says Markoff. The idea is to learn about the new ideas, solutions, and policies, and then give up your spot to someone else who needs that enrichment. For a CoE to be successful, Markoff says that it must also be somewhat fluid and adaptable. Keeping an ear to the ground for new IT solutions and tools that can solve current and future problems, for example, is an important part of Markoff s job. Its equally as important that he consider the major differences among LOrals business units (making fragrances for the luxury market versus manufacturing shampoo for the mass market, for instance), when running the CoE. We cant be too rigid or dogmatic in terms of policies we develop, says Markoff. Its not in anyones interest to try and make everyone think or act the same way because the context is not the same across our business units. And while Markoff doesnt get the satisfaction of attaching sales figures to his teams efforts at the end of every month, he says watching participants learn and CoE team members take ownership of the experience is extremely rewarding. To ensure similar success at their own organizations, Markoff says individuals who are establishing CoEs should start the process by getting conviction and buy-in from the top. Without that, he says, a companys commitment to ongoing excellence will lack the support it needs to sustain itself. To firms that already have CoEs, Markoff encourages supply chain managers to participate in the programs at some point during their careers. Being a part of a CoE will change your perspective, says Markoff, and help you gain a richer, more comprehensive view of the field that youre working in. Bridget McCrea is a Contributing Editor to Supply Chain Management Review
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SCM World survey nds supply chain managers still under pressure to deliver
By Patrick Burnson, Executive Editor, Supply Chain Management Review
hief supply chain officers need to accelerate their teams skills and capabilities if they are to meet growing expectations about the business value the function can deliver, according to the latest annual study conducted by SCM World.. Along with its traditional role of delivering products to customers while containing or reducing operating costs, supply chain in many companies is now also charged with harnessing innovation from suppliers, facilitating growth in new markets and building new fulfillment channels. It has also assumed accountability for supply chain risks and the impact of sourcing and manufacturing operations on the environment and local communities. Kevin OMarah, Chief Content Officer, SCM World told Supply Chain Managemetn Review in an exclusive interview that supply chain executives are less confident than they were in 2012 about the standing of their functions. But that may also be because so much is now being expected of them, he added. With all the omni-channel changes, theres a great deal of pressure being put on managers. He also noted that supply chain needs to catch up to the bigger role we have claimed for ourselves in recent years. Unfortunately, we still seem to struggle with developing the skill sets required among our teams. Too little systematic talent development and too hazy a measurement system may
be confounding our efforts and investments at exactly the time they are needed most. The global survey of more than 750 executives found that supply chain leaders currently face five major pressure points: 1. Continue to reduce costs while simultaneously improving customer service and supporting expansion in new markets and product lines 68% of respondents say that operating cost reduction is very important as a supply chain contribution to business strategy up from 64% in 2012. 83% believe that supply chain excellence contributes high or very high value in terms of enhancing customer service and loyalty; while almost three-quarters say the same about business expansion and new product introduction. 2. Manage the complexity of
Methodology: This is the fourth annual Chief Supply Chain Officer Report published by SCM World. In total, 756 completed surveys were received from members of SCM Worlds global community and other supply chain, procurement and operations practitioners between the end of July and early September 2013. Respondents are drawn from a wide range of industry sectors, including hi tech, food & beverages, consumer packaged goods, industrial and healthcare & pharmaceutical; while 44% are based in the Americas, 41% in EMEA and 15% in Asia-Pacific and rest of the world.
Readers can click here and download a summary version:
omnichannel selling and customer fulfilment. 55% report that the demands of e-commerce and mobile-enabled consumers are increasing the number of SKUs they have to support. 54% are building new distribution centres (of both the larger, more centralised and smaller, more local variety); and 48% are building direct-tocustomer fulfillment capabilities. 3. Deliver top- and bottom-line value, not just compliance, from sustainability initiatives 47% say their boards expect lower costs and greater efficiencyup from 43% in 2012 and just 32% in 2011. 24% say higher sales revenue is a business driverup from 17% last year. 4. Mitigate the risk of product integrity issuesand do so across all supply tiers. In the wake of the horsemeat scandal in Europe, safety and quality incidents top the risk index37% are very concerned about this for 201314 and 35% are concerned. Just 13% say they have visibility of potential risks at the third tier of their supply base (their suppliers suppliers supplier); while 41% are limited to the tier-one level. 5. Facilitate career progression, new product introduction skills and demonstrate ROI. 76% report that providing compelling career options for talented supply chain staff is challenging up from 66% in each of the previous two years. up from just 18% in 2011.. M 7
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The Vision and the Voyage

This interactive eBook features video footage captured during an E2opensponsored interview between Kevin OMarah, original creator of AMRs Supply Chain Top 25, and Richard Markoff, Corporate Supply Chain Standards & Audits Director at LOral. The discussion focuses on LOrals innovative supply chain transformation initiative, which leverages the latest cloud technologies to enable collaborative execution across the companys diverse and fast-growing business network.
Download the ebook now
Also, this eBook focuses on four supply chain challenges with engaging solutions discussed in video format. The 4 Challenges: 1. Leveraging existing investments in ERP systems. 2. Accelerating supply chain processes to fuel corporate growth. 3. Making better decisions faster. 4. Managing demand you cant predict and supply you dont control.
The 2013 Supply Chain Top 25:

The 2013 ranking of supply chain leaders from Gartner highlights the best of the bestlarge, global companies that are furthest along on the journey toward demand-driven supply chains. While the mix of companies is diverse, there are lessons to be learned from these supply chain leaders.
By Debra Hofman, Stan Aronow, and Kimberly Nilles
artner recently published its 9th annual Supply Chain Top 25, a ranking of the worlds leading supply chains. Since the beginning, the ranking has looked to answer one important question: Of the worlds largest companies with the most global reach, which are the furthest along on the journey to being demand driven? The ranking continues to draw intense interest from practitioners, academics, and publications around the worlda mark of the growing importance of the supply chain discipline. Our focus in producing this ranking goes beyond excellence to identify leadership in the supply chain, highlighting best practices to help raise the bar for the supply chain profession as a whole. While there are always some exciting new names on the list, there are some common characteristics that separate the best from the rest. This article discusses the insights and trends weve seen this year from the leaders. What is the Denition of Excellence? What does it mean to be demand-driven? Exhibit 1 captures the organizational ideal of demand-driven principles as applied to the global supply chain. This model has three overlapping areas of responsibility: Supply managementManufacturing, logistics, supply planning, and sourcing. Demand managementMarketing, sales, demand planning, and service. Product managementR&D, engineering, and product development. Excellence is about the visibility, coordination, and reliable processes that link the three areas of supply, demand, and product together (See Exhibit 2 on pge 10). When that happens, the business can
Debra Hofman is managing vice president, Stan Aronow is a research director, and Kimberly Nilles is a research analyst at Gartner Inc. They can be reached at Debra. Hofman@gartner.com, Stan.Aronow@gartner.com, and Kimberly.Nilles@gartner.com.
EXHIBIT 1
Demand-Driven Principles
A system of technologies and processes that senses and responds to real-time demand signals across a supply network of customers, suppliers, and employees
Demand
Supply
Product
Source: Gartner (May 2013)
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Learning from Leaders
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EXHIBIT 2
Operational Excellence and Innovation Excellence

