CAPS Research Publications

Cross-Industry Summary Report 2008

CAPS Research Benchmarking Team — Tue, 01 Jul 2008 00:00:00 GMT

Cross-Industry Reports include key performance indicators from different industry groups. The survey process is relatively constant, ensuring that the KPI's can be measured year-over-year. This summary report compares data from the 2006, 2007 and 2008 Cross-Industry Metric Reports.

Cross-Industry Metric Report May 2008

CAPS Research Benchmarking Team — Fri, 23 May 2008 00:00:00 GMT

Cross-Industry Reports include key performance indicators from different industry groups. The survey process is relatively constant, ensuring that the KPIs can be measured year-over-year.

MRO Goods Market Basket May 2008

CAPS Research Benchmarking Team — Wed, 07 May 2008 00:00:00 GMT

This report provides the average and median costs for 50 Maintenance, Repair & Operating (MRO) items. Each of the 50 line items has a unique description for the actual and equivalent item costs of the market basket items as reported.

Measuring Purchasing's Effectiveness

Roberta J. Duffy — Wed, 12 Mar 2008 00:00:00 GMT

As supply executives try to optimize their organizations and drive more value to the company, they're looking for ways to measure performance, contribution, efficiency, and effectiveness. These measures not only help them assess a current state but provide a context on which to make improvements. This Critical Issues Report, based on a 2007 event in Madrid, discusses several aspects of measurement systems and models, including: what is appropriate to measure, how are measures constructed, what metrics are important, how can measurements be used to drive improvement, can measures impact forecasting, and what are general lessons companies have learned? The Report also includes case examples from three firms.

DOE/NNSA Contractors 2007

CAPS Research Benchmarking Team — Mon, 11 Feb 2008 00:00:00 GMT

The DOE NNSA Contractors Benchmarking Metric Report 2007 contains key supply management performance measures including organizational structure, professional development, financial information, and supplier relationships and alliances.

Print Services Market Basket February 2008

CAPS Research Benchmarking Team — Mon, 11 Feb 2008 00:00:00 GMT

This report provides the average costs for 24 different print services jobs identified as being small (2,000 copies), medium (25,000 copies), or large (up to 20 million copies). Each of the 24 line items in the report has a unique item description, and while at first glance some of the descriptions look the same, there are differences throughout.

An Investigation of Supplier Development and Its Role in New Product Development

Daniel R. Krause, Ph.D. and Stephan M. Wagner, Ph.D. — Tue, 22 Jan 2008 00:00:00 GMT

New product development is one area in which firms look to gain competitive advantage. Engaging in innovative activities to produce new products or upgrade existing ones can differentiate a firm from its competitors and/or increase profit margins. Suppliers can be involved at the stages of concept, design, prototyping, process development and product release. This research examines German industrial firms' new product development processes, the importance of suppliers in these processes, and how organizations try to influence supplier performance. It compares buying firms' efforts to influence supplier performance through supplier development efforts during the new product development process.

Business Process Outsourcing in a Pharmaceutical Company

Anna E. Flynn, Ph.D. — Thu, 17 Jan 2008 00:00:00 GMT

Business process outsourcing occurs when the management of an organization decides its employees will stop performing certain processes or subprocesses and, instead, an external party will be paid to perform these activities. Critical decision points include: 1. Which business processes or subprocesses can be outsourced, given the organization’s overall business strategy? 2. To what extent can subprocesses be bundled with one provider? 3. Where should the provider be located onshore or offshore? 4. Which provider(s) should be used? This paper synthesizes key discussion points from the Forum and presents a process for outsourcing business processes.

Shared Services Center Benchmarking Metric Report 2007

CAPS Research Benchmarking Team — Thu, 13 Dec 2007 00:00:00 GMT

The operational impact of employing a Supply Management Shared Services Center (SMSSC) may result in achieving a desired level effectiveness at the lowest operational costs through consolidation. This report looks at standardized processes, organizational structure and SMSSC quality metrics.

The Supply Manager's Role in Corporate Social Responsibility Among Japanese Companies

CAPS Research Japan and NPO ISM Japan, Inc. — Thu, 13 Dec 2007 00:00:00 GMT

This research report examines to what extent Japanese companies, and specifically supply managers, are engaged in corporate social responsibility activities. CAPS Research Japan, authors of the study, based its work on the Institute for Supply Management (ISM)'s concepts and research of corporate social responsibility, which includes seven main focus areas: community, diversity, environment, ethics, financial responsibility, human rights, and safety. Data includes the level of activity in each area, a comparison between ISM's study results and Japanese study results, and a discussion of social responsibility’s integration into company culture.

American Electric Power Business Planning & Analysis Group: Turning Raw Data into Informed Decisions

Bryan Ashenbaum, Ph.D. and Scott Pannelle — Tue, 11 Dec 2007 00:00:00 GMT

Learn how American Electric Powers Business Planning and Analysis (BP & A) Group, a team of various supply chain analysts, provides an advantage through organizational innovation in leveraging its supply chain by gathering, analyzing and presenting market intelligence data to internal AEP clients. The BP & A Group's driving slogan is "Turning Raw Data into Informed Decisions".

Creating A Procurement Shared Services Center

Anna E. Flynn, Ph.D. — Mon, 03 Dec 2007 00:00:00 GMT

This paper discusses various approaches to structuring a procurement shared services center to better manage some or all of an organization's spend. It addresses the questions of: what is the value proposition for a shared services model (costs and benefits); what organizational models are being used; and what are the challenges when designing, developing, and maintaining a shared services procurement organization? Based on a CAPS Research event at The Boeing Company Inc., it includes three case studies.

eSourcing and eProcurement Benchmarking Metric Report 2007

CAPS Research Benchmarking Team — Thu, 15 Nov 2007 00:00:00 GMT

A comprehensive look at how different organizations use eSourcing and eProcurement tools and technologies including the amount of associated spend. The report references eReverse Auctions, eMarketplaces/Exchanges, eRFx tools and Supplier Portals. The report also includes a Manufacturing/Non Manufacturing comparative of eSourcing and eProcurement tools.

Supplier Diversity Programs Benchmarking Metric Report 2007

CAPS Research Benchmarking Team — Thu, 15 Nov 2007 00:00:00 GMT

A comprehensive look at trends and directions in supplier diversity programs. The report includes benchmarking data on supplier diversity program goals and awards; policies, procedures and expectations; outreach events; and which tools and technologies are being used to help identify and qualify new diversity suppliers.

IT Market Basket October 2007

CAPS Research Benchmarking Team — Fri, 26 Oct 2007 00:00:00 GMT

This report provides the average and median costs for 37 IT Goods and Services items. Each of the 37 line items has a unique description for the actual and equivalent item costs of the market basket items as reported.

Succeeding in a Dynamic World: Supply Management in the Decade Ahead

CAPS Research & A.T. Kearney, Inc. — Wed, 03 Oct 2007 00:00:00 GMT

What could change in the decade ahead and how might those changes affect the future of supply management? CAPS Research, A.T. Kearney, and the Institute for Supply Management (ISM) have just released a research study entitled "Succeeding in a Dynamic World: Supply Management in the Decade Ahead" that provides some answers. The study found that over the next ten years, business will be buffeted by strong forces of change including globalization, new demographics, natural resource constraints, heightened environment concerns, shifting consumption patterns, regulation and activism, technology and innovation, and the possibility of high-impact disruptive events. Business models and strategies will change as companies pursue new revenue streams, further squeeze costs, lean-out their asset base, and reshape their capital structures to meet the opportunities and threats that lie ahead. In turn, CEOs will ask supply to take on a broader, more strategic mission, to embrace a more comprehensive set of goals, and to deliver a higher level of performance. Supply management will be expected to deliver more innovation from suppliers, contribute more broadly to revenue generation, anticipate and monitor supply risk to ensure business continuity and sustainability, and expand the breadth and impact of cost management efforts. The study concluded that success will be based on how well supply executives plan and execute in seven critical areas: (1) developing forward-looking category strategies, (2) engaging, developing and managing key suppliers, (3) designing and operating multiple supply networks, (4) leveraging technology enablers, (5) collaborating internally and externally, (6) attracting and retaining supply management talent, and (7) managing and enabling the future supply organization globally.

The Key to an Effective Purchasing System: Is It Technology or Supplier Relationship Management?

Keah Choon Tan — Tue, 11 Sep 2007 00:00:00 GMT

This best practice article describes the lean but highly efficient supply management system of a world-class casino hotel chain that owns eight properties in Las Vegas. The company emphasizes strategic supplier relationships over implementation of sophisticated information technology and has developed a supply management system, founded on a contemporary management philosophy that stresses long-term relationships, trust and sole sourcing.

Semiconductor 2007

CAPS Research Benchmarking Team — Wed, 05 Sep 2007 00:00:00 GMT

The Semiconductor Industry 2007 metric benchmarking report looks at key supply management performance measures including organizational structure, professional development, financial information and supplier relationships and alliances.

Petroleum 2007

CAPS Research Benchmarking Team — Wed, 29 Aug 2007 00:00:00 GMT

The Petroleum Industry 2007 metric benchmarking report looks at key supply management performance measures including organizational structure, professional development, financial information and supplier relationships and alliances. The report includes breakout reports for Integrated, Upstream and Downstream operations.

Achieving World-Class Supply Chain Collaboration: Managing the Transformation

Stanley E. Fawcett, Ph.D.; Gregory Magnan, Ph.D.; Jeffrey Ogden, Ph.D. — Wed, 15 Aug 2007 00:00:00 GMT

As firms examine their supply chain management models for ways to be more competitive, the nature of the discussion often turns toward collaboration. The authors of this study define supply chain management as "the collaborative process and project management to meet the needs of end-customer efficiently and effectively." However, despite efforts by firms to work toward this goal, this research suggests that few are fully able to grasp the nature of collaboration and what it takes to achieve a true collaborative capability. This study details how proactively firms are engaged in supply chain collaboration; the drivers for it; how well firms balance the driving and resisting forces of achieving higher levels of creative collaboration; and whether or not a roadmap can be developed to manage the transformation to true collaborative supply chains that can be competitive. Note: This Focus Study was slightly modified in March 2008 to amend some minor data points, which did not affect the overall conclusions and themes of the work. Please disregard any version you may have downloaded in 2007.

