In order to fully leverage its supply chain, American Electric Power (AEP) formed a Business Planning & Analysis Group (BP&A) charged with gathering, analyzing and presenting market intelligence data to internal clients in an objective and neutral manner. The BP&A Group provides AEP an organizational advantage because of its team structure, but it also provides a technical advantage by adding value with the products and services it provides to the other functions within AEP. One example of a project came from a simple offhand comment that "supply chain was not providing material when needed." The project ultimately provided considerable insight into the root causes of delayed material and yielded numerous opportunities for operational improvements and savings. Significant results from this project include establishing a web-based supply chain scorecard, improvements in overall project scheduling and analysis of the distribution line team operations.

Click on the following link to access the Practix article:
American Electric Power Business Planning & Analysis Group: Turning Raw Data into Informed Decisions

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Does involvement by suppliers in new product development (NPD) have potential benefits? This question led to this CAPS Research focus study that investigates what organizations are doing to influence the performance of suppliers during the NPD process. One point emphasized by companies interviewed by the authors was that supplier development is a way to manage risk. One case respondent spoke of a new product to be introduced in five years. At the interview time, all potential suppliers had been evaluated by a team from supplier development, purchasing, plant and R&D. If a performance risk was detected during evaluation, the team addressed this risk. To further improve NPD and supplier performance within NPD, one company noted that it needed to do a better job of debriefing after NPD projects. Several companies noted that the outsourcing of systems and design is a continuous process, and there is a need to do a better job of managing the process.

Click on the following link to access the Focus study:
An Investigation of Supplier Development and its Role in New Product Development

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One of the most accessed reports in 2007 at the CAPS Research web site was the Focus study, "Succeeding in a Dynamic World: Supply Management in the Decade Ahead." The results of the research provides executives with information to help set strategic initiatives and drive change at the executive level and within the supply management profession. Based on an analysis of the survey data, focus sessions, and one-on-one interviews, the research team concluded there are seven main families of strategies that will have the greatest impact on supply management success in the future: developing category strategies that are robust and forward looking; developing and managing value-adding relationships with suppliers; designing and operating multiple supply networks to meet the needs of specific market segments; leveraging technology for internal productivity and external effectiveness; collaborating internally across functions and externally with suppliers and customers; attracting and retaining supply management talent and managing the future supply management organization. It is exciting to hear from our corporate sponsors who use the report for training purposes within their supply management group.

Review the focus study:
Succeeding in a Dynamic World: Supply Management in the Decade Ahead

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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™.