Contents
Preface xxii
Acknowledgments xxix
About the Authors xxx
Part 1
Introduction 1
Chapter 1 Introduction to Purchasing and Supply Chain Management 3
Introduction 6
A New Competitive Environment 7
Why Purchasing Is Important 8
Increasing Value and Savings 8
Building Relationships and Driving Innovation 8
Improving Quality and Reputation 9
Reducing Time to Market 10
Managing Supplier Risk 10
Generating Economic Impact 10
Contributing to Competitive Advantage 10
Understanding the Language of Purchasing and Supply Chain
Management 11
Purchasing and Supply Management 11
Supply Chains and Value Chains 13
Supply Chains Illustrated 14
Achieving Purchasing and Supply Chain Benefits 17
The Supply Chain Umbrella-Management Activities 18
Purchasing 18
Inbound Transportation 18
Quality Control 18
Demand and Supply Planning 19
Receiving, Materials Handling, and Storage 19
Materials or Inventory Control 19
Order Processing 19
Production Planning, Scheduling, and Control 19
Shipping/Warehousing/Distribution 20
Outbound Transportation 20
Customer Service 20
Four Enablers of Purchasing and Supply Chain Management 20
Capable Human Resources 20
Proper Organizational Design 22
Real-Time Collaborative Technology Capabilities 22
Right Measures and Measurement Systems 23
The Evolution of Purchasing and Supply Chain Management 24
Period 1: The Early Years (1850–1900) 24
Period 2: Growth of Purchasing Fundamentals
(1900–1939) 25
Period 3: The War Years (1940–1946) 25
Period 4: The Quiet Years (1947–Mid-1960s) 25
Period 5: Materials Management Comes of Age (Mid-1960s–
Late 1970s) 26
Period 6: The Global Era (Late 1970s–1999) 27
Period 7: Integrated Supply Chain Management (The Twenty-
First Century) 27
Looking Ahead 28
Part 2
Purchasing Operations and Structure 37
Chapter 2 The Purchasing Process 39
Introduction 41
Purchasing Objectives 42
Objective 1: Supply Assurance 42
Objective 2: Manage the Sourcing Process Efficiently and
Effectively 43
Objective 3: Supplier Performance Management 43
Objective 4: Develop Aligned Goals with Internal
Stakeholders 44
Objective 5: Develop Integrated Supply Strategies That
Support Business Goals and Objectives 44
Strategic Supply Management Roles and Responsibilities 45
Spend Analysis 46
Demand Management and Specifications/SOW’s 46
Category Management and Supplier Evaluation/Selection 47
Contract Management 48
Cost Management 48
Managing the Procure-to-Pay Process 49
Supplier Relationship Management 49
Establish a Supply Management Strategy 50
Improving the Procure-to-Pay Process 51
Forecast and Plan Requirement 54
Needs Clarification: Requisitioning 55
Purchase Requisitions/Statement of Work 55
Traveling Purchase Requisitions/Bar Codes 57
Forecasts and Customer Orders 58
Reorder Point System 58
Stock Checks 59
Cross-Functional Sourcing Teams 60
Description 61
Supplier Identification and Selection 62
Bidding or Negotiating? 62
Request for Quotation 64
Specifications or Blueprints 64
Evaluate Suppliers 64
Approval, Contract, and Purchase Order Preparation 65
Purchase Order 65
Blanket Purchase Order 68
Material Purchase Release 68
Receipt and Inspection 70
Material Packing Slip 71
Bill of Lading 71
Receiving Discrepancy Report 72
Invoice Settlement and Payment 72
Records Maintenance 72
Continuously Measure and Manage Supplier Performance 72
Reengineering the Procure-to-Pay Process 73
Types of Purchases 73
Raw Materials 74
Semifinished Products and Components 74
Production Support Items 75
Services 75
Capital Equipment 75
Transportation and Third-Party Purchasing 76
Improving the Purchasing Process 76
Online Requisitioning Systems from Users to Purchasing 77
Procurement Cards Issued to Users 77
Electronic Purchasing Commerce through the Internet 78
Longer-Term Purchase Agreements 78
Cloud-Based Ordering Systems 78
Purchasing Process Redesign 79
Electronic Data Interchange 81
Online Ordering through Electronic Catalogs 81
Allowing Users to Contact Suppliers Directly 81
Chapter 3 Purchasing Policy and Procedures 86
Introduction 88
Policy Overview 88
What Are the Advantages and Disadvantages of Policies? 88
What Makes for an Effective Policy? 89
Purchasing Policies—Providing Guidance and Direction 90
Policies Defining the Role of Purchasing 90
