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Straight To The Bottom Line by Shelley Stewart, Michael Katzorke, Douglas Smock, Robert Rudzki

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10

Automotive Purchasing

A Tale of Two Spenders

Alliances require a complete corporate focus, starting with senior management, to break the paradigm of individual companies building walls around themselves.

—Thomas T. Stallkamp, creator of the Extended Enterprise in Chrysler procurement

Suppliers are corporations’ most important allies in the competition of global supply chains. Curiously, it is only a very recent development that Western companies attempted to share even very basic information with them. When R. Gene Richter assumed the top procurement post at IBM in the 1990s, he discovered that all IBM corporate information was kept secret. Suppliers were told to make a specific part, but were never told how or where it would be used. ...

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