a comprehensive seen 19.11.10
TRANSCRIPT
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A Comprehensive
Examination of
Purchasing Practices byIndustry
A Comprehensive
Examination of
Purchasing Practices byIndustry
Session FL
May 2, 2000
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PURCHASING AND SUPPLY MANAGEMENT
ANALYTIC OVERVIEW
PURCHASING AND SUPPLY MANAGEMENT
ANALYTIC OVERVIEW
Central IssueCentral Issue
Do purchasing best practices vary byindustry?
How can you use this information toimprove your own level of performance?
Do purchasing best practices vary byindustry?
How can you use this information toimprove your own level of performance?
AgendaAgenda
Brief methodologyReview of practices by industryAnalysis using PSM practices as drivers
How to assess your own performance
Brief methodologyReview of practices by industryAnalysis using PSM practices as drivers
How to assess your own performance
Dr. Lisa Ellram C.P.M.,
Arizona State University
ASU Research Team Leader
Dr. Lisa Ellram C.P.M.,Dr. Lisa Ellram C.P.M.,
Arizona State UniversityArizona State University
ASU Research Team LeaderASU Research Team Leader
Dr. Sue Siferd,
Arizona State University
Co-researcher
Dr. Sue Siferd,Dr. Sue Siferd,
Arizona State UniversityArizona State University
CoCo--researcherresearcher
Michael Stanly C.P.M.,
McKinsey & Company
Research Sponsor
Michael Stanly C.P.M.,Michael Stanly C.P.M.,
McKinsey & CompanyMcKinsey & Company
Research SponsorResearch Sponsor
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There are differences among the level ofbest practices implementation by
industries
This information can be useful in assessingyour own performance and focusing future
improvement efforts
There are differences among the level ofbest practices implementation by
industries
This information can be useful in assessingyour own performance and focusing future
improvement efforts
THE END OF THE STORY FIRSTTHE END OF THE STORY FIRST
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Brief methodology
Review of practices by industry
Analysis using PSM practices as drivers
How to assess your own performance
TODAYS DISCUSSIONTODAYS DISCUSSION
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Extensive review of the PSM literature Used existing/modified scales where
applicable Additional scales developed from the literature
and based on McKinsey PSM practices
Survey reviewed extensively by practitioners andacademics General business expertise Purchasing expertise Research expertise
Survey modified and pretested on severalpurchasing executives before finalized
APPROACH PSM SURVEY DEVELOPMENTAPPROACH PSM SURVEY DEVELOPMENT
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Received a database of 2,300 names from theNational Association of Purchasing Management
Members at director level or higher People who attended seminars/conferences
whose title was director level or higher
Database was refined to exclude governmental,consulting, colleges and universities, not-for-profit, legal and accounting firms, foreign firms,
and individuals who did not indicate the name of
their firm
A random sample of 1,000 was generated from theremaining database
APPROACH PSM SURVEY SAMPLE SELECTIONAPPROACH PSM SURVEY SAMPLE SELECTION
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APPROACH ACHIEVED A VERY FAVORABLE
RESPONSE RATE
APPROACH ACHIEVED A VERY FAVORABLE
RESPONSE RATE
Total surveys sent out
Refusals, returns, no
longer in function,
unusable, too late, blank
Effective number of
surveys considered
Usable surveys returned
Effective response rate
Total surveys sent out
Refusals, returns, no
longer in function,
unusable, too late, blank
Effective number of
surveys considered
Usable surveys returned
Effective response rate
26%26%responseresponse
raterate
1,000
76
924
246
1,000
76
924
246
Number of surveysNumber of surveys
199919991999
--
==
--:: ==26.6%26.6%26.6%
effective numbereffective number
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CH-ZXG734-008jsmMS
7
METHODOLOGYMETHODOLOGY
Treat each of the practices separately as a dependentvariable; Each of the other factors tested
simultaneously treated as a independent variable
Split the sample for the variable of interest into twogroups based on whether the observation lies above or
below the median score for that variable
Statistically compared responses of high versuslow involvement groups to determine the existence of
significant differences between the factors (e.g., does a
high involvement group look different than a low
performer on the other factors?)
Use regression analysis to determine which of thefactors are the true levers
Treat each of the practices separately as a dependentvariable; Each of the other factors tested
simultaneously treated as a independent variable
Split the sample for the variable of interest into twogroups based on whether the observation lies above or
below the median score for that variable
Statistically compared responses of high versuslow involvement groups to determine the existence of
significant differences between the factors (e.g., does a
high involvement group look different than a low
performer on the other factors?)
