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Subscribe ToPostsAtomPostsAll CommentsAtomAll CommentsWelcome To Same World NetworkingSameworld.net is the networking blog for Supply Chain Specialists interested in creating channel partners around the globe. A key essence for success in a new market is to identify the ‘Right Partner’. We appreciate the huge importance of this aspect and are willing to invest the necessary time and effort to get it right. There is NO substitute for "Grunt Work" and it is essential to meet the prospective partner, understand their technical capabilities, visit their manufacturing unit and assess the management team. With the partners who add to this blog we hope to achieve that. Mark Kennedy Same World TradingWednesday, 8 December 2010Procurement Rules of EngagementIt was suggested to me by a colleague that I might want to blog about the “rules of engagement” for global procurement. I always thought this sounded like something you decide when you’re getting ready for to battle, dig in and shell your suppliers.I would start out by saying that’s not the direction I see supplier relationships going … the successful ones, anyway.We’re not looking to wage war at all; we’re here to make peace… and live in prosperity. At Same World, we aim to drive the message of winning by collaboration and cooperation, not conflict or confrontation.Someone once said about being caught up in the Rat Race; that “even if you win, you’re still a rat.” We think that pretty much sums up the old price-focused approach to procurement. One side bashes the other until they can’t stand up anymore, and no one ends up winning, at least not in the long run.Let me give you some quick background, most companies strive to become your customers’ best supplier, seems simple enough. But to reach that desired result can mean changing everything upstream in the procurement process. That’s not so simple. At Same World we are often invited to come aboard to drive the implementation of supply chain management best practices.We work on transforming that OEM’s procurement practices; and to do this we often use lean supplier development to excellent advantage. Working in tandem with suppliers to cut waste, expense, and develop the best possible product for the best possible cost. Lean practices helped make OEMs, and their suppliers, the most competitive and the most profitable.I often feel more like a preacher sometimes than a purchasing executive, because to affect the changes and to stay competitive means getting the board to take a big leap of faith, to take a new approach to their working relationships, and develop trust in people they’ve long considered adversaries.We need to take a leaf out of the Japanese book, because the Japanese corporate culture requires partner participation. Nobody needs to be sold on the ideas behind the collaborative approach, because it’s the accepted practice.Many c
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