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Ten strategies to enhance supplier management
15
Citations
0
References
1998
Year
Supply NetworkClient-supplier RelationshipsCommodities Supply ChainIndustrial OrganizationManagementLogisticsSupply ChainSourcing ManagementManufacturing CompanyNoncore CompetenciesStrategySupply Chain ManagementStrategic ManagementMarketingSupplier ManagementSupply ManagementSupplier RelationshipTypical CompanyBusinessStrategic SourcingBusiness StrategyPurchasing
Abstract Purchased goods and services represent between 50 and 70 percent of a manufacturing company's value potential. Even in service industries, more than half of all services are purchased from other organizations. In other words, the majority of what a typical company is is defined by the components, materials, and services it acquires from outside sources. Conversely, vertical integration is becoming less and less credible, serving only to clutter many organizations with noncore competencies and decrease flexibility in terms of cost structure and adaptability in the marketplace. With more and more parts, materials. goods, and services purchased outside the organization, companies are altering the tenor of their supplier relationships. In this excerpt from Supercharging Supply Chains , the authors explain how organizations can improve strategic sourcing and supplier management by buying smarter.