Office Supplies Market Basket August 2007

CAPS Research Benchmarking Team — Fri, 10 Aug 2007 00:00:00 GMT

175 organizations provided data for this market basket of goods report that shows prices for commonly purchased office supplies. Each of the 50 line items in the report has a unique description. Actual as well as equivalent costs of the market basket items are presented by average and median prices. The report provided to each survey participant also includes the lowest and highest price as reported. This allows each participant to better determine how they compare to other participants.

Mining Metals 2007

CAPS Research Benchmarking Team — Thu, 09 Aug 2007 00:00:00 GMT

Purchasing Performance Benchmarking Study for the Mining Metals Industry

E-Tool Optimization

Roberta J. Duffy — Mon, 16 Jul 2007 00:00:00 GMT

If the big question from the last decade was: What are e-tools and what are their features? Then, the question facing supply management professionals today might be best summarized as: How do we ensure we're getting the most out of the e-tools available? When you couple the multiple uses for e-tools with varying agendas that each segment of the business might have, the supply management professional must set some priorities about using e-tools and the resources they require. This report, based on a CAPS Research Critical Issues Partnership event co-sponsored by Philips Lighting Company, examines 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.

The Evolution of Electronic Invoicing at MRD

Tom Gattiker — Tue, 19 Jun 2007 00:00:00 GMT

This article describes the implementation of electronic invoicing (e-invoicing) at a large original equipment manufacturer and services provider in electronics and computing.

Investment Recovery 2007

CAPS Research Benchmarking Team — Wed, 13 Jun 2007 00:00:00 GMT

Sponsored by the Investment Recovery Association, these reports focus on the overall benefits of investment recovery, and the tools and technologies employed.

Utilities 2007

CAPS Research Benchmarking Team — Fri, 01 Jun 2007 00:00:00 GMT

This report is unique to the Utilities Industry and contains data from 27 organizations. Metrics include professional development, financial information and supplier relationships and alliances.

Aerospace/Defense 2007

CAPS Research Benchmarking Team — Tue, 29 May 2007 00:00:00 GMT

This report is unique to the Aerospace & Defense Industry and contains data from 15 organizations. Metrics include professional development, financial information and supplier relationships.

Diversified Foods/Beverages 2007

CAPS Research Benchmarking Team — Mon, 07 May 2007 00:00:00 GMT

Purchasing Performance Benchmarking Study for the Diversified Foods/Beverages Industry

Chief Purchasing Officers’ Mobility Compensation Benchmarks and Demographics: A Study of Fortune 500 Firms

Thomas E. Hendrick, Ph.D. and John Ni — Wed, 02 May 2007 00:00:00 GMT

This study continues on past CAPS Research work on this topic. To track mobility, the authors examined careers, functional experiences and educational paths that CPOs have taken to get to their current positions. Demographics and compensation information was collected to analyze salary, bonus and benefit trends. The focus study shows that, in 2006, the average CPO’s salary (inclusive of bonuses and benefits) was $380,818; average age was 49; average tenure in current position was 2.81 years. This focus study also provides career paths of 12 cases study individuals, detailing position and tenure.

Supply Leadership Changes

P. Fraser Johnson, Ph.D. and Michiel R. Leenders, D.B.A. — Mon, 12 Mar 2007 00:00:00 GMT

This study examines the chief purchasing officer (CPO) role within large multi-national companies, particularly the path that a CPO takes into that position and to whom in the organization the CPO reports. This study is the third phase, following two other CAPS Research Focus studies by the same authors (one on structural changes in supply and the other on supply chain responsibilities). This study looks at both initial CPO appointments that result from a centralization process and CPO replacements that result from a personnel change within an existing structure. CPO background, experience, tenure, and drivers for change are all analyzed.

Supplier Diversity Programs for the Pharmaceutical Industry

CAPS Research Benchmarking Team — Fri, 26 Jan 2007 12:47:39 GMT

This report is a subset of the larger Supplier Diversity Programs benchmarking report, and includes metrics provided by pharmaceutical companies.

Zeta - A Model of Process Excellence

Nicole DeHoratius and Joseph Van Orden — Fri, 26 Jan 2007 12:46:50 GMT

In this paper, we document the actions one retailer has taken to prevent and correct record inaccuracy at its retail stores. Specific actions include the improvement of inventory control, the design of new picking and shipment processes, and the development of measures to monitor and hold individuals accountable for record inaccuracy.

Business and Supply Chain Continuity

George A. Zsidisin, Ph.D., C.P.M. — Thu, 11 Jan 2007 11:45:01 GMT

This report examines the risk of supply disruptions and the ways firms manage this risk through business and supply chain continuity planning. It addresses the question of: “What are the critical elements in a successful business continuity planning process?” and provides case study examples of how firms have handled supply interruptions.

ISM Services Group Purchasing Performance

CAPS Research Benchmarking Team — Tue, 12 Dec 2006 15:17:53 GMT

Measures the supply management performance of companies who are members of the ISM Services Group. The report contains demographic information on the participating companies as well as information on professional development, supplier relationships, and purchasing spend management.

Operational Excellence in Procurement

Roberta J. Duffy — Tue, 12 Dec 2006 15:00:30 GMT

This Report examines the ways in which procurement and transaction activities can be optimized across a broad spectrum of operational activities and organizational structures. Some of the common approaches include improving data gathering and analysis, a separation of strategic versus tactical responsibilities, implementing e-procurement or automation systems, and effecting organizational structure changes to optimize workflow. The Report includes case studies that focus on the best practices at three large global firms.

Effective Global Sourcing and Supply for Superior Results

Robert M. Monczka, Robert J. Trent, and Kenneth J. Petersen — Thu, 16 Nov 2006 09:45:18 GMT

This focus study reports on the critical factors, benefits, progress, problems, strategy approaches, best practices, lessons learned, and results from the development of global sourcing and supply practices and strategies. It identifies the features and characteristics of organizations that excel in integrated global sourcing and supply. The study includes case examples from large global firms and addresses the growth of sourcing in emerging markets, such as China and India.

Procurement Shared Services Centers

CAPS Research Benchmarking Team — Mon, 06 Nov 2006 10:58:53 GMT

In theory and practice, the operational impact of employing procurement shared services center can result in achieving a desired level effectiveness at the lowest operational costs through consolidation. This report looks at standardized processes, consolidating the purchasing organizations’ operational ‘bandwidth’ and streamlined procurement activities.

Environmental Purchasing for Indirect Materials

Tom Gattiker — Wed, 27 Sep 2006 10:41:36 GMT

This article focuses on environmental purchasing, or “green” purchasing, in the indirect or non-production material area. Factors that make indirect material challenging with respect to environmental purchasing are, first, the variety of materials, users and applications present in most organizations and, second, the decentralized nature of the spend. The organization studied employs numerous practices to facilitate environmental purchasing of indirect materials.

Electronics 2006

CAPS Research Benchmarking Team — Fri, 18 Aug 2006 00:00:00 GMT

Purchasing Performance Benchmarking Study for the Electronics Industry

Pharmaceutical 2006

CAPS Research Benchmarking Team — Mon, 07 Aug 2006 13:56:56 GMT

Purchasing Performance Benchmarking Study for the Pharmaceutical Industry

Identifying and Evaluating Chinese Suppliers: China Sourcing Practices of German Manufacturing Companies

Fabian Hedderich, Rebecca Giesecke, and Daniel Ohmsen — Mon, 31 Jul 2006 13:50:14 GMT

Tapping the cost reduction potential of emerging supply markets like China has become an ever more important element of internationalization strategies across industries. This PRACTIX report summarizes the insights of 18 personal qualitative interviews with executives of mainly mid-sized (i.e., < 5,000 employees) German manufacturing companies with sourcing operations on the ground in China.

Telecommunications Services

CAPS Research Benchmarking Team — Fri, 14 Jul 2006 15:37:32 GMT

Purchasing Performance Benchmarking Study for the Telecommunications Services Industry

Change Management in Purchasing - Best Practices from Germany's No. 1 Airline Deutsche Lufthansa AG

Dr. Ingo Bülow, Ulrich Schott-Wüllenweber, and Fabian Hedderich — Mon, 26 Jun 2006 14:32:47 GMT

This Practix article describes how Lufthansa determined the required development path to become a value-adding purchasing organization, how new purchasing thinking was conveyed to purchasers by the application of specific training formats, and what other companies can learn from this example.

Financial Services 2006

CAPS Research Benchmarking Team — Wed, 07 Jun 2006 09:46:37 GMT

Purchasing Performance Benchmarking Study for the Financial Services Industry

Services Spend Management (Outsourcing/Offshoring)

Wendy L. Tate Ph.D., Lisa M. Ellram, Ph.D. — Thu, 11 May 2006 10:19:50 GMT

This benchmarking research focuses on the trends and directions in services spend outsourcing and offshoring. The growth in services spend and the recognition of the opportunities to improve business results through better management of services activities are indicative of the importance being given this topic by senior supply management professionals.

Bank of America: Services Purchasing and Outsourcing

Lisa Ellram, Ph.D., C.P.M. and Wendy Tate — Mon, 08 May 2006 10:22:25 GMT

Bank of America is one of the world’s largest financial services institutions. This best practice report describes the innovative process used for services purchasing and outsourcing.

eProcurement Benchmarking

CAPS Research Benchmarking Team — Thu, 27 Apr 2006 14:31:22 GMT

A comprehensive look at how 195 different organizations use eProcurement tools and technologies, and the amount of spend pushed through the tools. Also included is a look at eAuctions, eRFx documents, eCatalogs, eMarketplaces, and supplier portals.

