The Supply-Based Advantage: How to Link Suppliers to Your Organization's Corporate Strategy

The Supply-Based Advantage: How to Link Suppliers to Your Organization's Corporate Strategy

The Supply-Based Advantage: How to Link Suppliers to Your Organization's Corporate Strategy

The Supply-Based Advantage: How to Link Suppliers to Your Organization's Corporate Strategy

Synopsis

It's not enough for companies to simply try to find ways to save money through suppliers. If suppliers aren't fully integrated into their corporate strategy, there's no way for companies to ensure that they will continue to save money... and that their supply decisions will fit with changing organizational goals. Blending theory, best practices, and relevant examples, The Supply-Based Advantage reveals how to design, build, maintain, and " remodel" an organization's supply base to support its total business strategy and operations. Readers will learn how they can:




achieve greater profitability by using suppliers to capture value beyond price

• develop a supply management strategy that creates real, renewable benefits

• maintain flexibility in their supply chain to deal with unique business situations

• link supply execution into product marketing and fulfillment purposes


Filled with enlightening examples from companies such as Mars, Procter & Gamble, Intel, and Wal-Mart, this book shows how any organization can transform its supply function into a key driver of profit.

Excerpt

“Why write a book about business competitive advantage and inter-company relationships targeted for people in procurement and supply management?”

The speaker was business alliance expert, Robert Porter Lynch, and his reaction surprised me. His point was that senior management drives corporate direction and most senior executives (CEO, COO, CFO) would never pick up a book focused on what purchasing or supply management should do. They care about customer focus, not supplier focus, and rarely include procurement when formulating strategy.

Nevertheless, I continued to forge ahead and six months later submitted a book proposal to Christina McLaughlin (now Parisi), an editor with AMACOM Publishing, on supply strategy/supplier management architecture. The proposal described the audience as general management and executives whose functions are major users of outsourcing providers, not just the “natural” supply manager audience.

Her response echoed Robert Lynch's: “If executive management or even mid- and lower-level managers don't already believe managing the supply base is an essential function, they won't pick up a book about it.” Suppliers are often an afterthought, part of the business model's “givens” unless something major goes wrong. But if I was writing for supply professionals I would be just preaching to the choir. The sum of Robert and Christina's reactions caused me to pause and reflect—for three years!

I had to ask myself two questions:

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