PPP Management

Europe has been faced with supplier issues in the food chain over horsemeat in beef products.  The same problem, albeit different products has occurred in China. http://www.supplymanagement.com/news/2014/fox-dna-found-in-donkey-meat-products-at-chinese-walmart Whilst many negatives can be taken from such stories, including the original audits of the suppliers and the supply chains in both Europe and China, the positive must surely be about response from the agencies and key supermarkets and the introduction by governments of more stringent procedures. The key point to remember: supplier audits and continuous validation.

The widespread adoption of the VCR coincided with , or some would say resulted in the demise of the cinema.  Many small town cinemas closed and the number of video rental outlets increased.  This interesting article ( http://www.independent.co.uk/news/business/news/cineworld-to-buy-european-cinema-chain-in-500m-deal-9050974.html  ) in the Independent today raises some really interesting questions: 1.  In a world where convenience reigns supreme and a consumer can download a movie on a mobile device or home based entertainment system how come cinemas are big business again? 2.  The tangible form of a movie for personal consumption (i.e. VCR tape or DVD) has reduced significantly and is manifested in the loss of retailers from the high street and much reduced stocking in supermarkets? 3.  In a world where people are perceived to be becoming less tolerant why are we now more willing than in a long time to sit in a cinema next to people constant...

Congratulations to BAE Systems on the recent contract with South Korea to upgrade aircraft. "Nothing new!" many will shout; but what is very interesting is the fact that BAE Systems are not the OEM of the aircraft. Yes, BAE Systems are a world leading manufacturer of aerospace vehicles and equipment and yes they provide outstanding support to the armed forces who operate BAE Systems aircraft. This marks a real departure in their strategy of providing services. Upgrading an aircraft system from another OEM. Understanding the different engineering layouts and getting the bill of materials correct will prove to a real challenge, especially as the OEM of the aircraft (who will also have very strong relationships with component suppliers) was beaten in the competition. A great story, which could only have been better was if the work was being undertaken in the UK. Let's hope that this departure for BAE Systems in upgrading other OEMs aircrafts for clients is successful...

We've always known that risk in the supply chain is difficult to capture in totality and there has always been unforeseen risk lower down in the supply chain that results in significant problems.  The analysis from +MIT and +David Simchi-Levi. Recognising the impact that problems in low cost component supply can have is important and recognising that the impact can be disproportionally greater than the cost of the item is worthy of note.  Without re-visiting our previous article on managing by clichés this is perhaps worthy of "ruining the ship for a ha'penny of tar". The summary article in +Supply Management also raises the need for mitigation strategy.  The article and the need to manage risk are timely reminders following on from our recent article on the project management problems experienced by the BBC on its DMI project. http://www.supplymanagement.com/news/2013/supply-chain-risk-occurs-in-unexpected-locations-and-components

This article in the Daily Telegraph is thought provoking and as relevant to the industry sector as any other sector: http://www.telegraph.co.uk/finance/newsbysector/energy/10503106/UK-missed-chance-of-offshore-wind-jobs.html The significant investment and potential to build a really strong professional knowledge and skills base has been lost due to the failure to ensure an effective supply chain is in place. Time for all to start thinking about the importance of capable supply chains.

An article from Supply Management by Tom Alford of PPP Management on target cost pricing http://www.supplymanagement.com/analysis/features/2013/on-target/ We might be biased but this is a great article.  If you think so then you'll appreciate our forthcoming articles on incentivisation and the inextricable links between procurement and contract management

Previously dogged by supply chain issues and the ability to meet customer demand it sounds that the North American launch of the PS4 has gone better than previous console launches.  The bigger challenge of Europe on 29 November will be the litmus test. http://www.ft.com/cms/s/0/1480e760-4f85-11e3-b06e-00144feabdc0.html?siteedition=uk#axzz2kwQ1Jora

A really great article on finance and supply chain integration.  http://www.ey.com/Publication/vwLUAssets/EY-Partnering-for-performance-the-CFO-and-the-supply-chain/$FILE/EY-Partnering-for-performance-the-CFO-and-the-supply-chain.pdf The article is worthy of a good read and identifies the real benefits to organisations from aligning their finance and supply chain functions: CFOs and supply chain leaders are creating alignment between strategy, finance, tax and operations, unlocking hidden value within the organization and strengthening financial performance. Recognising the true value that supply chain and procurement brings helps financiers understand the value that is added and moves away from the accusation of "knowing the cost of everything and the value of nothing".   Disappointingly it is western Europe left trailing in the wake of Asia and the US in recognising the benefits of an integrated approach.  However, on a positive note the integrated ap...