Global competition is increasingly placing pressure on manufacturers to reduce costs, driving them to examine their procedures for obtaining components, which makes up more than 60 percent of their costs on average.
Traditional cost-cutting techniques – like benchmarking, volume bundling, and supply-chain process optimization – have centered on the purchasing function. Trouble is, much of the low-hanging fruit has already been harvested.
To achieve greater value out of the supply chain, solutions need to go beyond the chief procurement officer. Manufacturers need to embed procurement throughout the company and its supply ecosystem, a policy known as holistic value sourcing.
Holistic Value Sourcing
Evolving approaches to procurement can create value throughout an organization