Leader (Higher Price/Earnings Multiples) Winners
the demand-driven ideal, as defined in Gartner research and on the voting website. Inside the Numbers The Top 5 in the ranking this year include two exciting newcomers, Unilever at #4 and Intel at #5. (See table on page 11 for the complete rankings.) Each has moved steadily up the ranking for the past several years, and with good reason, embodying the essence of what the Top 25 is all about: they have each stepped up to the leadership podium. By sharing their supply chain practices and the lessons theyve learned with the broader supply chain community, they have helped to raise the level of supply chain performance to new heights. With a wide range of cutting-edge practices, Unilever is at the forefront of the supply chain maturity curve in many areas, from end-to-end segmentation to an impressive ability to design globally and implement locally across every function of its supply chain. More importantly, its supply chain innovations have been a critical component of the companys ability to retain profitable growth, even in the face of sluggish demand in some of its core markets. Chip giant Intel has made significant investments upstream and downstream to enable the broader computing ecosystem. At the same time, Intel has continued its commitment to sustainability and social responsibility in sourcing, having taken a lead role for several years now in the issue of conflict minerals. Outstanding financials combined with phenomenally strong votes (Apple was ranked No. 1 again by the peer voters, capturing 75 percent of the highest possible points a company can get across the voting pool) allowed Apple to retain the top position again this year. At the same time, the company known for its focus on simplicity has expanded its product portfolio to a broader array of sizes and price points to address increasingly robust competition, driving the need for more complexity management in its supply chain. In the middle of the Top 5 group and switching places this year are McDonalds and Amazon. While Amazon far outpaced McDonalds in the peer voteAmazon ranked a very close second to Apples position in the opinion of the supply
Demand
Supply
Product Operational Excellence (Perfect Order, Total Supply Chain Cost) Demand
Supply Laggard Leader
Product
Losers Innovation Excellence (Time to Value, Return on R&D) Laggard
respond quickly and efficiently to opportunities arising from market or customer demand. Supply chains built to this design manage demand rather than just respond to it, take a networked rather than linear approach to global supply, and embed innovation in operations rather than keep it isolated in the laboratory. The demand-driven model is inherently circular and self-renewing, unlike the push supply chains of our factory-centric industrial past. Our methodology is provided in detail below. Here are the basics. Each year, approximately 300 companies are chosen to be ranked. Companies do not apply to be included; rather, we select the companies from publicly available lists using a defined set of criteria, including size and industry sector. Each company gets a composite score, and these scores are then force-ranked to come up with the final list. The composite score is made up of a combination of publicly available financials, as well an opinion component, providing a balance between objective and subjective perspectives. In completing their ballots, voters are asked to identify those companies they believe are furthest along the journey toward
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Gartner Supply Chain Top 25 for 2013

Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Notes:
1. Gartner Opinion and Peer Opinion: Based on each panel's forced-rank ordering against the definition of "DDVN orchestrator" 2. ROA: ((2012 net income / 2012 total assets) * 50%) + ((2011 net income / 2011 total assets) * 30%) + ((2010 net income / 2010 total assets) * 20%) 3. Inventory Turns: 2012 cost of goods sold / 2012 quarterly average inventory 4. Revenue Growth: ((change in revenue 2012-2011) * 50%) + ((change in revenue 2011-2010) * 30%) + ((change in revenue 2010-2009) * 20%) 5. Composite Score: (Peer Opinion * 25%) + (Gartner Research Opinion * 25%) + (ROA * 25%) + (Inventory Turns * 15%) + (Revenue Growth * 10%) 2012 data used where available. Where unavailable, latest available full-year data used. All raw data normalized to a 10-point scale prior to composite calculation. "Ranks" for tied composite scores are determined using next decimal point comparison.
Company Apple McDonald's Amazon Unilever Intel P&G Cisco Systems Samsung Electronics The Coca-Cola Company Colgate-Palmolive Dell Inditex Wal-Mart Stores Nike Starbucks PepsiCo H&M Caterpillar 3M Lenovo Group Nestl Ford Motor Cummins Qualcomm Johnson & Johnson
Peer Opinion1 (172 voters) (25%) 3,203 1,197 3,115 1,469 756 1,901 1,167 1,264 1,779 794 1,409 745 1,629 955 808 810 399 714 999 397 679 552 74 122 730
Gartner Opinion1 (33 voters) (25%) 470 353 475 522 515 493 517 298 278 324 342 221 282 236 159 314 41 247 105 211 112 231 139 45 144
Three-Year Weighted ROA2 (25%) 22.3% 15.8% 1.9% 10.5% 15.6% 8.6% 8.5% 11.6% 11.7% 18.9% 6.2% 18.0% 8.8% 14.1% 16.5% 8.6% 28.2% 5.8% 13.3% 2.5% 13.3% 5.7% 13.3% 12.7% 9.6%
Inventory Turns (15%) 82.7 147.5 9.3 6.5 4.2 5.8 11.2 18.5 5.5 5.2 30.7 4.2 8.1 4.2 4.8 7.8 3.7 2.8 4.2 22.2 5.1 15.1 5.3 8.5 2.9
Three-Year Weighted Revenue Growth4 (10%) 52.5% 5.9% 33.6% 9.0% 11.4% 3.6% 7.8% 15.7% 14.0% 3.6% -0.6% 13.4% 4.9% 10.6% 11.5% 10.5% 6.7% 23.4% 6.9% 29.8% -0.6% 3.1% 13.5% 25.9% 3.3%
Composite Score5 9.51 5.87 5.86 5.04 4.97 4.91 4.67 4.35 4.33 4.27 4.05 3.85 3.79 3.62 3.41 3.41 3.22 2.91 2.87 2.75 2.51 2.51 2.48 2.37 2.35
chain communitythe Top 25 ranking is about more than opinion. We incorporate financials into the methodology as a balancing factor, to reflect a companys ability to translate supply chain leadership into corporate performance. While Amazons revenue growth has been meteoric, its three-year weighted ROA of 1.9 percent reflects a 2012 net income loss. Compare that to McDonalds
three-year weighted ROA of 16 percent, revealing a robust 20 percent annual net profit margin. This difference, coupled with still healthy respect from the voting community, nudged McDonalds into the No. 2 slot. Both have leading practices to share with the supply chain community. McDonalds stands out with strong new product launch capabilities and
Note: 7 of top 11 Gartner supply chain leaders are E2open customers.
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excellence in execution consistency. Building its digital portfolio of products and fast crossing lines into new markets, Amazon is a pacesetter across all industries in using its supply chain to set the standard for the customer experience. Some of the worlds top companies populate slots six through 15 in our ranking, with notable contributions to the discipline of supply chain management. Retaining its position as a supply chain innovator, P&G (#6) continues to define new standards of excellence in segmentation, the use of analytics, and leading sustainability efforts. Rising to #7 this year, Cisco leads the way with a supply chain team focused on revenue growth, enabling the company to break into new markets for its hardware, software, and services-based solutions. Samsung (#8) and Dell (#11) have each taken collaborative efforts to new heights: Samsung in its emerging markets demand channels, and Dell in its supply networks and intra-enterprise ecosystems of partners. Walmart, another longtime powerhouse, rejoins the ranking this year at #13. Pushing the envelope in integrating supply chain with new product launches are Nike (#14) and Starbucks (#15). Coca Cola (#9) retains strong peer recognition in APAC and Europe, and is focused on reducing complexity while it invests in across the board capabilities of its supply chain talent base. Both Colgate-Palmolive (#10) and Inditex (#12) have modeled a continued emphasis on efficiency as evidenced by their cross-industry leading ROAs. Both also go beyond efficiency: Colgate with its supply chain talent management and advanced S&OP, and Inditex with its well known commercialization and demand sensing capabilities. These efforts
are reflected in the steady rise of both companies since they first appeared in our ranking: Colgate has moved up 10 slots since it joined the ranking in 2009, and Inditex has moved up 11 slots since its first showing in 2010. This year we welcomed three newcomers in the final section of the ranking. Chinese electronics leader Lenovo (#20), now focused on the integration of supply chain with new product design and release; Ford (#22), the first automotive OEM to join the ranking since 2009, returning to profitability and building a foundation for more strategic global demand/capacity alignment, scenario planning, and risk modeling; and semiconductor Qualcomm at #24, with rapid re-planning capabilities and deep collaborative partnerships with key suppliers. In the ranking virtually since its inception are Pepsi at #16 this year, and healthcare/consumer products giant Johnson&Johnson at #25. Both continue to lead. J&J demonstrated increasing speed in executing on its compelling supply chain vision, and PepsiCo applied the out-of-the-box thinking embedded in its DNA to breakthrough improvements in its manufacturing technologies and logistics capabilities. Third-timer Nestle (#21) continues to expand into new markets with high points from its retail customers and an ongoing focus on supply development. Rising two slots to #19, 3M is now looking to balance its long-standing emphasis on product innovation with a focus on network complexity reduction and improvements on the efficiency side of the business in cost, cycle times, and inventories. Returning to the ranking for the second time are three companies. First, Swedish retail giant H&M (#17) is balancing what has been a truly
Excellence is about the visibility, coordination, and reliable processes that link the three areas of
supply, demand, and product together.
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impressive ROA for five years running with a focus on improving transparency into its emerging market supply base, an important step given the latest challenges for the industry as a whole. Second, leading industrial Caterpillar (#18) is focused on manufacturing and supplier network scalability, and commercialization process velocity. And third, engine and power generation player Cummins (#23) continues to focus on optimizing across a highly decentralized structure to deliver global scale, with initiatives in customer collaboration, extended visibility, and segmented supply chain strategies.
EXHIBIT 3
The Hierarchy of Supply Chain Metrics
Demand Forecast Supply Chain Management Cost
Perfect Order
Assess
Cash to Cash Accounts Payable Inventory Total Accounts Receivable Diagnose
Supplier Quality
Supplier On Time
Raw Material Inventory
Purchasing Costs
Direct Material Costs Correct
Characteristics of Leaders Work in Process Production Perfect Order Cost Plant As we can see from the discussion and Finished Schedule Order Cycle Detail Utilization Goods Inventory Variance Detail Time above, every company develops supply chain strategies and priorities that are uniquely suited to its corporate and Source: Gartner (May 2013) market context. While these are useful for others to learn from, in our research we also the players, and ensuring profitable delivery of the look for the characteristics they share in common. final product to the customer; and For many companies, these characteristics are eas excellence addicts, which points to the comier to talk about than to actually implement. What panies that have figured out how to use metrics differentiates the leaders is that they have moved effectively: how to focus on the metrics that beyond the words and presentation slides to make matter, and even more importantly, how to interthe hard changes that are needed throughout the pret and then act on those metrics to achieve a organization. desired outcome, namely to continually improve Weve talked about many of these in past arti- operational results. cles, and they remain relevant: The ability to measure and use metrics an outside-in focus, which requires a funda- (See Exhibit 3) effectively warrants more mental re-orientation not only in mindset, but in attention. Leaders understand which metrics the way groups are measured and in the way net- are critical to their ability to see and make works and business processes are designed; profitable tradeoffs across the end-to-end supply embedded innovation, which ensures that chain. More importantly, they use the metrics effecsupply chain considerations are taken into tively: Rather than focusing on one metric at a time, account early in the new product development they understand that its the relationship between and launch process, and that supply chain design the metrics that makes the metrics actionable. takes into account that new products require difThe best also understand that there are different supply chain strategies than existing prod- ferent portfolios of metrics (See Exhibit 4 on ucts; page 14) for the different goals and levels, and extended supply chains, in which leaders that there must be tight alignment across these design and manage their supply chains as extended levels. At the first level, supply chain execnetworks of trading partners, orchestrating activ- utives need only a small number of metrics ities across the network, aligning the goals of all for informational purposes and to assess the
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EXHIBIT 4
Three Levels of Aligned Metrics

