Management Questions

Managers who want to launch a Value Sourcing initiative should consider these questions:

• Is sourcing seen as driving revenue growth as well as cost reduction?
• Are we maximizing the value of our supplier relationships?
• Have we segmented our spending and identified strategic categories and suppliers?
• Do we understand and are we positively affecting supplier economics?
• How collaboratively do procurement, users, and key suppliers work on new product development?
• Are our product and service specifications up to date? Do they strike the right balance between technical need and total cost?
• Are there significant portions of spending under the control of the user community with little involvement from Procurement?
• What portion of spending could benefit from a global or regional approach?
• Do we have the internal capabilities to ensure a generation of continued gains?
• Is procurement of equal importance to engineering and operations in the company?
• Can we use Value Sourcing to transform the organization?
• How do we gain buy-in and motivation with key managers?
• What are the right and cost-effective digital tools to apply?

Source:
Stop Thrashing Your Suppliers: Focus on value and profits, not just cost, in the sourcing process
by David Bovet
Mercer Management Journal, Issue 14

Posted by Administrator / Procurement / Purchasing / Sourcing Questions