Distorted information from one end of a supply chain to the other can lead to tremendous inefficiencies: excessive inventory investment, poor customer service, lost revenues, misguided capacity plans, ineffective transportation, and missed production schedules. What happens when a supply chain is plagued with a bullwhip effect that distorts its demand information as it is transmitted up the chain? How do exaggerated order swings occur? What can companies do to mitigate them?
Successful outsourcing of back-office business functions requires knowing not only your company’s needs but also the 12 core capabilities that are key criteria for screening suppliers.
What used to be a matter of finding and purchasing goods and services at the most favorable price has changed. At some companies, procurement has become closely intertwined with strategic decision making and board policy at the highest levels of the organization.