Balanced Sourcing: Cooperation and Competition in Supplier Relationships

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Laseter and Booz-Allen coined the term balanced sourcing to describe a model for ensuring competitive pricing from suppliers while simultaneously nurturing cooperative relationships. Drawing upon Booz-Allen's experiences with leading companies, Balanced Sourcing lays out the six organizational capabilities that make up the firm's field-tested strategy. Balanced Sourcing offers real-life lessons from around the world in such key areas as creating sourcing strategies, building and sustaining supplier relationships,...
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Overview

Laseter and Booz-Allen coined the term balanced sourcing to describe a model for ensuring competitive pricing from suppliers while simultaneously nurturing cooperative relationships. Drawing upon Booz-Allen's experiences with leading companies, Balanced Sourcing lays out the six organizational capabilities that make up the firm's field-tested strategy. Balanced Sourcing offers real-life lessons from around the world in such key areas as creating sourcing strategies, building and sustaining supplier relationships, and leveraging supplier innovation. Though it is written for senior executives who want to drive transformation in their organizations, Balanced Sourcing also provides practical advice to purchasing executives who want to understand their role in implementing the best practices of their profession.
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Editorial Reviews

From the Publisher
"In an era when more foolishness than fact is burbled about managing the supply base, it's refreshing to read Balanced Sourcing. This book explores an average company's least-used resource: its supply base. In a step-by-step approach, the book explains how companies can develop a dynamic strategy based on the strengths and resources of their supply base." -James P. Morgan, editorial director and vice president, Purchasing magazine

"Traditional North American companies pay more than 20 percent premium for purchased goods and services compared to the new nontraditional competitors. Balanced Sourcing clearly shows the secret of 'Best in Class' cost management techniques. Do you know what 20 percent of your spending looks like added to your bottom line?" -R. David Nelson, vice president, Worldwide Supply Management, Deere & Company

"Too many 'best practice' guides present a one-size-fits-all solution, such as copying the so-called Japanese model of sole sourcing. In fact, the best Japanese companies do not treat all suppliers as sole-sourced partners and you should not either. Balanced Sourcing is full of practical tools and models that will help you think through appropriate strategies for each of your suppliers." -Dr. Jeffrey K. Liker, associate professor, industrial & operations engineering, and co-director, Japan Technology Management Program, University of Michigan

"This will be a super book to provide to new purchasing people and to reinvigorate experienced purchasing professionals. It was great to see many of the concepts with which we have experimented logically explained. I wholeheartedly endorse it." -Jean Mayer, executive director, manufacturing procurement operations, Ford Motor Company

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Product Details

  • ISBN-13: 9780787944438
  • Publisher: Wiley, John & Sons, Incorporated
  • Publication date: 9/28/1998
  • Series: J-B BAH Strategy & Business Series , #1
  • Edition number: 1
  • Pages: 288
  • Product dimensions: 7.32 (w) x 9.32 (h) x 1.00 (d)

Meet the Author

TIMOTHY M. LASETER is a vice president at Booz**Allen & Hamilton and founder of the firm's global network of sourcing practitioners. He has helped a wide range of companies build the organizational capabilities for balanced sourcing and is a regular columnist for Purchasing magazine.
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Table of Contents

Foreword
Preface
Sect. 1 A New Model for Purchasing 1
1 The Emergence of Balanced Sourcing 3
2 Transforming the Organization 19
Sect. 2 Building the Capabilities 35
3 Modeling Total Cost 37
4 Creating Sourcing Strategies 59
5 Building and Sustaining Relationships 89
6 Integrating the Supply Web 109
7 Leveraging Supplier Innovation 133
8 Evolving a Global Supply Base 159
Sect. 3 Balanced Sourcing Case Studies 179
9 Florida Power & Light Company 183
10 Supervalu 201
11 Honda of America 215
12 Cisco Systems 229
Notes 243
The Author 245
Index 247
Booz-Allen & Hamilton 257
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