Every day companies leave billions of dollars in invisible, unrealized savings on the table because of poor supply chain management practices. Now supply management experts Dave Nelson, Patricia E. Moody, and Jonathan Stegner show not only how leading companies recoup these savings through their mastery of target costing, value engineering, and supplier development, but how supply chain management -- the discipline of acquiring and moving material -- has become a manufacturing company's hottest competitive weapon.
Based on a survey of 247 purchasing managers and more than 1,000 hours of interviews and on-site visits, the authors have selected ten top firms whose supply management pioneers excel at twenty "best practices." With cases and stories, Nelson, Moody, and Stegner show how these leading-edge purchasing departments at American Express, SmithKline Beecham, DaimlerChrysler, Harley-Davidson, Honda of America, IBM, John Deere, Whirlpool, Flextronics, and Sun Microsystems have put into place pathbreaking processes and procedures. Here, for example, described in step-by-step detail, are Chrysler's SCORE program and Honda's strategic sourcing strategy that saved the companies billions. The book also includes a crucial section on the next stage of supplier development that will involve the sourcing and allocation of ideas as well as materials.
The authors provide concrete, practical steps to improvement that any supply chain manager can take to successfully implement these best practices. The Purchasing Machine will be required reading for logistics, purchasing, and procurement managers in hundreds of thousands of companies. The authoritative nature of the authors' source material is certain to make this the single most important and practical reference on best purchasing practices for years to come.
Industry Reviews
Thomas T. Stallkamp Vice Chairman and CEO, MSX International; former Vice Chairman, DaimlerChrysler; and former President, Chrysler Describes why senior management in many successful companies has embraced supply chain management....Shows the strategic value of working with, instead of against, suppliers. Chuck Lileikis CPM, Vice President, Central Procurement, Lockheed Martin Corporation Dave Nelson has brought supply chain management to the boardroom....For all purchasing professionals....Shows us how to think and practice strategically. Jim Scotti Vice President, Global Procurement & Materials, Halliburton Company For twenty-first-century supply chain leaders who have gone beyond stand-alone purchasing....Adaptable to a variety of global industries. George Koenigsaecker President, Lean Investments LLC, and Chairman, Shingo Prize for Excellence in Manufacturing Emphasizes the essential role of "charismatic, tough, brilliant leaders who made all the difference" in their organizations' transformation. Rosemary Mattick Vice President, Procurement and Supply Management, Weyerhaeuser If you think strategic supply chain competency is not critical to your company's success, read this book. It will change your perception forever. George J. Hupfer Vice President, Worldwide Purchasing, The Black & Decker Corporation A definitive work that demonstrates how to transform procurement into a profit machine. Henri E. Irrthum Vice President and Chief Procurement Officer, DuPont Loaded with case stories, leadership examples, best practices, and practical advice on how to extract maximum value from integrated supply chain management. Jose A. Mejia Chief Supply Officer, Lucent Technologies An enterprise-wide roadmap for organizations seeking to leverage supply management as a competitive weapon while embracing the virtual economy. G. Ken Newton, Jr. Vice President, Procurement and Logistics, Texas Instruments, Inc. Required reading that deserves a permanent place on your bookshelf. The best practices alone will return your investment in time and money many times over. Doug Smock Editor in Chief, Purchasing Magazine A good primer on outstanding procurement practices. It transcends buzzwords and jargon with many useful examples.
