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