Collaborative Sourcing

Strategic Value Creation through Collaborative Supplier Relationship Management

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?


Paperback - In English 20.00 €

Specifications


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 )
3177 MANAGEMENT, GESTION ET ECONOMIE D'ENTREPRISE
Title First Published
2005
Type of Work
Monograph
Original Language
English

Paperback


Product Detail
1 A4
Publication Date
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

Google Book Preview


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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


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