In today’s challenging environment a company’s success is determined by its ability to utilize all the assets at its disposal. One asset often neglected by the boardroom is supplier expenditure, yet most organizations spend at least half their costs with their supplier – often for business-critical goods and services. Effective procurement delivers rich rewards where P&L impact is relatively painless and immediate, benefit/cost ratios of 10 to 1 are realistic ambitions, in-year payback commonplace and top-line growth and cost reduction are both achievable. This book is for executives who recognize this opportunity and as such covers all aspects of strategic procurement, including: the role of both the top team and the organization as a whole in procurement; understanding the importance of procurement in delivering your customer value proposition; optimizing supply chains; reducing cost and creating value; making yourself important to the suppliers you need; sustaining procurement improvement and keeping it on the business agenda. Showing you how to cut costs while improving your business and the importance of effective supplier relationships, Strategic Procurement offers real understanding of the true worth of procurement in the boardroom.
Author(s): Caroline Booth
Publisher: Kogan Page
Year: 2010
Language: English
Pages: 193
Contents......Page 6
List of figures and tables......Page 10
Preface......Page 11
Acknowledgements......Page 13
1
No company is an island......Page 14
What is third-party spend?......Page 15
Supply chains......Page 16
Supply chain complexity......Page 19
2 Know what your customers value......Page 22
Remember the iceman......Page 23
Your customer value proposition......Page 26
3 Right first time......Page 28
Indirect or back office expenditure......Page 29
Direct expenditure......Page 31
Enabling expenditure......Page 33
4 Know your core......Page 38
Activities in the supply chain......Page 39
Core and non-core......Page 40
Market capability......Page 44
The models in action......Page 48
Consequential supply chains......Page 50
5 Handling the complexity......Page 52
Supply chains across organizations......Page 53
Marching to the same beat......Page 57
6 What’s the issue? We can all do procurement......Page 60
We all love to buy......Page 61
Deserve the suppliers you need......Page 62
Bow ties and diamonds......Page 64
The role of the procurement department......Page 66
Fixing the compass......Page 68
Your sponsorship......Page 70
Cascading sponsorship......Page 71
Don’t bother me with strategy,I don’t have time......Page 74
The value of strategy: the symphony orchestra......Page 75
The case for strategy......Page 76
Cascading strategies......Page 77
It’s never too early to know what you need......Page 80
Articulating the need......Page 81
Who needs blue sky?......Page 82
Bringing suppliers into the mix......Page 84
The complexities of needs statements......Page 86
10
Picking the right suppliers......Page 92
Your supply chain on the maturity curve......Page 93
In practice......Page 95
One size doesn’t fit all......Page 100
Alien tactics......Page 101
Value......Page 103
Category mapping......Page 104
What suppliers think of you......Page 109
It’s about more than the money......Page 114
Requirements......Page 116
Supply market distortion......Page 121
Cost advantaged supply......Page 122
Size matters, but be careful what you measure......Page 124
Don’t be a shock absorber......Page 126
When the going gets tough......Page 127
Getting your own house in order......Page 131
Be careful of getting what you wish for......Page 134
Back to the multinational......Page 135
Getting to a relationship that worked......Page 136
Good corporate citizenship......Page 138
Defining corporate responsibility......Page 139
Embedding corporate responsibility......Page 140
Health, safety and environment......Page 142
Supplier diversity......Page 143
16 Good procurement across the company......Page 146
Corporate culture and procurement......Page 147
Procurement proficiency......Page 149
Get your lipstick on......Page 152
Becoming important......Page 153
Good relationships......Page 154
Securing what you need......Page 157
Complexity......Page 159
Supplier management......Page 160
Don’t be fooled by mediocrity......Page 164
Getting the organization on side......Page 166
The same again but on steroids......Page 167
Still on steroids, but this time even more complex......Page 169
The magic ingredients for continuous improvement......Page 170
Shrinking the pie......Page 172
Total cost of ownership......Page 173
Safeguarding value......Page 177
Proving the value (again)......Page 180
Demonstrating value......Page 181
Holding the gain......Page 182
Extended enterprise......Page 183
Total cost......Page 184
Executive sponsorship......Page 185
Glossary......Page 186
References......Page 190
Index......Page 192
