By Paulo Moretti
I was recently interviewed by Dustin Mattison, Publisher at TheFutureofSupplyChains.com, where you can also hear the recording of the interview.
We talked about Supplier Relationship Management (SRM) and the preliminary results of a recent SRM benchmark study. Below is a transcript of the interview.
Please give us a brief background about yourself:
I worked for 35 years at Dow Chemical in different areas like Manufacturing, R&D, Sales, Marketing, Finance, Strategic Planning, e-Business, and (the last 12 years in) Purchasing. In 2012, I started a consultant firm called PM2Consult, with a focus in Purchasing. I am also a Senior Consultant at Vantage Partners.
Where are we now with Supplier Relationship Management?
I think it is a hot topic today, and several leading consultant companies have endorsed the need of SRM.
I think I’m able to answer this question with data because we at Vantage Partners just finished a huge benchmark study.
We had over 800 responses from all kinds of sectors like Mining, Arts & Entertainment, Manufacturing, Health Care, Finance, Transportation, etc. This survey reached companies with a total revenue of almost $5 trillion or 6.8% of world GDP, so I believe we have enough data to talk about it.
Why are we where we are?
The data indicates that there is a good correlation of investment made in SRM and results achieved. Each company is in a different level of maturity in terms of SRM, so the investment needed may be in different areas.
Where are we going?
Part of our benchmark survey was related to the next 3-5 years.
Do you have any recommendations?
I hope you found this summary useful to your work. Feel free to call me with any concerns you have about SRM at your company.
Taking Purchasing to the next level,
Download Is SRM Worth the Investment?
Paulo Moretti is Principal at PM2Consult.com, a boutique consulting company focused on excellence in the purchasing function for manufacturing industries and market analysis of Chemicals & Plastics industries.
Prior to becoming Principal, he was Senior Consultant at Vantage Partners, and worked 35 years at The Dow Chemical Company, where he developed experience in such diverse areas as Manufacturing, R&D, Sales, Marketing, Finance, Strategic Planning, e-Business, and Purchasing.
A native of Brazil now based in the U.S., Moretti holds a Bachelor’s degree in Chemistry and Chemical Engineering, with Master’s degrees in Industrial Management and in Business and executive course certifications from Kellogg, Wharton, and MIT Sloan.
According to the recently conducted “2018 Procuring Risk: The State of Risk Management and Mitigation in Today’s Global Supply Chain” survey, most organizations appear ill equipped to deal with growing risk within their critical supply chain. Read More
When identifying shipping best practices there are numerous methodologies, carriers, and shipment service choices to consider. These should be assessed Read More
George E. Krauter
Winston Churchill once said “Things do not get better by being let alone. Unless they are adjusted, the explode with a shattering detonation.” How apt these sentences are when considering the current state of most maintenance, repair and operations … Read More
Staples Advantage is the one supplier that offers all the business solutions you need, all with the expertise of a specialty vendor. Read More
It started in 1972 with an idea, a new concept in distribution. Today, Digi-Key Corporation is one of the fastest-growing electronic component distributors in the World. The stimulus for this growth is Digi-Key's customer-centered business philosophy… Read More
Procurement and supply management leaders have a seat at the table, and management’s expectations are high. But what do CEOs really want, and is purchasing delivering on these expectations? This webcast looks at how procurement and supply management … Read More
At world-class companies, purchasing’s influence touches just about every area of spending. But, how exactly do procurement teams get to the point where other departments approach them for help with sourcing such indirect categories as human resource… Read More