Defining Cost Reduction and Avoidance

Bryan Ashenbaum — Thu, 23 Mar 2006 14:29:05 GMT

Cost reductions tend to come in two broad categories: "hard" year-on-year cost savings and "soft" cost avoidance. This report attempts to establish working definitions for these categories. It explores the key issues and problems faced by companies as they seek to properly assess their cost reduction efforts and to apply them to their bottom lines. Extensive real world examples and case studies of cost reduction efforts are provided as best practice examples for purchasing and supply managers.

Technology and Organizational Factors in the Notebook Industry Supply Chain

William Foster, Zhang Cheng, Jason Dedrick, and Kenneth L. Kraemer — Tue, 21 Mar 2006 11:19:55 GMT

The study addressesthe kinds of information technology that Chinese manufacturers are investing in at different levels of the supply chain and the benefits to upgrade the information technology in the supply chain, who receives the benefits, and who pays for these upgrades.

Best Practices in the Procure-to-Pay Cycle: Perspectives from Suppliers and Industry Experts

Rob Handfield — Fri, 10 Mar 2006 09:54:02 GMT

This benchmarking study sought to define and understand the best practices currently being employed by companies in the procure-to-pay cycle for services.

Strategic Supply Management at Japanese Companies

Supply Management Research Group, Japan — Thu, 09 Feb 2006 13:39:55 GMT

This report describes strategic purchasing’s evolution in the Japanese business environment, particularly over the last decade. It also details how some proactive Japanese companies are using strategic purchasing to gain a competitive edge through business process reengineering and senior-level leadership.

Designing the Supply Chain for Production and Aftermarket Needs

Bryan Ashenbaum — Thu, 09 Feb 2006 13:39:12 GMT

Equipment and machinery supply chains must serve two needs: reliable flow of parts for production, and an appropriate amount of aftermarket parts for current and obsolete models. Aftermarket parts have become an increasing share of OEM revenues and profits. This report explores the potential impacts of supply base segmentation and globalization for these markets, and examines key issues and challenges faced by OEMs in designing optimal supply bases for their market needs.

Supplier Diversity Programs 2005

CAPS Research Benchmarking Team — Mon, 28 Nov 2005 12:05:43 GMT

This report includes data from 113 companies from 26 different industry sectors. Key metrics include the percent of U.S. purchase spend with businesses that are minority-owned, women-owned, disabled/veteran-owned, and with businesses that are defined as being HUBZone enterprises. The report also looks at the percent of diversity spend awarded as a result of competitive bidding, or were awarded as sole source or single source contracts.

Supply Management Performance

CAPS Research Benchmarking Team — Mon, 21 Nov 2005 15:46:25 GMT

The report looks at key supply management performance measures relative to spend management and cost savings, professional development activities, supplier information and factors used to manage suppliers, and information on sourcing activities.

Outsourcing Strategies and Implications

Roberta Duffy — Mon, 17 Oct 2005 16:58:53 GMT

In a continual effort to lower costs and get the maximum benefit from supply chain expertise, many firms have looked to outsourcing. Despite some challenging issues (such as those regarding intellectual property, employee/company/community sensitivity about outsourcing, and the lasting benefits of outsourcing), countless firms have felt that the positives have outweighed any potential risks. Some of the most common benefits associated with outsourcing include cost reductions, optimizing a "24-hour" day with overseas partners, more resources available for core competencies, and leveraging supplier technology. In each company, however, the main question that must be asked is: Is it right for our firm? Will the value that is achieved through an outsourcing model ultimately benefit the enterprise or help it to achieve its goals?

Optimizing MRO Inventory Management

Bryan Ashenbaum — Tue, 02 Aug 2005 16:57:44 GMT

MRO inventory can be difficult to properly manage, as it is an "indirect" spend category and its size and impact are often underestimated. This report discusses the key issues faced by firms as they try to optimize MRO inventory levels, and lays out some selected real world examples of firms that are managing to do so. Firms are best served by a four-step approach: (1) standardize MRO item-level data, (2) provide company-wide visibility to the data, (3) obtain top management buy-in, and (4) choose appropriate metrics to determine success.

Engineering/Construction 2005

CAPS Research Benchmarking Team — Wed, 27 Jul 2005 00:00:00 GMT

Purchasing Performance Benchmarking Study for the Engineering/Construction Industry

Japan's Keiretsu as a Strategic Relationship with Suppliers

Supply Management Research Group, Japan — Fri, 08 Jul 2005 18:18:55 GMT

The primary focus of the study is to explain and develop the Keiretsu relationships, its historical evolution, and its importance to the supply chain.

Managing Commodity Spend in Turbulent Times

George A. Zsidisin, Ph.D. — Fri, 08 Jul 2005 18:16:18 GMT

This report provides three techniques that supply management professionals may want to consider implementing for managing commodity price volatility.

Eastman Kodak Company Worldwide Purchasing Sourcing Process

Anna E. Flynn, Ph.D. — Fri, 08 Jul 2005 18:15:05 GMT

In the late 1990s, worldwide purchasing at Kodak moved from a highly decentralized to a highly centralized structure with a new chief purchasing officer (CPO) and a mandate from the CEO to reduce procurement costs by $1 billion. One initiative to achieve this target was a change to the sourcing process.The sourcing process was designed for all applications, used cross-functional project teams, and consisted of a formalized, consistent eight-phase process with gates and reviews to ensure project success and stakeholder buy-in.

Localizing Sourcing Volumes in China: Insights from the Automotive Industry

Fabian Hedderich, Ralph Nowak, and Ulrich-Bernhard Ochmann — Mon, 16 May 2005 20:26:53 GMT

This PRACTIX report describes how an international car manufacturer has successfully developed a local supply base by convincing its established partners to accompany its internationalization.

Outsourcing Strategically for Sustainable Competitive Advantage

Robert M. Monczka, Ph.D., William J. Markham, et.al — Wed, 13 Apr 2005 14:57:18 GMT

The focus of this research was to determine those factors most critical to successful outsourcing of strategic goods, services, processes, functions, and businesses. Good/best practices will be established through field research. Emerging outsourcing strategies will also be identified and prescriptive model developed.

Individual User Adoption and Diffusion of Internet Reverse Auctions at Shell Chemicals

Thomas F. Gattiker, Ph.D. — Wed, 13 Apr 2005 14:55:01 GMT

This article examines the diffusion of reverse auctions among individual buyers at the Shell chemicals companies.

Strategic Performance Measurement for Purchasing and Supply

Phillip L. Carter, D.B.A., Robert M. Monczka, Ph.D., C.P.M., and Trish Mosconi — Fri, 08 Apr 2005 19:11:28 GMT

This research identifies measurements that are and will be critical to the development and execution of leading-edge sourcing and supply strategies. Field research establishes most critical measures, their use, strengths, and weaknesses.

Consumption and Specification Management Bristol-Myers Squibb Company

Anna E. Flynn, Ph.D. — Tue, 01 Mar 2005 18:56:33 GMT

As procurement organizations map strategies for excellence, one of the tools at their disposal is a program known as consumption and specification management (CSM). CSM is the assessment of internal demand for external goods and services to identify underlying cost drivers, align purchases with business needs, and eliminate unnecessary consumption. The basic premise of a CSM program is that through careful review of consumption patterns, improved communication with internal users, and a rethinking of the purposes for some purchases, the procurement team can drive more savings, than through traditional sourcing alone. Although CSM is not a new concept within Bristol-Myers Squibb (BMS), a formal CSM program was launched in September 2003 as part of a company-wide productivity effort. The objective of this program is to formalize CSM; develop the necessary tools, processes, and operating model to embed CSM; and drive savings across the entire BMS organization.

Defining the Procurement Organization - Phase II

CAPS Research Benchmarking Team — Mon, 07 Feb 2005 11:40:23 GMT

This is Part II of a two-part report on procurement organization structures. This metric report focuses on roles and responsibilities, and the levels of involvement, of the procurement organizations in new product/technology development. The report also looks at the level of involvement that procurement organizations provide technical and engineering support for new product development activities. Part I of the report focuses staffing, outsourcing and offshoring, and related procurement operating costs.

Capital Spend

CAPS Research Benchmarking Team — Fri, 28 Jan 2005 16:24:40 GMT

As the name implies, this benchmarking report looks at the spend for capital goods and equipment, real property and plants, and related manufacturing equipment. When looking at activities and functions being performed by the purchasing organization, this report finds that within the companies surveyed, less than one percent of the total purchasing professionals manage capital spend activities.

Supply Base Rationalization

Roberta Duffy — Tue, 18 Jan 2005 15:27:57 GMT

As firms strive to be competitive, more and more they realize that it's not just a matter of how a single enterprise operates, but how it makes the best use of its supply base. Oftentimes, that leads to the question of what should the supply base "look like" and who should it include? To that end, supply base rationalization (which doesn't necessarily mean reduction) has been a major trend for more than a decade. Best practices around supply base rationalization usually involve identifying current spend, determining a supply strategy for each category, and then subsequently determining the appropriate number of suppliers that can both meet requirements but also make the most of leverage and supplier integration. Adequately managing the technology needed for such assessment, user resistance, conflicting supply strategies, and competition dynamics are just a few of the hurdles that must be overcome to realize the full potential of supply base rationalization.

