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by Hallie Forcinio, Contributing Editor   | Abstract: | Sourcing & procurement innovators have ventured beyond cost containment to optimize processes and strengthen collaboration with suppliers. |
The world of direct material sourcing and procurement has shifted. Replacing the traditional single-minded focus on cost cutting is a more holistic approach that considers quality, risk, and product innovation as well as cost. "Cost savings are great, but what's really happening is a transformation to compete in a global economy," says Dan Willmer, vice president of spend management at Ariba Inc. (Sunnyvale, CA), a provider of spend management products, including tools for contract management and contract compliance, plus a contract workbench to help suppliers and buyers hammer out terms and conditions. As a result, new emphasis is being placed on process optimization and collaboration both internally and with suppliers. "Execution is not enough," explains Patrick Scholler, director of the Procurement Competitive Edge Group at HP. "We need to go to the next step -- optimization -- not only within functions but across functions," he says. [Click to continue] |