Executive Dashboards Level 1
Forecast Accuracy Perfect Order SCM Cost
Cash to Cash
Alignment
End-to-End Supply Chain
Accounts Payable
Inventory Accounts Total Receivable
Level 2
Raw Purchasing Direct Supplier Supplier Quality On Time Material Costs Material Inventory Costs Cost Detail Production Plant Schedule Utilization Variance WIP & FG Inventory Order Cycle Time Perfect Order Detail
setting its own targets, the goals are set for the end-to-end supply chain and then cascaded down. So, for example, the question is not: What was our plant utilization last year and therefore what should it be this year? The question is: What is the right level of plant utilization that will allow us to achieve our end-to-end service and cost goals? Lastly, leaders understand that while the metrics are the same, the targets vary for each of the different supply chains they operate.
Trends Each year, our analysts talk to and research the supply chains of Level 3 Functions hundreds of companies. Through these discussions, we note certain Manufacturing Logistics Sourcing and patterns in the trends on which Procurement the leaders are focusing their Source: Gartner (May 2013) time and efforts. While many of these dont change dramatically from year to year, three warrant mention here. overall performance of their supply chains. In A new frontier of performance. Many the second tier are the mid-level, cross-supcompanies are working to build out the founply chain metrics that allow managers to anadational components of an end-to-end supply lyze the performance of the end-to-end supply chain across disparate businesses, focusing on chain and make tradeoff decisions. The third improving core supply chain functions, and level contains the detailed functional-specific creating more common processes and sysmetrics such as procurement, manufacturing, and logistics, allowing deeper root cause analysis tems across them. More advanced companies describe a wide range of initiatives that build and correction. But what really differentiates the measurement on the foundation, including end-to-end supleaders is this: They understand how to align all ply chain segmentation, simplification, costthe levels. They know that the goal of the supply to-serve analytics, multi-tier visibility, and chain is not just to have the lowest transporta- supply network optimization. The leaders are tion cost, or the highest manufacturing asset uti- taking it to the next level, stepping further out lization, or the lowest procurement per unit cost. on the maturity curve of these innovations and The goal of the supply chain is a profitable perfect deploying the capabilities that are still theory order, balancing service with end-to-end cost. The for most. In doing so, they are finding new and activities of all its components must be aligned creative ways to use these capabilities, explorin that direction. This means that wise tradeoffs ing synergies and opportunities they hadnt need to be made across the functions; it also necessarily anticipated in advance. For exammeans that the goal should not be best-in-class ple, leading companies like Unilever are findon every metric. This requires a fundamental and ing synergies in the intersection between simprofound shift in mindset and behaviors through- plification, segmentation, and cost-to-serve: out the organization. Rather than each function Having already focused on reducing complexity
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in everything from products to organizational structure, processes, and networks, theyre now using cost-to-serve data by segment to optimize rather than simply cut the product/item portfolio, and to ensure profitable growth. Others like P&G, Lenovo, and Caterpillar are finding synergies between S&OP and new product launches to optimize the commercialization process, or between risk management and segmentation to refine resiliency strategies. A new imperative for smarter growth. This past year, the growth in emerging markets that many companies were depending on to fuel their expansion, has slowed. Developed countries continue to exhibit anemic growth at best and retraction in some markets. Against this backdrop, we might have expected to see many companies retrench and slip back to focusing their supply chains solely and exclusively on delivering cost reductions and efficiency gains to corporate bottom lines. Instead, leaders are embracing a new imperative for growth, realizing they have to get smarter about how they expand. Whether its through reducing commercialization time, flexing the supply chain on packaging or service dimensions, or providing the engine with which new acquisitions can be quickly and easily absorbed, the conversation at companies like Cisco, Intel, and Starbucks has changed from supply chain being about blocking and tackling to it being an enabler of company success. Getting to the heart of talent. Many of the companies we talk to are investing significant time and effort in supply chain-specific talent management efforts, covering everything from expanded university relationships and supply chain certification programs to rotational programs, enhanced career progression planning and multi-channel learning options. The leaders are going beyond these talent initiatives to get at the fundamentals of motivation, looking to engage hearts, not just minds, and ignite passion for the work that goes beyond mere compliance. They are connecting the dots between the work people do every day and its contribution to the societies within which they live, recognizing that most people not only need to know how they fit into the larger corporate picture, but thrive within a larger aspirational goal. Whether you are a procurement professional
helping to reduce conflict minerals, or a logistics manager looking to cut cost by taking trucks off the road and thereby reducing the global carbon footprint, its about the contribution supply chain professionals make to improve the world. Supply Chain Top 25 Methodology The way we determine the ranking is something we have been transparent with since the beginning. Its one of the reasons this list works. We have also sought to keep it both consistent as well as responsive year after year, taking direct feedback from the supply chain community of professionals and incorporating suggested changes into the methodology where possible. As a result, the list reflects not only what Gartner analysts think about supply chain leadership, but what the community as a whole respects.
The leaders are going beyond talent initiatives