Chemical 2004

CAPS Research Benchmarking Team — Thu, 09 Dec 2004 00:00:00 GMT

Purchasing Performance Benchmarking Study for the Chemical Industry

Better Buyer-Supplier Relationships through Supply Base Reduction and Supplier Performance Measurement

Jeffrey A. Ogden, Ph.D. and Matthew W. McCarter — Thu, 18 Nov 2004 17:22:32 GMT

Supply base reduction and supplier performance measurement can be useful tools in developing closer relationships with suppliers. After successfully reducing its supply base, one company in the transportation industry achieved additional value from its supply base by utilizing a supplier performance measurement system with its remaining suppliers. This best practices report briefly describes the supplier performance measurement system utilized by this company and discusses the increased value that the firm achieved from implementing this tool.

Catalog Management Implementation Strategies

Anna E. Flynn, Ph.D. — Mon, 01 Nov 2004 10:55:37 GMT

This Report addresses the major considerations in developing and implementing an online catalog and content management strategy. It discusses various ways to prioritize catalog development (e.g., by number of transactions, cost of transactions, standards, etc.); various types of catalogs possible (e.g., buyer-hosted, supplier-hosted, third party, etc.); and challenges that arise when implementing a catalog program. The Report includes two case study examples.

Supply's Organizational Roles and Responsibilities

P. Fraser Johnson and Michiel R. Leenders — Thu, 28 Oct 2004 18:48:28 GMT

The study replicates the earlier CAPS studies, in 1987 and 1995, on supply's organizational roles and responsibilities. It provides a useful reference point for benchmarking and understanding organizational trends and approaches.

Procurement Compliance for the Pharmaceutical Industry

CAPS Research Benchmarking Team — Mon, 04 Oct 2004 13:29:59 GMT

This report was developed specifically for the pharmaceutical industry. The survey, developed in collaboration with the ISM Pharmaceutical Forum’s leadership, specifically addresses questions about specific policies and procedures related to procurement compliance programs.

Defining the Procurement Organization - Phase I

CAPS Research Benchmarking Team — Mon, 04 Oct 2004 13:28:07 GMT

Part I of a two part report on procurement organization structures. This report focuses on procurement staffing, outsourcing and offshoring of procurement functions, procurement operating expenses, and standard multipliers to calculate burdened overhead costs. Part II of the report focuses on new product development activities and the roles/responsibilities of the procurement organization.

Tiered Supplier Management

Anna E. Flynn, Ph.D. — Thu, 23 Sep 2004 16:29:05 GMT

This Report details the topic of tiered supplier management, including the process, how it relates to cost reductions, challenges associated with managing multiple tiers, the impact of globalization, and how to resolve supply chain issues that arise from this model. It also includes three case studies.

Developing and Implementing E-Sourcing Strategy

Anna E. Flynn, Ph.D. — Thu, 23 Sep 2004 16:24:41 GMT

This Report details how firms can effectively realize success of an e-sourcing program by first adequately assessing the organizational context in which the system will be used, including the organizational culture, structure, people, processes, and existing systems. It discusses how firms must balance these elements with the sense of urgency that is often present when reports of “quick paybacks” lead to speedy decisions and adoption. There are sections on developing e-sourcing strategy, metrics/ROI, and the future. The Report includes four case studies that illustrate: better buying through alignment of business processes and technical architecture; removing inefficiencies by driving e-enablement of strategic sourcing; increasing procurement effectiveness and sustaining transformation; and developing an e-procurement strategy and measuring the business impact.

Managing and Controlling the Services Supply Chain at Intuit

Lisa Ellram, Ph.D., C.P.M. and Wendy Tate — Wed, 18 Aug 2004 17:16:09 GMT

In many organizations the role of supply management in services procurement and the services supply chain is not clearly defined. This creates unclear expectations in service contracts and a lack of a definitive process for the procurement of services. This best-practices study addresses these issues by describing the process that Intuit Inc. has developed for the procurement of services. The focus of this article is specifically on the process for the development and the management of customer contact centers.

Study of Purchasing Practices in Japanese Manufacturing Companies

Michiya Morita and Osamu Uehara — Fri, 16 Jul 2004 19:51:40 GMT

This report discusses current purchasing practices in Japanese manufacturing companies and the changes that are occurring in these practices in order to meet the economic and strategic challenges facing Japanese manufacturing firms.

Purchasing Education and Training II

Larry Giunipero, Ph.D. and Robert B. Handfield, Ph.D. — Wed, 26 May 2004 14:32:39 GMT

The study provides an analysis of changes occurring in the purchasing function and how these changes will affect the skill sets and knowledge requirements of purchasing professionals. The impact of these changes on the body of knowledge in the purchasing/supply management area also was analyzed. Finally a longitudinal comparison with the previous 1993 study was performed to identify the major changes that have occurred in the past decade.

Computer Software 2004

CAPS Research Benchmarking Team — Tue, 18 May 2004 18:35:52 GMT

Purchasing Performance Benchmarking Study for the Computer Software Industry

Hedging Fuel Surcharge Price Fluctuations

Matt A. Schlosser and George A. Zsidisin, Ph.D. — Wed, 12 May 2004 13:05:08 GMT

This best practice report describes how Hershey Foods Corporation has been able to successfully hedge fuel surcharges passed on from its carriers — even though it does not directly consume diesel fuel, and despite the fact that diesel futures are not exchanged in the commodity markets.

X-BSC - Measuring the Performance of Truly Strategic Supplier Relationships

Lutz Kaufmann, Ph.D. — Thu, 11 Mar 2004 11:54:55 GMT

The concept of the Balanced Scorecard (BSC) is frequently employed to support the implementation of the strategies of individual business units within a multibusiness organization. This Practix best practices report describes how the principles of the BSC concept were successfully applied to strategic supplier relationships at a company from the automotive industry under the term Cross-Balanced Scorecard or X-BSC.

Improving the Total Cost of Ownership of Document Management at Bank of America

Robert Handfield, Ph.D. — Tue, 04 Nov 2003 18:29:15 GMT

Bank of America is one of the world’s leading financial services companies. In 2000, the bank began building a team of supply management professionals to develop new strategies for major commodity families, in an effort to consolidate and leverage major spend items to reduce costs and improve the profitability of Bank of America. The following best practice describes how the bank implemented this strategy that reduces the cost of printing documents by moving the documents to a digital library for better control and cost savings.

Evaluating E-Procurement Solutions

Ram Narasimhan, Srinivas Talluri, et al. — Thu, 25 Sep 2003 20:19:01 GMT

This research develops a structural, multi-phase, analytical methodology for evaluating alternative e-procurement solutions.

Indirect Spend

Phillip Carter, Stewart Beall, et al. — Fri, 05 Sep 2003 17:21:37 GMT

No description available

IBM's Supply-Base Efforts Toward Sustainability

Lisa Ellram, Ph.D., and Wendy Tate — Fri, 22 Aug 2003 14:29:42 GMT

Environmental concerns are playing an increasingly important role within the strategic framework of companies. By enlisting the aid of the purchasing professional, organizations have found a way to improve efficiency, reduce costs, decrease waste, and enhance the overall environmental impact of incoming materials, which directly influences the overall sustainability goals of the organization. This best practices study addresses these issues by describing the process that IBM has developed for including environmental matters in supplier selection.

Supply Organizational Structures

P. Fraser Johnson — Fri, 15 Aug 2003 14:10:39 GMT

No description available

Order Placement and Contract Conclusion in E-Business (This report is made available courtesy of the European Center for Research in Purchasing and Supply (ERPS), Vienna, Austria.)

Dr. Josef VLCEK — Thu, 26 Jun 2003 14:53:57 GMT

This study focuses on the rapid developments in information technology, especially in the use of the Internet as a communication tool that has led to new forms of placing orders and concluding contracts for B2B (business-to-business), B2C (business-to-consumer), and C2C (consumer-to-consumer) transactions.

Kodak's "Breakthrough Idea" Supplier Conferences: A Best Practice for Achieving Productivity Improvements

Timothy Smith and Thomas E. Hendrick, Ph.D. — Thu, 29 May 2003 17:16:41 GMT

The CPO and his newly energized (and centralized) purchasing team began a radical transformation. One component of this transformation was the development of a unique model of annual face-to-face supplier conferences. The primary objective of these conferences was to draft the support of key suppliers to generate “Breakthrough Ideas” to help reach the cost reduction stretch goal.

The Role of Reverse Auctions in Strategic Sourcing: Case Study METRO

Stewart Beall, C.P.M., Craig Carter, Ph.D., et al. — Mon, 19 May 2003 17:02:54 GMT

This research focuses on the value proposition of reverse auctions for a case study involving METRO.

The Role of Reverse Auctions in Strategic Sourcing: Case Study Bechtel

Stewart Beall, C.P.M., Craig Carter, Ph.D., et al. — Mon, 19 May 2003 17:02:20 GMT

This research focuses on the value proposition of reverse auctions for a case study involving Bechtel.

The Role of Reverse Auctions in Strategic Sourcing: Case Study GlaxoSmithKline

Stewart Beall, C.P.M., Craig Carter, Ph.D., et al. — Mon, 19 May 2003 17:01:01 GMT

This research focuses on the value proposition of reverse auctions for a case study involving GlaxoSmithKline.

The Role of Reverse Auctions in Strategic Sourcing: Case Study Volkswagen

Stewart Beall, C.P.M., Craig Carter, Ph.D., et al. — Mon, 19 May 2003 17:00:11 GMT

This research focuses on the value proposition of reverse auctions for a case study involving Volkswagen.

Business-to-Business E-Commerce: A Study of Greater Chinese and U.S. Electronics and Apparel/Textile Firms

Sherry Thatcher, Ph.D. — Mon, 05 May 2003 21:19:29 GMT

The results of this study help purchasing managers to understand the extent to which B2B e-commerce technologies are being used currently in the electronics and textile/apparel industries. In addition, the study examined the risks and benefits associated with B2B e-commerce systems, as perceived by U.S. and Greater Chinese firms, and provides recommendations for companies wishing to use B2B e-commerce tools effectively with their business partners in all four regions.

