Harnessing Value in the Supply Chain: Strategic Sourcing in Action

Harnessing Value in the Supply Chain: Strategic Sourcing in Action

Harnessing Value in the Supply Chain: Strategic Sourcing in Action

Harnessing Value in the Supply Chain: Strategic Sourcing in Action


A definitive roadmap for implementing effective supply chain management

Strategic sourcing redefines the traditional approach to buying and using materials and services. Purchasing and supplier programs are receiving substantial attention in current professional literature, but there is little information on implementing supplier strategies and techniques.

Harnessing Value in the Supply Chain offers a specific, step-by-step approach to the strategic sourcing process, developed by the author at Southern California Edison. This unique reference provides expert guidance on designing, launching, executing, evaluating, and maintaining a sourcing project. It includes illustrations, examples, and templates for immediate use. Finally, supply chain management and strategic sourcing are presented in a usable, comprehensive, and cost-effective framework.

To illustrate this approach, the book describes the experience of Southern California Edison, a utility company that achieved $150 million in annual cost reduction through a strategic sourcing program. The story is told from the perspective of the people who led the revolutionary change at SCE, as wellas the suppliers. A detailed method on how to duplicate SCE's success is included in the book.

This book is unique in that it fully traces a strategic sourcing initiative from conception to implementation-and it is the only book that documents the SCE story. Harnessing Value in the Supply Chain is a powerful tool that will help organizations optimize their resources and develop relationships to sustain effective supply chain management.


You are about to read a book that is primarily about people and their relationships—people in the middle of our company, people on the front lines of our services, people we buy from, people inside and outside Southern California Edison whose relationships have set off a phenomenal business revolution.

Those of us in executive leadership can claim only the following credit for this story: We had the good sense to support the bold vision of Emiko Banfield and the hundreds of employees and suppliers who helped her transform a key part of how we do business.

This revolution entails learning to respect our suppliers as much as we respect ourselves, discovering that our vendors sometimes know as much as we know (more, in some situations), and deciding to make relational commitments outside our walls that equal the trust we confer on our own employees.

Harnessing Value in the Supply Chain is a business case that has little to do with our specific line of work—energy production, distribution, and related services. It is an enlightening account of how a new approach to corporate procurement changed our company in ways that could benefit nearly every business in America. the originality of this case study is not in the particular concept used—Strategic Sourcing—but in its unique application here at Southern California Edison.

How effective is Strategic Sourcing? When Emiko Banfield proposed this strategy to our executive team, she predicted . . .

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