Sourcing models that enable organizations to go beyond basic
bidding strategies, cost savings we think there’s a general lack of awareness
in the market about how these sourcing models work. Best-in-class companies recognize strategic sourcing as a value
creator and consider it to be integral to their overall strategies for growth.
Here's what it takes to bring your organization up to that level.
To become a world-class procurement organization, company requires
following competencies that will enable it to effect strategic sourcing and
transfer value throughout the supply chain from supplier to customer. These
four competencies are the building blocks that support value creation. They
are:
- The competencies
needed to get the goods where they need to be, when they need to be there
- The competencies
required to anticipate and meet future demand
- The competencies
to do so in a customer driven environment
- The competencies
necessary to manage the flow of information throughout an extended supply
chain
Most companies face a number of challenges in trying to determine
their current level of those competencies and in transforming their
organizations to achieve the highest level of performance. In general, they face
three barriers to doing so. First, they are not sure what competencies are
really required to support a value-creating, world class, strategic sourcing and
supply chain organization. Second, even if they could define "world
class" in terms of competencies, they are not sure how to determine
whether their sourcing and supply chain professionals (and the organization as
a whole) can perform at the level of proficiency needed to achieve world-class
results. And finally, most organizations struggle to determine the best way to
support a transformation of individual and organizational competencies that
will substantially and sustainably, raise their competency level in the
strategic sourcing and supply chain arenas.