Chapter 4.pptx - Chapter 4 Supply Management The 3-5 Year...

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Chapter 4 Supply Management: The 3-5 Year Outlook
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SM: Why focus on the future? Predicting the future is an unpredictable task Future potential is where leaders make their mark Competitive advantage gained CEO’s expectations of the future drive priorities CeCe Webster – Senior VP Coca Cola “I want to get a mirror out there and see what’s around the corner. I’ve got other people in the organization who can identify current best practices. I need to know what going on years from now”
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CEO’s expectations Top Five areas: Cost & Price Focus Avoidable costs have largely been taken out Shift to institutionalizing the behavior Focus on developing & maintaining lean supply chains No longer set target cost savings Continuous improvement Transparency across supply chain
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CEO’s expectations Top Five areas: Brand Focus Branding grows more difficult with changing markets Speed Low barriers to entry Institutionalized cost management Transparency Pricing pressures from firms in developing countries Must link supply management to brand enhancement Collaboration with marketing
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CEO’s expectations Top Five areas: Technology Stagnation Internet capabilities begin to hit a wall IT innovation slows Unknown if/what new paradigm would look like Growth in partner data-sharing solutions/other implementation of current technology
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