INTRODUCTIONSince the early 1980s the field of purchasing and supply management has undergone dramatic change presenting professionals with an array of new, continually evolving challenges to effective supply chain management. Identified and analyzed in recent studies (WEF 2013; PwC 2013a; Carter, et al., 2012; McKinsey, 2010), current challenges expected to continue into the future for supply chains include, among others, rising competitive pressures, consumer expectations about customer services and product quality, complex patterns and volatility of customer demand, the increasing role of global markets for labor and talent including rising wages, constant changes in regulatory requirements, the need for increased automation and improved transparency, a focus on sustainability and social responsibility, a growing need for continuing education and skills training for employees in response to the rapidly changing nature of the functions involved in effective supply chain management, inadequate crossfunctional collaboration regarding supply chain-related issues, and limited involvement of CEOs in supply chain planning.Differing approaches employed by organizations to bring about change in response to these and other challenges are all rooted in a set of values, some of which are more likely to lead to ethical outcomes than (Burnes and By, 2012, p. 239; Giacalone, Jurkiewicz and Deckop, 2008). Whereas some approaches for dealing with change are built on a base composed of ethical principles, others give little, if any, direct recognition to ethics, relying instead heavily on power and politics to bring about change (Burnes and By, 2012). The past several decades have witnessed an ongoing global shift in values in which the importance of materialism has declined relative to that of expansive values focusing, according to Jurkiewicz and Giacalone (2008), on individual lifestyle preferences, the well being of people in society, and concern for group and values-based oriented outcomes. New ethical expectations of internal and external stakeholders arising from this shift in the priority of values have led many organizations to adopt new ethical principles reflecting expansive values (Giacalone, Jurkiewicz and Knouse, 2012). Organizations have become more concerned with incorporating the three key elements of sustainability-environmental, social, and economic-into decisionmaking. Ethics principles are being broadened to reflect more directly societal values related to human and labor rights. Businesses are expanding their responsibilities for the behavior of others with whom they do business.This paper examines the extent to which supply managers, currently engaged in dealing with potential change that in many cases may prove to be critical to the effective operation of supply chains in the future, are facing an ethical environment that has shifted over the past two decades. The findings of a study conducted in 1995 by Cooper, Frank and Kemp (1997) and cosponsored by the National Association of Purchasing Managers (NAPM) are compared with those of a 2012 follow-up study of the key ethical issues currently faced by those managing supply chains. Once again, data was gathered using an ethical issues questionnaire sent during the last quarter of 2012 to randomly selected samples of the Institute for Supply Management's (ISM, formerly NAPM) members some with and others without professional designations. The questionnaire also included items used to gather information about the respondents and their companies (or government organizations) to permit analysis of the issues for various participant subgroups.SURVEY DESIGNISM maintains membership lists that identify those holding professional designations and those who do not, hereafter referred to as designees and members, respectively. ISM members were randomly selected from each group, making 2,000 designees and 2,000 members available for the survey. …
The increasing complex fragmented business process, demand for speed, and pressures for cost control forced on us by the changing world situation reinforce the importance of better relationships throughout supply management processes. Similarly, rapid economic development, demand for increases in quality and performance, changing political attitudes, significantly improved communication systems, better transportation systems, trends toward economic integration and increasingly intense competition are tremendous social forces driving change in our supply management processes. These social economic changes will become even more important as we move on into the 21st century. This paper defines the process of networking and is my personal advice on how you can use networking during ISM's 90th International Supply Management Conference as a great career building opportunity for you. Definition. Networking means intentionally getting and giving information. It is not about a big fat Rolodex or long e-mail address lists. Rather networks are always mutually beneficial arrangements to exchange information between some set of two or more people who hope to learn from each other. Networking means lots of things to lots of people, but as I use the concept here, I mean a process of intentionally building personal and business relationships (networks) with the right people globally to enhance your supply management process and its managerial system. This power cannot be wielded just from your office; rather it is shared mutually by all elements of the network. Networking involves Cyber- space and the web, but they are only tools for the process. Networking is strategic managerial behavior that takes place over the long-term, across organizational boundaries and perhaps globally. As limited resources preclude networking with everybody in the market, we must limit the network to a special set of strategic supplier partners, inter- mediaries and others that we have carefully selected to support our supply management process. Even so, we do not want to be myopic. We must be proactive and alert to opportunities to expand our global network by introducing new members to our network. Much has been written about partnerships, strategic alliances, and better supplier relations. These are all special forms of networking. We have known for a long time that networking is key to success in many ways. Fred Luthans writing in The Academy of Management EXECUTIVE (1988) II showed that networking was the key characteristic of successful managers. When Luthans and his team of researchers statistically evaluated the differences between successful managers (those who were promoted faster than others) and effective managers (those recognized for doing a good job), they found that networking was the only statistically significant factor that delineated between the two sets of managers. The successful managers communicated more and better. Similarly, a CAPS study of world-class skills for supply management in 2000 showed that interpersonal communication is the number one skill required for success. The 2004 CAPS study showed that teambuilding is still the number one skill. The top skills included strategic planning, effective communication and relationship building. Most authorities agree that good
Organi zations have huge reservoirs of gold in their operations. Supply management means creating and leading the supply chain to ensure continuity of supply, better service and more involvement with suppliers and others to provide our stakeholders unexpected positive cash flow. The key concept making this all possible is to understand where the gold is and how to dig it. The discussions and examples involve several different operations and processes and were purposely selected to challenge everyone in supply management to "dig for the gold" at their respective level of organizational influence and responsibility. Our challenge is to find the will and the way and learn to recover that Gold!
