Monthly Archives: February 2010

Supply Chain Social Networks: Getting Better, But Are They Compounding the Problem?

About a year ago, in Supply Chain Social Networks: Useful Resource or Productivity Killer, I reviewed the new kids on the supply chain social network block, SCM Professionals and iProcurement.org, in my effort to determine whether they offer supply management professionals benefits above and beyond regular social networking.

I noted that they had blog, news headline, and presentation sharing capabilities — which are useful if the blog posts, presentations, and news articles contain useful information, as well as the ability to form groups, but that they also had all of the banes of time-wasting social networking sites, such as latest activity tracker, comment walls, and photo free-for-alls.

Checking them out again, I see that iProcurement.org has added a Jobs section, improved discussion forums, created an on-line book store, developed a better events calendar, gained more members, and launched a cleaner look. SCMP has transformed their video section into the beginnings of an online training portal, also added a Jobs section, improved their event calendar, and integrated with Google Docs. Since then, Kinaxis has created the Supply Chain Expert Community with similar capabilities and Inovis has launched the private Inovis Social Network for trading partners to keep in touch. This, of course, is in addition to the communities on Linked-In, Plaxo, and Xing (with Linked-In alone having over 300 supply chain groups).

So they are getting better, and offering some value to select groups of people, but when you look at the big picture, I think they might be reducing productivity instead of increasing it. There’s so many networks with so many groups, forums, and blogs that you could literally spend all day scouring them for useful information and still not find anything. If I had to log in to 60 groups and forums across 6 social networks every day to try and keep up with what’s going on, I don’t think I’d get anything done at all! And while many of the networks allow you to create e-mail digest summaries from the groups, this just compounds the e-mail box clutter problem that we’ve been tackling for years.

Long story short, I think a well designed knowledge network can be a boon to supply chain professionals, but only if its A well designed knowledge network. One network with links to all of the groups, forums, blogs, and communities a professional needs. In other words, instead of dozens of vendors, organizations, and groups creating their own little, separate, communities, they need to adopt the predominant business social network (which right now is Linked-In) and build on it. And if the network doesn’t have everything they need, they should focus their development resources on helping the network create what they need.

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Does your Global Trade Management Platform Have Content and Connectivity?

A recent article in Industry Week on The Role of Content & Creativity in Global Trade Management by Adrian Gonzalez of ARC Advisory Group noted that compliance is only one component of a best-in-class global trade management solution: content and connectivity are also critical. According to Adrian, companies must have accurate and complete trade content for every country they operate in and trade with in order to successfully comply with trade regulations and prevent customs clearance delays because a GTM solution without a comprehensive and continuously updated trade content database is only marginally useful.

According to Adrian, trade content should include:

  • denied parties
  • embargoed countries
  • harmonized system chapters and descriptions
  • license codes, descriptions, & requirements
  • document templates
  • duty, value added tax, excise taxes, and seasonal taxes

When you think about it, Adrian is right. Without proper tax rates, you could pay the wrong duties and get hit with fines and penalties. Without harmonized tax system data and license codes, you could mis-categorize your shipments and have them seized. And, without denied party or embargoed country lists, you could risk criminal charges. You need content. And if your platform provider can’t provide it to you, you need to get it from third parties, just like you’re probably doing with your supplier data.

Plus, sourcing in a trade data silo can have serious and costly consequences. Purchasing managers must take into account duties and taxes in total landed cost calculations, as well as countries of origin. Are there currency exchange risks that need to be estimated? Additional transportation costs? Preferential trade agreements, or a lack thereof?

Sourcing professionals will not be able to get this data without connectivity, which is also of critical importance because a cross-border shipment typically involves the exchange of information with about 25 external parties, including custom agencies, freight forwarders, brokers, banks, regulatory agencies, transportation providers, and suppliers. Thus, it’s important to make sure that the solution you select integrates with key external systems and supports open standards for information exchange.

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Purchasing Magazine should hire Geraint John as Editor-in-Chief

Rather than rant about yet another article from Purchasing.com that had me foaming at the mouth, I thought that, for a change, I’d offer Purchasing some constructive feedback and free advice. Hire Geraint John as Editor-in-Chief. For the past few years, I had tremendous respect for two supply management publications that consistently delivered high quality supply management content month-in and month-out. One is the Supply Chain Management Review, which has Robert Rudzki as one of its lead bloggers. The other is CPO Agenda, at which Geraint was Editor-in-Chief until May 2009.

To be honest, I used to think that Purchasing was a good magazine. But then again, 5 years ago, Doug Smock, who co-wrote the book (Straight to the Bottom Line), used to be the Editor-in-Chief. And ever since he left, as far as I’m concerned, it’s been a slow and steady decline for Purchasing Magazine. We’ve gone from creme brulee telling us What Supply Chain Management Is and that we need to Think Like a CPO to gruel that tells us that spend analysis is good, but expensive and that it is good to be a tweeting Twit. Sure you can live on gruel, but after eating creme brulee, do you really want to?

That’s why I’m recommending Geraint John for Editor in Chief. He did great work at CPO Agenda, has what it takes to return Purchasing to the glory days they experienced back when Doug Smock was in charge, and, to the best of my knowledge, isn’t attached to any publications. If Purchasing really wants to reach Purchasing 3.0, they’re going to need someone like him running the show. They might have good editors, but, as we’ve seen, good editors only make a great publication under great leadership. Time to bring some back. (Otherwise, I would bet that Purchasing can continue to kiss its web-traffic goodbye, as I predict that such traffic will continue to migrate to blogs like Metal Miner, Transformation Leadership, Supply Chain Matters, and Sourcing Innovation as long as Purchasing maintains the status quo.)

