By Katrina C. Arabe
Procurement and sourcing "best practices" aren't just for the Fortune 500. Here is AMR Research's action list for mid-market manufacturers trying to improve business:
By Pierre Mitchell, Vice President of Research, AMR Research
By Pierre Mitchell, Vice President of Research, AMR Research
As mid-market companies look for ways to ruthlessly reduce costs, especially as their large customers are mandating price reductions from them, procurement and supply chain departments are front-and-center in terms of delivering the savings and the operational improvements to support these increasingly stringent customer requirements. Unfortunately, the lack of skills, systems and real organizational support for improving supply processes has these groups caught between a rock and a hard place. While there are hundreds of possible interventions to address the root causes of these operational challenges, here's a top ten list of actions that mid-market manufacturers can take to improve their business:
1. Have a clear performance measurement system to make sure everyone is on the same page. Make sure you have some type of Program Management Office or other organizational process to see all your improvement projects, allowing everyone to be on the same page. Springfield Re-Manufacturing Corp. is a great example of this. Buy Jack Stack's book The Great Game of Business and adopt some of its key principles for open-book management.
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