Policies Defining the Conduct of Purchasing Personnel 92
Policies Defining Social and Minority Business Objectives 97
Corporate Social Responsibility 101
Policies Defining Buyer-Seller Relationships 102
Other Policies Dealing with Buyer-Seller Relations 105
Policies Defining Operational Issues 105
Purchasing Procedures 108
Purchasing Procedural Areas 109
Chapter 4 Supply Management Integration for Competitive Advantage 114
Introduction 117
Integration: What Is It? 119
Internal Integration 120
Supply Management Internal Linkages 121
External Integration 125
Supply Management’s External Linkages 126
Collaborative Buyer-Seller Relationships 126
Advantages of Closer Buyer-Seller Relationships 127
Obstacles to Closer Buyer-Seller Relationships 128
Critical Elements for Supplier Relationship
Management 128
The Critical Role of Cross-Functional Sourcing Teams 132
Benefits Sought from the Cross-Functional Team
Approach 133
Potential Drawbacks to the Cross-Functional
Team Approach 135
When to Form a Cross-Functional Team 135
Improving Sourcing Team Effectiveness 136
Integrating Supply Management, Engineering, and Suppliers to
Develop New Products and Services 141
Common Themes of Successful Supplier Integration
Efforts 141
Supplier Integration into Customer Order Fulfillment 147
Supplier Suggestion Programs 147
Buyer-Seller Improvement Teams 148
On-Site Supplier Representative 149
Potential Benefits of On-Site Supplier Representatives 150
Chapter 5 Purchasing and Supply Management Organization 157
Introduction 160
P/SM Organizational Structure 161
Location of Authority Centralized or Decentralized 162
Drivers Influencing the Adoption of Centralized/Center-Led or
Decentralized Structures 162
Advantages of Centralized/Center-led Purchasing
Structures 163
Advantages of Decentralized Purchasing 165
Organizational Mechanisms to Enable Center-led Organization
Design 166
Purchasing’s Position within the Organizational Structure 171
To Whom Does Purchasing/Supply Management Report? 171
Factors Affecting Purchasing’s Position in the Organizational
Hierarchy 171
Scope of the Purchasing/Supply Management Job
Function 174
Purchasing/Supply Management Job Tasks 175
Separating Strategic and Operational Purchasing 177
Using Teams as Part of the Organizational Structure 177
Supply Chain Management Structure 180
Future Trends in Organizational Design 180
Part 3
Strategic Sourcing 189
Chapter 6 Category Strategy Development 191
Introduction 193
Aligning Supply Management and Enterprise Objectives 194
Integrative Strategy Development 195
Engaging Stakeholders to Build Category Strategy
Objectives 196
What Is a Category Strategy? 199
Difference Between Category Strategies and Strategic
Sourcing 200
Conducting a Spend Analysis 201
Spend Analysis Spreadsheet 202
Category Strategy Development 208
Step 1: Build the Team and the Project Charter 208
Step 2: Conduct Market Intelligence Research on
Suppliers 213
Step 3: Strategy Development 218
Process 224
Step 4: Contract Negotiation 228
Step 5: Supplier Relationship Management 229
Types of Supply Management Strategies 230
Insourcing/Outsourcing 230
Supply Base Optimization 231
Supply Risk Management 231
Early Supplier Design Involvement 235
Supplier Development 235
Total Cost of Ownership 236
E-Reverse Auctions 236
Phase 1: Basic Beginnings 237
Phase 2: Moderate Development 238
Phase 3: Limited Integration 238
Phase 4: Fully Integrated Supply Chains 239
Observations on Supply Management Strategy Evolution 239
Chapter 7 Supplier Evaluation and Selection 245
Introduction 247
The Supplier Evaluation and Selection Process 248
Recognize the Need for Supplier Selection 248
Identify Key Sourcing Requirements 249
Identify Potential Supply Sources 249
Current Suppliers 250
Sales Representatives 250
Internet Searches and Social Media 250
Informational Databases 251
Organizational knowledge 251
Trade Journals 251
Trade Directories 252
Trade Shows 252
Second-Party or Indirect Information 252
Internal Sources 252
Determine Sourcing Strategy 254
Consider Sourcing Alternatives 255
Manufacturer vs. Distributor 255
Local or National or International Suppliers 255
Large or Small Suppliers 255
Categorizing Suppliers for Multiple or Single
