Week 1 S

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

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