Raytheon's Buyerless Tools

Anna Flynn, Ph.D. — Sat, 01 Mar 2003 00:00:00 GMT

Automating the purchasing process is one way to lower acquisition costs, streamline the process, reduce the number of people touching the process, and reduce cycle time from need recognition to receipt (and payment if it is also automated). What to automate and how to automate are two critical questions facing most purchasing/supply managers. This best practices study addresses these two key issues by describing the buyer-less tools developed and implemented by a team of people at the Space and Airborne Systems Division of Raytheon Company.

The Role of Reverse Auctions in Strategic Sourcing

Stewart Beall, C.P.M., Craig Carter, Ph.D., et al. — Sat, 01 Feb 2003 00:00:00 GMT

This research focuses on the value proposition of reverse auctions. Based on data collected from buyers, suppliers, and providers of reverse auction services, the research creates a comprehensive insight into best practices for the use of reverse auctions in an overall sourcing strategy. the research also documents the total volume of business transacted through reverse auctions.

Supply Base Reduction Within Supply Base Reduction

Jeff Ogden — Wed, 01 Jan 2003 00:00:00 GMT

As a strategic function, some of the most important and fundamental decisions that purchasing and supply management can make concern the creation and management of its supply base. One important decision relating to the design and administration of an organization’s supply base is the number of suppliers who will be utilized for a given product or service. Reducing the number of suppliers can lead to many benefits for the organization. This best practices report describes the successful implementation of supply base reduction efforts of a company in the transportation industry.

Strategic Cost Management in the Supply Chain

Lisa Ellram, Ph.D. — Mon, 01 Jul 2002 00:00:00 GMT

This research uses in-depth, on-site case studies to explore "best" practices in strategic cost management among leading-edge purchasing organizations today. Specifically, the research (1) identifies and studies a number of "best practice" organizations across several industries; (2) explores both upstream and downstream strategic cost management issues and practices; (3) synthesizes those best practices; (4) develops a prescriptive model for world-class cost management in the supply chain.

Early Supplier Involvement at MRD

Michael E. Smith, Ph.D., and George A. Zsidisin, Ph.D. — Sat, 01 Jun 2002 00:00:00 GMT

Early Supplier Involvement (ESI) in product design has been subject to extensive study in the automotive industry. However, there are limited applications of ESI in other industries. This best practice report describes the successful implementation of ESI in the aerospace industry. The company that is the subject of this study provides vital technology for civilian and military aircraft. By engaging suppliers early in product design, the organization has recognized significant cost savings and enhanced its competitive position. This case provides details about the process for implementing ESI in an engineering-intensive business.

Managing Professional Services Costs

Lisa M. Ellram, Ph.D., C.P.M., C.M.A., and Corey Billington, Ph.D. — Sat, 01 Jun 2002 00:00:00 GMT

As organizations increasingly outsource mainstream functions to consultants and contingent workforce providers, the dollars spent on outside services continue to grow and have a greater impact on firm profitability. Such is the case with Company H, which specifically targeted purchasing of professional services as an area of opportunity for improved satisfaction of internal client demand, increased understanding of costs, and better cost management.

Using Supply Chain Mapping as a Tool to Assess Performance in a Multi-tier Automotive Supply Chain

Robert Handfield, Ph.D. — Sat, 01 Jun 2002 00:00:00 GMT

In order for organizations to function as a truly integrated supply chain, information sharing is critical. Without adequate sharing of information, firms are required to supplement the available information with costly alternatives. This best practice maps the supply chain for a fabric used in an automotive product, beginning with a textile company that forms fabric, through a fabric extruder, to a sunroof manufacturer, and finally to an OEM automotive manufacturer. In this particular supply chain, multiple opportunities exist for collaboration and sharing of information. Before discussing collaboration, however, an important starting point is to use a technique called “supply chain mapping, which involves tracing the product flow through multiple processes and inventory collection points.

Chief Purchasing Officers' Compensation Benchmarks and Demographics: A 2001 Study of Fortune 500 Firms

Thomas E. Hendrick, Ph.D., and Jeffrey Ogden — Wed, 01 May 2002 00:00:00 GMT

This study is an update of the 1999 CPO Compensation study completed by Dr. Hendrick.

E-Commerce Exchanges: Making Informed Decisions. Applying Best Practices.

CAPS Research and McKinsey & Company — Wed, 01 May 2002 00:00:00 GMT

One of the purposes of this study is to help buyers, suppliers, and investors to understand how to best use different types of e-tools in order to realize supply chain management value. Another aim is to help exchanges understand and leverage emerging best practices.

Major Changes in Supply Chain Responsibilities

Michiel R. Leenders, D.B.A., and P. Fraser Johnson, Ph.D. — Mon, 01 Apr 2002 00:00:00 GMT

Supply chain responsibilities refer to the functional activities, such as inbound transportation, inventory control, and warehousing, that report to the chief purchasing officer. This research examined major changes to supply chain responsibilities of the purchasing function in large companies with the objective of understanding the important reasons for the changes and implementation issues related to additions or deletions in responsibilities. the research also reported on the expected benefits of making changes to purchasing's supply chain responsibilities.

Maximizing Purchasing Synergies

Cheryl L. M. Phillips and V.M. Rao Tummala — Fri, 01 Mar 2002 00:00:00 GMT

The Corporate Purchasing Office of a large Midwestern consumer and building products company identified opportunities to aggregate and leverage volume to reduce the total cost of purchases while maintaining the highest levels of quality and service and develop partnerships to promote greater product support, process improvement, developmental and testing programs, through maximizing purchasing synergies. The best practice involves the use of a committee approach to develop and implement national contracts, which can be applied to purchase commodities, products, or services by any operating division of the company. The committee approach can create a guiding coalition that will allow the operating divisions to become empowered in the purchasing process and lead the changes required, including the commitment, participation, and cooperation. It also can involve key decision-makers in the contract development process, and it taps into internal talent and knowledge of the company.

Strategic E-Procurement in Global Pharmaceutical (GP)

Dr. Simon R. Croom and Mihalis Giannakis — Fri, 01 Mar 2002 00:00:00 GMT

Global Pharmaceutical is a pharmaceutical corporation, with a global network of manufacturing locations and whose sales are heavily dominated by the North American and European markets. In 1997, it embarked upon the development of an integrated Information System infrastructure to support its global procurement of both direct and indirect purchases. This case study describes the design and implementation of GP’s e-procurement.

Supply Chain Collaboration in Ship Construction and Repair

Robert Lee Gordon — Fri, 01 Mar 2002 00:00:00 GMT

Cruise ship construction and repair require a variety of supply chain management techniques and innovative procurement strategies. Due to the high financial transaction involved, a new supply chain process has been emerging in the area of ship construction. Supply Chain Leadership (SCL) is the combination of the process of collaboration, the fusion of leadership, and the art of entrepreneurship.

The Strategic Role of Reverse Auctions in the Quotation and Selection Process

Dr. Ronald L. Meier, Dr. Michael R. Williams, and Dr. Rodger B. Singley — Fri, 01 Mar 2002 00:00:00 GMT

As companies place greater and greater emphasis on cost-reduction initiatives, electronic purchasing and reverse auctions are generating considerable interest in many purchasing departments. This article describes the development of a purchasing department’s communication practices and the strategies used to reduce costs through an on-line reverse auction. The article then describes the actual auction logistics and illustrates the cost reductions achieved through the implementation of this strategy in an on-line auction for fasteners.

Compare and Share: A Structured Approach to Understanding Similarities and Differences in Part Costs and Functionality

Lisa Ellram, Ph.D. — Sat, 01 Dec 2001 00:00:00 GMT

This case study describes a manufacturing company’s strategic sourcing improvement efforts aimed at understanding, drawing attention to and reducing non-value added part proliferation among its relatively autonomous business units. The initiative is a structured, six-step process that involves identifying and analyzing parts that serve similar purposes to understand the physical and price differences in parts that are not justified by the functionality of those parts.

Co-Packing: Developing Contract Manufacturing Agreements in the Food Industry

Lambros Laios and Philip Menagias — Sat, 01 Dec 2001 00:00:00 GMT

This report describes a contracting procedure as applied by Elea, a Greek Company and a leader in production of olive-oil products. The contracting procedure results in long-term agreements with local enterprises called co-packers. Co-packers are responsible for the whole value chain, with the exception of marketing and distribution.

Purchasing Complex Services: The Case of E-Purchasing

Larry Smeltzer — Sat, 01 Dec 2001 00:00:00 GMT

The management team recognized that the acquisition and implementation of e-purchasing services would require sophisticated strategic sourcing because the service and market was complex. As a result, a systematic and comprehensive, six-step process for purchasing a complex service was followed.

Buyer-Driven Electronic Marketplaces: Developing Business Models for an Integrated E-Procurement Strategy

Dr. Michael Essig and Heinzpeter Kaerner — Sat, 01 Sep 2001 00:00:00 GMT

In this article, we will take a closer look at developing an e-procurement strategy, especially concerning buyer-driven electronic marketplaces. The argumentation will be supported by a case study of a German software vendor.

Evolution of Online Auctions in B2B E-Procurement

Vincent A. Mabert and Tobias Schoenherr — Sat, 01 Sep 2001 00:00:00 GMT

This article describes the developmental process one firm experienced over a two-year time frame, moving from traditional face-to-face negotiation and sealed-bid practices for procurement to being an active user of online reverse auction technology with the assistance of an outside service provider, and ultimately self-sufficiency.

Management of Supplier Network Knowledge for Enhanced Manufacturing Efficiency

Nexhmi Rexha, Ph.D., Tadayuki Miyamoto — Sat, 01 Sep 2001 00:00:00 GMT

This best practice study presents a Japanese manufacturing company’s unique management of supplier network knowledge, based on its two kinds of supplier seminars, in pursuit of its Kaizen practice (i.e., continuous improvement in cost and quality in a journey to perfection).

