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The leading expert in the field brings the power of his experience and that of the world-renowned consulting firm Booz-Allen & Hamilton to reveal how buying smart can mean the difference between success and failure.
Is your company saving money by using outside suppliers? Is outsourcing reliable? As a result, is your company gaining a competitive edge? Or would the company do better by keeping some of the efforts in-house? And how is the performance of outside suppliers and in-house functions measured to facilitate effective sourcing decisions? These are questions the author, a specialist in corporate performance improvement, tackles in this book. The answers are surprising, and the guidance presented will have far-reaching benefits for organizations. He maintains that companies' expectations from outsourcing are not being met, because there is not a methodical approach to measuring and evaluating the performance of sources. By fully assessing the performance of available sources, the best can be selected and the company can benefit long term. Succinctly and comprehensively, Maromonte guides companies step by step through his proprietary techniques for sourcing performance assessment and decision making. His book will be an important, useful resource for senior management and executives, operations managers, finance, purchasing and quality professional, and anyone with responsibility for bottom-line results. To improve competitiveness in the global marketplace, companies are reducing costs through outsourcing—the purchase of goods and services from suppliers. In many cases, outsourcing is less expensive for companies than producing these goods and services internally. Companies, however, do not always achieve their ultimate goal of competing more effectively. This is because decisions to outsource are primarily based on the promise of lower direct costs, without considering other source performance criteria that also impact costs and ultimately competitiveness. Corporate Strategic Business Sourcing guides management in selecting the best sources—those that will raise performance to world-class levels and improve competitiveness. To improve sourcing decisions, the concept of the Strategic Business Unit, or SBU, is applied to each source being considered to provide the company with goods and services. Following the SBU approach, similar product and service lines are grouped together in the corporation. As a result quality levels, delivery performance, customer service, and product advancements, as well as costs, are more easily measured and improved. Just as the focus on these five criteria leads to improved SBU performance, the same approach can be applied to enhance the performance of the individual sources of goods and services. This is accomplished by similarily quantifying and improving the quality, delivery, cost, customer service and product advancement performance of the companies' sources, whether outside suppliers or in-house functions.
"The Sourcing Solution will help you stay on top of it all by giving you a clear and thorough overview of the new tools for sourcing success. Author Larry Paquette brings his considerable experience to this engaging and accessible guide, designed to give you practical ideas to use in your organization and throughout your entire career."--Jacket.
Federal agencies face a complicated set of decisions in finding the right mix of gov¿t. and contractor personnel to conduct their missions. But, agencies face challenges with increased reliance on contractors to perform core agency missions. A March 2009 Presidential memo tasked the Office of Mgmt. and Budget (OMB) to take several actions in response to this concern. This statement discusses: (1) civilian agencies' development and implementation of guidelines to consider whether contracted functions should be brought in-house -- a process known as insourcing; (2) OMB's proposed policy on work reserved for fed. employees; (3) challenges agencies face in managing the federal workforce; and (4) key tools available for insourcing. Illustrations.
While many business schools are teaching Global Operations Strategy with self-made teaching materials, there are no such textbooks. Combining practical approaches with detailed theoretical underpinnings, this book provides theories, tools, frameworks, and techniques for global operations strategy, and brings real world perspectives to students and managers. Each chapter includes definition of key terms, introduction of fundamental theories, several short case examples, one long new case to explain the associated theories, and recommended further reading.
Every day companies leave billions of dollars in invisible, unrealized savings on the table because of poor supply chain management practices. Now supply management experts Dave Nelson, Patricia E. Moody, and Jonathan Stegner show not only how leading companies recoup these savings through their mastery of target costing, value engineering, and supplier development, but how supply chain management -- the discipline of acquiring and moving material -- has become a manufacturing company's hottest competitive weapon. Based on a survey of 247 purchasing managers and more than 1,000 hours of interviews and on-site visits, the authors have selected ten top firms whose supply management pioneers excel at twenty "best practices." With cases and stories, Nelson, Moody, and Stegner show how these leading-edge purchasing departments at American Express, SmithKline Beecham, DaimlerChrysler, Harley-Davidson, Honda of America, IBM, John Deere, Whirlpool, Flextronics, and Sun Microsystems have put into place pathbreaking processes and procedures. Here, for example, described in step-by-step detail, are Chrysler's SCORE program and Honda's strategic sourcing strategy that saved the companies billions. The book also includes a crucial section on the next stage of supplier development that will involve the sourcing and allocation of ideas as well as materials. The authors provide concrete, practical steps to improvement that any supply chain manager can take to successfully implement these best practices. The Purchasing Machine will be required reading for logistics, purchasing, and procurement managers in hundreds of thousands of companies. The authoritative nature of the authors' source material is certain to make this the single most important and practical reference on best purchasing practices for years to come.
