With the onset of the pandemic last year, supply chains struggled to deliver, but payment terms were also affected. Of the supply managers we surveyed, 31% increased their payment terms last year. While 66% paid within 45 days in Q1, by the third quarter of the year, the number dropped to 57%, shifting toward longer 60- and 90-day terms.
CAPS News - 21 April 2021
Advance your analytics with the new CAPS metrics maturity model. Plus, negotiation and contracting and world news.
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Supply management has the power to transform businesses, economies, and lives. CAPS Research honors this, and while we hold our founder's values close, we fearlessly face the future to empower supply chain management leaders and advance the profession.
Negotiation & contracting to support business outcomes (stage 5)
Contracting and negotiating is the next step in the 7 stages to business-aligned strategies that organizations should follow as part of their category management playbook. It’s an important step in category strategy execution as you align supplier relationships with your strategy.
Move up the metrics and value reporting maturity curve
While inwardly focused metrics may be “safe” and what is expected of supply management, if the function is going to progress from tactical to strategic, the goal for most supply leaders ultimately should be alignment with stakeholders. Supply management must push beyond its own internal perspective to understand the business and, whenever possible, adopt the metrics that drive the enterprise.
ESG still lags in supplier assessments
When it comes to what questions supply managers are asking in supplier assessments, less than half include environmental, social, and governance (ESG) questions.
CAPS News - 7 April 2021
Best practices for sharing and protecting your data, developing your category management strategy, infrastructure proposals, and more timely SCM news.
Best practices for sharing and protecting data in supply management
In today's connected world, sharing data with suppliers is a given. But not all data, and all suppliers, are created equal. Organizations must assess their data-sharing priorities and connect with suppliers that are able to protect the data accordingly. Effective data security must be a critical element in supplier selection, onboarding, and relationship management.
Collecting Supplier Data
Out of all the data companies collect from suppliers, greenhouse gas (GHG) doesn’t make the list. Nope – it’s not an April Fools’ joke. While it’s encouraging that at least 1/3 of companies gather compliance and human rights information, key environmental data like GHG emissions are missing. Companies need to move beyond basic compliance to validating suppliers’ activities and carbon footprint. What proactive measures is your organization integrating to make a difference?
Strategy development is the foundation of your category management playbook
Category management strategy development can align internal business requirements with the marketplace and suppliers' capabilities by segmenting the organization's spend into discrete groups. It's the foundation of your category management approach, and doing it well delivers significant value to the organization.