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Corporate Strategic Business Sourcing [Hardcover]

Kevin R. Maromonte (Author)

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Book Description

Publication Date: February 28, 1998 | ISBN-10: 1567201148 | ISBN-13: 978-1567201147

To improve competitiveness in the global marketplace, companies are reducing costs through outsourcing--the purchase of goods and services from suppliers. In many cases, outsourcing is less expensive for companies than producing these goods and services internally. Companies, however, do not always achieve their ultimate goal of competing more effectively. This is because decisions to outsource are primarily based on the promise of lower direct costs, without considering other source performance criteria that also impact costs and ultimately competitiveness. Corporate Strategic Business Sourcing guides management in selecting the best sources--those that will raise performance to world-class levels and improve competitiveness. To improve sourcing decisions, the concept of the Strategic Business Unit, or SBU, is applied to each source being considered to provide the company with goods and services. Following the SBU approach, similar product and service lines are grouped together in the corporation. As a result quality levels, delivery performance, customer service, and product advancements, as well as costs, are more easily measured and improved. Just as the focus on these five criteria leads to improved SBU performance, the same approach can be applied to enhance the performance of the individual sources of goods and services. This is accomplished by similarily quantifying and improving the quality, delivery, cost, customer service and product advancement performance of the companies' sources, whether outside suppliers or in-house functions.

#outer_postBodyPS { display: none; } #psGradient { display: none; } #psPlaceHolder { display: none; } #psExpand { display: none; } To improve competitiveness in the global marketplace, companies are reducing costs through outsourcing--the purchase of goods and services from suppliers. In many cases, outsourcing is less expensive for companies than producing these goods and services internally. Companies, however, do not always achieve their ultimate goal of competing more effectively. This is because decisions to outsource are primarily based on the promise of lower direct costs, without considering other source performance criteria that also impact costs and ultimately competitiveness. Corporate Strategic Business Sourcing guides management in selecting the best sources--those that will raise performance to world-class levels and improve competitiveness. To improve sourcing decisions, the concept of the Strategic Business Unit, or SBU, is applied to each source being considered to provide the company with goods and services. Following the SBU approach, similar product and service lines are grouped together in the corporation. As a result quality levels, delivery performance, customer service, and product advancements, as well as costs, are more easily measured and improved. Just as the focus on these five criteria leads to improved SBU performance, the same approach can be applied to enhance the performance of the individual sources of goods and services. This is accomplished by similarily quantifying and improving the quality, delivery, cost, customer service and product advancement performance of the companies' sources, whether outside suppliers or in-house functions.

Editorial Reviews

About the Author

KEVIN R. MAROMONTE is a Performance Improvement Consultant.

Product Details

Hardcover: 232 pages
Publisher: Quorum Books (February 28, 1998)
Language: English
ISBN-10: 1567201148
ISBN-13: 978-1567201147
Product Dimensions: 9.6 x 6.4 x 0.9 inches
Shipping Weight: 1.2 pounds (View shipping rates and policies)
Amazon Best Sellers Rank: #4,196,130 in Books (See Top 100 in Books)

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Inside This Book (learn more)

First Sentence:
With the many sources of goods and services available in the global market, corporate outsourcing, the purchase of goods and services from external suppliers, began being widely used in the 1980s. Read the first page

Key Phrases - Statistically Improbable Phrases (SIPs): (learn more)
yield improvement trend, cost improvement trend, customer service performance measurement, immeasurable issues, improvement trend ratio, sourcing company, performance summation, annual percent reduction, annual yield improvement, summed weighted score, customer service criteria, braking system assemblies, preparing pie charts, prior year indicate, suppose one source, payroll processing transactions, purchased goods deliveries, total weighted points, annual capital investment budget, best performing source, source being assessed, internal purchasing department, project completion percentage, casting deliveries, considering new sources

Key Phrases - Capitalized Phrases (CAPs): (learn more)
Strategic Business Source, Balanced Performance Matrix, Balanced Performance Summation, Quality Performance Matrix, Pareto Analyses, Strategic Business Sourcing, Pareto Analysis, Yield Yield, Commitment Achievement, Global Castings, General Motors, Production Source Selection, Assessment Date, Strategic Business Units, Optimizing Performance, Score Planned, Trend Cost Cost

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Citations (learn more)

This book cites 7 books:

Quality Technology Primer for Managers (Total Quality Management Ser) by Joseph Tunner in Back Matter
Guide for Reducing Quality Costs (T106) by Quality Control Costs Committee in Back Matter
Juran's Quality Control Handbook by J.M. Juran in Back Matter
Total Quality Control, Revised (Fortieth Anniversary Edition) by Armand V. Feigenbaum in Back Matter
Procurement Quality Control by James L. Bossert in Back Matter

See all 7 books this book cites

3 books cite this book:

The Sourcing Solution: A Step-by-Step Guide to Creating a Successful Purchasing Program by Larry Paquette in Back Matter
The Global Economy and International Financing by Henri L. Beenhakker on page 120
Der Einkauf als Margenmotor f�r Ihr Unternehmen: Methoden zur Kostensenkung. Mit Fallbeispielen by Christian Schuh in Back Matter

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