to get at the fundamentals of motivation, looking to engage hearts, not just minds, and ignite passion for the work that goes beyond mere compliance.
The Supply Chain Top 25 ranking comprises two main components: financial and opinion. Public financial data provides a view into how companies have performed in the past, while the opinion component offers an eye to future potential and reflects future expected leadership, which is a crucial characteristic. These two components are combined into a total composite score. We derive a master list of companies from a combination of the Fortune Global 500 and the Forbes Global 2000, with a revenue cutoff of $10 billion. We then pare the combined list down to the manufacturing, retail, and distribution sectors, thus eliminating certain industries, such as financial services and insurance, which do not have physical supply chains. Financial component. ROA is weighted at 25
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percent, inventory turns at 15 percent, and growth at 10 percent. Inventory offers some indication of cost, and ROA provides a general proxy for overall operational efficiency and productivity. Revenue growth, while clearly reflecting myriad market and organizational factors, offers some clues to innovation. Financial data is taken from each companys publicly available financial statements. The weighting within the financials has remained consistent since 2010. Prior to 2010,
What differentiates the leaders is that they have moved beyond the words and presentation slides
to make the hard changes that are needed throughout the organization.
inventory was weighted higher than it is today, at 25 percent. We had considered dropping it all together. As much as inventory is a time-honored supply chain metricone of the few real supply chain metrics on a companys balance sheetthere have always been issues, not the least of which is that higher turns dont always point to the better supply chain. At the same time, its a metric that is widely known and understood, both inside and outside the supply chain community. Despite the issues, its not entirely invalid as an indicator, particularly if combined with other metrics. Therefore, we left it in, but reduced its weighting. Since 2009, weve used a three-year weighted average for the ROA and revenue growth metrics (rather than the one-year numbers we had previously used), and a one-year quarterly average for inventory (rather than the end-of-year number we had previously used). The yearly weightings are as follows: 50 percent for 2012, 30 percent for 2011, and 20 percent for 2010. The shift to three-year averages was put in place to accomplish two goals. The first was to
smooth the spikes and valleys in annual metrics, which often arent truly reflective of supply chain health, that result from events such as acquisitions or divestitures. It also accomplishes a second, equally important goal: to better capture the lag between when a supply chain initiative is put in place (a network redesign or a new demand planning and forecasting system, for example) and when the impact can be expected to show up in financial statement metrics, such as ROA and growth. Inventory, on the other hand, is a metric that is much closer to supply chain activity; we expect it to reflect initiatives within the same year. The reason we moved to a quarterly average was to gain a better picture of actual inventory holdings throughout the year, rather than the snapshot, end-of-year view provided on the balance sheet in a companys annual report. Opinion component. The opinion component of the ranking is designed to provide a forward-looking view that reflects the progress companies are making as they move toward the idealized demand-driven blueprint. Its made up of two components, each of which is equally weighted: a Gartner analyst expert panel and a peer panel. The goal of the peer panel is to draw on the extensive knowledge of the professionals that, as customers and/or suppliers, interact and have direct experience with the companies being ranked. Any supply chain professional working for a manufacturer or retailer is eligible to be on the panel, and only one panelist per company is accepted. Excluded from the panel are consultants, technology vendors, and people who dont work in supply chain roles (such as public relations, marketing, or finance). We accepted 224 applicants for the peer panel this year, with 172 completing the voting process. Participants came from the most senior levels of the supply chain organization across a broad range of industries. There were 33 Gartner panelists across industry and functional specialties, each of whom drew on his or her primary field research and continuous work with companies. Organizations must surpass a base threshold of votes from both panels to be included in the ranking. Therefore, a company that had a com-
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The goal of the supply chain is not just to have the lowest transportation cost, or the highest manufacturing asset utilization, or
the lowest procurement per unit cost... It is a profitable perfect order, balancing service with end-to-end cost, and the activities of all its components must be aligned in that direction.
posite score fall within the Supply Chain Top 25 solely based on the financial metrics would not be included in the ranking. The regional breakdown of voters continued to be a particular emphasis for us, and we made significant progress this year. In the past, North American voters made up 80 percent of the total, despite many efforts to get a more even regional distribution. Weve been making steady and constant improvements since then to increase the percentage of voters from Europe and Asia/Pacific. This year, the improvement was even more robust, providing a more balanced global view of supply chain leadership. For the first time, we had equal representation from Europe and North America, with 38 percent from North America, 38 percent from Europe, and 24 percent from Asia/Pacific. We expect this trend to continue towards fully balanced regional representation. Polling procedure. Peer panel polling was conducted in April 2013 via a Web-based, structured voting process identical to previous years. Panelists are taken through a four page system to get to their final selection of leaders that come closest to the demand-driven ideal, which is provided in the instructions on the voting website for the convenience of the voters. Heres a breakdown of the voting system: the first page provides instructions and a description of the demand-driven ideal; the second page asks for demographic information; the third page provides panelists with a complete list of the companies to be considered. We ask them to choose 30 to 50 that, in their opinion, most closely fit the demand-driven ideal; and after the subset of leaders is chosen, the form refreshes, bringing just the chosen companies to a list. Panelists are then asked to forcerank the companies from No. 1 to No. 25, with No. 1 being the company most closely fitting the ideal. Individual votes are tallied across the entire panel, with 25 points earned for a No. 1 ranking, 24 points for a No. 2 ranking and so on. The Gartner analyst panel and the peer panel use the exact same polling procedure. By definition, each persons expertise is deep in some areas and limited in others. Despite that, panelists arent expected to conduct external research to place their votes. The polling system is designed to accommodate differences in knowledge, relying on what author James Surowiecki calls the wisdom of crowds to provide the mechanism that taps into each persons core kernel of knowledge and aggregates it into a larger whole. Composite score. All of this information the three financials and two opinion votesis normalized onto a 10-point scale and then aggregated, using the aforementioned weighting, into a total composite score. The composite scores are then sorted in descending order to arrive at the final Supply Chain Top 25 ranking. Conclusion In its nine years to date, the Supply Chain Top 25 has served as a spark for the global discussion and debate that we believe is essential to help constantly push the envelope of innovation for all of us in the supply chain profession. We look forward to continuing the journey. M 19
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EXCELLENCE IN SUPPLY CHAIN MANAGEMENT
Setting the Table for Successful Supply Chain Management
By Michael Schmitt, chief marketing officer, E2open
or supply chain professionals, the challenges multiply with each passing day. Like everyone else, I see disruptive events such as natural disasters, security breaches, technology failures, political unrest and economic instability in the
news 24/7, and these events are greatly affecting todays global supply chains. Over the past decade, Ive watched as globalization, competition and digitalization have forever changed the business landscape. Throw in the fact that current, and potential, customers now have higher expectations, and more buying power, than ever before and you have very little room left for error when it comes to supply chain planning, process management and execution. With changing markets, volatile demand and a dependency on partners who can only be indirectly managed by contracts and influence, brand owners require constant access to timely, complete information. They need the ability to plan and see across the network and work collaboratively with partners to resolve the frequent disruptions that can hinder the achievement of customer service and margin goals. Unfortunately, the enabling technologies for visibility, management, and decision support in this environment have not kept up with the pace. As a result, supply chain professionals struggle to make their most important decisions based on information that is fragmented across their network of partners. Successful Supply Chain Management (SCM) is, in a way, like a hearty holiday meal. A lot of time and effort goes on in the background before you set the table. Your meal wont be a hit with your family and friends if everything doesnt come together in a timely fashion. So, lets take a look at a few of the key ingredients that your business requires to set the table for successful SCM:
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A Collaborative, Business Network In my time at E2open, Ive learned that what supply chain professionals really want is a single source of truth so that they can make better, faster and more informed decisions. In simple terms: they want the ability to commit with confidence. This requires technology enablement to connect trading partners in the network, to unify and manage multi-enterprise business processes, and to plan and make decisionsall in the network. The technology solution for the trading partner network is a business network, a collaborative platform that serves as a single version of the truth for the brand owner and all of their trading partners. Think of a business network as a supply chain control tower, a network of networks enabling a brand owner to orchestrate trading partners and manage changeto continually make course correctionsso, collectively, they can achieve their operational and financial plans. Big (Fast) Data Better information leads to better decision-making. But incomplete, inaccurate, or untimely information can be worse than uselessit can be actively damaging to your business. Demand instability is a perfect case in point. In this environment, success hinges on the ability of the entire trading partner network, not just the brand owner, to reliably and cost-effectively manage demand volatility. The most critical element is good, clean, accurate and timely data from as much of your trading partner network as possible. This data is the basis for creating a single source of truth for your company and your trading partners. Good data is the basis for good decision-making and essential for having a clear picture of your actual situation. The primary challenge posed by distributed, network-organized supply chains is the question of how do you manage demand you cant predict and supply you dont control? The answer is relatively simple. Businesses need to develop the ability to see at a distance, see multiple tiers into their supply chain, so they can commit with confidence to their customers. To ensure that the data they are getting from their trading partners is timely and accurate, they need to be getting it
digitally. Because not every one of their trading partners has the same level of capability, businesses of all sizes will need the ability to connect with them in a variety of ways, matching communication tools with their technical sophistication.
With predictive visibility, businesses can see the potential impact that an event is going to have in the futurefor example, a delayed shipment today leading to a shortage of a critical component in a couple of weeksright now.
Having this array of data from all partners is what qualifies it as big data. To be most effective, the data should be near-real-time, so you are dealing with the world as it is right now, rather than how it was yesterday or last week. This qualification of multiple nodes, feeding frequent, yet not always periodic, updates, is what makes it fast data. Concurrent Computations Concurrent computations? I dont know about you, but to me that always sounds like something right out of a math class. But in reality, concurrent computations are calculations performed on new data as it arrives into your business network. The network communicates data in real time from all of the connected trading partners, which is then used to calculate current and projected values of critical metrics and trigger alerts when those thresholds are exceeded. This provides you with predictive visibility in near real time. The business network provides integration of the data, but it is process harmonization and concurrent computations that put the data into alignment and give users the insight they need as to the health of their operations. With predictive visibility, businesses can see the potential impact that an event is going to have in the futurefor example, a delayed shipment today leading to a shortage of a critical component in a couple of weeksright now. Its very similar to what youre doing when driving down the freeway: constantly taking in information, calculating the current and projected implications of that information, and taking action in response. 21
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So, combine big, fast data from throughout the network, put it in context through process harmonization, and determine its significance and potential impact with network concurrency. Now you have the virtual equivalent of asking a colleague what the latest status of some critical shipment is and understanding what it means to you. This early warning system can reduce risk by giving you and your trading partners more time to react to problems and opportunities, while staying a step ahead of your competition.
your goals can empower those partners to make better decisions, collaboratively, with you to solve those problems. Collaborative Planning and Execution So, now that youve put in place the base ingredients and the keystone ingredient (network planning and response) and have achieved an educated understanding of the best way to deal with whatever disruptions to your planwhats next? You can now use the very same tools and techniques you used to reach agreement to implement the course of action moving forward. For example, the very same connectivity and process harmonization that pulls data in, and puts it in a simple to use context, also works in the opposite direction. This will allow you to execute agreed-upon actions with minimum latency and a shared understanding of what exactly needs to be done, by whom, thus eliminating the scope for many common errors. The iterative, two-way communication you use to collaborate with your trading partners to solve a problem is just the ticket for ensuring that decisions are carried out correctly and in a timely fashion. Revised orders can be agreed upon, placed, and acknowledged with minimum latency and maximum clarity; its all there on the platform, where everyone can see what was agreed to, and conformation to the new plan can be monitored and enforced. Commit with Condence Commit with Confidence. Its a term I use frequently in conversations with my staff, as well as each and every one of my customers. But, it might not be a phrase thats in your everyday vocabulary (if it isnt, it should be). At E2open, weve made it our goal and our promise, to empower those up, down and across the supply chain to commit with confidence. This includes our entire customer base. How can you commit to a customer when you dont have the confidence of making the ship date? What does that say about your customer service, and inevitably, your customer loyalty? It wouldnt make me very comfortable to go to any of my customers and say WellI think youll make it. Not very strong words. Not very confident. And its not like you can say Let me get back to you on that. Frankly, saying Ill get back to you later is not
Cloud connectivity with your trading partners enables decision making in the network and is the hallmark of a supply chain control tower.
Network Planning and Response Ive witnessed firsthand how changes in the organization of the global economy have introduced latency and friction into todays supply chain. In this complex, network-production world, you cant just collar a colleague in the coffee room to find out what is going on and then work together to devise a solution to the problems you have found. There are also limits to how much volatility you can buffer with additional inventory without getting into trouble with your CFO. Fortunately, Ive also seen that there are technological and process innovations available that can be harnessed to recapture the immediacy and connection that was the hallmark of the best-run traditional supply chains in the days before outsourcing. With the business network and procedures in place, you and your partners have the ability to gather around a virtual conference table to work together to solve problems as if you were in the same room, even when you are scattered across the globe. This is what we call network planning and response. Cloud connectivity with your trading partners enables decision making in the network and is the hallmark of a supply chain control tower. Because both you and your partners are seeing the same information in alignment, you can agree on the nature of the problems you face. Furthermore, because those problems often originate several tiers out in the supply chain, having a shared understanding of both the problem and
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going to cut it in todays cloud-based world. By having a 360 degree view into your constrained supply in the network, and all of your customer demand translated into details by segments, profitability, promotions and timeframes, can enable you to commitment with confidence, thus making the customer experience exceptional. This sets the table for future growth and prosperity. Putting it All Together By utilizing the key ingredients mentioned above, you can quickly increase revenue via profitable demand management, manage assets better with continuity of supply, and reduce working capitalall while better meeting your customers demanding requirements. You do this by making your most important supply chain decisions with confidence. When done right, collaboration allows companies to respond more rapidly to possible inventory shortages and shipment delays. It also allows you to ward off and deal with supply chain disruptions, create and share supply and demand signals and coordinate with literally thousands of suppliers at one time. By aligning and collaborating with such
a wide range of suppliers, supply chain managers gain the visibility they need to respond to any supply chain challenge thats put in front of them in todays competitive business environment. With network information integrated and in alignment, everyonetrading partners, procurement, planning, customer service, CSCOs, CFOs, all the way up to CEOscan commit with confidence not only to plans, but also to those last-minute course corrections that can make the difference between profit and loss. About the Author Michael Schmitt joined E2open in 2011 as Senior Vice President of Marketing. In his current role of Chief Marketing Officer, Schmitt is responsible for managing marketing communications, product marketing, and sales development functions on a global basis.
EXCELLENCE IN SALES
&
OPERATIONS PLANNING
Commit with condence: The four must haves of S&OP
Radisys: Condence in customer commits
CASE STUDY
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EXCELLENCE IN PROCUREMENT
What makes a Winning Procurement Organization?

