taking the first step on your supply management journey
DESCRIPTION
VFS. Hi-Def Sourcing. Next Level Supply Management. Next Practices. Value Chain Creation. The acronyms and acclamations are flying fast and furious. Even world class Supply Management organizations have to do something more to maintain their year-over-year contributions to the bottom line with the perfect Procurement storm of high demand, low supply, and high market volatility brewing off of the coast. But where does an average Supply Management organization begin?TRANSCRIPT
New report by BravoSolution
The Next Level Supply Management• What does it mean to be best-in-class? How do we make it happen?
• According to the Hackett Group – a best-in-class procurement organization rests in the top quartile for efficiency and effectiveness.
• Only 8% of the companies they benchmark make the cut. • The rest are above the median – average performers – or below the
median – the laggards.
• But, companies can make the jump to the next level with 18-24 months.
The 3-Tier Maturity Model
Strategic Business Enablement
Operational Excellence
Standardization & Complexity Reduction
• What data is captured? Where is it stored? • How does it support standard processes?
Now that the data is centralized, current, and easily accessed, how can it support better business decisions?
How can we shift from controlling cost to finding new sources of value?
What it means for procurement:
From Standardization to Excellence• Focus: Controlling and maximizing the sourcing process.
• Shifting from a basic landed cost focus to a more holistic outcome focus that revolves around TCO for high-value strategic categories.
• Modifying the generic sourcing process for key categories, focus on should-cost models and not best quote.
• Focus: Centralizing procurement. • Shifting from after-the-fact sales analysis to immediate demand
visibility.• Moving demand to more profitable products.• Focusing on moving into other profitable markets.
From Excellence to Enablement• Focus: The Next Level – Enabling procurement’s business impact
• Focusing on the bottom line vs. supply management outcomes.• Including supplier and customers on category management teams.• Identifying mini-trends to maximize the gains from mega-trend
efforts.
• The Result: Truly collaborative sourcing teams that include suppliers and customers on strategic projects.
Taking the First Step onYour Next Level Supply Management Journey
Download the full report, free of charge, at BravoSolution.com.
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