This paper presents the findings of a study of purchasing and supply management professionals in India conducted to identify the key ethical issues they face in carrying out their work related responsibilities as well as to determine the extent to which various factors appear to be helpful or to present challenges to their efforts to act ethically in the course of their work. The Indian findings are then compared to those for studies conducted among purchasing and supply management professionals in the United States, United Kingdom and Canada. Key findings for the four studies are summarized and implications for business and the professions are presented.
This paper presents the key findings of a study cosponsored by The Chartered Institute of Purchasing and Supply that surveyed 1,500 CIPS members in an effort to (1) identify the key ethical issues facing the profession of purchasing and supply chain management today, and (2) determine the extent to which those working in the profession tend to find various factors to be helpful or to present challenges to their efforts to act ethically in the conduct of their work. The implications of the key findings for business and the profession - both CIPS and its individual members - are discussed.
This article presents the key findings of a study cosponsored by NAPM that surveyed NAPM members in an effort to (1) identify the key ethical issues facing the profession of purchasing and materials management today, and (2) determine the extent to which purchasing professionals find various factors to be helpful or to present challenges to their efforts to act ethically. A comparison of the findings for C.P.M.s and non‐C.P.M.s indicates that the two groups of NAPM members have very similar views regarding the key ethical issues and the helps and challenges encountered by the profession. The implications of the key findings for business and the profession are discussed.
Based on the results of a study conducted in 1988 in conjunction with the Center for Advanced Purchasing Studies (CAPS), Janson (1988, p. 7) concluded, "Ethical challenges have dramatically increased for purchasing personnel as well as for management in general." With the business environment in general becoming increasingly competitive and tumultuous in recent years, those in the profession of purchasing and supply management continue to face a very challenging ethical envi ronment. In light of the increasing emphasis being placed on ethics throughout the business world today, the National Association of Purchasing Management (NAPM) cosponsored a 1995 study of 6,000 of its members?3,000 C.P.M.s (members who hold the Certified Purchasing Manager designation) and 3,000 non-C.P.M.s-in an effort to get an updated and expanded picture of the ethical environment faced by those in the field of purchasing and materials management in the United States. In addition to identifying the key ethical issues faced by U.S. purchasers (a task undertaken periodically in the past by other researchers, including Rudelius and Buchholz, 1979; Dubinsky and Gwin, 1981; and Forker and Janson, 1990), the recent study of NAPM members also identified the key factors which those in the profession view as helping and hindering their efforts to respond
The new CAPS/A.T. Kearney Research depicts a world in dynamic business change at every level—economic, organizational, political and social. Clearly forecasting will be even more important and difficult for supply management. In making strategic decisions under uncertainty, we all make forecasts. We may not think that we are forecasting, but our choices will be directed by our anticipation of results of our actions or inactions. We must know our forecasting tools so as to expand and organize our vision of the supply management environment. Knowingly or unknowingly, we all make forecasts/predictions everyday. Albeit, since forecasts seldom hit the target right on, many people believe that forecasting is wasted effort. Not so! Although forecasts may differ from actual result, it is important to note that this fact may not be bad. More importantly we should ask ourselves how much worse your operations might have been without the guiding light of your forecast. Trying to see and structure your future is not wasted time! Actually, learning to create better forecasts is value-adding work.