Use regression analysis to determine which of thefactors are the true levers
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EnergyEnergy
High techHigh tech
1999 STUDY SUMMARY BY INDUSTRY1999 STUDY SUMMARY BY INDUSTRY
Total number of
respondents
Total number ofTotal number of
respondentsrespondents
By industry groupBy industry groupBy industry group
4848
246246
8585
ManufacturingManufacturing ServiceService
6565
21211919
Health careHealth care
88
UnclassifiableUnclassifiable
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Brief methodology
Review of practices by industry
Analysis using PSM practices as drivers
How to assess your own performance
TODAYS DISCUSSIONTODAYS DISCUSSION
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UNDERLYING PREMISE THERE ARE A SET OF
BEST PRACTICES IN PSM THAT LEADING-EDGE
FIRMS FOLLOW
UNDERLYING PREMISE THERE ARE A SET OF
BEST PRACTICES IN PSM THAT LEADING-EDGE
FIRMS FOLLOW
Set of best practices was developed basedon extensive consulting work
A review of the literature
Expert opinion
We call these characteristics of world-classPSM
Set of best practices was developed basedon extensive consulting work
A review of the literature
Expert opinion
We call these characteristics of world-classPSM
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Traditional purchasing organization
High
aspirations
High
aspirations
Periodic, incremental purchase price
reductions, hoping to keep up with inflation
Source: McKinsey Purchasing and Supply Management Practice
Disadvantaged vs. suppliers in
negotiations who have better facts aboutthe buy
Process orders and minimize the cost of
the purchasing function
Purchasing viewed as an administrative
function and staffed with mediocre
performers; last to know about key
decisions
Infrequent bidding with some;undemanding partnerships with too many
World-class supply management organization
Captures 10-15% initial reduction in total cost of
ownership, followed by 3-5% ongoing annual
improvements
Advantaged vs. suppliers, with distinctive insights in 3
areas Total cost of ownership (TCO) Supplier economics Supply market options and opportunities
Strategic rather than tactical focus; develops and executes
sourcing strategies grounded in a thorough understanding
of supply market and deliver significant and sustainablereductions in TCO
Staffed with the best and brightest and a respected
member of teams formed around core processes such as
compliance management
Builds a world-class supplier network with a fewdemanding partnerships for the goods and services that
can truly contribute to competitive advantage
Attribute
Advantagedfact base
Advantaged
fact base
Strategic
focus
Strategic
focus
Supplier
network
Supplier
network
Current
technology
Current
technology
Technology tools rarely applied; when so,
focus on reducing transaction cost and
tracking compliance
Strategic application of supply management technology tools
to accelerate journey to world-class through
Preemptively reshaping supply markets to their advantage
Harnessing more knowledge for better decision making onTCO, supplier economics, and supply markets
Better integrating suppliers
6 ATTRIBUTES OF WORLD-CLASS PSM
Top talentTop talent
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Traditional purchasing organization
High
aspirations
High
aspirations
Periodic, incremental purchase price
reductions, hoping to keep up with
inflation
Source: McKinsey Purchasing and Supply Management Practice
Disadvantaged vs. suppliers in
negotiations who have better facts aboutthe buy
Process orders and minimize the cost of
the purchasing function
Purchasing viewed as an administrative
function and staffed with mediocre
performers; last to know about key
decisions
Infrequent bidding with some;undemanding partnerships with too many
World-class supply management organization
Captures 10-15% initial reduction in total cost of
ownership, followed by 3-5% ongoing annual
improvements
Advantaged vs. suppliers, with distinctive insights in 3
areas Total cost of ownership (TCO) Supplier economics Supply market options and opportunities
Strategic rather than tactical focus; develops and executes
sourcing strategies grounded in a thorough understanding
of supply market and deliver significant and sustainablereductions in TCO
Staffed with the best and brightest and a respected
member of teams formed around core processes such as
compliance management
Builds a world-class supplier network with a fewdemanding partnerships for the goods and services that
can truly contribute to competitive advantage
