The concept of supply chain management was invented in the 1980s at Chrysler Corp. by top buyer Thomas Stallkamp, who remains an active member of PURCHASING magazine's Editorial Advisory Board. "We redefined purchasing from buyers of parts to professionals that managed material flow from extraction of the raw materials to the scheduling of final assembly," says Stallkamp. "I even had the lift truck operators reporting to purchasing." His ideas helped lead Chrysler out of financial disaster into a model of success. The shock troops of SCM were—and are today—suppliers who become long-term partners and integral parts of design and product development. In Stallkamp's world , the suppliers' role was an extreme case due to financial necessity. Suppliers designed the highly successful Viper composite car because Chrysler had virtually no development money. Stallkamp's buyers picked the players and managed the process.
Everyone has their own idea of what outsourced procurement means – and they’re all right. There are a variety of different approaches to outsourced procurement from a full-blown takeover of your purchasing department to bringing in a niche expert to assist in a specific spend area or technology implementation. Dan Donaghy, vice president of procurement at $7 billion container maker Crown Cork & Seal in Philadelphia, says too often purchasing staffers assume that outsourcing equates to bad news and uses a simple example to explain his take on procurement outsourcing.
New white paper suggests it can actually increase profits and quality
New York — Procurement of goods and services supporting a company's internal operations, such as temporary help, travel or maintenance, involve expenditures that are often poorly managed.
Not only are millions of dollars spent needlessly, but the quality of what's purchased is frequently sub-par, according to a white paper titled "World-Class Procurement: Increasing Profitability & Quality," recently published by Geller & Co., a finance, accounting, procurement and tax outsourcing firm.
The ability to reduce costs is as important as the ability to increase sales. CCR provides the practical, long-term solution for reducing the outlay for regularly purchased goods and services.
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