Senior Purchasing and Supply Managers' (SPSMs') Compensation Benchmarks and Demographics: a 2001 Study

Thomas E. Hendrick, Ph.D., and Jeffrey Ogden — Sun, 01 Jul 2001 00:00:00 GMT

The purpose of this study was to facilitate a first-of-its-kind survey of annual compensation packages for senior purchasing and supply managers of United States' Fortune 500 companies.

A Triangulation Approach to Diversity Supplier Development

Ralph G. Kauffman, Ph.D., C.P.M. — Fri, 01 Jun 2001 00:00:00 GMT

This article discusses how one company triangulates between itself, primary suppliers, and diversity suppliers to develop new diversity suppliers and as a result meets customer needs, reduces non-core activities of its primary suppliers and increases diversity supplier purchases.

Achieving World-Class Supply Chain Alignment: Benefits, Barriers, and Bridges

Stanley E. Fawcett, Ph.D., and Gregory M. Magnan, Ph.D. — Fri, 01 Jun 2001 00:00:00 GMT

This research identifies successful supply chain integration strategies, the conditional that led to success, and the barriers that were overcome. The costs and benefits of supply chain integration will also be documented.

Measuring Supply Risk: An Example from Europe

George Zsidisin — Fri, 01 Jun 2001 00:00:00 GMT

There has not been a significant degree of attention given to understanding the risks that exist with suppliers and the supply market. These supply risks can significantly affect the ability of an organization to achieve financial success. This best practice reports how one division, “Communication” (not its real name), in a multi-national company measures the potential financial impact of supply risks.

Purchasing Strategy in the 21st Century: E-Procurement

Keah Choon Tan and Ray Dajalos — Fri, 01 Jun 2001 00:00:00 GMT

This best practice study describes the Web-based B2B e-procurement system of a leading e-commerce enabler in Las Vegas, Nev. It is compiled based on interviews with two major clients, both of which are prominent hotel casinos in Las Vegas. The e-commerce enabler in this study is a leader in the Web-based B2B industry, providing e-commerce solutions that enable firms of all sizes to streamline their purchasing processes. While the e-commerce enabler provides other services, this study focuses on e-procurement.

An Online RFQ System: A Case Study

Vincent A. Mabert and Tobias Schoenherr — Thu, 01 Mar 2001 00:00:00 GMT

This article explores the development and implementation of an online quoting system within the purchasing function as a means to reduce overall cost for a manufacturer.

Commercialization of Procurement

Ray Carter and Alan Fenwick — Thu, 01 Mar 2001 00:00:00 GMT

This article focuses on the next stage in the development process of an internal Professional Procurement Service (PPS): changing mind and skill sets of the PPS team and the commercial aspects of, what has in effect,become a profitable internal procurement consultancy. In recent times, PPS has been going through the process of changing from a highly functional, price-driven and procedural-based process to a more commercially oriented business-like organization.

Digital Procurement - A Stand Alone Practice?

Rajesh Nellore — Thu, 01 Mar 2001 00:00:00 GMT

Not many companies succeed in implementing a digital procurement strategy and invariably end up destroying their relationships with long-time suppliers. We will investigate Firm P, a company that has successfully built up its digital procurement strategy. This firm is one of the top three firms in a manufacturing intensive industry and is a global player. This article describes the firm's implementation of its digital procurement strategy for the sourcing of paper.

Report on the Job Analysis to Update the Certified Purchasing Manager and Accredited Purchasing Practitioner Examinations

Eugene W. Muller, Ed.D. — Mon, 01 Jan 2001 00:00:00 GMT

This report describes the methods and results of a comprehensive job analysis of the purchasing and supply management function, conducted for the National Association of Purchasing Management from November 1997 to January 1999.

Purchasing's Contribution to the Socially Responsible Management of the Supply Chain

Craig R. Carter, Ph.D., and Marianne M. Jennings, J.D. — Fri, 01 Dec 2000 00:00:00 GMT

The purpose of this research was to examine the involvement of purchasing managers in the socially responsible management of the supply chain. This concept is referred t as purchases social responsibility (PSR) and consists of a wide array of behaviors that fall into the categories of environment, safety, diversity, and human rights, and quality of life, ethics, and community and philanthropy activities. The factors that drive PSR, barriers to PSR, ways of overcoming those barriers, and outcomes of PSR are examined in greater detail in the report.

Coming into Focus: Using the Lens of Economic Value to Clarify the Impact of B2B e-Marketplaces (bw version)

CAPS Research and McKinsey & Company — Wed, 01 Nov 2000 00:00:00 GMT

The goal of the research was to provide an objective analysis of the benefits, strategies, and capabilities of B2B e-marketplaces so that B2B e-marketplace users could better understand the purchasing and supply management functionalities they offer.

Coming into Focus: Using the Lens of Economic Value to Clarify the Impact of B2B e-Marketplaces (color version)

CAPS Research and McKinsey & Company — Wed, 01 Nov 2000 00:00:00 GMT

Developing "Fast Track" Policies and Procedures for the Purchase of Underground Construction: A Public Utilities Example

John M. Browning, Ph.D., C.P.M. — Fri, 01 Sep 2000 00:00:00 GMT

This report provides an overview of the “Fast Track” method of contracting for underground construction by one company to upgrade the City Water and Sewer System.

Strategic Sourcing: A Systematic Approach to Supplier Evaluation, Selection, and Development

James L. Patterson, Ph.D., C.P.M., A.P.P. and Kim M. Amann — Fri, 01 Sep 2000 00:00:00 GMT

This best practices study highlights an original equipment manufacturer’s (OEM) efforts to achieve world-class competitiveness through the development of a standardized strategic sourcing process throughout its several operating divisions.

The QV Way to Avoid Adverse Selection and Moral Hazard

Andrew Cox — Fri, 01 Sep 2000 00:00:00 GMT

This article outlines two cases in which the QuoVectius (QV)™ Way of Thinking was used to improve procurement and supply management practice.

Chief Purchasing Officers' Compensation Benchmarks and Demographics: A 1999 Study of 152 Fortune 500 Firms

Thomas E. Hendrick, Ph.D., and Jeffrey Ogden — Tue, 01 Aug 2000 00:00:00 GMT

The purpose of this study was to develop a model to identify the factors that explain the relative value and extent of compensation components (base salary, bonus, benefits) for Chief Purchasing Officers (CPOs) of Fortune 500 companies.

Deregulation in the Energy Industry: A Vision of the Future

Robert B. Handfield, Ph.D. — Tue, 01 Aug 2000 00:00:00 GMT

This study documents the emerging trends occurring in the electrical utility markets within different regions of the country. It also looks at the process that purchasers can use in evaluating potential suppliers. Selected purchasing managers will be asked to share insights on the following issues: Key evaluation criteria to consider, leveraging opportunities that may arise in the future, and future trends that may affect industrial purchasers of electricity in the near and distant future.

Electronic Reverse Auctions: Integrating the Tool with the Strategic-Sourcing Process

Larry Smeltzer, Ph.D., and Marc Ruzicka — Thu, 01 Jun 2000 00:00:00 GMT

This article describes how the reverse auction was integrated successfully as a tool in the sourcing process for a direct material at a major aerospace corporation. The process used to implement the new procurement tool consists of eight integrated steps: conducting a spend analysis, profiling the categories, identifying opportunities for leverage, developing clear specifications, identifying and qualifying the supply base, selecting the reverse auction provider, communicating with the suppliers, and conducting the electronic reverse auction.

Invoiceless Procurement: Streamlining the Receiving and Billing Processes

Marc Ruzicka — Thu, 01 Jun 2000 00:00:00 GMT

This article reviews the concept of evaluated receipts settlement (ERS), describes how ERS may benefit a procurement organization, and provides an example of how a procurement organization at a global pharmaceutical company successfully implemented an ERS system.

One Buyer's Contribution to Supplier Managed Inventory (SMI)

Arnold Maltz, Ph.D. — Thu, 01 Jun 2000 00:00:00 GMT

One popular trend in procurement is to maximize the supplier's role in managing inventory. There are obvious benefits. The buyer can reduce or eliminate inventory management activities such as daily monitoring, planning, and ordering. Inventory holding cost is minimal because the supplier takes on most of the risk. As long as the supplier performs — delivers the right amount of competitively priced components at the right time — supplier managed inventory (SMI) looks like paradise for purchasing professionals.

Best Value Procurement in Local Authorities

Martin Spring and Angel Dominguez-Ortega — Wed, 01 Mar 2000 00:00:00 GMT

European public procurement is becoming more professional, mainly because of the Best Value or Excellence strategies that are being implemented in public sector organizations. Partnerships, performance assessment, and the constant evaluation of indicators are the key elements of this process.

Creating a Self-funding Purchasing Department: A European Example

Lisa Ellram, Ph.D., C.P.M., C.P.A., and George Zsidisin — Wed, 01 Mar 2000 00:00:00 GMT

Cost containment and cost management continue to be top priorities for senior-level management. Several major companies in the Netherlands have found a way around the continual questioning of purchasing’s value: they fund themselves. Not the same as a profit center, these organizations make zero profit, nor do they charge user business units for their services.

Meaningful Involvement of Purchasing: The Case of Consulting Services

Joseph J. Schiele — Wed, 01 Mar 2000 00:00:00 GMT

The findings from this study suggest that purchasing can add value to those decisions where purchasing involvement has traditionally been low. In addition, benefits that result from meaningful involvement of purchasing are associated with the consulting service purchased and the organization as a whole, the specifier, the purchasing process, and the consulting service supplier. Managers may want to consider these insights the next time they are purchasing similar services.