Attribute
Advantagedfact base
Advantaged
fact base
Strategic
focus
Strategic
focus
Supplier
network
Supplier
network
Current
technology
Current
technology
Technology tools rarely applied; when so,
focus on reducing transaction cost and
tracking compliance
Strategic application of supply management technology tools
to accelerate journey to world-class through
Preemptively reshaping supply markets to their advantage
Harnessing more knowledge for better decision making onTCO, supplier economics, and supply markets
Better integrating suppliers
6 ATTRIBUTES OF WORLD-CLASS PSM
Top talentTop talent
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WORLD-CLASS SUPPLY MANAGEMENT
CHARACTERISTICS HIGH ASPIRATIONS/
ACCOUNTABILITY
WORLD-CLASS SUPPLY MANAGEMENT
CHARACTERISTICS HIGH ASPIRATIONS/
ACCOUNTABILITY
100
Very high
0
None
87.187.1
ManufacturingManufacturing
85.585.5
ServiceService
89.089.0
High techHigh tech
EnergyEnergy
87.787.7
90.990.9
HealthcareHealthcare
Purchasers areincreasingly held
accountable for
resultsNo real differenceexists among
industries
Purchasers areincreasingly held
accountable for
resultsNo real differenceexists among
industries
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High
aspirations
High
aspirations
Periodic, incremental purchase price
reductions, hoping to keep up with inflation
Source: McKinsey Purchasing and Supply Management Practice
Disadvantaged vs. suppliers in
negotiations who have better facts
about the buy
Process orders and minimize the cost of
the purchasing function
Purchasing viewed as an administrative
function and staffed with mediocre
performers; last to know about key
decisions
Infrequent bidding with some;
undemanding partnerships with too many
Captures 10-15% initial reduction in total cost of
ownership, followed by 3-5% ongoing annual
improvements
Advantaged vs. suppliers, with distinctive insights in
3 areas
Total cost of ownership (TCO) Supplier economics Supply market options and opportunities
Strategic rather than tactical focus; develops and executes
sourcing strategies grounded in a thorough understanding
of supply market and deliver significant and sustainable
reductions in TCO
Staffed with the best and brightest and a respected
member of teams formed around core processes such as
compliance management
Builds a world-class supplier network with a few
demanding partnerships for the goods and services thatcan truly contribute to competitive advantage
Advantaged
fact base
Advantaged
fact base
Strategic
focus
Strategic
focus
SuppliernetworkSuppliernetwork
Current
technology
Current
technology
Technology tools rarely applied; when so,
focus on reducing transaction cost and
tracking compliance
Strategic application of supply management technology tools
to accelerate journey to world-class through
Preemptively reshaping supply markets to their advantage Harnessing more knowledge for better decision making on
TCO, supplier economics, and supply markets Better integrating suppliers
Top talentTop talent
6 ATTRIBUTES OF WORLD-CLASS PSM
Traditional purchasing organization World-class supply management organizationAttribute
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WORLD-CLASS SUPPLY MANAGEMENT
CHARACTERISTICS
WORLD-CLASS SUPPLY MANAGEMENT
CHARACTERISTICS
No real differenceamong industries
all are high
This is aprerequisite, not
a differentiator
No real differenceamong industries
all are high
This is aprerequisite, not
a differentiator
100Always
0Never
88.188.1
ManufacturingManufacturing
86.786.7
ServiceService
86.886.8
High techHigh tech
EnergyEnergy
81.181.1
86.086.0
HealthcareHealthcare
Advantaged fact based
market knowledge
Advantaged fact based
market knowledge
Stay in close touch with the external supply marketeconomic trends, technology, availability, pricing
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WORLD-CLASS SUPPLY MANAGEMENT
CHARACTERISTICS
WORLD-CLASS SUPPLY MANAGEMENT
CHARACTERISTICS
100
Always
0
Never
73.673.6
ManufacturingManufacturing
71.571.5
ServiceService
74.074.0
High techHigh tech
EnergyEnergy
72.472.4
71.871.8
HealthcareHealthcare
Advantaged fact based
use of TCO for key
purchases
Advantaged fact based
use of TCO for key
purchases
Use TCO analysis
Less prevalentthan market
knowledgeStill nosignificant
differences
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WORLD-CLASS SUPPLY MANAGEMENT
CHARACTERISTICS
WORLD-CLASS SUPPLY MANAGEMENT
CHARACTERISTICS
Lessprevalent
than TCO
Nosignificant
differences...
Lessprevalent
than TCO
Nosignificant
differences...