By William Atkinson
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.
hat is procurement excellence? The answer depends on whom you ask. It seems that each expert comes at the concept from a different perspective. For Robert Rudzki, procurement excellence is about understanding corporate leaderships expectations for the functionregardless of how basic or how advanced these areand then meeting those expectations. For Philip Carter, procurement excellence is about managing risk. For Robert Monczka, its about improving competitiveness. For Timothy Fiore, procurement excellence is about aligning with overall business objectives, and then collaborating around those objectives. As diverse as these definitions seem, however, they are all in a way interconnected. For example, meeting corporate leaderships expectations requires managing competitiveness, collaborating on corporate objectives, and managing risk. Managing competitiveness depends on the ability to meet corporate leadership expectations as well as the ability to collaborate and manage risk. Managing risk requires the ability to manage competitiveness and faster collaboration. As Robert A. Rudzki sees it, procurement excellence needs to be defined by the perspective of the senior executives running the company, and their expectations for procurement. Rudzki is president of Greybeard Advisors LLC in Pittsburgh and author of three procurement-related books, including Next Level Supply Management Excellence. Senior executive expectations can take three general forms, from the most basic to the most advanced, Rudzki says. Traditional procurement focuses on buying, on price, on a silo and reactive mentality, and on task orientation. In such cases, expectations center on having the right stuff at the right price at the right time. Most companies, until they reach about $500 million in revenue, operate with the traditional procurement form, which is a tactical buying activCenters of Excellence: Driving Supply Chain Innovation
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ity, the consultant and author explains. Senior management just wants them to support the operation and not allow the plant to stop operating. As such, excellence in procurement is defined tactically, again: Did you get the right stuff at a decent price and delivered to the plant at the right time? Progressive procurement focuses on purchasing, on cost and quality, on an internal consultative focus with business units, and on skillful commodity management (both direct and indirect). The expectations at this level rise to cost reduction, quality, and continuous improvement. This tends to occur when companies are approaching $500 million to $1 billion in revenue, says Rudzki. This is when they begin to realize that there may be more that can be done in procurement. At this level, excellence is determined by how well procurement reduces cost, improves quality, and fosters continuous improvement.
extremely large publicly held company that still has a very tactical view of procurement (which the company still calls purchasing). The company actually has no policies to guide the overall strategy of procurement, he says. They have procedures only. As one might expect, the company is not doing well. It is story of staggering ineptitude at the management level. The procurement people have tried to open their eyes. Unfortunately, however, management continues to maintain a tactical view of everything.
Procurement as Risk Mitigator When Phillip L. Carter thinks about procurement excellence, he thinks about risk management. Carter is the executive director of CAPS Research and a professor at the W.P. Carey School of Business at Arizona State University. As he sees it, risk management is about two things: (1) preparing for what might happen so as to prevent or mitigate it in the first place and (2) having good people and practices in place to react if problems do occur. These days, a lot of companies are building their own supply chain specifically in the selection of risk management systems, looking at suppliers in the design, materials, suppliers, and services. second, third, and fourth tier, Carter says. In many cases, they have a specific Advanced procurement focuses on sup- focus on natural disasters, but they also work ply management as a whole, on total value and on other activities such as carefully plotting out ROIC, on cross-functional teams, and on exter- capacity for the next 12 months and developing nal strategies. And, importantly, it has a market procedures to track quality more carefully. orientation. Expectations include total value Carter believes that companies are being forced enhancement on revenues, costs, working cap- into a focus on risk management as a result of at ital, and capital expenditures; contributions to least four developments: risk identification and risk management; and the A spate of very disruptive natural disasters in creation of a strategic advantage for the com- recent years such as the earthquake and tsunami pany. This involves a proactive approach, looking in Japan and the massive flooding in Thailand. ahead and looking into the marketplace to under The increasing scrutiny by companies of stand it better, and being more strategic, says their global footprints, focusing in particular on Rudzki of this top level. rising labor costs in China and the additional One role procurement executives can play risks that long supply chains in these arrangeis to help senior management see the value of ments are causing. Some companies are even evolving from one level to the next. This can be bringing some manufacturing back from overa challenge, though. Rudzki is familiar with one seas, Carter observes. For example, labor costs
Procurement must be involved in new product development earlier in the process,
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in Mexico are competitive with those of the East W.P. Carey School of Business. These days, it is coast of China. how the supply base and business characteristics Companies are becoming increasingly aware are able to contribute to the overall competitive of the other risks that need to be managed, such strategies of the business, he says. This goes far as suppliers going out of business or cutting back beyond cost reduction. on their capacity or product line. Indeed, procurement still needs to focus on The SEC (Securities and Exchange Com- the basics, such as cost management and conmission) has mandated more emphasis on risk tract negotiation. At the same time it must pay management for companies in general. close attention to the concepts of speed and agilAnother way procurement can better manage ity, especially in terms of the following: risk is to seek innovation from the supply base, How quickly procurement can respond to especially by creating collaborative partnerships changes in customer requirements. with smaller suppliers, with a focus on innova How quickly it can develop supply bases in tion. For this to happen, risk sharing and reward regions of the world where their customer base is sharing processes need to be in place, Carter expanding. believes. In the past, bigger companies tended How quickly suppliers can introduce new to want to get control of the technology early technologies if the company itself doesnt mainon and pay suppliers for it as part of the normal tain technology as a core competency. pricing mechanism. However, they found that suppliers werent happy is a key with this, so, in order to get the best suppliers, companies now need to component of business success today. And if senior rethink these arrangements and create more sharing kinds of relation- management doesnt insist on collaboration both ships with suppliers, Carter says. internally and externally, then it is up to procurement Procurement leaders also need to look not only at current risk, but also itself to initiate it, at future risk around the development of new products and markets, for example. It is This technology component is particularly important for companies to involve procurement important, as Monczka explains: Procurement in the potential risks that are being created, says people need to work closely with their engineerCarter. For instance, if a company introduces a ing people and technology people. They also new product, it may involve new technologies and need to provide commercial insight and review new suppliers. Procurement, for its part, needs to of the suppliers to identify their capabilities and understand the potential risks with these technol- abilities to deliver on the technologies. Finally, ogies and suppliers, such as those associated with they need to identify the risks from a business relying on a single source for the new technology. and technology standpoint of doing business with these suppliers. Enabling Competitiveness As Monczka sees it, procurement must be When Robert M. Monczka, thinks of procurement involved in new product development earlier in excellence, he thinks of the role procurement can the process, specifically in the selection of design, play in helping the company improve its competi- materials, suppliers, and services. Procurement tiveness. In the past, procurement excellence was executives need to raise red flags if there are errors defined as how well you cut costs, with a functional or omissions, he says. Procurement also needs to orientation, and excellence was based on how well work cross functionally to standardize, to the degree you performed that function, says Monczka, who possible, the technology and design to simplify the is director of strategic sourcing and supply chain overall supply chain, he adds. strategy research for CAPS Research, and profesExperts agree that collaboration is a key comsor of supply chain management at Arizona States ponent of business success today. And if senior
Experts agree that collaboration
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management doesnt insist on collaboration both internally and externally, then it is up to procurement itself to initiate it, Monczka asserts. Procurement needs to begin working with business unit managers on their own, especially if they find they are being asked to respond to continual problems that result from the choice of the wrong technology, the inability of suppliers to deliver whats expected, or other problems. Collaboration Is Key Supply chain executive Timothy F. Fiore, senior vice president of supply management and CPO for ThyssenKrupp North America, echoes the point about collaboration as a hallmark of procurement excellence. The starting point for a collaborative effort is having a well-known and not too complicated sourcing process. It is important to get the team going in the directionconsistent with the companys overall business objectives, Fiore says. I like to focus on getting management teams and functional experts together with joint objectives, and then moving the ball down the court in a non-threatening manner. Over many years of procurement experience in a number of different industries, Fiore has learned that achieving procurement excellence on the personal level is not so much about knowing what to do, how to do it, and when to do it as it is about making sure that everyone involved in the process feels as though they are empowered and engaged effectively. In this way, everyone has
a sense of accomplishment and ownership when a project is done. I like to get things started, and then slowly back off as organizations and teams accept more and more responsibility, he explains. I find that if I have to stay involved on a day-to-day basis, something is wrong. Either I havent been effective in empowering people, or theyre not capable of accepting it. Being able to do this is part of becoming a good general manager, Fiore believes. You can lay out strategies and force people to follow them, he says. However, in the end this is not sustainable, because they will eventually go back to doing what they were doing. A good general manager knows how to empower people around a common objective that makes sense, Fiore concludes. You want people who are tied in with the business objectives, and then rewarded and recognized when they are successful. Reflecting on the insights and observations of these experts, a central story line emerges. Procurement excellence means aligning procurement strategies and programs with the overall objectives of the organization, helping everyone to align with those objectives, and managing the risks that are inherent in the procurement processes. The ultimate goal: A more competitive business. William Atkinson is a freelance writer specializing in procurement and supply chain. He can be reached at w.atkinson@mchsi.com.
EXCELLENCE IN PROCUREMENT
Download this E2open Infographic
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Seven Best Practices for Success
Almost a third of the top capability firms adopted a supply chain strategy/CoE (Center of Excellence) group that drove improvements across procurement, operations, logistics, quality, engineering, etc.compared with only 6% for their peers.
-Re-inventing Direct Procurement Study Report Spend Matters October 2013
Download The Why and How of Centralized Procurement Organizations ebook and learn about the best practices to help you build the business case, design for success, and avoid common pitfalls Download the ebook now
of and How ent The Why Procurem ed iz al tr Cen ns io Organizat

