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   A Global Research Center for Strategic Supply Management

Email Newsletter, 7/16/2007

How do you get the most value from the e-tools available to your organization? The focus was on e-tools during a recent CAPS Research Critical Issues Partnership Event and some of the issues discussed included: the drivers and value proposition for e-tool initiatives; examples of the most common tools being employed; setting priorities for e-tool projects and lessons learned from e-tool implementations. Most of the companies who were represented at the partnership event reported the drivers for implementing and using e-tools included: cost management, the complex requirements being levied on the supply management organization both internally and externally, risk mitigation, cross-functional applicability, user benefits, and return on investment (ROI).

Click on the following link to access the Critical Issues report which includeds case studies describing 4 global firms who have been relatively effective implementing e-tools:
E-Tool Optimization

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Implementation of electronic invoicing (e-invoicing) at a large original equipment manufacturer and services provider (with the fictional name MRD) provided cost savings of forty percent the cost of a paper invoice. The initiative resulted in a decrease in headcount of invoice processing personnel, and an increase in invoice accuracy. This shifts the focus of front-line AP personnel from high-volume processing to identifying and eliminating root causes of errors.

To access this PRACTIX article, click on the following link:
The Evolution of Electronic Invoicing at MRD

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Benchmarking is one of the most powerful tools for initiating and sustaining continuous improvement. Twenty-seven major electric, gas, nuclear and water/sewer utilities organizations participated in the 2007 Utilities Industry benchmarking report to compare their supply management business practices to those of others within the same industry sector. Metrics included in the report cover topics such as organization information, professional development, financial information and supplier relationships and alliances. New to this year’s report is the benchmark that shows the percent of supply management employees assigned to various operations functions.

Review this benchmarking report with separate reports for organizations with over $3B in sales and organizations with under $3B in sales at:
Utilities Industry 2007 Supply Management Performance

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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™.