ABSTRACT
A rigid strategic sourcing process across all categories people buy includes evaluating cost drivers and value drivers across the entire supply/value chain. This process enables people to evaluate, in a transparent way, total cost including price, reduced material usage, shorter setup times, better cash flow, lower energy consumption, faster time to market, and reduced capital tied up in inventories. Value of shorter lead times, risk management, and better supply chain agility/resilience is also considered. Top Management needs to walk the talk and set the right culture and performance indicators to drive the right behavior in the organization. Salespeople should understand that it is not companies that compete, it is the supply chains. Salespeople should invest more in understanding their customers’ value proposition, what are the burning platforms, what problems can the author's product and service offering solve, and what opportunities can they create.
