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   A Global Research Center for Strategic Supply Management

Email Newsletter, 1/11/2007

Happy New Year from all of us at CAPS Research! What better way to start 2007 than to look back at some of the most requested reports of 2006.

Supply Management Performance Benchmarking: This unique benchmark study provides insight into a number of key management performance metrics that range from a look at how survey participants rated their strategies that helped achieve cost reduction goals, to the ratings assigned various strategies used to manage suppliers. Here’s a hint at these two outcomes: Renegotiations and competitive bidding are still the most effective strategies being employed to reduce costs; while price reduction, service improvement, and long-term relationships are rated as being of ‘most importance’ when managing suppliers. The report provides information on organizational structures, key financials, professional development activities, sourcing activities, and supplier information.

To access the most frequently downloaded focused benchmarking report of 2006, click on the following link: 2005 Supply Management Performance Benchmarking Report

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Defining Cost Reduction and Cost Avoidance: Purchasing and supply management departments are under continuous pressure to reduce costs and deliver savings to their organizations’ bottom lines. At a recent CAPS Research Critical Issues conference, participants attempted to provide clarity and standardized working definitions for defining cost reduction and cost avoidance. These definitions and clarifications are detailed in the Critical Issues report titled, “Defining Cost Reduction and Cost Avoidance” that focuses on three case studies, detailing selected approaches and best practices in defining, tracking, and validating cost savings and cost avoidance.

Click on the following link to read the most requested Critical Issues report of 2006: Defining Cost Reduction and Avoidance

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Strategic Performance Measurement for Purchasing and Supply: This highly acclaimed CAPS Research Focus Study was authored by Dr. Phillip Carter and Dr. Robert Monczka (CAPS Research) and Ms. Trish Mosconi (McKinsey & Company). The report focuses on eight best practices that were identified during the authors’ research on strategic performance measures at 15 large organizations. To better illustrate the eight best practices identified, the report provides brief descriptions of particularly good applications of each practice at several organizations. The authors also give their thoughts about the future directions for measures and measurements systems based on their observations at the organizations who participated in the research, plus their broader view of what is now happening - and is likely to happen - in purchasing, supply, and supply chain management.

To access the most demanded focus study of 2006 titled, “Strategic Performance Measurement for Purchasing and Supply”, click on: Strategic Performance Measurement for Purchasing and Supply

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Best Practices in the Procure-to-Pay Cycle: Without a planned process for managing the procure-to-pay cycle, organizations may be bearing significant costs due to non-compliance to system or process requirements. The most common root causes associated with the procure-to-pay cycle, noted by suppliers interviewed for this report were: lack of a formally designed process; the lack of a central relationship management; problems associated with supplier interfaces and the lack of a forecasting process.

Read recommended solutions suggested by suppliers and subject matter experts in the most asked for PRACTIX article of 2006 titled, “Best Practices in the Procure-to-Pay Cycle: Perspectives from Suppliers and Industry Experts”:Best Practices in the Procure-to-Pay Cycle: Perspectives from Suppliers and Industry Experts

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Our next edition of CAPS Research Reports will highlight recent activities in benchmarking, critical issues, and best practices.

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For more information about CAPS Research programs and products please contact us at Research@capsresearch.org.

Sincerely,
Phillip Carter, D.B.A.
Executive Director
CAPS Research

CAPS Research is a global research organization jointly sponsored by the W. P. Carey School of Business at Arizona State University, and the Institute for Supply Management™.