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Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals
Supply Chain Management:
Costly Mistak...
• Identify specific opportunities to improve your company’s
negotiating power and mitigate contract leakage
exposures
• Im...
Proformative is the leading professional development resource for
corporate finance professionals.
Announcing the new Prof...
Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals
Supply Chain Management: Costly
Mistak...
• ASU ranked among the top 100 world
universities
• Supply Chain Management
department ranked #3 in the U.S.
• The world’s...
 Supply Chain Management Trends and
Benchmarks
 Five Costly Mistakes in the Area of Supply Chain
Management
 Five Steps...
Supply
Management
organizations are
positioned more
strategically
within the
Corporation
• 82.1% report
directly or one
le...
Average 85.5%
of a company’s
external spend
is managed by
Supply Chain
Management
Source: CAPS Research
2014 Cross-Industr...
1. Tactical vs. strategic focus
Tactical Strategic
Consumed doing purchase orders
– “the paper-pushers”
Never touch a purc...
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Aerospace Financial
Services
Manufacturing Petroleum Utilities
% of Supply Man...
2. Expect to look at the data differently
• Visibility of your external spend across the entire
enterprise
• Spend grouped...
Thank you for your interest in this presentation.
View the on-demand webinar or download the full
presentation at:
www.Pro...
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Supply Chain Management: Costly Mistakes & Success Metrics for CFOs

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Most companies, even if they are not in manufacturing, have a supply chain. Ineffective Supply Chain Management (SCM) often fails to get its due in the damage it can cause to financial performance. Costly mistakes are often made by companies in many areas including contract negotiation, cost leakage, and in selecting the right supply chain partners.

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Supply Chain Management: Costly Mistakes & Success Metrics for CFOs

  1. 1. Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals Supply Chain Management: Costly Mistakes & Success Metrics for CFOs
  2. 2. • Identify specific opportunities to improve your company’s negotiating power and mitigate contract leakage exposures • Improve your supply chain network from choosing better partners to managing supplier relationships more effectively • Evaluate the metrics your company uses to measure supply chain efficiency After attending this event you will be able to: Learning Objectives
  3. 3. Proformative is the leading professional development resource for corporate finance professionals. Announcing the new Proformative Academy: • On demand video courses taught by peers and SMEs • Over 170 finance and accounting courses and growing rapidly • CPE for CPAs, CMAs, CTPs, and CIAs Check it out at www.ProformativeAcademy.com Welcome to Proformative
  4. 4. Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals Supply Chain Management: Costly Mistakes & Success Metrics for CFOs Deborah Stanton, Executive Managing Director, CAPS Research
  5. 5. • ASU ranked among the top 100 world universities • Supply Chain Management department ranked #3 in the U.S. • The world’s first supply management association • Publishes the monthly ISM Report On Business® • Established in 1986 as a research center in the W. P. Carey School of Business and in partnership with the Institute for Supply Management • A non-profit organization advancing the profession of supply management through outstanding research, benchmarking, and peer-to-peer networks • Companies/corporations join CAPS Research as Member Companies to receive benefits Introduction
  6. 6.  Supply Chain Management Trends and Benchmarks  Five Costly Mistakes in the Area of Supply Chain Management  Five Steps for Getting the Most Value from your Supply Chain Partners  Q&A Agenda
  7. 7. Supply Management organizations are positioned more strategically within the Corporation • 82.1% report directly or one level down from CEO • 20% report to the CFO 11.6% 70.5% Number of Levels in between CPO and CEO 0 1 2 3LEVELS: 2014 Benchmarking Supply Chain Management Trends
  8. 8. Average 85.5% of a company’s external spend is managed by Supply Chain Management Source: CAPS Research 2014 Cross-Industry Report of Standard Benchmarks Supply Chain Management Trends
  9. 9. 1. Tactical vs. strategic focus Tactical Strategic Consumed doing purchase orders – “the paper-pushers” Never touch a purchase order; focus on development and execution of sourcing and category/commodity strategies Reactive to the business – “waiting for the phone to ring” “3 bids and a buy” Proactively engaged with the business on major projects and initiatives; strategic business alignment; bringing solutions to the business Only involved with non-critical spend areas Driving sourcing/category strategies for all critical spend areas, i.e. Marketing, I.T., Legal Only focused on cost reduction, deal by deal Managing total cost, driving maximum value from suppliers, enabling competitive advantage Desperate systems and technology solutions – “the supplier tells me what I spend with them” Great spend visibility across entire enterprise; e-sourcing tools; automated tools for supplier performance management, contract management, risk management Five Costly Mistakes
  10. 10. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Aerospace Financial Services Manufacturing Petroleum Utilities % of Supply Management Employees that are Strategic vs. Operational (2014) % of SMEs that are Operational % of SMEs that are Strategic Tactical vs. Strategic
  11. 11. 2. Expect to look at the data differently • Visibility of your external spend across the entire enterprise • Spend grouped by category codes (not GL) • Metrics you should be asking about:  How many suppliers do we have? Are they segmented? How are they managed?  How many suppliers make up our top 80-90% of spend? How do we identify critical suppliers?  What is your supply management ROI?  Cost savings…what is the budget impact?  How are we managing supplier risk? Five Costly Mistakes
  12. 12. Thank you for your interest in this presentation. View the on-demand webinar or download the full presentation at: www.Proformative.com Supply Chain Management: Costly Mistakes & Success Metrics for CFOs

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