Your Most Important Tool
In the upcoming chapter on supplier relationships (Chapter 14), we note that the word “partnership” is often used casually in the business world when the speakers often means different things.
The term “strategic sourcing” can sometimes fall into the same trap. Simply adding a few bells and whistles to conventional purchasing, and then slapping the word “strategic” onto the process or the department name, is not the same thing as adopting the process that the authors have used in their careers to generate significant improvements in corporate financial performance.
What is strategic sourcing? It is a fact-based, rigorous process that involves substantial internal data gathering and evaluation, ...