Creates a managerial compass for entering into the LIVING (Live, Intelligent, Velocity, Interactive, Networked, and Good) era of supply chain management and defines the imperative for creating Velocity and Visibility as the focal point for exploiting new digital, mobile, and cloud-based technologies Written by well-known researchers in the field, this book addresses the changes that have occurred and are still unfolding at various organizations that are involved in building real-time supply chains. The authors draw on their experiences with multiple companies, along with references to the natural evolution of ecosystems throughout to help identify the “new rules of supply chain management." The LIVING principles associated with the rapid digitization and technology changes occurring in the global economy are discussed, along with the push to become more sustainable and responsive to customer needs. “ Handfield and Linton reveal the “secret ingredient” to leveraging the power of a well managed supply chain....will revolutionize the way companies approach supply chain management.” Frank Crespo, Vice President, Global Supply Network Division (CPO/Logistics/IoT Analytics), Caterpillar Inc. “ The LIVING supply chain is a wake up call to any enterprise that depends on suppliers and contractors. Be fast, be nimble and make supply chain transparency the nucleus of your operations or become endangered.” Paul Massih, Vice President, BP PSCM “ ...a fascinating journey through the future of supply chain management ... a must read for every supplychain professional.” Yossi Sheffi, Professor, MIT Center for Transportation and Logistics “ ... a great “living” reading on how to bring supply chains to a powerful living state. The idea of Live-Interactive-Velocity–Intelligent–Networked-Good is the foundation of how supply chains can be agile, adaptive and aligned. ...of value to every supply chain executive and practitioner.” Hau Lee, Professor, Stanford University “ Successful businesses are those that support the success of their customers. This book captures the essence of our volatile, uncertain world and the opportunities that exist for the commercially astute, organizationally integrated business. More important, it offers insight to the recipe for 21st century operations and the management of complex supply ecosystems.” Tim Cummins, CEO, International Association of Commercial and Contract Management “ A LIVING supply chain requires a living company. The authors make a great case for how Flex is creating a living company to thrive in the living supply chain.” Tom Choi, Harold E. Fear on Eminent Scholar Chair of Purchasing Management, Arizona State University, Executive Director, CAPS Research “ To survive we need to have an adaptive supply chain and capability to both optimize and adapt simultaneously. This book begins to describe the ability to shift from functional silos to E2E Frictionless flow with the maturity to make E2E tradeoff decisions as a key enabler for success.” Wayne Rothman, Vice President, Enterprise Supply Chain Planning, Johnson & Johnson “A fantastic read and excellent stories from Dr. Handfield and Tom.” Joanne E. Wright, Vice President, IBM Supply Chain ROBERT HANDFIELD, PhD, is Bank of America University Distinguished Professor of Supply Chain Management and Director of the Supply Chain Resource Cooperative at North Carolina State University. The author of four books and over 150 journal articles, Dr. Handfield received his PhD in Operations Management from The University of North Carolina in 1990. TOM LINTON is Chief Procurement and Supply Chain Officer at Flex. A recognized industry and functional expert, he has 30 years of international industrial experience in procurement and supply chain management. Tom Linton is also the recipient of the Procurement Leaders Lifetime Achievement Award in May, 2017.
The purpose of supply chain management is to make production system manage production process, improve customer satisfaction and reduce total work cost. With indubitable significance, supply chain management attracts extensive attention from businesses and academic scholars. Many important research findings and results had been achieved. Research work of supply chain management involves all activities and processes including planning, coordination, operation, control and optimization of the whole supply chain system. This book presents a collection of recent contributions of new methods and innovative ideas from the worldwide researchers. It is aimed at providing a helpful reference of new ideas, original results and practical experiences regarding this highly up-to-date field for researchers, scientists, engineers and students interested in supply chain management.
This book provides readers a holistic and pragmatic approach towards supply management in China. It elaborates on how supply management should integrate the optimum level, and a combination of quality, cost and delivery. In addition to serving as a guide on how to address cultural barriers, apply supply tools and concepts, it also illustrates the best practices in supply management in China. It draws from a large number of best practices of companies from automotive to railway, to convince other functional departments and higher management that supply management plays the most fundamental role in any organization due to the high number of value adding activities which are coming from suppliers. These practices have been derived by a multi-methodical approach including interviews with supply management leaders from industry and experts in academia, making it as unique and a suitable a guide for practitioners and academics.