Value Sourcing 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

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