Supply Market Intelligence: A Managerial Handbook for Building Sourcing Strategies(Resource Management)

Supply Market Intelligence: A Managerial Handbook for Building Sourcing Strategies charts the course to success for executives who are seeking to lead their organizations to supply-chain maturity. This volume is intended for supply-chain executives who struggle with the challenges of an uncertain supply market environment and whose supply chain function is constantly buffeted by unexpected changes in customer requirements and commodity prices. The author offers a more effective path, describing an integrated approach to supply chain management based upon solid market intelligence. This path is derived from the authors' multiple engagements with organizations such as Suncor Energy, Bank of America, Shell Oil, Honda of America, General Motors, Boston Scientific, Visteon, Federal Express, Sonoco, Duke Energy, Caterpillar, John Deere, GlaxoSmithKline, and many others. He emphasizes that the elements of a successful plan do not arise from a simple vision, instead they require much hard work and a focused approach backed by solid leadership. This book begins by defining supply market intelligence and discussing opportunities, the establishment of a project team, and conducting an internal business intelligence assessment. The book then examines the development of business and market intelligence, supplier evaluations, and sourcing strategies. It also explores how to execute a sourcing strategy, manage a strategic supplier relationship, and redesign an organization for effective supply-chain intelligence and strategic sourcing. This volume offers a benchmarking maturity model tool that covers all facets of end-to-end supply-chain management.

Table of Contents:
Introduction Chapter Outline What Is Supply Market Intelligence? Moving Supply Management from the Tactical to Strategic Approach The Profit-Leverage Effect of Supply Management How Mature Is Your Supply Management Function? Translating Corporate Objectives into Supply Management Goals Bringing Goals and Objectives Together - the Strategic Sourcing Process A Word on Business and Market Intelligence Summary Intelligence and Opportunity Chapter Outline BI and SMI - A Massive Challenge for Enterprises in the Future The Need for a Dedicated BI/MI Centralized Team in Large Enterprises The Push Approach to BI/MI Building a Case for Change: Identifying a Trigger Have You Spoken to Your CFO about Supply Management Recently? What Is an Opportunity? Detecting an Opportunity Types of Opportunities Acting on an Opportunity From Opportunity to Prospective Project Validate the Opportunity and Estimate the Prize The Project Proposal Intelligence and Opportunity Checklist Results Establishing the Team Chapter Outline Getting the Project Started The CPO and the Project Budget The Project Coordinator Issuing a Project Charter Assess Current and Future Environmental Requirements Identify Skills Required Recruiting an RM Cross-Functional Teams Kickoff Meeting Distributing Tasks Checklist Results As-Is Assessment (Creating Internal Business Intelligence) Chapter Outline Getting Started: Defining User Requirements Internal Analysis Identifying Historical Cost and Volume Trends Segmenting Spend by User, Type, and Supplier Data Warehouse and Data Warehousing Creating a Spend Analysis Report, Including Unit-Cost Analysis Project Cost and Demand Requirements Analyzing Data Performing Cost Audit Grassroots Interviewing Checklist Results Developing Business Intelligence and Market Intelligence Chapter Outline The Sales and Operating Plan The Three Laws of Forecasting Accuracy Market Forecasts Forecasting Uses Forecasting Types Characteristics of a Solid Forecasting System Six Steps of Forecasting Sales and Operations Implementation - Best Practices Conclusion Checklist Results Supply Market Intelligence Chapter Outline Introduction Integrating Market Intelligence with Risk Assessment Types of Forecasts Assessing Global Logistics Risk Tying Together the Elements of Risk Eighteen Best Practices For Supply-Chain Risk Management Strategic Sourcing Conclusion Checklist Supplier Evaluation Chapter Outline Identifying Key Supplier Evaluation Criteria Identifying Potential Supply Sources through RFIs and Secondary Market Research Organizing Data and Determining If Sufficient Information Exists Detailed Financial Analysis Total Cost/Value Chain Assessment Performing a Detailed Supplier Evaluation through Supplier Visits Conclusion Checklist Results Develop Sourcing Strategy Chapter Outline Commodity Analysis Supplier Preferencing Evaluate Strategies Finalize Strategy Develop Relationship Strategy and Bargaining Position Developing a Strategy Position Paper Obtain Management Approval of Sourcing and Negotiation Strategies Conclusion Checklist Results Execute Sourcing Strategy (Nonstrategic Supplier Relationships) Chapter Outline Introduction - Managing the Transition to Relationship Management What Type of Relationship Is Appropriate for the Commodity? E-Procurement and the Purchasing Process Purchase Approval Release and Receive Purchase Requirements What is the Right Approach to a Negotiation? Preparing for the Negotiation Conducting the Negotiation Implementing the Agreement Negotiation Planning Power in Negotiation Building a Contract that Minimizes Risk Conclusion Checklist Results Relationship Management (Strategic Supplier Relationships) Chapter Outline Introduction Why Relationship Management? Ten Reasons Why You Need a Dedicated Relationship Management Function (Handfield and Nichols, 2003) Making the Transition from Strategic Sourcing to Relationship Management Organize the Relationship Management Team, Define the Vision The Case of Software Development and Proprietary Technology Define the Relationship Management Leader, the Team, and the Change-Management Strategy Operate the Relationship Manage Performance, Monitor Relationships Common Problems Strategic versus Reactive Approaches to Supplier Development Supplier Development: A Strategy for Improvement CAPS Global Supplier Development Study (1997) Supplier Development Efforts That Sometimes Do Not Work Can You Trust the Concept of Trust in Supply-Chain Relationships? What Does It Mean to Trust? Dependence: Too Much Is Never a Good Thing Conclusions: Lessons Learned about Relationship Management Checklist Results References Redesigning Your Organization for Supply-Chain Intelligence and Strategic Sourcing Chapter Outline Leading Organizational Change for SCM What Is the Required Organizational Structure for SCM? Definition of Skills SCM Knowledge Definitions Deploying Organizational Change What Is Organizational Modularization? Rollout of Proposed Organizational Changes The Criticality of Building Consensus in Change Management: The Role of Cross-Functional Teams The Challenges of Partnerships Conclusion Checklist Results Benchmarking Chapter Outline Benchmarking Supply Market Intelligence and Organizational Maturity The SCM Framework How Will Organizations Progress through This Framework? Maturity Grids Behaviors and Roles Conclusion - Leading Change in Supply Management Checklist Results APPENDICES A Global Sourcing in China Low-Cost-Country Sourcing: What about China? The Growth of Low-Cost-Country Sourcing Barriers to Global Sourcing Locating Global Sources Identifying New Suppliers Globally China's Growing Economic Strength Labor Force Centers of Growth in China Identifying and Negotiating with Chinese Suppliers International Exchange Rate Forecasts Conclusions Notes B Best Practices Three Best Practices in Supplier Development Best Case 1: BMW's Approach to Supplier Development Best Case 2: Supplier Development at Chrysler Best Case 3: Supplier Development at Honda C Case Studies Suncor Energy: Foothills Drilling - Relationship Management Process Packaging Manufacturer - Developing an RFP Bank of America: Document Management - Supply Market Intelligence FedEx Strategic Sourcing and Supply D Coding Systems Most Commonly Used Commodity Classification and Coding Systems Advantages and Disadvantages Industry: Transportation Industry: Energy and Utilities Industry: Information Technology Industry: Plastics Industry: Services Industry: Steel Manufacturing Industry: Textiles General Web Sites Paid Services Supplier Data To Be Collected Purchase Order Data To Be Collected Sourcing Relationship Factors To Be Considered for Strategic Sourcing Process E References and Resources Other Resources Web sites