Where the leading edge is heading?

 

A new thought-provoking research piece has been released by CAPS Research looking at what they have termed Value Focused Supply (VFS).

 

The summary article in the latest ISM "Inside Supply Management" magazine provides insight into the four key areas where VFS generates return...

• Eliminate value leakage
• Increase current value
• Create tomorrow's value
• Stretch for added value

Certainly we see leading clients looking beyond cost in their strategic supply relationships. Many are well along the path towards defining and extracting extra "value", especially in the areas of process alignment and innovation. And this in categories such as raw materials and logistic; well outside the complex indirect categories where "value" (rather than pure cost), has always been the key driver e.g. marketing, consulting and professional services.

 

However, is this really a feature of the leaders only?

 

Our experience is that in too many cases cost is still too much of a dominating driver in strategic relationships. Culturally this is hard to shift and often it takes a visionary CPO to execute such a change in focus.

 

Author: Richard Benyon (Decideware)

 

Source: Leading-edge companies are turning to a value focused supply strategy to move beyond just cost savings.

CAPS Research: Promoting Supply Management's Best PracticesLeading-edge companies are turning to a value focused supply strategy to move beyond just cost savings.

http://www.ism.ws/pubs/ISMMag/ismarticle.cfm?ItemNumber=20823