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(Chapter 6: SUPPLY MANAGEMENT AND COMMODITY STRATEGY DEVELOPMENT) - Coggle…
Chapter 6: SUPPLY MANAGEMENT AND COMMODITY STRATEGY DEVELOPMENT
Understand category strategy development
Step 3: Strategy Development
Goal: Classify suppliers and define sourcing approach
Inputs:
Market research Portfolio matrix Forecasted spend
Outputs: Supplier evaluation tool with desired relationship
Step 4: Contract Negotiation
Goal: Negotiate a win-win contract
Inputs: Negotiation plan Supplier evaluation tool
Outputs: Signed contract
Step 2: Conduct Market Research on Suppliers
Goal: Understand the supply market
Inputs: Interviews Online research Conferences
Outputs:
Report on supply trends, changes, pricing, capacity, etc.
Step 5: Supplier Relationship Management
Goal: Continuously improve performance
Inputs: Contract Supplier scorecard
Outputs:
Supplier development plan Communication
Step 1: Build the Team and the Project Charter
Outputs: Baseline data Project charter Work plan
Inputs and Tools: Project leader Other team members
Goal: Develop a scope of work and plan
Identify the types of supply management strategies
Supply Base Optimization
Supply Risk Management
Global Sourcing
Longer-Term Supplier Relationships
Early Supplier Design Involvement
Supplier Development
Total Cost of Ownership
Recognize a category strategy
Conducting a Spend Analysis
Did suppliers charge accurate price across all divisions vs. P.O. requirements, contracts, and SOWs?
Which divisions spent their money on products and services that were correctly budgeted for?
What suppliers received majority of business?
Are there opportunities to ...?
Did the business receive right amount of products and services, given what it paid for them?
What did the business spend its money on over the past year?
Spend Analysis Spreadsheet
Understand e-reverse auctions
Evolving Sourcing Strategies
Phase 1: Basic Beginnings
Supplier quality focus
Supply-base consolidation
Volume leveraging
Longer-term contracts
Quality/cost teams
Phase 2: Moderate Development
Cross-functional sourcing teams
Ad hoc supplier
alliances
Cross-location sourcing teams
Supply-base optimization
International sourcing
E-RAs
Phase 3: Limited Integration
Strategic supplier
alliances
Supplier TQM development
Global sourcing
Total cost of ownership
Nontraditional purchase focus
Parts/service standardization
Early supplier involvement
Dock to stock pull systems
Phase 4: Fully Integrated Supply Chains
Full-service suppliers
Early sourcing
Cross-enterprise decision making
Insourcing/outsourcing to maximize core
competencies of firms throughout the supply chain
Global supply chains with external
customer focus
E-systems
Align the supply management and enterprise objectives
Supply Management Goals
Translating Supply Management Objectives into
Cost-Reduction Objective
Technology/New-Product Development Objective
Supply Base Reduction Objective
Supply Assurance Objective
Quality Objective
Integrative Strategy Development
Supply Management Strategies
Business Unit Strategies
Corporate Strategies
Commodity Strategies