100
Always
0
Never
67.667.6
ManufacturingManufacturing
68.268.2
ServiceService
69.969.9
High techHigh tech
EnergyEnergy
63.763.7
73.673.6
HealthcareHealthcare
Advantaged fact based
strategic cost management
Advantaged fact based
strategic cost management
Use other strategic cost management approachesUse other strategic cost management approaches
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WORLD-CLASS SUPPLY MANAGEMENT
CHARACTERISTICS
WORLD-CLASS SUPPLY MANAGEMENT
CHARACTERISTICS
Some largedifferences related todeveloping target
costs for purchases,
and for sharing those
targets with
customers
Not surprisingly,manufacturing, high
tech, and healthcare
lead, showing theemphasis on specific
goals for cost in those
industries
Overall, use of facts is
important in allindustries
Some large
differences related todeveloping target
costs for purchases,
and for sharing those
targets with
customers
Not surprisingly,manufacturing, high
tech, and healthcare
lead, showing the
emphasis on specific
goals for cost in those
industries
Overall, use of facts is
important in allindustries
100Always
0Never
65.265.2
ManufacturingManufacturing
54.654.6
ServiceService
67.267.2
High techHigh tech
EnergyEnergy
46.846.8
60.560.5
HealthcareHealthcare
Advantaged fact based
use of target costing
Advantaged fact based
use of target costing
Use target costing
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High
aspirations
High
aspirations
Periodic, incremental purchase price
reductions, hoping to keep up with inflation
Source: McKinsey Purchasing and Supply Management Practice
Disadvantaged vs. suppliers in
negotiations who have better facts aboutthe buy
Process orders and minimize the cost of
the purchasing function
Purchasing viewed as an administrative
function and staffed with mediocre
performers; last to know about key
decisions
Infrequent bidding with some;undemanding partnerships with too many
Captures 10-15% initial reduction in total cost of
ownership, followed by 3-5% ongoing annual
improvements
Advantaged vs. suppliers, with distinctive insights in 3
areasTotal cost of ownership (TCO)
Supplier economics
Supply market options and opportunities
Strategic rather than tactical focus; develops and
executes sourcing strategies grounded in a thorough
understanding of supply market and deliversignificant and sustainable reductions in TCO
Staffed with the best and brightest and a respected
member of teams formed around core processes such as
compliance management
Builds a world-class supplier network with a fewdemanding partnerships for the goods and services that
can truly contribute to competitive advantage
Advantagedfact base
Advantaged
fact base
Strategic
focus
Strategic
focus
Supplier
network
Supplier
network
Current
technology
Current
technology
Technology tools rarely applied; when so,
focus on reducing transaction cost and
tracking compliance
Strategic application of supply management technology tools
to accelerate journey to world-class through
Preemptively reshaping supply markets to their advantage
Harnessing more knowledge for better decision making onTCO, supplier economics, and supply markets
Better integrating suppliers
Top talentTop talent
6 ATTRIBUTES OF WORLD-CLASS PSM
Traditional purchasing organization World-class supply management organizationAttribute
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WORLD-CLASS SUPPLY MANAGEMENT
CHARACTERISTICS
WORLD-CLASS SUPPLY MANAGEMENT
CHARACTERISTICS100
Always0
Never
86.186.1
ManufacturingManufacturing
85.785.7
ServiceService
84.984.9
High techHigh tech
EnergyEnergy
85.685.6
89.589.5
HealthcareHealthcare
Strategic focusStrategic focus
Virtually no
difference among
industries All show a high
focus on strategy
development for
key purchases
Virtually no
difference among
industries All show a high
focus on strategy
development for
key purchases
Develop/execute strategies for key purchases
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High
aspirations
High
aspirations
Periodic, incremental purchase price
reductions, hoping to keep up with inflation
Source: McKinsey Purchasing and Supply Management Practice
Disadvantaged vs. suppliers in
negotiations who have better facts aboutthe buy
Process orders and minimize the cost of
the purchasing function
Purchasing viewed as an administrative
function and staffed with mediocre
performers; last to know about key
decisions
Infrequent bidding with some;undemanding partnerships with too many
Captures 10-15% initial reduction in total cost of
ownership, followed by 3-5% ongoing annual
improvements
Advantaged vs. suppliers, with distinctive insights in 3
areasTotal cost of ownership (TCO)
Supplier economics
Supply market options and opportunities
Strategic rather than tactical focus; develops and executes
sourcing strategies grounded in a thorough understanding
of supply market and deliver significant and sustainablereductions in TCO
