Collaborative Sourcing
Strategic Value Creation through Collaborative Supplier Relationship Management
First Edition
How much value do you create because of the way you work with your suppliers? Are you reducing costs, like all your competitors? Or are you capable of building a differentiating relationship with selected suppliers? The authors explain how collaborative sourcing can create sustainable competitive advantages, and how world-class procurement teams are managing a portfolio of supplier relationships, from the traditional arm's-length negotiation to full-fledged collaboration. They develop their recommendations based on multiple case studies, examples and their own professional experience. This book provides a comprehensive framework to evaluate when and how collaborative sourcing should be applied. Which are the key sourcing processes and the infrastructure required for effective collaboration? How does one change and shape an organization to initiate and sustain collaborative sourcing?
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- Publisher
- Presses universitaires de Louvain
- Title Part
-
Numéro 2
- Author
- Michel Philippart, Christian Verstraete, Serge Wynen,
- Collection
- E-Management - Chaire ING
- Language
- English
- Publisher Category
- Management > General Company Policy
- Publisher Category
- Management > Marketing and Sales
- Publisher Category
- Management > Production Management
- BISAC Subject Heading
- BUS000000 BUSINESS & ECONOMICS > BUS041000 BUSINESS & ECONOMICS / Management
- Onix Audience Codes
- 06 Professional and scholarly
- CLIL (Version 2013-2019)
- 3177 MANAGEMENT, GESTION ET ECONOMIE D'ENTREPRISE
- Title First Published
- 01 January 2005
- Type of Work
- Monograph
- Original Language
- English
Paperback
- Publication Date
- 01 January 2005
- ISBN-13
- 9782930344997
- Extent
- Main content page count : 262
- Code
- 72523
- Dimensions
- 16 x 24 x 1.4 cm
- Weight
- 393 grams
- List Price
- 20.00 €
- ONIX XML
- Version 2.1, Version 3
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Contents
INTRODUCTION: Shareholder Value: The Right Perspective...................................1
Supplier Relationship Management...................................................................3
Collaborative Sourcing......................................................................................3
Objectives and Readership ................................................................................4
PART 1: STRATEGIC FRAMEWORK..................................................................7
CHAPTER 1: FROM TRANSACTION TO SHAREHOLDER VALUE.............11
From Tactical Cost Cutting to Strategic Supplier Management: The Maturing
of Procurement ................................................................................................12
Value Creation and Sustainable Competitive Advantage................................16
Resource Based View of the Firm...................................................................18
The Benefits ....................................................................................................20
Collaborative Sourcing vs. Transactional Effectiveness .................................21
Conclusion.......................................................................................................23
Case Study: The Winning Chips .....................................................................25
CHAPTER 2: COLLABORATIVE SOURCING OPPORTUNITIES .................27
Identifying the Strategic Targets .....................................................................27
Value Creation Opportunities..........................................................................29
Industries and Value Chain .............................................................................31
The Age of the Extended Enterprise................................................................33
Shaping your Collaborative Sourcing Network...............................................36
Price and Value Setting ...................................................................................38
Key Questions to Identify Value .....................................................................40
Conclusion.......................................................................................................42
Case Study: Does Size Matter in Wind Mill Manufacturing? .........................43
Case Study: Critical Partnership in Clinical Research.................................... 45
CHAPTER 3: THE COLLABORATIVE SOURCING MODEL ......................... 47
Types of Customer-Supplier Relationships .................................................... 47
Conclusion ...................................................................................................... 52
Case Study: Toys or Burgers .......................................................................... 53
PART 2: BUSINESS PROCESSES & INFRASTRUCTURES............................ 55
CHAPTER 4: FROM FUNCTION TO PROCESS................................................ 59
Business processes, what do you mean?......................................................... 59
Case Study: Cisco Systems............................................................................. 63
Development of Cisco's Extended Enterprise ................................................ 64
Where Things went Wrong............................................................................. 64
How Cisco reacted.......................................................................................... 65
Case Study: Hewlett-Packard ......................................................................... 67
Initial Spend Analysis..................................................................................... 67
Creation of Global Operations ........................................................................ 68
Merger with Compaq...................................................................................... 69
Example: Memory buying .............................................................................. 69
Conclusion ...................................................................................................... 71
CHAPTER 5: WHAT VALUE DO BUSINESS PROCESSES ADD?.................. 73
Evolution of business processes...................................................................... 74
People, processes and infrastructures ............................................................. 76
Processes and Business Agility....................................................................... 81
Documenting Business Processes ................................................................... 82
Business Process Standards ............................................................................ 84
The SCOR Sourcing Processes....................................................................... 88
DCOR and CCOR...........................................................................................89
Communication Standards...............................................................................90
Business Process Management........................................................................92
Business Processes and Outsourcing...............................................................95
Conclusion.......................................................................................................96
Case Study: ZARA, an unconventional approach to sustainable value creation
.........................................................................................................................97
CHAPTER 6: SOURCING PROCESSES .............................................................101
Supplier Portal...............................................................................................102
Product catalogs ............................................................................................103
Case Study: EADS Corporate Sourcing. .......................................................104
Reverse Auctions...........................................................................................106
Supplier data warehouse................................................................................108
Contractual arrangements..............................................................................109
And marketplaces in all of this......................................................................109
