Delivering Customer Value through Procurement and Strategic Sourcing: A Professional Guide to Creating A Sustainable Supply Network

Book description

This is the complete executive's guide to driving sustainable competitive advantage and mitigating risk in today's complex supply networks. Two of the field's leading consultants show senior managers how to apply advanced strategic sourcing to significantly improve your supply chain's efficiency, effectiveness, and sustainability.

Drawing on their cutting-edge research, Yusen Xia and Walter L. Wallace help you go beyond mere cost-cutting and contract management to redesign and orchestrate your entire multi-tier supply chain. Wallace and Xia present powerful case studies and lessons from UPS, Coca-Cola, Home Depot, Shaw Industries, and other pioneers. You'll learn how to:

  • Bring together the multiple business disciplines whose work impacts sourcing and procurement

  • Use strategic sourcing techniques to create a more sustainable supply chain

  • Integrate the use of emission permits into your strategic sourcing programs

  • Manage procurement when the cost of raw materials fluctuates widely

  • Effectively utilize financial hedging in strategic sourcing

  • Deepen your understanding of contemporary buyer-supplier relationships

  • Implement strategic lead-time management

  • Increase visibility as a way to become more demand-driven

  • Take advantage of recent advances in e-sourcing and e-procurement

  • More effectively manage risk and uncertainty in your supply network

  • Make better outsourcing/insourcing decisions in global supply chains

  • If you're a senior manager who wants to transform sourcing and procurement into a key competitive differentiator, this book will help you deliver the goods.

    Table of contents

    1. About This eBook
    2. Title Page
    3. Copyright Page
    4. Dedication Page
    5. Contents
    6. Acknowledgments
    7. About the Authors
    8. Introduction
      1. Notes
    9. 1. Purchasing, Procurement, and Strategic Sourcing
      1. Strategic Sourcing Methodology
      2. Supplier Relations and Performance
      3. Notes
    10. 2. Managing Sourcing and Procurement Processes
      1. Step 1: Determine the Type of Purchase and Level of Investment
      2. Step 2: Perform the Procurement Process
      3. Step 3: Evaluate the Effectiveness of the Strategic Sourcing Process
      4. Supplier Selection
      5. Use of the Tradeoff Analysis for Supplier Selection
      6. Procurement Pricing
      7. The Procurement Team and Its Contribution
      8. Notes
    11. 3. Strategic Sourcing and Delivering Customer Value
      1. Delivering Customer Value
      2. Defining Customer Service
      3. The Impact of “Out of Stock”
      4. Value Creation and Effectiveness
      5. It’s the Totality of the Offer that Delivers Customer Value
      6. Market-Driven Supply Chains
      7. Identifying Customers’ Service Needs
      8. Defining Customer Service Objectives
      9. The Cost Benefit of Customer Service
      10. Setting Customer Service Priorities
      11. Setting Service Standards
      12. Notes
    12. 4. The Size of the Organization Spend and Financial Significance
      1. Organizational Spend and Its Significance
      2. Return on Investment Effect
      3. Profit-Leverage Effect
      4. Reduction in Inventory Investment
      5. Supply Side Contribution to the Organization
      6. The Mission, Vision, and Strategy of the Organization
      7. The Size of the Organization
      8. The Financial Strength of the Organization
      9. The Reputation of the Organization
      10. Notes
    13. 5. Understanding Buyer-Supplier Relationships
      1. Trusting a Single Source
      2. An Apple of an Idea
      3. A Calculated Risk
      4. Keeping the Complex Simple!
      5. A Foolproof Strategic Procurement System
      6. Managing the Strategic Sourcing Decision: Buyer-Supplier Relationships
      7. Notes
    14. 6. Value Creation for Global Procurement Competitiveness
      1. Spotlight on Procurement Performance
      2. The Strategic Sourcing Decision: The Best Value Chain Wins
      3. Notes
    15. 7. Procurement under Raw Material Price Fluctuations
      1. Raw Materials and Commodity Procurement Contracts and Trading Markets
      2. Raw Materials and Commodities Price Forecasting
      3. Commodity Procurement Strategies when Forecasted Prices Are Increasing
      4. In Conclusion
      5. Notes
    16. 8. Supply Processes and Information Technology
      1. The Supply Management Process
      2. Technology-Driven Efficiency and Effectiveness
      3. Building Application Layer Security into the Supply Chain
      4. Information Technology Implications for Strategic Sourcing
      5. Notes
    17. 9. Creating a Sustainable and Environmentally Compliant Supply Network
      1. A Greener Manufacturing Process
      2. Initial Steps
      3. Considerations for a Greener Supply Network
      4. Big Picture Considerations
      5. Why Sustainability?
      6. Green Sourcing
      7. A Green Strategic Sourcing Process
      8. Building a Competitive Advantage through Collaborative Sustainability Goals
      9. Corporate Social Responsibility
      10. Notes
    18. 10. Time-Based Strategic Management
      1. Supplier Lead Times
      2. Quantity, Delivery, and Lead Time
      3. Time Has a Price
      4. A Shift in Priorities
      5. Logistical Lead-Time Network Management
      6. Eliminating Waste through Streamlined Flow
      7. Throughput Time Element Analysis
      8. Operational Effectiveness
      9. Notes
    19. 11. The Use of Emission Permits in Strategic Sourcing
      1. Top-Down Trading System
      2. Bottom-Up Trading System
      3. Linking Different Systems
      4. Further Thoughts on the Subject of Emissions-Trading Systems
      5. In Conclusion
      6. Glossary of Related Terminology
      7. Notes
    20. 12. Visibility as an Attribute to Becoming Customer-Centric and Demand-Driven
      1. Big Data, Greater Visibility
      2. Greater Visibility: What More Can We Do?
      3. Building Visibility in the Inbound Supply Chain
      4. Visibility on a Cloud-Based Supply Chain Network
      5. Event Sourcing Software Architecture
      6. Dell’s Information Visibility System
      7. Crate & Barrel’s Vision for Global Supply Chain Visibility
      8. A Well-Implemented Visibility Solution
      9. Notes
    21. 13. Understanding the Supply Chain Risk Profile
      1. Managing Supplier Risk
      2. The Hidden Risks of Supply Chain Innovation
      3. Growing Threats to Supply Chains
      4. Mitigating Risk by Gaining Visibility in the Global Network
      5. Mapping the Organization’s Internal Risk Profile
      6. Managing Supply Chain Risk
      7. Notes
    22. 14. Reshoring: Revolution or Evolution
      1. Offshoring
      2. Improving the Outsourcing Decision
      3. Reshoring
      4. Nextshoring
      5. Proximity to Demand: Localization and Postponement
      6. Made in America
      7. Outsourcing Services
      8. Benefits and Risks of Outsourcing Services
      9. Outsourcing Challenge
      10. Classification of Business Services
      11. Offshoring’s Future
      12. Notes
    23. 15. Supply Chain Network Design and Analysis
      1. Responsiveness
      2. Reliability
      3. Resilience
      4. Relationships
      5. Concluding Remarks
      6. Notes
    24. Index

    Product information

    • Title: Delivering Customer Value through Procurement and Strategic Sourcing: A Professional Guide to Creating A Sustainable Supply Network
    • Author(s): Walter L. Wallace, Yusen L. Xia
    • Release date: November 2014
    • Publisher(s): Pearson
    • ISBN: 9780133890112