Supply Market Intelligence A Managerial Handbook for Building Sourcing Strategies

Supply Market Intelligence: A Managerial Handbook for Building Sourcing Strategies 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 framework covering all facets of supply-chain management, and includes best practices and case studies of world-class companies.

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.

IntroductionChapter Outline What Is Supply Market Intelligence? Moving Supply Management from the Tactical to StrategicApproachThe Profit-Leverage Effect of Supply Management How Mature Is Your Supply Management Function? Translating Corporate Objectives into Supply Management GoalsBringing Goals and Objectives Together - the StrategicSourcing Process A Word on Business and Market IntelligenceSummary Intelligence and OpportunityChapter Outline BI and SMI - A Massive Challenge for Enterprises in the Future The Need for a Dedicated BI/MI Centralized Team in LargeEnterprisesThe Push Approach to BI/MIBuilding a Case for Change: Identifying a Trigger Have You Spoken to Your CFO about Supply ManagementRecently? What Is an Opportunity? Detecting an Opportunity Types of OpportunitiesActing on an Opportunity From Opportunity to Prospective ProjectValidate the Opportunity and Estimate the Prize The Project ProposalIntelligence and Opportunity Checklist Results Establishing the TeamChapter Outline Getting the Project Started The CPO and the Project Budget The Project Coordinator Issuing a Project Charter Assess Current and Future Environmental RequirementsIdentify Skills RequiredRecruiting an RM Cross-Functional Teams Kickoff MeetingDistributing Tasks ChecklistResults As-Is Assessment (Creating Internal Business Intelligence) Chapter Outline Getting Started: Defining User RequirementsInternal Analysis Identifying Historical Cost and Volume Trends Segmenting Spend by User, Type, and SupplierData Warehouse and Data Warehousing Creating a Spend Analysis Report, Including Unit-Cost Analysis Project Cost and Demand Requirements Analyzing Data Performing Cost AuditGrassroots InterviewingChecklistResults Developing Business Intelligence and Market Intelligence Chapter Outline The Sales and Operating PlanThe Three Laws of Forecasting Accuracy Market Forecasts Forecasting UsesForecasting Types Characteristics of a Solid Forecasting System Six Steps of ForecastingSales and Operations Implementation - Best Practices Conclusion ChecklistResults Supply Market IntelligenceChapter Outline Introduction Integrating Market Intelligence with Risk AssessmentTypes of ForecastsAssessing Global Logistics RiskTying Together the Elements of RiskEighteen Best Practices For Supply-Chain Risk ManagementStrategic Sourcing Conclusion ChecklistSupplier Evaluation Chapter Outline Identifying Key Supplier Evaluation Criteria Identifying Potential Supply Sources through RFIs and SecondaryMarket ResearchOrganizing Data and Determining If Sufficient InformationExists Detailed Financial Analysis Total Cost/Value Chain Assessment Performing a Detailed Supplier Evaluation through SupplierVisits Conclusion ChecklistResults Develop Sourcing Strategy Chapter Outline Commodity Analysis Supplier Preferencing Evaluate StrategiesFinalize Strategy Develop Relationship Strategy and Bargaining Position Developing a Strategy Position PaperObtain Management Approval of Sourcing and NegotiationStrategies Conclusion ChecklistResults Execute Sourcing Strategy (Nonstrategic Supplier Relationships) Chapter Outline Introduction - Managing the Transition to RelationshipManagementWhat Type of Relationship Is Appropriate for the Commodity?E-Procurement and the Purchasing Process Purchase ApprovalRelease and Receive Purchase Requirements What is the Right Approach to a Negotiation?Preparing for the NegotiationConducting the Negotiation Implementing the Agreement Negotiation PlanningPower in Negotiation Building a Contract that Minimizes Risk Conclusion ChecklistResults Relationship Management(Strategic Supplier Relationships) Chapter Outline Introduction Why Relationship Management? Ten Reasons Why You Need aDedicated Relationship Management Function(Handfield and Nichols, 2003) Making the Transition from Strategic Sourcing to RelationshipManagementOrganize the Relationship Management Team, Define the VisionThe Case of Software Development and Proprietary TechnologyDefine the Relationship Management Leader, the Team, and theChange-Management Strategy Operate the RelationshipManage 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-ChainRelationships? What Does It Mean to Trust? Dependence: Too Much Is Never a Good Thing Conclusions: Lessons Learned about Relationship Management ChecklistResults ReferencesRedesigning Your Organization for Supply-ChainIntelligence and Strategic SourcingChapter Outline Leading Organizational Change for SCMWhat Is the Required Organizational Structure for SCM?Definition of SkillsSCM Knowledge DefinitionsDeploying Organizational Change What Is Organizational Modularization?Rollout of Proposed Organizational ChangesThe Criticality of Building Consensus in Change Management:The Role of Cross-Functional TeamsThe Challenges of Partnerships Conclusion ChecklistResults Benchmarking Chapter Outline Benchmarking Supply Market Intelligence and OrganizationalMaturity The SCM Framework How Will Organizations Progress through This Framework? Maturity Grids Behaviors and RolesConclusion - Leading Change in Supply Management ChecklistResults APPENDICESA Global Sourcing in China Low-Cost-Country Sourcing: What about China?The Growth of Low-Cost-Country SourcingBarriers to Global Sourcing Locating Global SourcesIdentifying New Suppliers GloballyChina's Growing Economic Strength Labor Force Centers of Growth in China Identifying and Negotiating with Chinese Suppliers International Exchange Rate ForecastsConclusions Notes B Best Practices Three Best Practices in Supplier DevelopmentBest Case 1: BMW's Approach to Supplier Development Best Case 2: Supplier Development at ChryslerBest Case 3: Supplier Development at HondaC Case StudiesSuncor Energy: Foothills Drilling - Relationship ManagementProcess Packaging Manufacturer - Developing an RFPBank of America: Document Management - Supply MarketIntelligenceFedEx Strategic Sourcing and Supply D Coding SystemsMost Commonly Used Commodity Classification and CodingSystemsAdvantages and Disadvantages Industry: Transportation Industry: Energy and UtilitiesIndustry: Information TechnologyIndustry: 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 ProcessE References and Resources Other ResourcesWeb sites