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What are the 3 biggest challenges faced by supply chain/purchasing professionals today? (Survey Result 14)

Written by: Jon Hansen

Article Overview: There are many factors both internally as well as externally that are affecting supply chain/ procurement practices today. From the growing talent vacuum to the continuing lack of collaboration between Finance, IT and Purchasing relative to corporate initiatives. What in your own experiences and opionions are the top 3 issues that procurement professionals face?

What are the 3 biggest challenges faced by supply chain/purchasing professionals today? (Survey Result 14)

Bernie, Director, Restructuring and Turnaround Practice, Detroit, U.S.

Before we reach out and consider how other disciplines support or struggle to support Purchasing & Supply Chain Issues, we may want to get "real close to the mirror.

My three for Purchasing would be:
1) Lack of education and training in the discipline.
2) Rising commodity prices and “non elastic " nature of some OEMs.purchases.
3) Credit unstable supply base and no mechanism to verify "private firms Health. financial health"

Alex, Global Distribution Change Manager and Speaker, Basel, Switzerland

They are the same as they always were, but professionals are more exposed as systematic short-term inventory and cost cutting remain high on the CEO agenda:

1. Alligning targets and performance indicators with other functions
2. Finding the right balance between mandatory compliance to regulations, serice and cost pressures
3. availabiity of data rather than information about the supply chain

Coordinate in such a way that your supply chain is with
minimized supply disruption risks but has been optimized to meet demand with best service at lowest total supply cost is a continous challenge and balancing exercise but also an education marathon.

Nitish, Independent Supply Chain Software Professional, India

1. Identifying exact bottlenecks and problems in supplychain

2. Supply chain Optimization considering varying internal and external conditions

3. Lack of total involvement (from top management to bottom), wrong distribution of responsibilities and authorities, and lack of motivation and proper business policies.

Scott, Buying Director, Harrow, United Kingdom

1. Getting the balance between working with stakeholders to include a more strategic role for purchaisng, and forcing them to do it thorugh policy, directives, board involvement

2. Changing the view of purchasing so there is greater early and development strategic inclusion in projects rather than requests for 'can you beat this price' after the fact

3. Educating on the balance between price and service and the sustainability issues where agreements with suppliers do not allow adequate returns for the supplier

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Article Tags: basel switzerland, bottlenecks, business policies, ceo agenda, commodity prices, cost cutting, distribution change, financial health, global distribution, lack of education, lack of motivation, mandatory compliance, policy directives, private firms, proper business, purchasing supply, software professional, supply chain optimization, supply chain software, supply disruption



Related Forum Posts
Re: What is your biggest challenge? Today? - [quote:3ce2ievo](Oh, the state of the human condition! What challenges we create for ourselves. Do the birds of the air toil as we do? Or do they simply revel in the joy of each moment?)[/quote:3ce2ievo] GT - Be like the birds... That's my biggest challenge today.
Re: What Businesses to Bail Out? - That's the tough thing. People are really hanging onto their money right now, in fear that they may lose their job. No one is secure and it's going to be one of our biggest challenges ever to get through this crisis. All the money Obama sank into the system to get things moving and 10 months later we are still losing jobs. There's got to be a better way.
Re: What is your biggest challenge? Today? - My today biggest challenge was to avoid distractions... and i managed.
Finding Good People - From my own experiences and from interviewing some of Canada's fastest growing companies, one of the biggest challenges always seems to be finding good people to hire. What have you guys done to find good people and keep them in your organization?
Survey the Landlord - Terry, my suggestion is simple but powerful - Survey. Survey Landlords and find out what is important to them. By doing this it does two things: 1. You will find out trends/under-operated services that Landlords are currently unsatisfied with = your client will be able to fulfill 2. You are infact Marketing your clients services by doign this because when you are approaching your landlords it not a sales pitch and they have someone to clear their frustrations with. Then when you approach them after a month (when you've put your numbers together and identified services that are most important) you can remind them of the survey and share with them the results. At this point you can end with an offer to use your clients services to manage their property. I use this method with my clients who are looking for new services to develop in thier markets. It's simple but powerful.


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