EARLY INVOLVEMENT OF PURCHASING…
Early involvement of Purchasing in the road map of new products.
Transparency is a key factor during the preparation of Material Strategy. Cost transparency is important in regards to capacity vs demands and market & supplier analysis, but also in the roadmap of new products.
The components that will be used in new projects and platforms, possible demands, necessary locations, production start and lead time for requested equipment and releases are all factors which need to be assessed as soon as possible to start the analysis.
If we want use the same or similar technologies as currently in production but with a different design, we can use this opportunity as leverage during upcoming negotiations to improve our commercial conditions and, if needed, to improve our supplier portfolio implementing new sources and/or phasing out some of our current suppliers.
If we use completed new technology and requirements, scouting activities are needed to find the right suppliers with requested capabilities, taking time to learn and establish a proper supplier pool.
As you can see in both cases the early involvement of Purchasing creates a great opportunity to improve the sourcing conditions.
On the other hand, if Purchasing becomes involved later, it would mean lack of time to prepare a proper strategy, creating poor sourcing conditions and even delays in the project if the right suppliers are not found in time.
If you are interested in investing in an exceptional team and increasing your company’s profitability, we encourage you to consider our next training focused on improving strategic purchasing skills. Additionally, please feel free to contact us for more information.
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