Notes
Slide Show
Outline
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Agenda
Making Sourcing Strategic
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Executive Summary
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Which of the following best describes your function?
  • Maintenance/Operations
  • Logistics/Transportation
  • Engineering
  • Planning
  • Purchasing/ Sourcing
  • Quality
  • Other
  • Professional conference attendee
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What is Strategic Sourcing?
  • IS a new mindset focused on true cost, not just price paid
  • IS customer directed to understand what’s needed, and what’s not
  • IS a leveraged approach; knowledge, skills, process, decisions, data, and volumes
  • IS a way to actively work with suppliers to gain full potential
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What Strategic Sourcing Is Not. . .
  • NOT a “Purchasing/Procurement” project… is a cross functional, true lowest cost transformation
  • NOT a short term price reduction project… is a long term transformation
  • NOT a replacement for current cost reduction   projects … is complementary
  • NOT a means to exclude users … is collaborative and cross functional team
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Strategic Sourcing
A Key Component To Competitiveness
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Strategic Sourcing
Meeting Expectations?
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Alticor Products
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"Why Sourcing is Strategic –"
  • Why Sourcing is Strategic –    Income Statement


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Key First Steps
  • Executive Integration
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Is your strategic sourcing vision ratified by
cross-functional executives ?
  • A what ?
  • Written, department only
  • Less then 50%
  • Most of the executives
  • Yes, we are aligned !
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Did each cross-functional person sign off on their specific sourcing accountabilities?
  • None documented
  • Department only
  • Less then 50%
  • Most have
  • Yes, we are aligned !
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Cost Control
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Are performance metrics designed to influence behavior and achieve desired results?
  • None in place
  • Limited focus on metrics
  • Typically department based
  • Typically transactional or price
  • Yes, we are aligned!
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Creating Value
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Is the value-add happening at the right organizational level?
  • Haven't looked at it this way
  • No, too top heavy in decisions
  • No, under utilizing our talent
  • In most cases yes
  • Yes, we are aligned !
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Roadmap Success
Achieving and Sustaining Results
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Access Business Group - Alticor
Jay Ertl – Vice President Product Supply
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Integrated Strategies Team
Steve Trecha – President and CEO
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Integrated Strategies
Mission Statement
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Integrated Strategies
Core Capabilities and Strengths
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Integrated Strategies
Capabilities: Driving Client Competitive Advantage