or Sole Sourcing 256
Evaluate Critical Issues 257
Size Relationship 257
Risk/Reward Issues 257
Sustainability and Diversity Objectives 258
Competitors as Suppliers 258
International Suppliers and Countertrade 258
Limit Suppliers in Selection Pool 258
Supplier Risk Management 259
Evaluation of Supplier Performance 261
Evaluation of Supplier-Provided Information 261
Determine the Method of Supplier Evaluation
and Selection 261
Supplier-Provided Information 261
Supplier Visits 262
Use of Preferred Certified and Partnered Suppliers 263
Third-Party Information 264
Select Supplier and Reach Agreement 264
Key Supplier Evaluation Criteria 264
Management Capability 265
Employee Capabilities 265
Cost Structure 266
Total Quality Performance, Systems, and Philosophy 266
Process and Technological Capability 266
Sustainability and Environmental Compliance 267
Financial Stability 269
Scheduling and Control Systems 269
E-Commerce Capability 270
Supplier’s Sourcing Strategies, Policies, and Techniques 271
Longer-Term Relationship Potential 271
Developing a Supplier Evaluation and Selection Survey 272
Step 1: Identify Supplier Evaluation Categories 272
Step 2: Assign a Weight to Each Evaluation Category 273
Step 3: Identify and Weigh Subcategories 273
Step 4: Define a Scoring System for Categories
and Subcategories 274
Step 5: Evaluate Supplier Directly 274
Step 6: Review Evaluation Results and Make
Selection Decision 276
Step 7: Review and Improve Supplier Performance
Continuously 277
Reducing Supplier Evaluation and Selection Cycle Time 278
Map the Current Supplier Evaluation
and Selection Process 278
Integrate with Internal Customers 278
Data Warehouse Software with Supplier Information 278
Third-Party Support 279
Integrating Technology into Organizational Design 279
Supplier Categorization 279
Electronic Tools 279
Predefined Contract Language and Shorter Contracts 279
Chapter 8 Supplier Quality Management 285
Overview of Supplier Quality Management 287
What Is Supplier Quality? 287
Why Be Concerned with Supplier Quality? 289
Factors Affecting Supply Management’s Role in Managing
Supplier Quality 290
Supplier Quality Management Using a Total Quality Management
Perspective 292
Defining Quality in Terms of Customers and Their
Requirements 292
Deming’s 14 Points 293
Pursuing Quality at the Source 296
Stressing Objective Rather than Subjective Measurement
and Analysis 298
Emphasizing Prevention Rather Than Detection of
Defects 298
Focusing on Process Rather than Output 300
Basics of Process Capability 301
Striving for Zero Defects 302
Cost of Quality 303
The Seven Wastes 304
Establishing Continuous Improvement as a Way of Life 305
Making Quality Everyone’s Responsibility 306
Pursuing Six Sigma Supplier Quality 308
Using ISO Standards and MBNQA Criteria to Assess Supplier
Quality Systems 309
ISO 9001:2008 Standards 310
ISO 14001:2004 Standards 312
The Malcolm Baldrige National Quality Award 313
Basic Contents of a Supplier Quality Manual 315
Chapter 9 Supplier Management and Development: Creating a World-Class
Supply Base 322
Introduction 323
Supplier Performance Measurement 324
Supplier Measurement Decisions 324
Types of Supplier Measurement Techniques 327
Rationalization and Optimization: Creating a Manageable Supply
Base 332
Advantages of a Rationalized and Optimized Supply Base 332
Possible Risks of Maintaining Fewer Suppliers 335
Formal Approaches to Supply Base Rationalization 336
Summary of Supplier Rationalization and Optimization 338
Supplier Development: A Strategy for Improvement 339
A Process Map for Supplier Development 339
Supplier Development Efforts That Sometimes Do Not
Work 342
Overcoming the Barriers to Supplier Development 343
Buyer-Specific Barriers 343
Buyer-Supplier Interface Barriers 344
Supplier-Specific Barriers 346
Lessons Learned from Supplier Development 348
Managing Supply Base Risk 349
Managing Sustainability in the Supply Base 357
Chapter 10 Worldwide Sourcing 364
Globalization—Changing Supply Strategy in a Dynamic World
Economy 366
Changing Global Dynamics Create Challenges 367
Worldwide Sourcing Timeline 369
Why Source Worldwide? 372
Barriers to Worldwide Sourcing 374
Developing a Worldwide Sourcing Program 377
Information about Worldwide Sources 377