Staffed with the best and brightest and a respected
member of teams formed around core processes such
as compliance management
Builds a world-class supplier network with a fewdemanding partnerships for the goods and services that
can truly contribute to competitive advantage
Advantagedfact base
Advantaged
fact base
Strategic
focus
Strategic
focus
Supplier
network
Supplier
network
Current
technology
Current
technology
Technology tools rarely applied; when so,
focus on reducing transaction cost and
tracking compliance
Strategic application of supply management technology tools
to accelerate journey to world-class through
Preemptively reshaping supply markets to their advantage
Harnessing more knowledge for better decision making onTCO, supplier economics, and supply markets
Better integrating suppliers
Top talentTop talent
6 ATTRIBUTES OF WORLD-CLASS PSM
Traditional purchasing organization World-class supply management organizationAttribute
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WORLD-CLASS SUPPLY MANAGEMENT
CHARACTERISTICS
WORLD-CLASS SUPPLY MANAGEMENT
CHARACTERISTICS
Not surprisingly,manufacturing
and high tech
come out on top
Greater emphasison PSM for years
Energy sectorneeds to play
catch-up
Not surprisingly,manufacturing
and high tech
come out on top
Greater emphasison PSM for years
Energy sectorneeds to play
catch-up
100Very high
0Very low
50Average
73.073.0
ManufacturingManufacturing
69.069.0
ServiceService
73.473.4
High techHigh tech
EnergyEnergy
61.561.5
71.671.6
HealthcareHealthcare
Top talent/perception
of PSM
Top talent/perception
of PSM
Measured by high reporting level, job rotation, perceived importance
by top management, other functions
S O O C SS S
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High
aspirations
High
aspirations
Periodic, incremental purchase price
reductions, hoping to keep up with inflation
Source: McKinsey Purchasing and Supply Management Practice
Disadvantaged vs. suppliers in
negotiations who have better facts aboutthe buy
Process orders and minimize the cost of
the purchasing function
Purchasing viewed as an administrative
function and staffed with mediocre
performers; last to know about key
decisions
Infrequent bidding with some;undemanding partnerships with too
many
Captures 10-15% initial reduction in total cost of
ownership, followed by 3-5% ongoing annual
improvements
Advantaged vs. suppliers, with distinctive insights in 3
areasTotal cost of ownership (TCO)
Supplier economics
Supply market options and opportunities
Strategic rather than tactical focus; develops and executes
sourcing strategies grounded in a thorough understanding
of supply market and deliver significant and sustainablereductions in TCO
Staffed with the best and brightest and a respected
member of teams formed around core processes such as
compliance management
Builds a world-class supplier network with a fewdemanding partnerships for the goods and services
that can truly contribute to competitive advantage
Advantagedfact base
Advantaged
fact base
Strategic
focus
Strategic
focus
Supplier
network
Supplier
network
Current
technology
Current
technology
Technology tools rarely applied; when so,
focus on reducing transaction cost and
tracking compliance
Strategic application of supply management technology tools
to accelerate journey to world-class through
Preemptively reshaping supply markets to their advantage
Harnessing more knowledge for better decision making onTCO, supplier economics, and supply markets
Better integrating suppliers
Top talentTop talent
6 ATTRIBUTES OF WORLD-CLASS PSM
Traditional purchasing organization World-class supply management organizationAttribute
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SUPPLIER NETWORKS STRATEGIC ALLIANCESSUPPLIER NETWORKS STRATEGIC ALLIANCES
100
Very high
0
None
83.183.1
ManufacturingManufacturing
81.181.1
ServiceService
83.783.7
High techHigh tech
EnergyEnergy
78.978.9
83.083.0
HealthcareHealthcare
All very similarin their
recognition of
the importanceof supplier
relations/
networks
All very similarin their
recognition of
the importanceof supplier
relations/
networks
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SUPPLIER NETWORKS
SUPPLIER CO-LOCATION
SUPPLIER NETWORKS
SUPPLIER CO-LOCATION
100
Frequently
0
Never
48.748.7
ManufacturingManufacturing
51.251.2
ServiceService
59.359.3
High techHigh tech
EnergyEnergy
50.050.0
58.558.5
HealthcareHealthcare
Surprisinglylowest in
manufacturing
firms, but
fairly lowoverall
Great deal oftalk versus
real level ofactivity
Surprisinglylowest in
manufacturing
firms, but
fairly lowoverall
Great deal oftalk versus
real level ofactivity
S O O C SS S
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High
aspirations
High
aspirations
Periodic, incremental purchase price
reductions, hoping to keep up with
inflation
Disadvantaged vs. suppliers in
negotiations who have better factsabout the buy
Process orders and minimize the cost of
the purchasing function
