Profit from the Source (Christian Schuh et al.)
Problem
Companies lose value when procurement lacks executive attention.
Action
Make procurement and key supplier relationships direct leadership responsibilities.
Outcome
Procurement creates greater business value.
Chapter: How You Need to Change - Start at the Top: Make Your Suppliers and Your Procurement Function Leadership Imperatives
Problem
Transactional supplier relationships limit shared value.
Action
Develop long-term partnerships with key suppliers based on trust and shared goals.
Outcome
Collaboration delivers stronger business results.
Chapter: How Your Company Needs to Change - Treat Your Suppliers as Friends: Forge New Dynamic Relationships with Your Most Important Suppliers
Problem
Late procurement involvement misses opportunities to improve products.
Action
Include procurement from product ideation through post-production.
Outcome
Products achieve better cost, quality, and supply decisions.
Chapter: How Your Company Needs to Change - Empower Your "Shoppers": Put Your Procurement Team at the Very Heart of Your Product Life Cycle - from Ideation to Postproduction
Problem
Manual procurement processes limit performance.
Action
Use digital technology to strengthen the work of procurement professionals.
Outcome
Procurement decisions become faster and more effective.
Chapter: How Your Company Needs to Change - Go Bionic: Create a Procurement Function That Combines the Virtues of Human Creativity and Digital Technology
Problem
Incremental savings leave significant value unrealized.
Action
Work with suppliers to identify major cost reductions before production begins.
Outcome
The business achieves lower total costs.
Chapter: How Your Company's Ecosystem Needs to Change - Cut Costs - Fast: Demand Up-Front Double Savings from Your Top Suppliers and Double Down on the Rest
Problem
Internal development alone limits innovation.
Action
Share research and development efforts with strategic suppliers.
Outcome
Joint innovation produces stronger products.
Chapter: How Your Company's Ecosystem Needs to Change - Dream Big Together: Achieve Breakthrough Innovations by Pooling R&D Resources with Your Suppliers
Problem
Quality problems persist when companies and suppliers improve separately.
Action
Work with suppliers to identify and eliminate the causes of defects.
Outcome
Products achieve more consistent quality.
Chapter: How Your Company's Ecosystem Needs to Change - Settle for Perfection: Deliver Unbeatable Quality by Joining Forces with Your Suppliers to Wage a War on Errors
Problem
Company sustainability goals depend on supplier performance.
Action
Work with suppliers to meet shared environmental, social, and governance standards.
Outcome
The supply chain becomes more sustainable.
Chapter: How Your Company's Ecosystem Needs to Change - Share Your Tomorrows: Become Truly Sustainable by Allying with Your Suppliers to Meet Environmental, Social, and Governance Standards
Problem
Poor coordination across the supply chain slows execution.
Action
Share plans and jointly execute work with suppliers.
Outcome
Products reach the market more quickly.
Chapter: How Your Company's Ecosystem Needs to Change - Get Quicker, Faster - as One: Go Twice as Fast by Collaborating with - Not Competing Against - Your Suppliers
Problem
Unexpected supply disruptions create avoidable business losses.
Action
Share information with suppliers to identify and prepare for risks early.
Outcome
The supply chain becomes more resilient.
Chapter: How Your Company's Ecosystem Needs to Change - Anticipate the Inevitable: Halve Your Risks by Working with Your Suppliers to Predict the Unexpected