Original Source: Sourcing Plus

“Smarter Supplier Management – Contributing to Corporate Vision

 What is the role of supplier management? The objectives of a Purchasing Strategy / Procurement Strategy? What is its impact? Where should the CPO sit in an organization? What is the scope of a CPO responsibilities? The Matrix below, developped by Michel Philippart in 2001, shows that Supplier Management Scope and Impact vary across organizations. Like for the other essential activities of the enterprise, the most important purpose of the function is to deliver shareholder value. Unfortunately, few organizations understand the relation between suppliers and shareholder value. Many do not include it in the supplier management role, most of the others mention it but do not understand the difference between cost reduction and shareholder value development. Even fewer have the right processes in place to insure that supplier management can deliver on this objective.

CPO questions

Do I need to be better than last year or better than my competitors?

Am I organized properly? How do I staff, train, develop, measure, promote?

Should I measure the quality of the relation with my suppliers?  How? Then what?

How to change culture? How can my team become proactive problem solvers rather than reactive specification finders. How to develop their “Purchasing Leadership, and increase their footprint?

How to integrate acquisitions or merger?

 

Do we need to look beyond traditional ethics issues: What is the right thing to do in developing non traditional suppliers?  In managing for sustainability? In dealing with suppliers in LCC…” 

http://www.sourcing-plus.com/index.php

Contributors: Open Source
Categories: Industry Articles, SIG U Resource
SRC Type: Sourcing Management, Third Party Management