Today's customers expect zero defects with JIT delivery from their suppliers of the specified quantities as a matter of standard practice. More importantly, customers expect us to help them know what they need in terms of quantities and quality now and for the future. No other change process adds long-term value as quickly as zero defects. Companies failing to embrace this quality culture face difficult challenges. To achieve this level of performance requires tremen-dous focus in your organization and throughout its supply base. The four- broad processes and eight steps discussed here will help an organization create a quality culture of zero defects. Introduction. The Global Supply Management team at Delphi is undergoing a lean trans- formation to further enhance competitiveness and to improve supplier relationships. Continu- ous improvement of supplier quality is a key element in lean transformation. Delphi quality control has identified poor supplier quality as a major potential systemic problem. A lean transformation will fail without continued requisite quality from suppliers. In 2002, the Delphi Supplier Quality team developed the Quality Focus Supplier Process (QFSP) to continuously improve its suppliers' quality performance. Delphi implemented the QFSP with 300 suppliers globally in 2003. This presentation will provide participants with specific knowledge and supply management tools to build a QFSP to help improve supplier performance. Our discussions will include problem identification, solution techniques, step-by-step procedures, and early results from QFSP. Our goal is to show you how to create an organizational cultural change and commitment to zero defects and total quality performance. Quality Focused Supplier Process System. The QFSP is designed around the four processes of the Plan-Do-Check-Act (PDCA) mentality. Plan: Understand the problem and create the plan. Do: Execute the plan.
The importance of better relationships throughout supply management processes is reinforced by the increasing complexity, demand for speed, and pressures for cost control forced on us by the changing world situation. Similarly, rapid economic development, demand for increases in quality and performance, changing political attitudes, significantly improved communication systems, better transportation systems, trends toward economic integration and increasingly intense competition are some of the tremendous social forces that are driving change in our supply management. These social changes will become even more important as we move on into 21st century. This paper defines the process of networking and is my personal advice on how you can make the 87th International Supply Management Conference a great career building opportunity for you by networking. Definition. Networking means intentionally getting and giving information. Networks are always mutually beneficial arrangements or systems to exchange information between some set of two or more participants. Networking means lots of things to lots of people, but as I use the concept here, I mean a process of intentionally building personal and business relationships (networks) with the right people globally to build power in your supply management process and its managerial system. This power cannot be wielded just from your office; rather it is shared mutually by the elements of the network. As networking is long- term and across organizational boundaries, it is strategic managerial behavior. Hence, we cannot afford to network with everybody in the market. Rather, we must limit the network to a special set of strategic supplier partners, intermediaries and others that we have carefully selected to support our global supply management process. Even so, we do not want to be myopic. We must be proactive and alert to opportunities to expand our global network by introducing new members to our network. Much has been written about partnerships, strategic alliances, and better supplier relations. These are all special forms of networking. We have known for a long time that networking is key to success in many ways. Fred Luthans writing in The Academy of Management EXECUTIVE (1988) II showed that networking was the key characteristic of successful managers. When Luthans and his team of researchers statistically evaluated the differences between successful managers (those who were promoted faster than others) and effective managers (those recognized for doing a good job), they found that networking was the only statistically significant factor that delineated between the two sets of managers. The successful managers communicated more and better. Similarly, a CAPS study of world class skills for supply management in 2000 showed that interpersonal communication is the number one skill required for success. The top ten skills included teamwork, negotiation, influencing and persuasion, and strategic thinking. Most authorities agree that good networking practices
The dynamic changes envisioned for tomorrow's business world tomorrow demand new and dynamic strategies to meet supply management's strategic responsibilities and roles. Clearly, reshaping traditional suppliers and supply chains is not at easy task. Even our best suppliers will want to know, "What's in it for me?" A critical supply management problem is how to increase supply chain performance while facing increasingly serious global forces from 1) expanding and increasing global competition, 2) increasing global risk, 3) higher energy costs, 4) increasing market demand for productivity, quality, improved product performance and higher value, and 5) increasing pressure and demands to reduce total cost. We need a practical model to move to even better strategic supply chain operations. Migrating existing processes to systems that create strategic competitive advantage in cost, quality, delivery and innovative support systems requires dynamic change and leadership. This project will accomplish five things. We will 1) map the dynamic-change process to identify and sequence the mind-boggling changes required to ensure that supply managers meet strategic-organizational expectations, 2) identify and define new knowledge, tools and structure to support supplier development and reward systems, 3) provide models for supplier development/ reward systems to lead suppliers in a dynamic supply chain that exceeds customer expectations, 4) provide a map for professional development and life-long learning for supply managers and leaders at the supplier level, and 5, reinforce these discussions with live examples. Participants will take away two maps and two models to guide the strategic migration of existing supply management professionals, carefully selected suppliers and even supply chains from today's old world to the dynamic new world of tomorrow.� Mapping the dynamic-change process: To map the dynamic-change process to identify and sequence the mind-boggling changes required to ensure that supply management meets strategic-organizational expectations is not a one step process that is put into operation and completed. It too becomes a living, dynamic, ever-changing organizational process that will live beyond the developers and participants. First we must recognize that nothing is ever as good as it can be and that improvement at workable costs is always possible. Similarly, we