Sourcing Revisited: Five Steps to More Effective Purchasing
- Topics:
- Ordering Systems
- Tags:
- Business Operations,
- Management,
- Procurement,
- Procurement Function,
- Purchasing & Procurement,
- Sourcing,
- Strategy,
- Supply & Demand Chain Executive
- Source:
- Supply & Demand Chain Executive
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Overview: In order to take advantage of the cost savings that e-sourcing solutions offer, large organizations will have to transform their procurement functions' core competency from sourcing management to information management. In doing so they will carve out a new cross-functional role that weaves together the strategic procurement function, a deep understanding of Web-based sourcing and supply chain tools, and a macro-economic view of global supply market trends. Companies that create this new type of procurement function and staff it appropriately will find themselves at a huge strategic advantage. This article has identified five key steps that organizations should take to rethink their sourcing function. These are: To strategically invest in applications, services and information for competitive advantage, shift emerging talent to the procurement function, closely link the IT function to procurement, consider multiple B2B solutions early on, focus on return on IT investment above return on equity. All these have been discussed in in the article.
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Format: HTML | Date: Jan 2003 | Pages: 1