International Purchasing and Supply Management: A Comparison of U.S. and German Practices

Lutz Kaufmann, Ph.D., and Craig R. Carter, Ph.D. — Tue, 01 Feb 2000 00:00:00 GMT

This research identified successful international purchasing and supply management practices. First, it explored how successful firms have designed their international purchasing and supply management systems, and how these designs relate to both external and internal success factors. second, it looked at how international purchasing and supply transactions can be managed successfully within those contexts. finally, world-class purchasing practices were identified and compared in manufacturing industries in the United States and in Germany.

A Skills-Based Analysis of the World Class Purchaser

Larry Giunipero, Ph.D., C.P.M. — Sat, 01 Jan 2000 00:00:00 GMT

The report documents the attributes of world-class purchasing and supply management individuals based on the experiences and practices at leading corporations.

Major Structural Changes in Supply Organizations

Michiel R. Leenders, D.B.A., and P. Fraser Johnson, Ph.D. — Sat, 01 Jan 2000 00:00:00 GMT

This research examined major changes in the purchasing/supply organization of large companies and ascertained the reasons for the change and the important benefits and costs of the changes. The research established the internal and external drivers of these changes and examined how the changes were implemented.

Gaining Competitive Advantages Through a Supplier Diversity Program

Hokey Min, Ph.D. — Wed, 01 Dec 1999 00:00:00 GMT

In this article, we will profile the successful implementation of a corporate-wide supplier diversity program utilized by one of the Fortune 500 companies.

Procurement Revolution with Intelligent Agent Technology

Mark E. Nissen, Ph.D. — Wed, 01 Dec 1999 00:00:00 GMT

This article describes some key principles for integrating intelligent agent technology into procurement processes — such as working effectively with people in the process and adhering to purchasing policies and procedures in the enterprise — and outlines key features of a revolutionary procurement process design enabled by this advanced information technology.

Worldwide Capital Construction Procurement at GlobaChem

Michael A. McGinnis, D.B.A. — Wed, 01 Dec 1999 00:00:00 GMT

The procurement department of GlobaChem, a multinational chemical company with sales of over US $5 billion, faced a challenge. The company began a strategy of expanding its global operations which included numerous global construction projects and purchasing played a key role in driving the success of this strategic effort.

Purchasing Electricity in a Globally Transitioning Market

Robert Handfield, Ph.D. — Wed, 01 Sep 1999 00:00:00 GMT

Organizations that purchase significant amounts of electricity as part of their operating expenses can benefit from adopting a global energy procurement strategy, as the organization described in this best practice has done.

Statement of Work for Technical Services: A Decision Process Approach

Larry Smeltzer — Wed, 01 Sep 1999 00:00:00 GMT

Global-Net recognized the importance of developing cross-functional teams for acquisition of software/technical services. To accomplish this, it was necessary to complete a decision process for writing the Statement of Work. This led to creation of an SOW process, a way to make the SOW process more easily understood, and the development of a best-practice model for contract-type selection. Once this was accomplished, Global-Net’s goal of harnessing software costs was realized.

Surrogate Sourcing - Not to be Confused with Outsourcing

Jerry Marstall — Wed, 01 Sep 1999 00:00:00 GMT

Whereas outsourcing has been seen as an undermining of the influence and power of supply management organizations, Surrogate Sourcing resuscitates the influence and power of supply management by providing tools that allow supply management to become the largest contributor to corporate profits of all the organizations within a company. Surrogate Sourcing, in the timeframe of weeks versus months and years, can contribute more to corporate profits than any other business approach, including outsourcing.

A Multi-Country Study of Strategic Topics in Purchasing and Supply Management

Thomas E. Hendrick, Ph.D. — Tue, 01 Jun 1999 00:00:00 GMT

The research looked at what changes (or drivers of change) are under way (or are expected to occur in the next decade) in both external global economic/political environments, and internal organizational environments that are expected to have a direct or indirect impact upon the nature of both traditional and/or leading-edge purchasing and supply management functions, activities, authorities, responsibilities, domains, human resources, organizational structures, services, suppliers, and customers/clients.

Competency Development in Supply Chain Management

Eberhard E. Scheuing, Ph.D., C.P.M., A.P.P. — Tue, 01 Jun 1999 00:00:00 GMT

Using a systematic, team-driven process to assess current state, needed competencies, and appropriate actions has enabled Biz Comm (not its real name) to create a cutting-edge supply chain management organization that practices commitment to continuing professional development and improved performance.

Environmental Management: Purchasing's Cross-Functional Role

Craig R. Carter, Ph.D., and Martin Dresner, Ph.D. — Tue, 01 Jun 1999 00:00:00 GMT

Environmental issues are becoming important not only to firms as a whole, but to purchasing as a function. But what role can purchasing managers play? What type of cross-functional integration is necessary to successfully implement an environmental project, and how can purchasing managers contribute to a firm’s environmental efforts? Is there a tradeoff between environmental friendliness and higher costs?

Reducing the Transactions Costs of Purchasing Low-Value Goods and Services

Robert J. Trent, Ph.D., and Michael G. Kolchin, D.B.A., C.P.M. — Tue, 01 Jun 1999 00:00:00 GMT

This study looked at how organizations can reduce the time allocated to and transactions cost of low-value purchases so that more effort can be dedicated to high-value purchases.

Supply Risk Assessment Analysis

George Zsidisin and Lisa Ellram, Ph.D., C.P.A., C.P.M. — Tue, 01 Jun 1999 00:00:00 GMT

This best practice summarizes the risk assessment process and the proactive supply risk management of a Fortune 500 high technology electronics company in order to elucidate how other organizations can develop their own risk mitigation strategies.

The Impact of Purchasing on Financial Performance

Julia S. David, Ph.D., Yuhchang Hwang, Ph.D., et al. — Tue, 01 Jun 1999 00:00:00 GMT

This research used the CAPS benchmarking database and data on publicly held firms to explore relationships between purchasing performance, as reported on CAPS benchmarking studies, and financial performance of firms. The study speaks to the aggregate relationships between purchasing and financial performance, but will evaluate the performance of individual firms.

ISO 14000 Assessing Its Impact on Corporate Effectiveness and Efficiency

Steven A. Melnyk, Ph.D., CPIM — Sat, 01 May 1999 00:00:00 GMT

This study looked at this new international standard. While the ISO 9000 series focused on quality and the processes developed within the firm, ISO14000 focuses primarily on the environmental management systems developed by firms. The project addresses the following research questions: What is the initial predisposition of potential users of ISO 14000 to the ISO 14000 standard, how are these predispositions influenced by factors such as past experiences with ISO 14000 registration and success, and improved market and corporate performance.

OEM Cycle Time Reduction Through Supplier Development

James L. Patterson, C.P.M., A.P.P., and J. Dougal Nelson — Mon, 01 Mar 1999 00:00:00 GMT

This best practices study highlights a manufacturer’s supplier development activities, providing assistance by focusing on cycle time reduction. To this end, this company, identified as “Accent Equipment,” has provided significant engineering and process management support to its key suppliers, reducing cycle time, decreasing manufacturing costs, and improving product quality.

Strengthening Internal Relationships

Eberhard E. Scheuing, Ph.D., C.P.M., A.P.P. — Mon, 01 Mar 1999 00:00:00 GMT

The Chief Procurement Officer (CPO) of Major Insurance Company wanted to gain more cooperation from the management and his fellow employees throughout the many divisions and locations of his vast international firm. Being in a highly competitive service industry, he felt that his company’s success in the marketplace depended significantly upon the extent and nature of the cooperation between his purchasing team and its internal customers. Because any chain is only as strong as its weakest link, he set out to strengthen his team’s working relationships with internal customers.

The Marketing of Professional Procurement

Ray Carter, MA, MCIPS, MBM — Mon, 01 Mar 1999 00:00:00 GMT

This article describes the development of an internal Professional Procurement Service (PPS) designed to provide value-adding procurement services to the group’s internal customers. The “marketing”of PPS was highly successful and the PPS now provides a valuable service to the company. The article focuses on the service to be provided, promotion of the concept of a commercial and professional procurement service and Global Travel’s procurement executive, and, finally, the delivery of that service to the customer.

Developing a World-Class Supply Base

Daniel R. Krause, Ph.D., and Robert B. Handfield, Ph.D. — Fri, 01 Jan 1999 00:00:00 GMT

compares buying firms' supplier development efforts in the United States to buying firms' supplier development efforts in the United Kingdom and South Korea, in the automotive and electronics industries. Specifically , what are these firms doing to effectively improve their suppliers' performance to world-class levels.

The Role of Supply Management in Target Costing

Lisa Ellram, Ph.D., C.P.M., C.P.A. — Fri, 01 Jan 1999 00:00:00 GMT

This report investigates how leading firms use target costing in purchasing and supply. The research examines factors that influence implementation, the role of purchasing and supply professionals, supplier involvement, and variations among industries.

Getting Suppliers Up to Speed on Y2K

Eberhard E. Scheuing, Ph.D., C.P.M., A.P.P. — Tue, 01 Dec 1998 00:00:00 GMT

To protect itself against disruptions caused by the ‘millennium bug’, Titan Heavy Equipment Co. (not its real name) moved early and decisively by identifying and resolving date sensitivity problems in its supply chain. Its efforts focused on both systems issues and embedded problems at three levels: its own operations, critical first-tier suppliers, and their second-tier suppliers. Consequently, Titan anticipates a smooth transition into the next millennium, resulting in a competitive advantage.

Purchasing Professional Services

Larry R. Smeltzer, C.P.M. — Tue, 01 Dec 1998 00:00:00 GMT

Pharmed’s efforts demonstrate that an integrated program is needed to successfully implement best practices when purchasing professional services. Top management support is needed; buy-in from the various professional disciplines is required; sound purchasing principles must be applied; and value must be demonstrated.

