Imagine a strategic meeting is in progress inside your organization, focused on speeding up the market release of a product for competitive advantage. The chief procurement officer proposes an alternative to using a supplier-developed customized design and production process that will lock the company’s future product road map to a single supplier. His idea: use design-based bidding (DBB) so potential suppliers can propose a product design and manufacturing process that will build a custom design the company owns and that leverages generally available components. The bids will be designed in collaboration with the company’s product engineering and management teams to help them achieve the required cost target, design objectives, and go-to-market acceleration. Sounds futuristic? This is Next Generation Procurement, a partner focused singularly on value creation for the organization. Besides its pivotal role in achieving cost savings, Next Generation Procurement can act as the much-needed innovation catalyst connecting external expertise with internal business functions to maximize their potential in co-creation. This allows an organization to orchestrate the identification, acquisition, and management of all external (third-party) resources in concert with its business imperatives to create sustainable value. This can be accomplished only by integrating with core functional stakeholder groups and aligning with their agendas.

Contributors: WNS Denali
Categories: Whitepaper
SRC Type: Performance Management, Sourcing Management