Purchasing viewed as an administrative
function and staffed with mediocre
performers; last to know about key
decisions
Infrequent bidding with some;undemanding partnerships with too
many
Captures 10-15% initial reduction in total cost of
ownership, followed by 3-5% ongoing annual
improvements
Advantaged vs. suppliers, with distinctive insights in
3 areasTotal cost of ownership (TCO)
Supplier economics
Supply market options and opportunities
Strategic rather than tactical focus; develops and
executes sourcing strategies grounded in a thorough
understanding of supply market and deliver
significant and sustainable reductions in TCO
Staffed with the best and brightest and a respected
member of teams formed around core processes such
as product development
Builds a world-class supplier network with a fewdemanding partnerships for the goods and services
that can truly contribute to competitive advantage
Advantaged
fact base
Advantaged
fact base
Strategic
focus
Strategic
focus
Supplier
network
Supplier
network
Current
technology
Current
technology
Technology tools rarely applied; when
so, focus on reducing transaction cost
and tracking compliance
Strategic application of supply management technology
tools to accelerate journey to world-class through
Preemptively reshaping supply markets to their
advantage Harnessing more knowledge for better decision making
on TCO, supplier economics, and supply markets
Better integrating suppliers
Top talentTop talent
6 ATTRIBUTES OF WORLD-CLASS PSM
Traditional purchasing organization World-class supply management organizationAttribute
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WORLD-CLASS SUPPLY MANAGEMENT
CHARACTERISTICS USE OF TECHNOLOGY
WORLD-CLASS SUPPLY MANAGEMENT
CHARACTERISTICS USE OF TECHNOLOGY
100
Very high
0
None
66.166.1
ManufacturingManufacturing
64.864.8
ServiceService
75.275.2
High techHigh tech
EnergyEnergy
65.965.9
75.175.1
HealthcareHealthcare
Healthcare
and high tech
firms lead the
way
- EDI- e-Ordering
- Faster move-
ment to
e-Procurement
Healthcare
and high tech
firms lead the
way
- EDI- e-Ordering
- Faster move-
ment to
e-Procurement
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Brief methodology
Review of practices by industry
Analysis using PSM practices as drivers
How to assess your own performance
TODAYS DISCUSSIONTODAYS DISCUSSION
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Overall, high tech leads the way COPY THEM!
Energy lags
NEED TO CATCH UP!
Overall, high tech leads the way COPY THEM!
Energy lags
NEED TO CATCH UP!
BIGGEST SURPRISE HOW FEW DIFFERENCES
THERE REALLY ARE BY INDUSTRY!
BIGGEST SURPRISE HOW FEW DIFFERENCES
THERE REALLY ARE BY INDUSTRY!
Given the low incidence of significant differences
in world-class purchasing practices, whats the
best approach?
Given the low incidence of significant differences
in world-class purchasing practices, whats the
best approach?
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WHAT CHARACTERIZES THE
BEST OF THE BEST ACROSS INDUSTRIES?
WHAT CHARACTERIZES THE
BEST OF THE BEST ACROSS INDUSTRIES?
Strategic alliances in supplier networks and highaspirations for results appear as the most
frequent levers
Do these first if you want to improve overall
These are followed in frequency by fact-based
strategic cost management and target costing,and a strategic focus
The next area to target if you are already good
at alliances/high aspirations
Strategic alliances in supplier networks and highaspirations for results appear as the most
frequent levers
Do these first if you want to improve overall
These are followed in frequency by fact-based
strategic cost management and target costing,and a strategic focus
The next area to target if you are already good
at alliances/high aspirations
O S
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32/33
OVERALL SUMMARYOVERALL SUMMARY
The levers identified can be used to facilitateimprovement in a particular attribute
It is difficult, and often not meaningful, to isolatesingle causes of superior PSM performance
PSM is a system
Attributes of world class PSM organizations arehighly related
The analysis of the key levers shows that certaintypes of behaviors are likely to drive, or at least
be supportive of, other PSM practices within the
researched attributes
The levers identified can be used to facilitateimprovement in a particular attribute
It is difficult, and often not meaningful, to isolatesingle causes of superior PSM performance
PSM is a system
Attributes of world class PSM organizations arehighly related
The analysis of the key levers shows that certaintypes of behaviors are likely to drive, or at least
be supportive of, other PSM practices within the
researched attributes
-
7/30/2019 A Comprehensive Seen 19.11.10
33/33
A Comprehensive
Examination ofPurchasing Practices by
Industry
A Comprehensive
Examination ofPurchasing Practices by
Industry
Session FL
QuestionsDiscussion
Wrap-up