1. Supply Function Evaluation and Trends
Chapter 17
Supply Function Evaluation and Trends
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2. Key Questions Addressed in Chapter 17
What research is needed to develop and operationalize plans and metrics?
How can the contribution of supply be captured and communicated?

3. Research Topics and Methods
What is Acquired?
- value analysis
- target costing
- commodity studies
Purchasing
Research
From Whom?
- supply base analysis
How?
- supply process analysis

4. Topics in Supplier Research
Analysis of financial capacity and production facilities
Service delivery capabilities
Finding new supply sources
Supplier cost analysis
Relationship classification
Quality assurance of purchased materials/services
Supplier perception survey
Supplier sales strategy
Countertrade
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5. Major Topics for Supply Operating Reports
Market and economic conditions and price performance
Inventory investment changes
Purchasing/supply operations and effectiveness
Operations affecting administration and financial activities
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Cost Metrics
Cost savings
Cost reductions
Cost avoidance
Process cost savings
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7. Supply Performance Benchmarking
A process of evaluating a company’s work methods, processes, service levels, or products and services against meaningful standards
Purpose: How are we doing compared to other firms?
Performance benchmarking
measures what results organizations have achieved
Process benchmarking
Determines how an organization achieves results

8. Supply Management Trends
Emphasis on total quality management and customer satisfaction
Sustainability– environmental and social
Global versus local sourcing
Risk management
Safety and security
Supply processes and technology
Supply organizations
External and internal collaboration
Metrics and performance measurement
Innovation
Public procurement
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