Substantial cost savings can be generated through leveraging global supplier capabilities. Global sourcing introduces additional competition into sourcing categories, especially valuable where there are small groups of suppliers and limited local alternatives. Realising these savings in a rapid and sustainable manner requires a clear understanding of regional manufacturing capabilities, a robust process to select appropriate suppliers, and development of strong supplier engagement to ensure on-time, on-budget delivery of high-quality goods.
PIP’s methodology is:
Capability development is a key feature of all our engagements, which enables clients to maximise ongoing benefits.
We investigated putting in place a global sourcing capability, originating in a major improvement engagement facilitated by Partners in Performance (PIP). As this was a significantly different approach for us, it took a concerted effort to engage and obtain support from stakeholders, culminating in a visit to a number of manufacturing sites in China. From a sceptical starting point, this programme has delivered large impact real benefits, and is now fully supported and is being driven by the business after the PIP team has left the site. HEAD OF GROUP PROCUREMENT AND SUPPLY CHAIN
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