Spinning-off Procurement - Establishing an Independent Procurement Company

Wolfgang Buchholz, Ph.D., and Lutz Kaufmann, Ph.D. — Tue, 01 Dec 1998 00:00:00 GMT

In the process of developing “core competency with outsourcing” strategies, many companies face the issue of whether they continue to carry out purchasing on their own. If somebody offering procurement services has a core competency and can provide added value for the customer, a successful relationship may be established. Identifying the value and successfully marketing it is, and will continue to be a challenge for the “central buyers of the good old days.”

The Influence of the EURO on the Purchasing Function (hard copy only)

Prof. Ing. Dkfm. Dr. Geiserich Tichy, and Mag. Josef Baumgartner, et al. — Tue, 01 Dec 1998 00:00:00 GMT

The focus of this study is to give the first systematic and detailed look of how the EURO will have a major impact on business environments with the increasing importance of materials management, purchasing, and logistics as strategic corporate functions.

Managing the Year 2000 Supplier Compliance Process

Eberhard Scheuing, Ph.D., C.P.M. — Thu, 01 Oct 1998 00:00:00 GMT

This research project explores the efforts being made to address the year 2000 challenge by purchasing professionals. Year 2000 supplier compliance processes, supplier support issues, and organizational issues are explored.

Target Costing

Lisa Ellram, Ph.D. — Tue, 01 Sep 1998 12:00:00 GMT

This best practice study highlights Carsrun Company’s (CRC) current practices in target costing.

Going Global

Robert B. Handfield, Ph.D. — Tue, 01 Sep 1998 00:00:00 GMT

Managers at Sportscar believe most barriers to successful global supplier development are “soft” issues. One cannot “buy” management skills, attitude, and acceptance, yet these elements are most important when selecting and qualifying suppliers.

Making the Most of Your Distributors

Arnold Maltz, Ph.D. — Tue, 01 Sep 1998 00:00:00 GMT

As staffs get leaner and products more complicated, it only makes sense to maximize benefits from your supply base. In the high-tech electronics world, the pressure is intense. Product life-cycles can be 18 months or less, performance expectations are extreme, markets are global, and engineering content is very high. Add to that the very complicated design process and the large number of components, and the purchasing task is challenging, to say the least.

The Future of Purchasing and Supply: A Five- and Ten-Year Forecast

CAPS Research and NAPM — Tue, 01 Sep 1998 00:00:00 GMT

This report provides a forecast of the future environment in which purchasing and supply professionals will be working five and 10 years into the future. This forecast will allow professionals and their organizations to better plan and prepare for the future.

The Making of the CPO: The Mobility Patterns of Chief Purchasing Officers

Aaron A. Buchko, Ph.D. — Tue, 01 Sep 1998 00:00:00 GMT

This report studies the career paths of executives in purchasing and supply management. The research looks for patterns that accompany career moves within, into and out of the purchasing and supply function. It also looks at the history of career moves from the chief purchasing officer position to other executive positions in the organization.

Beyond Purchasing to Life Cycle Management

Linda L. Stanley, Ph.D. — Mon, 01 Jun 1998 00:00:00 GMT

A few years ago, the purchasing director for the North American region of a global semiconductor producer (named Semico for this article) was given responsibility for not only purchasing manufacturing site equipment, but also managing its performance through its entire life cycle. A dramatic move to incorporate their suppliers to becoming a "seamless" extension of the company has resulted in significant improvement in equipment performance.

Doing More with Less: How Teams Can Help Manage the Commodity Management Process

Lisa Ellram, Ph.D., C.P.M., C.P.A. — Mon, 01 Jun 1998 00:00:00 GMT

Doing more with less is an issue that all purchasing departments seem to be wrestling with today. ConsumerPro (not its real name) is a consumer products company that has a surprisingly low purchasing headcount for the dollars of purchasing expenditure. How this company changed the purchasing organization to support a cross-functional team approach is the focus of this best practice. The teams are referred to as strategic sourcing teams, while the commodity management approach is referred to as category management.

Ethical Issues in Global Buyer-Supplier Relationships

Craig R. Carter, Ph.D. — Mon, 01 Jun 1998 00:00:00 GMT

This study investigates the factors that comprise ethical issues in global sourcing, the precursors and outcome of ethical purchasing behavior, and distinctions in the perceptions of ethical behaviors that might exist at different levels within the purchasing organization as well as between purchasing and global suppliers.

Integrated Purchasing System

Michael A. McGinnis, D.B.A., C.P.M., A.P.P., and Rafeekh Mele Vallopra, M.B.A. — Mon, 01 Jun 1998 00:00:00 GMT

ATELX (not their real name), a leading full-service communications company implemented an integrated management information system to assist in solving strategic sourcing problems. This best practice illustrates the development of an integrated purchasing system (IPS) through the use of fundamental and straightforward processes. The result of these efforts allowed ATELX to achieve a very effective and dynamic system that continues to be refined.

A World-Class Supplier Quality Control Program

Hokey Min, Ph.D. — Sun, 01 Mar 1998 00:00:00 GMT

Considering that the quality of incoming parts sets the stage for the quality of finished goods, a supplier quality control program is a major step toward company-wide continuous quality improvement efforts. This best practice study highlights the world-class supplier quality control program that an electronic hardware distributor (hereafter called "NewStar") has successfully developed and implemented over the last several years.

Purchasing and the Internet

Steven Chapman, Ph.D. — Sun, 01 Mar 1998 00:00:00 GMT

A large company with more than $5 billion dollars in annual sales and multiple manufacturing and service sites throughout the world is in the process of developing an effective and interesting application for internet purchasing activities. The Company is aggressively pursuing expansion of the intranet into an internet application, and to put virtually all major MRO material and service needs on-line.

Taking Stock of an Inventory System

James L. Patterson, C.P.M., A.P.P., and Keri Alexander — Sun, 01 Mar 1998 00:00:00 GMT

When a global company strives to achieve world-class competitive status, it frequently focuses on its ability to improve its cost structure through the streamlining of its materials management processes and the overall reduction of inventories. This best practice study highlights a U.S. coal mining company's materials management function and processes, especially the effective management of maintenance, repair, and operating supplies, which have been a significant contributor to its corporate cost improvement program.

Purchasing and Supplier Involvement: New Product Development and Production/Operations Process Development and Improvement

Michael A. McGinnis, D.B.A., C.P.M. — Sun, 01 Feb 1998 00:00:00 GMT

This report assesses early supplier involvement in new product design (NPD). Specific issues examined include the roles of purchasing, supplier identification and certification, timing of involvement, technology sharing, monitoring and control, risks/rewards, timesaving, and quality cost issues in early supplier involvement.

Purchasing Innovation through Pet Projects

Stanley E. Fawcett, Ph.D. — Mon, 01 Dec 1997 00:00:00 GMT

This best practice study looks at how one firm in the minerals extraction industry systematically dismantled its long-standing and reactive materials management style in an effort to create a materials organization that creates and delivers value. Four elements form the foundation for the overhaul: a leadership style that encourages individual initiative, aggressive goal setting, enhanced communication and teamwork, and constant improvement through pet projects. Combining these four initiatives promotes increased profitability and enhanced long-term competitive position.

Supply Chain Management as Profit Center

Arnold Maltz, Ph.D. — Mon, 01 Dec 1997 00:00:00 GMT

Supply chain management is under increasing pressure to prove its contribution to the bottom line. This study relates how one purchasing group has taken the ultimate step and become responsible for profit, as opposed to cost. Key challenges included selling, pricing, and reinventing relationships with internal customers.

Supply Positioning at SGX Corporation

Joseph R. Carter, D.B.A., C.P.M. — Mon, 01 Dec 1997 00:00:00 GMT

The Supply Positioning technique provided SGX Corporation with a mechanism for discriminating between the various goods and services that are purchased and for developing specific strategies to meet the needs of the organization with respect to each item or class of items. It has proved to be a very powerful tool for coordinating the sourcing patterns of the various strategic business units and convincing senior management of the really effective role that purchasing can play in contributing to corporate profit and success.

Handling Small Dollar Orders

Marc Ruzicka and Phillip L. Carter — Mon, 01 Sep 1997 00:00:00 GMT

Effectively and efficiently handling a large volume of small dollar orders is a challenge for all purchasing departments. This best practice study highlights one university's solution to the challenge. The solution, which has evolved over time, was for the purchasing department to design and manage the purchasing process while letting the end-users manage the individual transactions within the process.

How Managers Become Chiefs

Eugene E. Jennings, Ph.D. — Mon, 01 Sep 1997 00:00:00 GMT

The purpose of this study is to address the knowledge managers need about mobility skills, rules, and moves needed by managers to make the transition to the leadership role of “chief.”

Purchasing Consortiums: Horizontal Alliances Among Firms Buying Common Goods and Services. What? Who? Why? How?

Thomas E. Hendrick, Ph.D. — Mon, 01 Sep 1997 00:00:00 GMT

This research explores combining requirements for goods and services of two or more buying organizations to gain the price, design, supply availability/assurance benefits (and other benefits) of higher volume commitments. In what environment(s) or situation(s) does consortium buying work best? What are the problems? What are the benefits? What are the legal issues? How should purchasing develop and structure consortium buying?

Reinventing Purchasing for Competitive Advantage

Eberhard Scheuing, Ph.D. — Mon, 01 Sep 1997 00:00:00 GMT

As the company streamlined itself for the competitive onslaught, its new Chief Sourcing Officer revamped both the structure and approach of its centralized purchasing organization to enhance competitive advantage. The new Corporate Sourcing Organization revolves around 12 product/service streams that draw on Central Sourcing Support in executing the strategic sourcing process. Central to the new approach is a cadre of Sourcing Process Leaders who as process owners drive strategic sourcing with the help of cross-functional teams.