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Disclaimer: The opinions expressed in this post are solely the opinions of the doctor. Furthermore, Geraint John had no prior knowledge of this post or the doctor‘s opinions.

Three Answers Every Supply Chain Executive Should Give Themselves This Year

A recent post over on the Harvard Business Review Blogs pointed out Three Questions Executives Should Ask for the New Year based upon eight characteristics of top performers and four characteristics of under-achievers identified by Melissa Raffoni of Raffoni Ceo Consulting and author of Managing Time in the HBR Pocket Mentor Series.

According to Raffoni, who identified the following eight characteristics of top performers:

  • they set clear measurable goals
  • they seek feedback
  • they communicate thoughtfully
  • they act thoughtfully
  • they are decisive
  • they have integrity
  • they have ego-less confidence
  • they study to make themselves smarter

and the following four characteristics of underachievers:

  • they don’t set goals with leverage in mind
  • they don’t get enough out of the people around them
  • they don’t listen well
  • they lack the energy and boldness to try new things

executives should ask themselves the following three questions before setting their goals for 2010:

  • If there was only one thing I could do to improve my business, what would it be and how would I make it happen?
  • If there was only one thing I could focus on to improve my personal performance, what would that be and how would I make it happen?
  • What messages am I not listening to or refusing to confront in my business and personal performance and how am I going to overcome that this year?

I agree. But even more importantly, I think supply chain executives (CPOs, CSCOs, etc.) should start with these three answers:

  • I’m going to improve my organization’s technology platform.
    Supply management is too complex, and the opportunity costs associated with continuing to use antiquated spreadsheet technology (which never fit in the first place), are too great not to have the right tools. I’m going to get the right platform for the job, make my people more productive, and watch the savings go Straight to the Bottom Line as efficiency soars and my people are able to strategically source more categories than they were able to in the past.
  • I’m going to get training.
    I’m going to learn what I’m missing, fill the holes in my vision, understand what my team needs to be the best they can be, and then get them the right training.
  • I’m going to say “uncertainty be damned”.
    “I’m not one of the lemmings“. “If my brethren want to jump off the cliff into the ocean, that’s their choice”. “I’m going to forge ahead and be successful, economy be damned”. “I’ll make the tough choices”. “And I’ll win”.

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Webinar Wackiness IV: Webinars This Week from the #1 Supply Chain Resource Site

The Sourcing Innovation Resource Site, always immediately accessible from the link under the “Free Resources” section of the sidebar, continues to add new content on a weekly, and often daily, basis — and it will continue to do so.

The following is a not-so-short selection of over 15 webinars THIS WEEK that might interest you:

Date & Time Webcast
2010-Feb-23

14:00 GMT-05:00/CDT/EST

Asset Sustainability — The next step in asset performance
  

Sponsor: Infor

2010-Feb-23

10:00 GMT-08:00/AKDT/PST

Best Practices for Successful Target Account Demand Generation
  

Sponsor: Dunthorpe Marketing Group Inc

2010-Feb-24

8:00 GMT-08:00/AKDT/PST

Outsourcing in CEE. Country Overview. Lithuania
  

Sponsor: Baltic Outsourcing Association — BOA

2010-Feb-24

11:00 GMT-05:00/CDT/EST

The 2010 ASME Boiler Code
  

Sponsor: S&DC Executive

2010-Feb-24

13:30 GMT-05:00/CDT/EST

Reducing Cost & Increasing Efficiency Through Competitive Sourcing
  

Sponsor: Tefen Management Consulting

2010-Feb-24

9:00 GMT-08:00/AKDT/PST

Securing Virtualized Data Centers and Private Clouds
  

Sponsor: Altor Networks

2010-Feb-24

12:00 GMT-05:00/CDT/EST

Procurement Law: 2010 Primer
  

Sponsor: PMAC

2010-Feb-24

13:00 GMT-05:00/CDT/EST

Demystifying services procurement: A roadmap to sustainable savings
  

Sponsor: Purchasing

2010-Feb-24

11:00 GMT+01:00/CET/WEDT

Learn all about the latest trends in warehouse management
  

Sponsor: IBS

2010-Feb-24

14:00 GMT-05:00/CDT/EST

Finding True North in Trade Analytics Adoption
  

Sponsor: DemandTec

2010-Feb-24

14:00 GMT-05:00/CDT/EST

Audience Recruitment – Get the Right Eyeballs, and more of them, on your Webinar
  

Sponsor: WebAttract

2010-Feb-24

2:00 GMT-05:00/CDT/EST

Supplier Compliance and Impact Webinar
  

Sponsor: TraceGains

2010-Feb-25

14:30 GMT/WET

10 Characteristics of Successful ERP Implementations
  

Sponsor: BSM

2010-Feb-25

11:00 GMT-08:00/AKDT/PST

Cloud Spend Management: The Next Generation of Purchasing and Expense Control
  

Sponsor: Coupa

2010-Feb-25

15:00 GMT-05:00/CDT/EST

Risk-Based Approach to Managing FCPA Compliance in the Supply Chain
  

Sponsor: TomFoxLaw.com

2010-Feb-25

14:00 GMT-05:00/CDT/EST

Living a LEAN Lifestyle in Good Times and Bad
  

Sponsor: Transportation Insight

2010-Feb-25

10:30 GMT/WET

The New EU VAT Legislation – Theory and Business Reality
  

Sponsor: ICAEW

They are all readily searchable from the comprehensive Site-Search page. So don’t forget to review the resource site on a weekly basis. You just might find what you didn’t even know you were looking for!

And continue to keep a sharp eye out for new additions!