Semiconductor industry participants reported a significant increase during the last
two years in the number of supply management employees in both India and China (nine
percent and seven percent, respectively) and a decrease in the overall number of
supply management employees in North America. Although the staffing levels in India
and China have increased significantly, there doesn’t appear to be a significant
change in the level of authority given to regional sourcing leadership. These same
industry participants also reported it is difficult to retain experienced regional
sourcing personnel. Other personnel-rated metrics include the observation that most
of the employee turnover (average = 11%) is attributed to supply management employees
leaving the company for other employment opportunities. Only 10% of the turnover
was attributed to retirement. More than one-third of supply management employees
support commodities management functions, and another 30% provide administrative
support and transaction processing.
Review this benchmarking report:
Semiconductor Industry 2007 Supply Management Performance
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"Information technology is a tool to facilitate business processes; it is not, by
itself, the solution to business challenges", claims Keah Choon Tan, Ph.D., author
of a new CAPS Research best practices article on effective purchasing systems. The
article describes the lean but highly efficient supply management system of a division
of a world-class casino hotel chain that purchases foods, beverages and operating
inventories and supplies for eight Las Vegas properties. The company emphasizes
strategic supplier relationships over implementing sophisticated information technology.
Their supply management system is founded on a contemporary management philosophy
that stresses long-term mutually beneficial relationships and trust. The author
points out that the supply management system described in this article is in contrast
to the eProcurement systems previously highlighted in earlier PRACTIX articles.
Click on the following link to access the PRACTIX article:
The Key to an Effective Purchasing System: Is It Technology or Supplier Relationship Management
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The 2007 Supply Management Performance Benchmarking Report for the Petroleum Industry
is the sixteenth report published for this industry. The survey and subsequent report
were tailored specifically to meet the requirements of the Petroleum Industry, but
the benchmarks relative to professional development, financial metrics, and supplier
relationships and alliances cut across industry boundaries. The report includes
breakout information for Integrated, Upstream and Downstream operations. New to
this report is the metric, "percent of companies that source goods and services
from low-cost countries", along with the low-cost country list and goods and services
sourced.
To access this benchmarking report, click on the following link:
2007 Petroleum Industry Benchmarking Report
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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™.