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Article: Get the most out of strategic sourcing. (Time-to-Value).
- Article from:
- Purchasing
- Article date:
- February 20, 2003
CopyrightCOPYRIGHT 2003 Reed Business Information, Inc. (US). This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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A major machinery OEM bougnt more than 100 grades of polypropylene resin from more than 20 suppliers. There was no leverage on the buy because specifications were set by design engineers at several locations around the world. Since each compound was slightly different each product had to be weather tested separately, adding significant costs.
The same OEM launched a strategic sourcing process aimed at optimizing many spend groups, including plastics. A cross-functional team of engineers and buyers managed to consolidate 99% of the polypropylene buy within four grades that could be met by global suppliers. An online request for information was launched that ...