CSCMP's Supply Chain Quarterly
December 14, 2017
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Business process, transaction costs are top change initiatives

Comment
Research finds supply management organizations have a laundry list of changes they plan to make in the next few years.

A recent report from CAPS Research indicates that procurement and supply managers are focusing most of their change initiatives on business process improvements and transaction cost management. Some 240 U.S. and Canadian companies took part in the study, titled Supply's Organizational Roles and Responsibilities 2011.

The survey asked respondents what initiatives they planned to implement by 2016 in order to contribute to organizational effectiveness; 59 percent said they intended to make business process improvements. Examples of these kinds of initiatives included implementation of a global enterprise resource planning (ERP) system or a simplified purchasing payment process for all business units.

Another 41 percent of study participants said they were working on changing roles and responsibilities within their organizations, through such initiatives as staff education. The third most popular initiative was increasing the use of performance analytics, cited by 36 percent.

The CAPS Research study was conducted by P. Fraser Johnson and Michiel R. Leenders, both professors at the University of Western Ontario (Canada). The complete study results can be found at www.capsresearch.org. Where have supply management responsibilities grown?

Where have supply management responsibilities grown?
A recent CAPS Research study of 240 U.S. and Canadian companies found that supply executives have increased the amount of time they spend on supplier development and management. Below are the top 10 areas where supply managers have increased their level of responsibilities, according to the study Supply's Organizational Roles and Responsibilities 2011.

  1. Supplier development
  2. Supplier cost management/value analysis
  3. Outsourcing and subcontracting
  4. Material and purchasing research
  5. Logistics and warehousing
  6. Inbound transportation
  7. Outbound transportation
  8. Travel and expense control
  9. Inventory control
  10. Scrap/surplus disposal/investment recovery

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