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The Progression to WCSM
Supply management a core
competence
Strategic sourcing
Monitor supply environment
Develop and implement
commodity strategies
Supply base by design
Develop and manage
alliances and networks
Time based competition
Virtually defect free
materials and services
Leverage supplier
technology
Integrated supply strategy
Manage risk
Emphasis: total cost
relationships
Relationships:
transactional,
collaborative and alliance
Bottom line impact:
increase shareholder
value
Reporting: member,
executive group
Data: facilitates strategic
planning
Understand key supply
industries
E-Commerce II
Coordinate procurement system
Develop suppliers
Long-term contracts
Involved in development of
requirements
Plan for recurring requirements
Procurement adds value
Active in source selection
Near defect free materials and
services
Emphasis: cost, quality and
timeliness
Relationships: transactional and
collaborative
Bottom line impact: profit
contributor
Reporting: upper management
Data: facilitates sourcing and
pricing
Fulfill social responsibilities
E-Commerce
Transactional focus
React to requisitions
Not involved in key source
selections
Emphasis: purchase price
Relationships: transactional and
adversarial
Bottom line impact: revenue
neutral
Reporting: low level
Data: used to expedite
Computers process paperwork
Process Paperwork
Confirm actions of others
Emphasis: convenience
Relationships: personal
Bottom line impact: overhead
Reporting: very low level
Data: not available
Clerical
World Class
Proactive
Mechanical
1 2 3 4 5 6 7 8 9 10
The Progression to WCSMSupply management a core competen.docx

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  • 1. The Progression to WCSM Supply management a core competence Strategic sourcing Monitor supply environment Develop and implement commodity strategies Supply base by design Develop and manage alliances and networks Time based competition Virtually defect free materials and services Leverage supplier technology Integrated supply strategy Manage risk Emphasis: total cost relationships Relationships: transactional, collaborative and alliance Bottom line impact:
  • 2. increase shareholder value Reporting: member, executive group Data: facilitates strategic planning Understand key supply industries E-Commerce II Coordinate procurement system Develop suppliers Long-term contracts Involved in development of requirements Plan for recurring requirements Procurement adds value Active in source selection Near defect free materials and services Emphasis: cost, quality and
  • 3. timeliness Relationships: transactional and collaborative Bottom line impact: profit contributor Reporting: upper management Data: facilitates sourcing and pricing Fulfill social responsibilities E-Commerce Transactional focus React to requisitions Not involved in key source selections Emphasis: purchase price Relationships: transactional and adversarial Bottom line impact: revenue
  • 4. neutral Reporting: low level Data: used to expedite Computers process paperwork Process Paperwork Confirm actions of others Emphasis: convenience Relationships: personal Bottom line impact: overhead Reporting: very low level Data: not available Clerical World Class Proactive Mechanical 1 2 3 4 5 6 7 8 9 10