Welcome to the station of www.supplierlifecycle.com, where we would like to share with you the process, tools and practices developed in globally leading industrial organizations, and learn from your valuable perspective to optimize the system and methodology in the field of Supplier Lifecycle Management (SLM).
Hot words under discussion in recent years are “Total Solutions”, “Big Data”, and “Smart Intelligence System”. All of these symbolize people to re-think stuff in a big picture instead of scatters or fragments, and this has strong link to the fast development of information technology and globalization. Businesses in many sectors are now either developed vertically or horizontally in width and depth far more than before. Either is expected for achieving results of 1>1, or 1+1 > 2, of which former means the created value is more than before and latter means the total valued created along the value chain is larger than the sum of individual sub-business.
There has been concepts and theories in place already for Customer Lifecycle Management and Product Lifecycle Management but seems Supplier Lifecycle Management is not that much mentioned in practices (except some Enterprise Resource Planning software companies), instead of Supplier Quality Management, Supplier Relationship Management, etc. Of course all the latters can cover a broad topics but they still miss a well streamlined overview from the names-selves. For more introduction about Supplier Lifecylce Management pls visit page SLM brief
“ Supplier Lifecycle Management works from the premise that the supplier should be considered as central to procurement activities and processes, an approach which drives significant benefits… Seeing the Supplier as a Lifecycle can help Purchasing departments involve the suppliers earlier in the process so that their needs are satisfied in a deeper more effective manner. SLM considers all the elements of our relationship with a supplier, from initial engagement and information gathering, the sourcing process, through the work relationship, to development and on towards final parting of the ways” (Smith, 2012, p.19).
China speeds up the industrialization since opening the door to world in 2001, when China joined the WTO (World Trade Organization). The increased global trading and expanded foreign investment in industries to China forces organizations to place even higher focus over not only internal quality but also external quality, that’s an important reason that there was very booming period for ISO9001 and TS16949 in China during 2000 and 2008 as illustrated in below chart (Growth of Quality Management System Certificates Released in China during 2002 and 2016), however it’s slowed down since the global economic crisis in 2008.
Today’s Chinese organizations are exposed to an even fierce competition business environment, and organizations are adopting new development strategy to be more slim and flexible instead of heavily relying on assets, and at the same time more and more organizations are moving towards the two ends of smile curve value chain – R&D, and Service. As a result, suppliers are becoming critical partners to ensure fast delivery of quality goods at right cost to market, especially when “outsourcing” and “contracting” turns to be hot words in 2010s. Every coin should be saved properly each business activity and value should be maximized, and this is consistent with the principle of LEAN ideas. No exception in Supplier Management, and that’s why Value Driven is addressed.
In addition to the thoughts blogged, you will also be able to be benefited from below:
- seeing the useful forms and tools applied in real business,
- directing to popular and frontier portal and knowledge,
- being inspired to re-think the supplier management in a bird-view way,
- advancing your career development by broadening your horizon,
Hope you enjoy!