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1 STRATEGIC SOURCING WEBINAR Mike Gozzo Presented By: Michael Gozzo Senior Consultant “Who’s Who in American Manufacturing” Hosted By: Artin Vaqari Chief Executive Officer Purchasing & Procurement Center Inc. 5 Powerful Strategies For Effective Strategic Sourcing STRATEGIC SOURCING Mike Gozzo Michael Gozzo Over 30 Years Experience in Purchasing, Supply Chain, Inventory CPIM Certified in Production & Inventory Management -APICS CPSM Certifed Supply Chain Professional APICS Who’s Who In American Manufacturing

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STRATEGIC SOURCING WEBINAR

Mike Gozzo

Presented By:

Michael Gozzo Senior Consultant “Who’s Who in American Manufacturing”

Hosted By:

Artin Vaqari Chief Executive Officer

Purchasing & Procurement Center Inc.

5 Powerful Strategies For Effective Strategic Sourcing

STRATEGIC SOURCING

Mike Gozzo

Michael Gozzo Over 30 Years Experience in Purchasing,

Supply Chain, Inventory

CPIM Certified in Production & Inventory

Management -APICS

CPSM Certifed Supply Chain Professional –

APICS

Who’s Who In American Manufacturing

Page 2: STRATEGIC SOURCING - Purchasing & Procurement …The supplier checklist ... Let us guide you to implement Strategic Sourcing in your ... How to Categorize goods & services for strategicppc-inc.com/webinars/docs/strategic-sourcing-webinar.pdf ·

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Before We Start 1. Questions - Write them down – We’ll

answer what we can or reply later by email

2. Stay Until the end to get a Copy of this presentation

3. For those who want more regarding Strategic Sourcing after this webinar, we’ll announce at the end of webinar how you can get more

Mike Gozzo

WHAT IS STRATEGIC SOURCING?

Strategic Sourcing is a relationship

based business process It integrates suppliers into a company

It optimizes the values received

o Via development

o Via continuous improvement

For mutual benefit

For a long term

Mike Gozzo

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What is Strategic Sourcing?

Another view

It is a process of identifying, evaluating , collaborating

and implementing the optimal mix of goods and

services that best support the objectives of the

enterprise

(Aberdeen Group Report – March 2010)

o The major factor and objective is maintaining cost savings

Mike Gozzo

Strategic Sourcing Plan

Change what we buy

Change how we work with suppliers

Change the way the

supply market operates change

dynamics

Traditional

Sourcing

Approaches

Mike Gozzo

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Strategic Sourcing Challenges

Reluctance to a

standardized approach

Needed to cultivate a

“repeatable

environment”

Insufficient visibility and

accurate spend data

Limited budget/

resources to implement

Executive support

Why?

o Understanding

o Past results

o Impatience

Mike Gozzo

1 – The Targeting

Model

Mike Gozzo

STRATEGIC SOURCING WEBINAR

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Targeting Model

Bottleneck Critical

Routine Leverage

VALUE Low High

RISK

High

Low

Mike Gozzo

2 - Evaluating Supplier

Performance & Capabilities

We’re as Good as Our Suppliers.

Mike Gozzo

STRATEGIC SOURCING WEBINAR

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Evaluating Supplier Performance

& Capabilities

What are the specific areas of activity?

How to determine the evaluation criteria

Integrating ISO evaluation factors

Supplier evaluation technique for various

factors

Prioritizing critical criteria

The role of supplier self evaluation

Mike Gozzo

Qualifying the Supplier

The supplier checklist

Attributes of supplier performance

The supplier survey

Developing sources of supply

Financial considerations

Mike Gozzo

Page 7: STRATEGIC SOURCING - Purchasing & Procurement …The supplier checklist ... Let us guide you to implement Strategic Sourcing in your ... How to Categorize goods & services for strategicppc-inc.com/webinars/docs/strategic-sourcing-webinar.pdf ·

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Targeting Model

Bottleneck Critical

Routine Leverage

VALUE Low High

RISK

High

Low

Mike Gozzo

3 – Strategic Alliances

Mike Gozzo

STRATEGIC SOURCING WEBINAR

Page 8: STRATEGIC SOURCING - Purchasing & Procurement …The supplier checklist ... Let us guide you to implement Strategic Sourcing in your ... How to Categorize goods & services for strategicppc-inc.com/webinars/docs/strategic-sourcing-webinar.pdf ·

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Strategic Alliances Discussion question

Which of the following is the best example of

risk mitigation in a strategic alliance? a. Overcoming barriers to market entry

b. Surmounting limited availability of component

suppliers

c. Improving overall financial position

d. Improving operations by lowering system costs

Mike Gozzo

4 – Reducing Effort/Time

Mike Gozzo

STRATEGIC SOURCING WEBINAR

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HOW IS IT DETERMINED?

What has been the traditional methodology?

Mike Gozzo

Characteristic of Lead time

It is typically inflated?

Yes or no?

oWhy do you say that?

Mike Gozzo

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Question

Can I use Lead Time

Mike Gozzo

Question

Can I use Lead Time For

Consultants/Services?

Mike Gozzo

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5 – Systems Thinking

Mike Gozzo

STRATEGIC SOURCING WEBINAR

Systems Thinking What is a system? It is an interconnected

complex of functionally related components that work together trying to accomplish the aim of the customers

Systems purpose? For everyone to gain

Stockholders

Employees

Suppliers

Customers

Community

Environment

Leads to optimization

A process of orchestrating efforts of all the components toward the aim

Mike Gozzo

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The Improvement Journey

Need to ask and address these questions

Where am I now?

Where am I going?

What road will take me there?

How am I going to get there?

What resources are needed to get there?

How long will it take to reach the various milestones?

Mike Gozzo

What’s Next?

Let us guide you to implement

Strategic Sourcing in your

organization with ...........

Mike Gozzo

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7 Step Strategic

Sourcing

Live Training

Program/Workshop

Mike Gozzo

Mike Gozzo

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If you have 10 or more people

that you believe should attend,

click below as well, and let us

know that you want this done in-

house/bespoke for your

organization only.

Or Email directly at

[email protected]

Mike Gozzo

The Objective of

7 Step Strategic Sourcing

Mike Gozzo

Increasing a company’s

competitive posture and

profitability via a strategic

focus and execution

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Payback Of

7 Step Strategic Sourcing

Mike Gozzo

How to Categorize goods & services for strategic

success

How to use collaborative techniques for results

Employ the sequence of actions to ensure

successful implementation of strategic sourcing

Understand & Use the right techniques to achieve

lead time reduction from the supply base

Discover the critical areas for accomplishing a

procurement set of objectives aligned with

corporate goals

1. Do Nothing We Respect That as You are the Best Person to Decide

if This is for You or Not

2. Contact Us For Full Information & To Register Click the Button Below, Or Go To:

www.ppc-inc.com/StrategicSourcingWebinar Or Contact Us by email

[email protected]

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Problems are only opportunities in work clothes.

~ Henry J. Kaiser

One of the true tests of leadership is the ability to

recognize a problem before it becomes an

emergency.

~ Arnold Glasow

Mike Gozzo