Supply Chain Standard April 2013

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Contents 03 April 2013

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Who needs partners?

If everyone in the chain shares the same values, it is more difficult for issues such as horsemeat in burgers ever to occur.

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veryone knows that supply chain collaboration is a good thing – or do they?Only one fifth of finance directors view their suppliers as strategic partners, according to a survey by Expense Reduction Analysts,

a firmof procurement advisors. Not only that: ERA points out that four out of five organisations don’t have a specialist procurement teamor individual, and half of finance directors think that employees suffer froma lack of time, experience and energy when it comes to securing the best supplier deals.

And just to hammer home the point, 46 per cent of the companies surveyed said

that their company discussed procurement at board level only once a year or never. Not surprisingly, EAmanaging director Rob Allison highlights the horsemeat scandal to drive home the dangers of using suppliers without having comprehensive audit checks. “Cutting costsmay keep businesses afloat temporarily, but if the correct checks aren’t put in place businesses are risking their long-termfuture,” he says. Clearly audits and controls are important, but Professor RichardWilding argues that

what is really needed is a “Supply Chain Society” built on a shared culture and values. And if everyone in the chain shares the same values, then it becomesmuch more difficult for issues such as horsemeat in burgers ever to occur. Technologies are alsomoving into themainstreamthat can facilitate greater

collaboration.Gartner reckons that by 2016, some 70 per cent of high-performing companies willmanage their business processes using real-time predictive analytics or extreme collaboration by 2016. Real time analytics can increase the visibility in how a company is running and

what is happening in its external environment, allowing faster decisionmaking. "Human or automated actions can be initiated for proper decisionmaking to

achieve the desired business outcomes. If the situation dictates, knowledge workers can collaborate in and around the process, case or instance to decide on and effect change," according to JimSinur,Gartner’s research vice president. But all the technology in the world will not help if you have not built the right

relationships with your supply chain partners. And you can’t really build the right relationships if you start by rejecting the notion of strategic partnerships.

MaloryDavies FCILT Editor

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Unit 205, The Foundry, 156 Blackfriars Rd, London SE1 8EN. Fax 020 7953 3011  Editor Malory Davies FCILT (020 7953 3002) malory.davies@akabomedia.co.uk  johanna.parsons@akabomedia.co.uk  Junior Reporter Rosy Hill (020 7953 3807) rosy.hill@akabomedia.co.uk   Contributing Editor, Property Liza Helps (01449 673 952) mesquita@tinyworld.co.uk 

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© 2013 Akabo Media Ltd. Supply Chain Standard April 2013 Production Assistant Morgan Spicer (020 7953 3860) morgan.spicer@akabomedia.co.uk  Reporter Johanna Parsons (020 7953 3003)

Contributing Editor, Supply Chain Nick Allen (01444 467 307) nick.allen@supplychainintelligence.co.uk Commercial Manager Mark Judd (020 7953 3010)

Sales Executive Emma Hughes (020 7953 3013) emma.hughes@akabomedia.com Commercial Director Events Lesley Fryer (020 7953 3006)

Marketing and Events Manager Jennifer Halliday, jennifer.halliday@akabomedia.com 

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Analysis:PenelopeOdy

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Analysis

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Viewpoint

The customer is king is a classic business mantra. But are enough B2B businesses taking it seriously enough?

ERP systems: Too old to work?

Conference review: Extended supply chain

Lessons fromaward-winning supply chains were a key feature of ESC 2013.

Supply chain: Is agile always best?

24

Creating an agile supply chain has become the Holy Grail for businesses... but is it always the best option?

putting future growth at risk forWestern companies.

Cover Story Supply chains have changed, but has our IT? Lack of investment in supply chain systemsmay be

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