Types of Intermediaries and Organization for Worldwide
Sourcing 378
Organizational Issues-IPOs 380
Supplier Qualification and Selection Issues 381
Understanding Cultural Issues 381
Language and Communication Differences 382
Legal Systems 385
Countertrade Requirements 387
Evaluating Costs Associated with International
Purchasing 390
Managing Currency Risks 393
Moving to a Global Sourcing Philosophy 396
Factors Driving Successful Global Sourcing Programs 397
Future Global Sourcing Trends 400
Part 4
Strategic Sourcing Process 407
Chapter 11 Strategic Cost Management 409
Introduction 411
A Structured Approach to Cost Reduction 412
Price Analysis 418
Market Structure 418
Economic Conditions 419
Pricing Strategy of the Seller 420
Market-Driven Pricing Models 421
Using the Producer Price Index to Manage Price 425
Cost Analysis Techniques 428
Cost-Based Pricing Models 428
Product Specifications 429
Estimating Supplier Costs Using Reverse Price Analysis 430
Break-Even Analysis 433
Break-Even Analysis Example 436
Building a Should-Cost Model 438
Step 1: Conceptual Design 440
Step 2: Refine and Derive Elements of the Cost Model 440
Step 3: Design and Construction of Cost Model 441
Step 4: Identify Data Sources for the Model 443
Supplier Provided Data 444
Total Cost of Ownership 444
Building a Total Cost of Ownership Model 445
The Importance of Opportunity Costs 445
Important Factors to Consider When Building a TCO
Model 447
Example of a TCO Model 448
Collaborative Approaches to Cost Management 449
Target Pricing Defined 449
Cost-Savings Sharing Pricing Defined 450
Prerequisites for Successful Target and Cost-Based
Pricing 450
When to Use Collaborative Cost Management
Approaches 451
An Example of Target Pricing and Cost-Savings Sharing 451
Chapter 12 Purchasing and Supply Chain Analysis: Tools and Techniques 459
Introduction 462
Project Management 462
Defining Project Success 462
Project Phases 464
Project Planning and Control Techniques 467
Rules for Constructing a Project Management Network 468
Project Management Example: Sourcing Strategy 468
Project Management with Time Estimates 471
Learning-Curve Analysis 475
Components of the Learning or Experience Curve 476
When to Use the Learning Curve 476
Learning Curve Illustrated 476
Learning-Curve Problem 478
Value Analysis/Value Engineering 479
Who Is Involved in Value Analysis? 479
Tests for Determining Value in a Product or Service 480
The Value Analysis Process 481
Quantity Discount Analysis 482
Quantity Discount Analysis Illustrated 482
Process Mapping 485
Value Stream Mapping 487
Chapter 13 Negotiation and Conflict Management 495
Introduction 497
What Is Negotiation? 497
The Negotiation Framework in Supply Management 500
Identify or Anticipate the Sourcing Requirement 501
Determine If Negotiation or Competitive Bidding Is
Required 502
Plan for the Negotiation 503
Conduct the Negotiation 504
Execute and Follow Up on the Agreement 506
Negotiation Planning 506
Develop Specific Objectives 507
Analyze Each Party’s Strengths and Weaknesses 507
Gather Relevant Information 508
Recognize Your Counterpart’s Needs 508
Identify Facts and Issues 508
Establish a Position on Each Issue 509
Develop the Negotiation Strategy and Accompanying
Tactics 509
Brief Other Stakeholders 510
Practice the Negotiation 510
Power in Negotiation 511
Sources of Negotiation Power 511
Reward Power 512
Concessions 513
Negotiation Tactics: Trying to Reach Agreement 515
Win-Win Negotiation 517
International Negotiation 521
Selected Countries 523
Brazil 523
China 523
France 524
Germany 524
India 524
Japan 524
Mexico 525
Russia 525
Saudi Arabia 525
South Korea 525
Vietnam 526
The Impact of Electronic Media on Negotiations 526
Chapter 14 Contract Management 533
Introduction 535
Elements of a Contract 537
How to Negotiate and Write a Contract 542
Types of Contracts 543
Fixed-Price Contracts 544
Fixed-Price Contract with Redetermination 545
Fixed-Price Contract with Incentives 545
Cost-Based Contracts 545
Considerations When Selecting Contract Types 547
Long-Term Contracts in Alliances and Partnerships 549
Benefits of Long-Term Contracts 549
Risks of Long-Term Contracts 551
Contingency Elements of Long-Term Contracts 552