lp you tices to he design Best prac se, business ca build the d oi av d s, an for succes pitfalls common
E2open eBo
ok
The Why and How of Centralized Procurement Organizations:
EXCELLENCE IN OPERATIONS
Key to Operational Excellence

By Timothy Raven
any high product variety manufacturing companies have come to understand, operational excellence is an on-going process in which companies strive to produce better results. It has an inherent collaborative nature and typically includes participation from all parts of the organization. Clearly S&OP has to be an integral component of any overarching Operational Excellence strategy, but historically this process has been one where expected demand for products is balanced and synchronized with the ability to deliver the products. To be an effective component of Operational Excellence, an S&OP process has to be able to evaluate constrained and unconstrained planning scenarios and their financial impact upon the enterprise so that all stakeholders can reach consensus. This fact has not gone unnoticed as many leading consulting firms and software firms have introduced processes and applications to support Integrated Business Planning (IBP), a holistic approach which enables effective decision making and control over the entire organization and more closely aligns the goals of sales and operations with those of finance and shareholder objectives. IBP is a great step forward in the maturation of S&OP, and according to an Aberdeen Research Study, enterprises that deploy integrated S&OP programs consistently outperform those companies whose approach to S&OP is more tactical and less integrated.
But here in lies the rubto be effective, an S&OP process must be guided by financial metrics that matter, and metrics dont come in a one size fits all category. Today, nearly every company uses unit margin to guide decision making, but for management teams of high product variety manufacturing companies, using unit margin to guide decision making will result in missed opportunities to significantly improve cash contribution. Management teams at high product variety manufacturing companies need to understand SKU and customer profitability in terms of return on assets. Why is this important? As a profit metric, unit margin represents a return on material costs or material inventory, which might be meaningful for retail businesses where their primary investment is in inventory. But for industrial manufacturers where their primary investment is in production equipment, unit margin does not reflect the return on assets invested in making the product. When armed with the metric of cash contribution per hour of machine time (aka profit velocity) at an SKU or customer level, management teams can precisely measure the effectiveness of their assets, and optimize their mix of customers, products and assets to drive significant improvements in cash contribution. Today when manufacturing management teams rely on standard profit per unit rankings to set policy on customer priority, product mix, market focus, pricing strategy, new capacity investments and the like, those poli-
cies are inherently biased in ways that actually slow down the enterprises overall flow rate of profit per hour. A lower average profit per hour leads to lower profits per quarter and per year, and lower returns to investors. The table above provides an example of this bias where product B has a higher margin at $300, but in fact, product A produces more cash per hour ($1,600) and is a more profitable use of existing assets. Achieving Operational Excellence and improving shareholder returns starts with effective S&OP, but to be effective, an S&OP process must be guided by the right metrics. Using the metric of profit velocity to guide decisions, manufacturers can increase cash contribution by 3+% of revenues from their existing assets, maximize capacity, master product mix and significantly boost returns on their investors capital. Timothy Raven is the Managing Director of Profit Velocity Solutions, a provider of business analysis and planning tools for manufacturers.
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EXCELLENCE IN OPERATIONS : VISIBILITY
Supply Chain Visibility and Cost to Serve AnalysisAn Avnet Case Study
By Lalit Wadhwa & Douglas Kent
With product lifecycles continuing to shrink, time to market is critical.
Editors Note: This guest feature is authored by Lalit Wadhwa, Avnet Electronics Marketing & Douglas Kent, Vice President, Supply Chain Services Development High-tech Industry Ecosystem. he globalization of the design chain and supply chain in the hightech industry has played an important role in the success of technology companies, enabling them to bring their products to market quickly and to a wider customer base. At the same time, globalization has introduced significant complexity in the form of geographically dispersed suppliers and customers, design and manufacturing partners and logistics infrastructure and channels. With product lifecycles continuing to shrink, time to market is critical. Sensing and adequately responding to customer demand is an ever increasing challenge for every node in the design chain and supply chain. Traceability, regulatory compliance and sustainability have become important factors to be considered right from product design and development stage, and are shaping decisions across all nodes of the design and supply chain. Returns and reverse logistics are impacting decisions not only in the demand management process, but have assumed a critical role in meeting sustainability goals and complying with the regulatory framework. The complexity of globally extended supply chains in the high-tech industry is illustrated here, with major nodes working collaboratively to optimize throughput. Supply Chain Landscape Given that the complex ecosystem described above has evolved rapidly, it comes as no surprise that the supply chain landscape and the associated challenges have shifted significantly. Supply chain challenges have moved beyond the goals of reducing inventory, working capital, other assets and total supply chain costs. Supply chains must be able to address a host of new challenges, primary amongst those being: Managing risk in a more uncertain world: The hightech industry recognizes that globalization and inter-
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dependence on multiple partners in extended supply chains has made identifying, measuring and managing risk much more difficult. Natural disasters over the past few years have led to greater urgency in understanding and managing risks associated with increasing number of nodes in supply chains. New vulnerabilities have been introduced and each additional supplier, manufacturing site or distribution center is a potential failure point in the extended network. Companies have experienced large disruptions that have had significant impact on revenue, customer experience and brand loyalty. While configuring supply chains that account for every single risk is not feasible, some demonstrate better resilience that is, their ability to rebound from disruptive events is significantly better than others. Enhancing the depth and quality of customer engagement in order to better understand shifting customer needs: Nodes in the high-tech supply chains recognize that profitable revenue growth depends on ability to continually address evolving customer needs and ensuring product, process and service innovation. Metrics related to customer goal achievement are being increasingly tracked as a subset of supply chain performance measurement. Supply chain planning has evolved beyond suppliers and internal S&OP, and customer participation in demand planning is vital. Ability to receive and interpret demand signals from the source with high degree of automation provides an opportunity for innovation in the customer engagement. Globalization of end markets and procurement: New markets have provided significant
revenue streams. This growth has been accompanied by new challenges related to distribution channels, logistics, regulatory compliance, inventory optimization and leadership talent. Globalization of procurement has introduced challenges related to lead-time increase, product quality, counterfeits and IP protection. Need for deeper visibility into the extended supply chain: In the high-tech ecosystem, an OEMs manufacturing strategy frequently uses a combination of multiple contract manufacturers (CM) and wholly owned subsidiaries. Each of these globally dispersed sites receives or generates independent data streams related to demand signals, forecasts, sales orders, supplier purchase orders and input, and finished inventory. In such an environment, managing operational execution along multiple points in the extended supply network becomes increasingly complex and challenging. In the absence of timely visibility, the performance of the value chain suffers. With dispersed manufacturing sites using different ERP systems, the challenges get compounded. It can be summarized from the above discussion, that in absence of timely visibility into the supply chain, extending from the supply network to the demand side, it is difficult to address the other challenges. The relationship between supply chain maturity and supply chain visibility is illustrated here. Challenges due to lack of Visibility While enough information is being captured at every node in the dispersed supply chain, visibility continues to be a significant challenge, specifically for mid-sized OEMs in the high-tech industry. OEMs have attempted to address the visibility gap by implementing data solutions that have included some combination of spreadsheets with hundreds of data points, in-house developed applications, and thirdparty solution providers. Each solution has had some inherent drawbacks, such as the ability to manage complexity, scalability, depth and timeliness of information visibility; limited
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analytics; or significant upfront investment. Unsurprisingly, the challenge has not been limited to visibility of partner data in many cases, access to supply chain data in disparate systems within the organization has been equally challenging. In the high-tech industry, lack of visibility in extended networks manifests as three major issues. Working capital optimization issues: Unplanned duplication of inventory across multiple sites and hubs, excess or short supply of component inventory, and obsolescence due to demand modification are some examples. Higher operational costs: Expedites leading to increased process and freight costs, and manual intervention to flag and resolve supply or demand related issues are two prime examples. Impact on customer engagement: Inability to adequately respond to upswings in customer demand signals impacts the revenue stream, and the overall relationship. Addressing Visibility Gaps As one of the worlds largest industrial distributor of electronic components, subsystems, enterprise computing and storage products, Avnet Inc. (NYSE: AVT), leverages its extensive worldwide infrastructure and footprint to offer solutions that address the above issues, and offers realtime visibility into transactional and analytical data points across the extended network. These solutions are a combination of product-centric value-added services, along with information and analytics services, and address the needs of OEMs in the technology industry with dispersed and complex supply networks. The combination helps simplify the supply network design and provides a coherent global/multi-site view of transactional and analytical data across the OEMs extended manufacturing footprint. The basic solution that addresses the visibility gaps is illustrated above, with Avnet integrating the material flow and associated information across multiple global sites. OEMs connect through a secure web portal,
Supply Chain Central (scc.avnet.com), to access information related to orders, invoices, forecasts, product backlog, inventory, inventory aging, supply constraints, EOL notifications, transportation and tracking, and component level traceability data. OEMs leverage the near real-time visibility across multiple sites, to drive the following advantages: Manage planning, procurement, and inventory for globally dispersed manufacturing sites through Avnet-managed physical or virtual hubs, at the individual site level, as well as at an aggregate level. Manage supply variability and (or) demand variability and improve response to unforeseen events through the movement of inventory between Avnet-managed hubs by leveraging visibility into data points such as raw material forecasts, supply commit dates, inventory levels and constraints. Leverage on-demand access to data points related to spend, supplier performance, component lifecycle management and on-time performance to benchmark supply base performance, aggregated across the multiple sites. Conduct scenario planning related to supply network agility and responsiveness, and leverage this information for demand shaping. Leading OEMs with a focus on demand driven fulfillment chains, have expressed a need for solutions that provide deeper and wider visibility of their network. These OEMs need a level of 33
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visibility to critical data points that extends from multi-tiers in the supply network, all the way across to their demand generation network and customer base. To address these requirements, Avnet deploys a cloud based E2open platform as a visibility and collaboration tool spanning all network partners, designs the network collaboration processes and on-boards the network constituents. The concept and design is referred to as Control Tower. In addition to creating a consistent view across multiple enterprises in the OEMs network, the Control Tower delivers significant benefits in multi-enterprise process design and process innovation. A representative illustration of the supply and demand side multitier ecosystems, and the collaboration platform is included below. Leveraging Supply Chain VisibilityCost to Serve An exciting application that leverages supply chain visibility is the Cost to Serve analysis (CTSA). The analysis helps understand total costs involved in delivering a solution to a customer, evaluates cost-service tradeoffs and helps ensure that customer requirements are addressed in a profitable manner. Interest in Cost to Serve capabilities has increased over years, though many organizations in the high-tech industry have
struggled to model all supply chain activities in their network, identify associated costs and then properly allocate those costs. At the other end of the spectrum, companies with mature CTSA capabilities are actively engaged in Cost to Serve Optimization (CTSO) that involves what-if analyses to optimize manufacturing, transportation, inventory and pricing strategies. Avnet leverages its CTSA / CTSO capabilities to assist customers move up the CTSA maturity curve through a three step process. The process validates costs associated with each supply chain in the customers business, and allows customers to analyze the cost impact by changing performance attributes of individual supply chains. Customers can then optimize their supply chains to specific performance levels and cost, while ensuring competitiveness in their markets. This following discussion provides an overview of the framework and the process that can be used for CTSA. The analysis and quantification of all activities and associated costs incurred in order to fulfill customer demand for a product is referred to as Cost to Serve Analysis (CTSA). Since the combination of every Customer CategoryChannelProduct Category would have disparate set of activities and associated costs, CTSA must account for multiple supply chains that exist in the business. Cost to Serve Framework, Source: Inforum Step 1: Identification of Data Requirements, Data Sources and Data Collection: In most cases, there are seven types of data elements that must be identified. 1. Product related, such as Part Number, Description, Cost, Price, Unit Weight 2. Bill of Materials related, such as mapping raw materials, intermediate materials and packaging materials to final product 3. Site related, such as
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demand locations, manufacturing locations and supply locations 4. Demand related, such as customer, product, quantity and shipment frequency 5. Supply related, such as product, supplier and production site 6. Inventory related, such as product, safety stock, obsolescence rate and handling costs 7. Transportation related, such as origin and destination, mode, transit time, shipping weight and shipping cost These data elements reside in ERP, off-ERP databases, excel files and service providers systems. The role of the finance team is critical here to ensure that cost allocations are done correctly and any assumptions are documented. Step 2: Create Supply Chain Matrix: This phase defines the number of supply chains in relation to its customers and products. Columns in the matrix represent DemandChannel-Customers, while the rows represent SupplyBusiness CategoryProduct Category. A probable supply chain matrix for a storage products manufacturer is shown here. If done right, columns would add up to total revenue (Demand) and rows would add up to total cost (Supply). Step 3: Supply Chain Prioritization and Performance Prioritization: The supply chains identified in the prior step are ranked based on pre-selected criteria and weight. A higher number denotes a higher ranking. The resultant matrix is illustrated below. With the above matrix, the supply chains within project scope can be finalized. Supply chains with a higher overall rating are more critical to the company. As the final step, the objective is to prioritize supply chain performance based on competitive requirements in the industry or market. For each supply chain attribute, the company must
determine if it needs to perform at a superior level (90th percentile), advantage level (between superior and parity) or at parity to most competitors (50th percentile). The resultant unique combination of ratings defines the overall strategy for each supply chain that the company has. Referred to as the Performance Prioritization matrix, this ensures that optimization of cost-service tradeoffs are aligned with competitive requirements of the specific supply chain. Summary Technology solutions have created a more viable path to achieving multi-tier visibility across network partners in a global supply chain. Visibility allows identification and mitigation of risks, and is required across the plan, source, make, deliver and return processes of the extended supply chain. Companies can leverage the visibility to drive segmentation of their supply chains, and optimize each supply chain for profitability and customer service.
EXCELLENCE IN OPERATIONS : CONTROL TOWER
Building Superior Supply Chains: The Rise of the Control Tower
Links to Resources on Centers of Excellence

