Innovation & Opportunity in Supply Chain Management

A significant opportunity in supply chain managementAfter the sourcing process has completed and the
is shown in current studies in the Supply Chainmaterials have entered the supply chain other
Management field which indicate that a 1 percenttechnologies can be utilized. Technologies such as
reduction in the cost of purchased materials isRFID (Radio Frequency Identification Systems) that
equivalent to a 12 to 18 percent rise in sales growth.provide real-time defective product data, can
This presents an enormous opportunity forimprove item tracking and aids supplier managed
companies that can take advantage of this costinventory processes. Still other technologies such as
reduction in this time of economic stagnation.PLM (Product Life Cycle Management) can manipulate
Companies must find a way to improve their bottomthe relationship between the product life cycle and
line when their sales revenues are either flat orcost reduction opportunities.
declining.Expert recruitment staff are aware of these
There are several reasons why this kind of reductiontechnologies and the impact they may have on a
is possible, among them are the use of new andcompany's ability to reduce the overall cost of the
better technology, more companies from which tosupply chain operations. They delve into the
source (globalization) and increasingly sophisticatedcompany's current and planned use of technologies
approaches to managing the supply managementwhen approaching a search assignment for the
function (GPOs and outsourced Procurement Servicecompany. This then becomes part of the selection
Providers)criteria used for the search.
As mentioned, one of the factors enabling costExecutive search firms that have this focus can be
reduction is the maturing and scaling of procurementan important partner in the search for those
technology which can help curtail rogue spending whileindividuals that can bring this opportunity to fruition
allowing companies to work more efficiently with aand allow companies to gain a competitive advantage
wider range of suppliers. These technologies canover their competition.
simplify the sourcing process and help activelyASG can be an important partner in the search for
manage total sourcing costs. Included in these newerthose individuals that can bring this opportunity to
technologies is e-Sourcing, this is becoming morefruition and allow companies to gain a competitive
sophisticated and popular and in fact is becomingadvantage over their competition.
more integral to e-procurement initiatives.