Upload
jabil
View
1.421
Download
3
Embed Size (px)
Citation preview
Despite the fact that supply chains govern our modern economies, there are lots of misconceptions about managing them.
Back in the 1980s, professionals that were involved
in purchasing were often viewed as “buyers” or “clerks”.
But that early interpretation completely misses the increasingly strategic role that supply chain management now plays in the modern digital enterprise.
PURCHASING ROLE
SUPPLY CHAINMANAGEMENT
INVESTMENTS
RISK MITIGATION
IMPORT/EXPORT
CASH UTILIZATION
TAXES
COMPLIANCE
Today it’s closer to finance than operations with supply chain professionals managing many functions:
The Supply Chain industry is undergoing one of the most massive talent shifts we have ever seen.*Cisco Systems John Kern, Senior Vice President of Supply Chain*The Wall Street Journal
Today, for every 6 openings in supply chain management, there is only 1 qualified candidate.*
*Supply and Demand Chain Executive
And with available jobs expected to grow by 26 percent between 2010 and 2020, that ratio is projected to grow to as high as 9 openings to 1 qualified candidate.
*Supply and Demand Chain Executive
The myth that supply chain management is still primarily a purchasing role keeps many young professionals from considering it as a career.
A graduating engineer typically wouldn’t think, I’m going to get into supply chain. He or she is more likely to think, I’m going to get into manufacturing. In reality, companies like Jabil employ entire teams of engineers to help manage its supply chain. It’s a skill set that is in very high demand.Joe McBeth, VP Global Supply Chain, Jabil
This is compounded by the fact that only a handful of universities offer appropriate courses.
As a result, there is a distinct shortage of
qualified individuals ready to step into such roles today.
Despite the talent gap, managing the supply chain is becoming an exciting career track that involves professionals from disciplines such as statistics, engineering, finance and data management.
A few decades ago most supply chain decisions were based on institutional knowledge and industry experience rather than data. The human element is still vital but...
NETWORKEDMACHINES
CONNECTEDWAREHOUSES
REAL-TIMESALES REPORTS
Digital technology has made the promise of Big Data a reality.
But data alone, doesn’t solve the problem. Companies must be willing to invest in tools that can actually deliver actionable intelligence from it.
Just because you “only make cars”, doesn’t mean you’re not competing for the same base resources and services supporting healthcare devices.
And just because your business hasn’t been forced to operate in the global marketplace yet, don’t think that day won’t come.
Many managers responsible for purchasing fixate on controlling costs and, therefore, do all they can to keep inventories as low as possible.
Let’s say, for example, a single sourced part that is required to complete the production of a sub-assembly that you make and sell for $1,000, is part of a final product that sells for $100,000.
Lets also assume your weighted average cost of capital is usually about 1-2% percent per month.
In this example, the potential loss of revenue and profit from one lost sale dwarfs the inventory cost when you analyze the total profit loss of the final product.
CASH COST
Cash and cost are usually the key metrics for supply chain management, but is that really the right priority?
Ask yourself how much risk can you take in managing assets and costs in order to generate the potential for profit and increased revenue?
What if your supply chain intelligence allowed you to understand market movement and trends before your competitors?
Not only does this allow you to gain market share but you also have the opportunity to do it at a higher margin.
Dispelling the most common misconceptions is the first step in achieving supply chain excellence. To take your next step, contact Jabil today.
L E A R N M O R E