E2open Collaborative Planning & Execution LOral Talks: Supply Chain Transformation with Collaborative Execution Building Superior Supply Chains: The Rise of the Control Tower The How and Why of Centralized Procurement Organizations Supply Chain Centers of Excellence What Do I Really Need to Know About Supply Chain Control Towers? Supply Chain Control Towers: Dont Believe the Hype Supply Chain Control Tower: Its About Time Radisys: Confidence in Customer Commits What Does Commit with Confidence Mean to Radisys Commit with Confidence: The Four Must-Haves of S&OP Three Techniques to Improve Organizational Alignment
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Supply Chain Control Towers: Dont Believe the Hype

There's a lot of hype out there about supply chain control towers ... What they are, what they aren't. What they do, what they don't do. If you're embarking on a supply chain control tower initiative, how do you know what's really important, especially when you consider that no two control towers are alike? E2open can help you get your supply chain control tower built the right way.
Watch the video now
What Do I Really Need to Know About Supply Chain Control Towers?
What Do I Really Need to Know About Supply Chain Control Towers? Supply Chain Control Towers are being touted as "the next big thing" in global manufacturing. But with all the hype out there, how do you know where to start, or even if a control tower is right for you?
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Driving Supply Chain Innovation

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Centers of Excellence: Driving Supply Chain Innovation

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Supply Chain Control Tower

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LOral: Cultivating Operational Excellence Across the Supply Chain

Centers of Excellence: Driving Supply Chain Innovation

Centers of Excellence: Driving Supply Chain Innovation

The Technology That Drives Successful COEs

Centers of Excellence: Driving Supply Chain Innovation

By Patrick Burnson, Executive Editor, Supply Chain Management Review

Centers of Excellence: Driving Supply Chain Innovation

The Vision and the Voyage

The 2013 Supply Chain Top 25:

By Debra Hofman, Stan Aronow, and Kimberly Nilles

Source: Gartner (May 2013)

Centers of Excellence: Driving Supply Chain Innovation

Learning from Leaders

Centers of Excellence: Driving Supply Chain Innovation

Operational Excellence and Innovation Excellence

Supply Laggard Leader

Losers Innovation Excellence (Time to Value, Return on R&D) Laggard

Source: Gartner (May 2013)

Centers of Excellence: Driving Supply Chain Innovation

Gartner Supply Chain Top 25 for 2013

Source: Gartner (May 2013)

Note: 7 of top 11 Gartner supply chain leaders are E2open customers.

Centers of Excellence: Driving Supply Chain Innovation

Centers of Excellence: Driving Supply Chain Innovation

The Hierarchy of Supply Chain Metrics

Demand Forecast Supply Chain Management Cost

Cash to Cash Accounts Payable Inventory Total Accounts Receivable Diagnose

Raw Material Inventory

Direct Material Costs Correct

Three Levels of Aligned Metrics

Forecast Accuracy Perfect Order SCM Cost

End-to-End Supply Chain

Inventory Accounts Total Receivable

Centers of Excellence: Driving Supply Chain Innovation

The leaders are going beyond talent initiatives

Centers of Excellence: Driving Supply Chain Innovation

Centers of Excellence: Driving Supply Chain Innovation

Centers of Excellence: Driving Supply Chain Innovation

EXCELLENCE IN SUPPLY CHAIN MANAGEMENT

Setting the Table for Successful Supply Chain Management

By Michael Schmitt, chief marketing officer, E2open

Centers of Excellence: Driving Supply Chain Innovation

Centers of Excellence: Driving Supply Chain Innovation

Centers of Excellence: Driving Supply Chain Innovation

Commit with condence: The four must haves of S&OP

Radisys: Condence in customer commits

Centers of Excellence: Driving Supply Chain Innovation

What makes a Winning Procurement Organization?

Centers of Excellence: Driving Supply Chain Innovation

Procurement must be involved in new product development earlier in the process,

Centers of Excellence: Driving Supply Chain Innovation

Experts agree that collaboration

Centers of Excellence: Driving Supply Chain Innovation

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