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   A Global Research Center for Strategic Supply Management

Email Newsletter, August 2008

New Resources:
Benchmarking: Financial Services Industry 2008 Metric Report
The companies participating in this year's financial services industry benchmarking survey reported significant improvements within their supply management organizations. More employees are assigned to strategic functions, supply management is responsible for a larger percentage of the organizations' total addressable spend, and operating expenses have decreased as a percent of total revenue and total spend. One of the metrics that is unique to the financial services industry is the organizational efficiency ratio. In the previous industry-specific report, the participants spent $0.71 to create $1.00 of operating revenue. In the 2008 report, survey participants reported they spent on average $0.64 to create $1.00 in operating revenue. This represents a 10% increase in overall operational efficiency.

Click here to access the resource information page at Knowledge Central associated with the Financial Services Industry 2008 benchmarking report. CAPS Research sponsors with established user profiles may click 'login to view document' to access the report. Note: The Financial Services industry report will be posted to the CAPS Research public web site on October 1, 2008.

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Benchmarking: Industrial Manufacturing Industry 2008 Metric Report
The first CAPS Research industry benchmarking report specifically for the Industrial Manufacturing industry sector shows that two-thirds of the participating companies reported an increase in the number of supply management professionals working in China, and more than half of the participants also reported an increase in the number of supply management employees in other Asia Pacific countries. Conversely, 46% of the participants reported a decrease in the number of supply management professionals within North America (United States and Canada). All of the survey particpants reported their managed spend for goods and services sourced from China has increased, and about 70 percent reported their managed spend also increased in other Asia Pacific countries as well as Central/Eastern Europe and Latin America including Mexico. Other key metrics include information on organizational metrics, financial measures, professional development, and supplier relationships.

Click here to access the resource information page at Knowledge Central associated with the Industrial Manufacturing Industry 2008 benchmarking report. CAPS Research sponsors with established user profiles may click 'login to view document' to access the report. Note: The Industrial Manufacturing industry report will be posted to the CAPS Research public web site on October 1, 2008.

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Benchmarking Report: Pharmaceutical Industry Summary Report 2008
This pharmaceutical executive summary provides more detail about data provided in the CAPS Research Pharmaceutical Industry benchmarking report published in June 2008. Also included is a comparative look at industry-specific data reported in earlier benchmarking reports. Many of the benchmarks show a comparison of data from large pharmaceutical companies (more than $5 billion in revenue) and smaller companies (less than $5 billion in revenue). For example, the larger pharmaceutical companies report they manage/control a larger amount of spend than do smaller companies (97.9% vs. 67.9%).

Click here to access the resource information page at Knowledge Central associated with the Pharmaceutical Industry 2008 summary report. CAPS Research sponsors with established user profiles may click 'login to view document' to access the report. Not a CAPS Research Corporate Sponsor? For more information on how to gain full access to the Pharmaceutical Industry Summary report and other CAPS Research Sponsor-Only resources click here.

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Benchmarking Report: Market Basket of Goods Metric Report for Office Supplies 2008
Although market basket price benchmarking avoids pure cost comparisons, it does reveal differences in prices paid and identifies areas of opportunity to supply management organizations. The fourth iteration of the office supplies basket provides average and median prices for 50 commonly purchased office supplies along with the percent of market basket items that were actual item purchased versus equivalent item purchased.

Click here to access the resource information page at Knowledge Central associated with the Market Basket of Goods 2008 Office Supplies report. The Market Basket of Goods Office Supplies 2008 metric report is also posted to the CAPS Research public web site. Click here.

to access the report at the public web site.

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CPO Insights: Developing and Managing an Enterprise Risk Management and Mitigation Process
Proactively addressing problems in the supply base before they become a reality is the key to success in mitigating risk. Does your organization have an enterprise risk management program? What risks are addressed? Who is involved and what level of attention is this given? Read what our CPO community has to say regarding their risk and mitigation process and examine the advice provided to aid in developing best practices for an Enterprise Risk Management/Mitigation initiative.

Click here to access the resource information page at Knowledge Central associated with this edition of CPO Insights. CAPS Research sponsors with established user profiles may click 'login to view document' to access the CPO responses.

For more information on how to gain full access to this document and other Knowledge Central resources, see Establishing Sponsor Login.

Not a CAPS Research Sponsor? To learn more about the benefits of becoming a CAPS Research Sponsor, click here.

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CPO Insights: Best Practice for a Buyer-Single Source Global Supplier Interface
Some companies with multiple manufacturing locations have a single global supplier that supplies all their global manufacturing sites for one or more categories. What are the pros and cons of this global buyer approach? Read our CPO community insights into how best to establish the buyer-supplier interface for a "single source-multiple facility" scenario.

Click here to access the resource information page at Knowledge Central associated with this edition of CPO Insights. CAPS Research sponsors with established user profiles may click 'login to view document' to access the CPO responses.

Not a CAPS Research Sponsor? To learn more about the benefits of becoming a CAPS Research Sponsor, click here.

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Benchmarking in Progress:
Data collection continues this month for the focused survey on Automotive Parts Manufacturing. New benchmarking surveys released include focused reports for the ISM Services Group and a short survey regarding Enterprise Shared Services Centers. Remember, if you participate in a CAPS Research benchmarking survey, you will receive the report first, which can be 6-8 weeks before it is posted to the CAPS Research web site. If you did not receive an email with your participant log-in information but would like to take part in any of our benchmarking industry surveys, contact us at: metrics@capsresearch.org.

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Note:
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Public access to reports is available at www.capsresearch.org.

CAPS Research Corporate Sponsors may also access resources at Knowledge Central at www.capsknowledge.org.

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For more information about CAPS Research programs and products please contact us at Research@capsresearch.org.

Sincerely,
Phillip Carter, D.B.A.
Executive Director
CAPS Research

CAPS Research is a global research organization jointly sponsored by the W. P. Carey School of Business at Arizona State University, and the Institute for Supply Management™.