Monday 5 November 2012

The Straw That Broke the Camel’s Back

Authored by: Mickey North Rizza

In a new blog post, procurement expert, Dr. Gordon Murray, highlights how important the little things are to overall supplier strategy and sourcing success.

He cites a recent Wall Street Journal article about the importance of laptop hinges and asks the question: Can a $10 hinge can be strategic?

It’s a point that is counter-intuitive to most sourcing strategies – when procurement focuses the most time and resources on complex categories to gain supplier and contract visibility. With a huge and diverse amount of spend – spanning direct, indirect and commodity categories – companies need to invest where it matters most…With the most to gain in the complex categories.

But as pointed out by Dr. Murray, overlooked small categories can be detrimental, too. Ensure negotiation, pricing, service level, and other information is consistent across categories – and that while visibility is heightened for complex spend, the small things aren’t slipping through the cracks.

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