With your category management strategy in place, it's time to monitor and measure the benefits it delivers to your organization and identify opportunities for improvement. To succeed long term, the category strategy must remain aligned with business objectives and the dynamics of the supplier marketplace. This requires regular re-evaluation.
CAPS News - 5 May 2021
A new tool to help you prioritize risk protection, supplier relationship management, advanced analytics, and more in this edition of CAPS News.
Be strategic with supplier relationship management
It's critical that category management delivers maximum value to the organization through innovation, sharing risk and rewards, and ongoing assessments. For many companies, the hard work of supplier management begins after the contract is signed. We're moving on to the sixth step in category management strategy: supplier relationship management (SRM).
The pandemic's impact on payment terms
With the onset of the pandemic last year, supply chains struggled to deliver, but payment terms were also affected. Of the supply managers we surveyed, 31% increased their payment terms last year. While 66% paid within 45 days in Q1, by the third quarter of the year, the number dropped to 57%, shifting toward longer 60- and 90-day terms.
CAPS News - 21 April 2021
Advance your analytics with the new CAPS metrics maturity model. Plus, negotiation and contracting and world news.
Get inspired, empower your team, explore with CAPS
Supply management has the power to transform businesses, economies, and lives. CAPS Research honors this, and while we hold our founder's values close, we fearlessly face the future to empower supply chain management leaders and advance the profession.
Negotiation & contracting to support business outcomes (stage 5)
Contracting and negotiating is the next step in the 7 stages to business-aligned strategies that organizations should follow as part of their category management playbook. It’s an important step in category strategy execution as you align supplier relationships with your strategy.
Move up the metrics and value reporting maturity curve
While inwardly focused metrics may be “safe” and what is expected of supply management, if the function is going to progress from tactical to strategic, the goal for most supply leaders ultimately should be alignment with stakeholders. Supply management must push beyond its own internal perspective to understand the business and, whenever possible, adopt the metrics that drive the enterprise.
ESG still lags in supplier assessments
When it comes to what questions supply managers are asking in supplier assessments, less than half include environmental, social, and governance (ESG) questions.