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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
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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
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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
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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
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
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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