In Introduction to Sourcing Transformation by Houston, Schwarting, Spieker, and Turner, published in Booz & Co’s Sourcing Reloaded, the authors put forward four rules of the road in global sourcing that should not be forgotten in your current quest to lower costs:
- Pick Your Spots
Start your sourcing transformation by redesigning procurement procedures in simple, concrete ways that can produce measurable and significant value. - Create Total Transparency in Purchasing Costs and Trade-Offs
Make-vs-Buy decisions, supply chain re-design, and the ramifications of sourcing changes should be clearly articulated so the organization understands the reasoning and buys in. - Collaborate Fully with Internal and External Stakeholders
A robust sourcing process depends on participation throughout the product life cycle, from the concept stage in R&D to the final disposal or salvage of the product. - Become an Influential Corporate Leader
Successful CPOs build confidence by leveraging their position in the executive suite.
Whether times are good or bad, the basics don’t change.