I have put together 10 tips to help you on your next sourcing project in China. I have spent several years sourcing in China, including setting up and running representative offices for my employers in the UK. This is not a fully exhaustive list (I did have more than 30 tips, and a more detailed look at purchasing from the country will appear in an upcoming edition of SM) but they are the ones I thought most helpful to act as a checklist. (more…)
Outsourcing works when you embrace and understand the concept of a partnership approach with your chosen provider. Your partner must be seen as an integral extension of any retained function and treated in the same way as any other colleague. Only by understanding that success is a shared responsibility between you and the provider, not the sole responsibility of either party, will you be able to create a powerful platform for transformation. Outsourcing works when it is underpinned with a clear mandate and executive sponsorship from the business to effect change. Of course, if it was easy we would all be doing it. (more…)
Chief procurement officers have long viewed business process outsourcing (BPO) as a way to streamline operations, enhance efficiency and reduce costs.
BPO, however, can do so much more than that. Today, leaders in this space are increasingly looking at BPO as a way of adding value, enabling their procurement functions to play a more strategic role in the business. This involves using their BPO relationships to provide business insight, innovation, and solutions, not just cost cut. (more…)
According to a recent study by KPMG, the outsourcing of back office functions is due to increase over the next six months, which is of course good news for outsourcers. But the report mentions suppliers are concerned customers will not renew contracts. With outsourcing trends moving away from the single supplier model to an approach where buyers choose the best provider for specific tasks, and contract lengths becoming shorter, clients can achieve more flexibility and efficiency when outsourcing. (more…)
Recent high profile news stories have thrust outsourcing into the public spotlight and under this brightness, the industry may seem pale and washed out. Despite this it has to be understood whenever private sector companies bid for public sector contracts there is always a great amount of scrutiny through formal EU governed processes. After all, it is our money being spent, and we want it spent in the best possible way. (more…)
The concept of outsourcing print management can be beneficial to businesses of any size. But despite this, many companies in the UK continue to manage their print in-house. From time spent printing collateral to the money spent on materials, it all costs – and that’s before you consider the potential waste from overprinting. (more…)
Procurement strategy has bizarrely become caught up in the US presidential election, with both candidates engaged in a bitter fight over the outsourcing and offshoring of US jobs.
But while the politicians focus on the employment issue, for most companies manufacturing or suppliers location is a complex evaluation of cost, risk and lead-time. (more…)
Across the pond in the US a storm is brewing. The two forces fighting are the incumbent president Barack Obama and the man vying to evict him from the White House, Mitt Romney, and it is all blowing up over outsourcing. (more…)
Current supply chains are not responding to the fast pace of technological change. Some businesses have found it difficult to modernise their approach to address these challenges – many continue to work around the supply chain rather than make it work for them. Businesses must adapt to overcome these challenges. Combining sourcing principles and applying lean principles provides the key to successful supply chain management. (more…)
So you think that business process outsourcing (BPO) is the next step in your firm’s evolution. But where do you start?
Most companies set out to implement BPO effectively, but many end up failing to deliver this. All too often I hear of lost bargaining power, ill-conceived short-term contracts and weakened commercial terms with suppliers. (more…)