The CAPS Research Semiconductor Industry Benchmarking Metric Report that was updated this year indicates there are fewer supply management employees assigned procurement-related functions globally. In North America alone, the semiconductor manufacturers who participated in the survey reported an average of 16 percent fewer supply management professionals when compared to the previous industry report published in 2007. Although some companies did report increased numbers of supply management professionals located in the APAC (Asia Pacific) region, China, and EMEA (Europe, Middle East, Africa) the negative numbers posted by other semiconductor manufacturers offset these increases and left the averages for all the global regions measured in negative territory when compared to data published in 2007.
One of the key supplier metrics is the number of active suppliers from whom semiconductor manufacturers reported they purchased direct and indirect goods, services, and capital equipment during the reporting period. In the previous report, 39 percent of survey participants reported an increase in the number of active suppliers during that reporting period. But in 2009 only 12 percent reported an increase. Another metric within this benchmark indicates 44 percent of organizations report the number of active suppliers decreased overall. In the previous report, only 13 percent of participants reported a decrease in numbers of active suppliers.
The 2009 metric report also provides a listing of the supplier performance measures most frequently used by the participating semiconductor manufacturers. The top five supplier performance measures are cost savings, price, delivery commitments, quality, and formal supplier scorecards. The importance and use of these measures has not changed since the metric report was last published.
Industry benchmarking provides metrics for process improvement, more detailed benchmarking, or possibly topics for more extensive primary research. This focused approach to benchmarking will help participants identify business practices (internal and external) that are producing superior performance, as well look closely at areas that can be improved.
To view the full metric report, “Semiconductor Industry Benchmarking Metric Report 2009,” visit the CAPS Research Web site at:
http://www.capsresearch.org/publications/pdfs-protected/Semiconductor2009Metric.pdf
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CAPS Research is a non-profit research organization founded in 1986 to provide leading research to our strategic-minded corporate sponsors and to the public. Its mission is to work in partnership with a global network of executives and academics for the discovery and dissemination of strategic supply management knowledge and best practices. CAPS Research is jointly sponsored by the W.P. Carey School of Business at Arizona State University, the Institute for Supply Management and Global 1000/Fortune 500-size organizations.
