Be the first to like this
"Supply Management: The Missing Voice in the Integrated Business Plan: How Cost Management, Negotiation and Contract Management Inform the Process and are Essential to Its Execution ”
In manufacturing, traditional sales and operations planning is expanding beyond simple supply-demand balancing toward integrated business decision-making. Service firms are also realizing the benefits of holistic business planning. Integrated business planning is neither integrated nor complete without supply management which must come to the process with an understanding of the supply risks and a strategy for capitalizing on opportunities. An integrated plan for the business must be informed by the relative bargaining position of the firm, supplier viability under multiple economic scenarios, trends and potential ranges for commodity and other prices, supplier and global capacities, technological advances, and other relevant context. Supply management must also be prepared to contribute to integrated business planning with a comprehensive analysis of total cost of ownership and its sensitivity to each of its components, strategies for structuring supply agreements to mitigate risk and minimize the cash-to-cash cycle, approaches for substituting information for time and inventory, sourcing alternatives to support sales and marketing initiatives as well as manufacturing and quality requirements, and scenarios for reducing lead time and lot size.