CSCMP's Supply Chain Quarterly
May 05, 2016

Current Issue: Quarter 1 2016

Procurement at Philips: Total transformation on a global scale

Procurement
Procurement at Philips: Total transformation on a global scale

When Royal Philips implemented a new product design and procurement process, it also completely reconfigured its procurement organization. The author, who worked together with Philips executives Fredrick Spalcke and Ad Boon on the project, explains the initiative's origins, challenges, and successes.

Information without borders
Technology

Information without borders

For companies with international supply chains, developing an information technology strategy that successfully balances global and local requirements is not easy. Here are some considerations to keep in mind.
Simple but effective KPIs for global shipments
Global

Simple but effective KPIs for global shipments

By utilizing just three key performance indicators—lane cost, working capital, and a penalty for excessively late delivery—and converting them into economic values, you'll have the information you need to properly manage any global logistics move.
Full circle
Manufacturing

Full circle

Reverse supply chain management and closed-loop recycling reintroduce reusable parts and materials into the forward supply chain. Manufacturers, consumers, and even the planet can benefit from this practice.
A look into the future of procurement
Procurement

A look into the future of procurement

Techniques and strategies for choosing suppliers and building strategic partnerships are due for an overhaul. "Value procurement" may be the next step in the discipline's evolution, say the authors of the new book The Procurement Value Proposition: The Rise of Supply Management.
Strategy

International ambassadors

Miquel Serracanta and Eduardo Vargas are dedicated to representing and strengthening CSCMP's international membership. Here's why they think that's important.
Columns
Procurement Priorities

Cheaper oil has procurement rethinking strategies

With oil and other commodity prices lower than they have been in over a decade, procurement leaders are reassessing contracts with suppliers.
Top-Performing Supply Chains

Top-performing supply chains: Industrial packaging

When it comes to improving their supply chains, industrial packaging companies (for the most part) have stalled out, but a few companies are making headway.
Afterword

Revisiting the TPP

The Trans-Pacific Partnership may not take effect until well into 2017—if ever. What effects it will have on global business and economies remains in dispute.
Direct Connection

Collaboration is key to improving rail service

There's no question that there are opportunities to improve America's rail system, but carriers can't do it alone.
Monetary Matters

What's in store for the U.S. consumer in 2016?

Consumers can expect low fuel prices, modest gains in household income, and rising home sales. But consumers are still likely to remain somewhat cautious in their spending.
Perspective

Thinking globally

Virtually every supply chain professional is affected in some way by international trade, logistics, and supply chain operations and strategies.
Forward Thinking

Ten ways the manufacturing supply chain will transform itself in 2016 (and beyond)

The next 24 months will bring radical changes in manufacturers' supply chain strategies and operations, says analyst group IDC. The drivers: technologies such as cloud-based commerce networks, demand-sensing technology, and 3-D printing.

Health-care industry continues to struggle with managing inventory

Hospitals could significantly cut costs by using technology to improve supply chain visibility, says a report from Cardinal Health.

Book provides guidance on handling (and avoiding) supply chain disputes

In Legal Blacksmith, a longtime supply chain executive and a veteran attorney team up to help keep supply chain professionals out of the courtroom.

Real estate firm predicts strong demand for logistics and distribution space through 2016

JLL anticipates that, for the most part, supply of available space for lease will not grow and rents will continue to rise.

No one in the driver's seat

A new study from GT Nexus finds that most manufacturers are operating without a chief supply chain officer.

Global Trade and Container Flow Index: Global economy in a holding pattern

Gains in mature economies have not been significant enough to offset losses in emerging countries.
Departments

Chain Reactions

Letters and comments from our readers
Supply Chain Executive Insight E-Newsletter
Each month the Supply Chain Executive Insight e-newsletter will include brief articles about developments that are often overlooked by other supply chain publications. We will present you with summaries of the latest research as well as new ideas on how to make your supply chain operations more effective. And we'll offer commentary that sheds light on what's happening in supply chains today.
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Latest Video

The leading edge

Ostermann's distribution center in Bocholt, Germany recently added sophisticated storage systems to hold all of its products so that it can make certain that carpenters got the right products when they need them.

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Perspective
Beyond the bottom line
If you dig up significant cost savings, why not use some of that windfall for a good cause?

Top-Performing Supply Chains
Top-performing supply chains: Contract manufacturing
Analysis suggests that the contract manufacturing model is failing to produce supply chain efficiencies and resiliency in the high-tech industry.

Procurement Priorities
Now's the time to manage "tail spend"
By managing their companies' smaller, low-dollar purchases, procurement leaders can better achieve their larger, strategic priorities.
Forward Thinking
So you think Amazon rules the world? New report says you ain't seen nothing yet.
Consultant's white paper says Amazon prepared to eviscerate anyone that stands between producer and consumer.

Forward Thinking
Industrial recession? Yes and no.
Industrial production weakness in the United States has led to increased talk of a recession, but a deeper examination shows that this weakness is highly concentrated in energy and globally exposed sectors.

Forward Thinking
Persistently high inventory levels make things tough for retailers, truckers
January's inventory-to-sales ratio nears seven-year high, dampening demand for orders, trucking services.

Forward Thinking
With e-commerce returns on the upswing, pressure may build on DC demand
Can businesses optimize their existing networks, or will they need to go outside for their requirements?

Forward Thinking
Cisco opens Houston innovation center to develop new supply chain technology
Company may market solutions to outside firms, executive says.

Forward Thinking
When "moneyball" meets procurement
The global logistics conglomerate Maersk Group analyzes data from its online auctions to identify sourcing strategies.

Forward Thinking
CPOs lack faith in their staff, survey finds
A Deloitte survey of chief procurement officers found that the majority of CPOs are not confident in their teams' ability to deliver on their procurement strategy. Many are relying on technology to fill the gap.

Forward Thinking
Increase in warehouse, DC labor costs has ripple effect on rental rates, CBRE study finds
A dollar-an-hour wage increase is equal to a 37-percent jump in industrial rents, says a recent study.

Forward Thinking
Reverse logistics could spark surge in warehouse, DC demand, CBRE report says
Space will be needed to support returns that current facilities can't handle, firm says.

Forward Thinking
Worldwide spending on robotics to reach more than $135 billion in three years
Robotics spending in process manufacturing and health care are each forecast to nearly double by 2019, says a new report from IDC.

CSCMP Notebook
CSCMP announces general session speakers for annual conference
An astronaut who spent a year in space, a digital technology guru from GE, and a drummer all hope to inspire attendees at the CSCMP Annual Conference in Orlando.

CSCMP's New York City Roundtable to host session on managing security disruptions
How would your supply chain respond to a "dirty bomb" attack? Test your decision-making skills at a May 17 tabletop exercise run by CSCMP's New York City Roundtable and the Metropolitan Resilience Network.

CSCMP Spain's Supply Chain Leadership Forum 2016 focuses on customer-driven supply chains
The fourth annual event, to be held May 19 in Barcelona, features internationally renowned speakers from Europe, Asia, and the U.S.

CSCMP chairman's commentary: Supply chains, careers, and the value of what we do
Supply chains—and supply chain managers—make the world a better place, playing an essential (but often unheralded) role in enabling economic success.

Supply chain simulation game provides unique education and networking opportunities
In CSCMP's Roundtable Global Challenge, teams from around the world battle it out to create the best-run supply chain for a fictional juice company.

CSCMP