Nontraditional Contracting 553
IT Systems Contracts 553
Minority- and Women-Owned Business
Enterprise Contracts 555
Consulting Contracts 556
Construction Contracts 558
Other Types of Contracts 559
Settling Contractual Disputes 560
Legal Alternatives 561
Arbitration 562
Other Forms of Conflict Resolution 563
Chapter 15 Purchasing Law and Ethics 571
Introduction 574
Legal Authority and Personal Liability of the Purchasing
Manager 575
Laws of Agency 575
Legal Authority 575
Personal Liability 576
Contract Law 577
Essential Elements of a Contract 577
The Purchase Order—Is It a Contract? 580
Cancellation of Orders and Breach of Contract 583
Damages and Remedies 584
Acceptance and Rejection of Goods 585
Honest Mistakes 586
The Uniform Commercial Code 587
A History of the UCC 587
Electronic Contracts and Signatures 589
Warranties 590
Transportation Terms and Risk of Loss 592
FOB Point 593
Sellers’ and Buyers’ Rights 594
Patents and Intellectual Property 594
Other Laws Affecting Purchasing 598
Antitrust and Unfair Trade Practice Laws 598
Laws Affecting Global Purchasing 599
Purchasing Ethics 601
Risks of Unethical Behavior 601
Types of Unethical Purchasing Behavior 602
Influence and Ethics 605
ISM Professional Code of Ethics 606
Supporting Ethical Behavior 607
Corporate Social Responsibility 609
Environment & Sustainability 609
Part 5
Critical Supply Chain Elements 617
Chapter 16 Lean Supply Chain Management 619
Introduction 621
Understanding Supply Chain Inventory 622
Types of Inventory 622
Inventory-Related Costs 624
Inventory Investment—Asset or Liability? 625
The Right Reasons for Investing in Inventory 629
Avoid Disruptions in Operational Performance 629
Support Operational Requirements 629
Support Customer Service Requirements 630
Hedge against Marketplace Uncertainty 630
Take Advantage of Order Quantity Discounts 630
The Wrong Reasons for Investing in Inventory 631
Poor Quality and Material Yield 631
Unreliable Supplier Delivery 632
Extended Order-Cycle Times from Global Sourcing 632
Inaccurate or Uncertain Demand Forecasts 632
Specifying Custom Items for Standard Applications 633
Extended Material Pipelines 633
Inefficient Manufacturing Processes 633
Creating the Lean Supply Chain 635
Six Sigma 637
The Lean Perspective on Inventory 638
Lean Supply 640
Lean Transportation 641
Just-in-Time Kanban Systems 643
Approaches for Managing Inventory Investment 644
Achieve Perfect Record Integrity 645
Improve Product Forecasting 646
Standardize and Simplify Product Design 646
Leverage Companywide Purchase Volumes 648
Use Suppliers for On-Site Inventory Management 649
Reduce Supplier-Buyer Cycle Times 649
Delivering the Perfect Customer Order 650
Material Requirements Planning System 650
Distribution Resource Planning System 651
Supply Chain Inventory Planners 651
Automated Inventory Tracking Systems 652
Chapter 17 Purchasing Services 657
Introduction 659
Transportation Management 659
Deregulation of Transportation and Supply Management’s
New Role 661
A Decision-Making Framework for Developing a Transportation
Strategy 663
Current Transportation Issues 676
Performance-Based Logistics 678
Outsourcing Logistics to Third-Party Logistics Providers 680
Select Providers 680
Gain Access to Critical and Timely Data 682
Develop Systems Visibility to Material Shipments 682
Develop Closer Relationships with Fewer Providers 682
Establish Companywide Contracts 683
Purchasing Services and Indirect Items 683
Internal Methods of Managing Indirect Spend 684
External Methods of Managing Indirect Spend 686
Enabling Tactics and Strategies 686
Sourcing Professional Services 688
Have a Clearly Defined Scope 689
Move to a Centralized Procurement Structure 689
Develop a Professional Services Database 690
Develop a Sound Procedure for Evaluation and Selection of
Consultants 691
Optimize the Supply Base 691
Develop a Standardized Contract 692
Monitor Results 692
Develop Policy Compliance 692
Service Supply Chain Challenges 693
Chapter 18 Supply Chain Information Systems and Electronic Sourcing 700
Introduction 703
Evolution of E-SCM Systems 704
An Overview of the E-Supply Chain 705
Supply Chain Information Flows 706
Drivers of New Supply Chain Systems and Applications 711
