Managing Supply Chain Vulnerability                                            Cost reduction has driven a lot of supply  ...
About the Chief Procurement Officer Summit 2013  The Finance Network - marcus                                             ...
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Managing Supply Chain Vulnerability - Thom McLeod, Tenzing Consulting

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James Lucier of Workspend™/USTS Group, a Master Services Provider (MSP) at the upcoming marcus evans Chief Procurement Officer Summit 2013, on the areas of the talent supply chain management function that deserve more attention.
Interview with: James Lucier, VP Workforce Solutions, Workspend™/USTS Group
talent supply management

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Managing Supply Chain Vulnerability - Thom McLeod, Tenzing Consulting

  1. 1. Managing Supply Chain Vulnerability Cost reduction has driven a lot of supply the next step. This involves constantly offshore, making the supply chain more monitoring events and conditions that vulnerable to geographic, weather, may disrupt the supply chain, and security, and political risks. Many taking proactive steps to address them, companies have also leveraged the such as positioning inventories, volume of their purchases, consolidating informing customers, and switching to to fewer suppliers or even sole sourcing, secondary suppliers. The best practice is resulting in more single points of failure that even these actions should not be in the supply chain. improvised. Lean principles, rightly, emphasize Rather, they should be part of a keeping inventories low, but doing so “playbook” developed in advance and without a full view of supply chain risk ready to put into action whenInterview with: Thom McLeod, can deplete the inventories that act as a disruptions occur or are imminent. ThisFounder and Managing Director, “shock absorber” for supply chain is what drives better resiliency.Tenzing Consulting disruptions. How can procurement become relevant to every function in the“Supply chains are now more organization?vulnerable than ever,” says ThomMcLeod, Founder and Managing The procurement as a service functionDirector, Tenzing Consulting. “Beingable to systematically manage supplychain risk is a very important issue The supply has to successfully and effectively reach out to all key stakeholders in the organization. In other words, it musttoday, because Boards of Directors arewaking up to it. Audit Committees arenow required to look at overall chain is only export the value of procurement to other functions in ways that clearly align with those stakeholders’ mission,enterprise risk, and the supply chain isoften an area where there is atremendous amount of business risk to as strong objectives, and measurable business value. Marketing is a good example of a function that can be a challenge tobe managed,” he explains.As a solution provider attending the as its partner with as a procurement team. Marketing sees its mission as driving revenues and sees itself as a high-ROImarcus evans Chief ProcurementOfficer Summit 2013, in Atlanta,Georgia, April 22-23, McLeod takes the weakest link investment for the company. Rather than approaching marketing to help them “save” money, as manyfocus to supply chain risk procurement professionals do, it ismanagement, and discusses why better to focus on procurementprocurement is relevant to every strategies that drive greater value fromfunction in an organization. What should they look at first? their investments and higher effectiveness from suppliers inWhy is supply chain vulnerability a Really understanding how a supply supporting marketing’s mission. If theybig issue today? Where is this chain is put together is the first critical save money, too, who can complain?vulnerability coming from? step, because a supply chain is only as strong as its weakest link. Do you have any final words ofCompanies are only now starting to advice?understand where supply chain risk fits Many organizations look at their first-into overall enterprise risk. Many tier suppliers and manage the largest of Become completely invaluable as aorganizations look primarily at financial them vigorously, but a smaller second- partner to every functional executiveand market risks, without giving the or third-tier supplier can be a major and senior executive in the company.supply chain the attention it needs. The single point of failure, leaving them That means reaching out to thosefirst challenge for supply chain- extremely vulnerable. people, understanding their businessdependent organizations is to make sure and how they need to accomplish whatthat supply chain risk is elevated to and For example, one of our clients found they do, then figuring out how yourvisible at an executive or Board level. that many of its first-tier suppliers were procurement organization can deliver buying sub-components from the same on that. The biggest challenge is makingThe effort that procurement and supply manufacturing location of a single third- sure your procurement team haschain organizations have invested to tier supplier. The entire supply chain the skills and temperament for thisimprove productivity, reduce cost, and could collapse if that single site were mission - great communication, listeningbecome leaner have paid big dividends. disrupted. and problem solving skills are moreBut in many respects, these important to accomplishing this than theimprovements have made supply chains Once a company knows where it is technical knowledge we oftenmore vulnerable than ever. vulnerable, becoming more resilient is emphasize in hiring.
  2. 2. About the Chief Procurement Officer Summit 2013 The Finance Network - marcus This unique forum will take place at The Ritz Carlton, Buckhead, Atlanta, Georgia, evans Summits group delivers April 22-23, 2013. Offering much more than any conference, exhibition or trade peer-to-peer information on show, this exclusive meeting will bring together esteemed industry thought leaders strategic matters, professional and solution providers to a highly focused and interactive networking event. trends and breakthrough innovations. www.cpo-summit.com Please note that the Summit is a Contact closed business event and the Sarin Kouyoumdjian-Gurunlian, Press Manager, marcus evans, Summits number of participants strictly Division limited. Tel: + 357 22 849 313 Email: press@marcusevanscy.com For more information please send an email to info@marcusevanscy.com All rights reserved. The above content may be republished or reproduced. Kindly inform us by sending an email to press@marcusevanscy.comAbout Tenzing ConsultingTenzing Consulting is a management consulting firm that delivers results across the value chain from procurement through supplychain and operations. Our senior, expert consultants work shoulder to shoulder with our clients at all levels as “player coaches.” Webring the insights and execution support necessary to achieve client objectives while helping build their capability to sustain thoseresults in the future.www.tenzingconsulting.comAbout marcus evans Summitsmarcus evans Summits are high level business forums for the world’s leading decision-makers to meet, learn and discussstrategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity toindividually tailor their schedules of keynote presentations, think tanks, seminars and one-on-one business meetings.For more information, please visit: www.marcusevans.comTo view the web version of this interview, please click here: www.cpo-summit.com/ThomMcLeod

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