A member organization is in the first phase of evaluating our quality processes to determine those that might be moved to cost-advantaged regions. Most respondents have experimented with limited transfer of quality to low-cost subsidiaries. Data-heavy tasks have been reported as outsourced to Chi
Most companies use in-house systems. Among those deployed from outside are SAP, EtQ, and Interlex. Very few participants are unsatisfied with functionality. Among the problems reported, the most prevalent are difficulty to inter-operate and the time it takes to master/administer.
A member is exploring 4PL models within their network. This involves both hiring a 4PL, or becoming an internal 4PL. Companies such as Penske, Agillence and Odyssey Logistics were names. Scorecards, including cost reductions and optimization are used to measure success.
A fair number of members do not use enough steel and aluminum to be affected. Some members are shielded from prices increases by contractual covenants. Those affected by tariffs will pass them on through higher prices. There is no evidence of panic buying in the marketplace.
Most companies outsource freight payment and audit services. Among the programs used internally are Franklin Global Strategies and M&L Worldwide. Respondents provided no specific software or additional outsource providers.
The expectations with respect to DPPM vary by company size, technology, and other characteristics. Most reporting companies indicate that they do have expectation for suppliers to adhere to certain metric bounds. Only in a few cases would this bound be zero.
At the request of a member, the Purchasing Council surveyed the membership about Savings Target in Procurement.
• The vast majority of companies have targets for procurement
• The distribution of savings follows the standard bell curve