Beyond marketplaces, Communities of Interest ............................................112
Conclusion.....................................................................................................113
CHAPTER 7: DIRECT MATERIAL SOURCING..............................................115
The link between Sourcing and Product Design............................................116
Sourcing Strategy ..........................................................................................118
Sourcing Project Management ......................................................................121
Trading Partner Collaboration.......................................................................123
Performance Management.............................................................................124
Beyond collaborative sourcing: value chain integration................................125
Key collaborative concepts............................................................................127
Case Study: Wal-Mart, P&G and Vendor Managed Inventories...................128
Dynamic Replenishment ...............................................................................129
Collaborative Planning, Forecasting and Replenishment ..............................130
Sourcing and lean manufacturing ................................................................. 132
Visibility to optimize the Extended Supply Chain........................................ 133
Case Study: Amazon, a virtual shopping center ........................................... 134
Conclusion .................................................................................................... 136
CHAPTER 8: INDIRECT PROCUREMENT...................................................... 137
Procurement Strategies ................................................................................. 138
Indirect Procurement..................................................................................... 139
Services Procurement ................................................................................... 141
Conclusion .................................................................................................... 145
CHAPTER 9: COLLABORATIVE INFRASTRUCTURE................................. 147
Secure information sharing........................................................................... 148
Collaborative Portal ...................................................................................... 149
Case Study: Adidas-Salomon ....................................................................... 149
Exchanging Messages and Performing Transactions.................................... 151
Partner on-boarding process ......................................................................... 157
Business Processes........................................................................................ 157
Real-Time Collaboration .............................................................................. 160
Sourcing and Procurement Collaboration Tools ........................................... 161
Collaboration and Security ........................................................................... 162
Radio Frequency Identification..................................................................... 163
Supply Chain Visibility ................................................................................ 163
Thinking towards the future: on-line contractual negotiations ..................... 165
Case Study: HP's Keychain™ environment ................................................. 167
Conclusion .................................................................................................... 171
PART 3: PEOPLE AND CHANGE......................................................................173
CHAPTER 10: LEADERSHIP ...............................................................................177
Overcoming Cultural Barriers .......................................................................177
Case Study: Airbus........................................................................................180
Risks of Collaboration...................................................................................181
The Role of a Steering Committee ................................................................184
The Role of Change Agent ............................................................................185
The Role of the CPO.....................................................................................187
Starting Small ................................................................................................189
Renting vs. Hiring Sourcing Resources.........................................................190
Managing Cross-organizational Teams .........................................................192
Conclusion.....................................................................................................193
CHAPTER 11: TRUST............................................................................................195
Trust and Commitment..................................................................................195
Trust Impacts Collaboration..........................................................................196
Finding a Zone of Comfort............................................................................197
Building Inter-personal Trust ........................................................................198
Building Inter-organizational Trust ...............................................................199
Case Study: Lean Manufacturing ..................................................................200
Conclusion.....................................................................................................201
CHAPTER 12: ORGANIZATION.........................................................................203
Organizational Evolution...............................................................................203
Organizational Readiness ..............................................................................204
Balancing Organizational Resources.............................................................206
Case Study: HP’s Indirect Procurement Organization ..................................208
Building the Procurement Organization........................................................210
Case Study: GE .............................................................................................210
Pooling Inter-organizational Resources ........................................................ 212
Case Study: PSA Peugeot-Citroën – Toyota Motor...................................... 213
The Supplier or Outsourcing Perspective ..................................................... 213
Conclusion .................................................................................................... 216
CHAPTER 13: COMPETENCES AND SKILLS................................................. 217
Change Agent Competences......................................................................... 218
Aligning Sourcing Skills-Set and Sourcing Strategy.................................... 219
Collaborative Skills - Case Study: Schering-Plough .................................... 221
Attracting and Retaining Sourcing Talent .................................................... 222
Sourcing Career Incentives........................................................................... 223
Learning and Skills Development................................................................. 225
Customer Orientation Skills.......................................................................... 228
Communication Skills .................................................................................. 230
Virtual Teamwork......................................................................................... 231
Conclusion .................................................................................................... 232
CONCLUSION.......................................................................................................... 235
ACKNOWLEDGEMENTS.......................................................................................... 241
BIBLIOGRAPHY...................................................................................................... 243