Internal and External Strategic Integration 712
Globalization and Communication 712
Data Information Management 712
New Business Processes 712
Replacement of Legacy Systems 712
Strategic Cost Management 713
Internal Information Systems—Enterprise Resource Planning
(ERP) 713
Implementing ERP Systems 715
Purchasing Databases and Data Warehouses 717
Electronic Data Interchange (EDI)—Pioneering External
Electronic Communication 719
The Electronic Order Process 719
EDI and the Internet 720
E-Sourcing Basics 721
E-Sourcing Models—The External Information Systems 721
E-Sourcing Suites—General 722
E-Sourcing Suites—Supplier Relationship Management (SRM) 722
Spend Analysis 722
Sourcing 723
Contract Management and Compliance 728
Risk Management and Supplier Performance
Measurement 728
Total Cost Reporting 729
Internal and External Systems Integration 729
Social Networking Software in SCM—Improving Collaboration
and Visibility 730
Professional Networking Software in SCM 732
Blogs, Tweets, and Cloud Computing 733
Information Visibility in SCM 735
Benefits of Information Visibility 735
Information Visibility in the Cloud 736
Collaboration and Big Data 737
Chapter 19 Performance Measurement and Evaluation 746
Introduction 749
Purchasing and Supply Chain Performance Measurement and
Evaluation 749
Why Measure Performance? 750
Problems with Purchasing and Supply Chain Measurement
and Evaluation 751
Purchasing and Supply Chain Performance Measurement
Categories 752
Price Performance Measures 754
Cost-Effectiveness Measures 756
Revenue Measures 757
Quality Measures 758
Time/Delivery/Responsiveness Measures 758
Technology and Innovation Measures 759
Environmental Sustainability Measures 760
Asset and Integrated Supply Chain Management
Measures 761
Administration Efficiency/Overhead Cost Measures 762
Governmental/Social Measures 763
Safety Measures 763
Internal Customer Satisfaction Measures 763
Supplier, Risk, and Strategic Performance Measures 764
Strategic Performance Measures 764
Developing a Performance Measurement and Evaluation
System 765
Determine Which Performance Categories to Measure 766
Develop Specific Performance Measures 766
Establish Performance Objectives for Each Measure 768
Finalize System Details 769
Implement and Review System Performance and
Measures 770
Performance Benchmarking: Comparing Against the Best 770
Benchmarking Overview 770
The Benchmarking Process 772
Balanced Scorecard for Purchasing and Supply 774
A Summary of Purchasing Measurement and Evaluation
Characteristics 775
System Characteristics 775
Human Resource Characteristics 776
Part 6
Future Directions 781
Chapter 20 Purchasing and Supply Strategy Trends 783
Introduction 785
Expanding the Mission, Goals, and Performance
Expectations 785
Developing Category Strategies Will Become Broader and More
Complex 788
Strategy Formulation and Selection 788
Concluding Observations 792
Supplier Management Across the Extended Supply Chain 792
Improving Supplier Relationships 792
Concluding Observations 795
Designing and Operating Multiple Customer-Focused Supply
Networks 795
Risk Considerations 796
Concluding Observations 797
Leveraging E-System Technology Enablers Takes on Additional
Focus 797
Concluding Observations 799
Collaborating Internally and Externally Will Grow in Strategic
Importance 799
Obtaining Innovation 800
Concluding Observations 800
Attracting, Developing, and Retaining Supply Management Talent
Will Become a Key Differentiator for Success 801
Current and Future Supply Management Skills 802
Cross-Functional and Cross-Cultural Teaming Skills 802
“Soft-Side” Skills 803
Acquisition, Development, and Retention 803
Concluding Observations 803
Managing and Enabling the Future Supply Management
Organization and Measurement Systems 805
Organization Approaches 805
Measuring Supply Management Performance 806
Concluding Observations 807
Twelve High-Impact Sourcing and Supply Chain Strategies for
2013–2018 807
Cases 813
Case 1 Avion, Inc. 814
Case 2 The Global Sourcing Wire Harness Decision 817
Case 3 Managing Supplier Quality: Integrated Devices 819
Case 4 Negotiation—Porto 822
Case 5 Purchasing Ethics 823
Case 6 Insourcing/Outsourcing: The FlexCon Piston Decision 826
Case 7 Email Exercise 837
Index 839