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Balanced Sourcing: Cooperation and Competition in Supplier Relationships

ISBN: 978-0-7879-4443-8
288 pages
September 1998, Jossey-Bass
Balanced Sourcing: Cooperation and Competition in Supplier Relationships (0787944432) cover image
There's too much work to be done. Your organization can't handle the load. That's when you begin to consider outsourcing some of your business functions. But how can you choose the right suppliers and ensure maximum results? In this book, Laseter--of the world-renowned consulting firm Booz*Allen & Hamilton--shows companies how to address that challenge through the dynamic pursuit of balanced sourcing.

"This will be a super book to provide to new purchasing people and to reinvigorate experienced purchasing professionals. It was great to see many of the concepts with which we have experimented logically explained. I wholeheartedly endorse it."
Jean Mayer, executive director, manufacturing procurement operations, Ford Motor Company

Laseter and Booz-Allen coined the term "balanced sourcing" to describe a model for ensuring competitive pricing from suppliers while simultaneously nurturing cooperative relationships. Drawing upon Booz-Allen's experiences with leading companies, Balanced Sourcing lays out the six organizational capabilities that make up the firm's field-tested strategy. Detailed case studies of four prominent corporations-Honda of America, Cisco Systems, SUPERVALU, and Florida Power & Light-show you the broad applicability of this model for companies in industries from manufacturing to services to high-tech.

"Too many 'best practice' guides present a one-size-fits-all solution, such as copying the so-called Japanese model of sole sourcing. In fact, the best Japanese companies do not treat all suppliers as sole-sourced partners and you should not either. Balanced Sourcing is full of practical tools and models that will help you think through appropriate strategies for each of your suppliers."
Dr. Jeffrey K. Liker, associate professor, industrial & operations engineering, and co-director, Japan Technology Management Program, University of Michigan

Get real-life lessons from around the world on:

  • Creating sourcing strategies
  • Building and sustaining supplier relationships
  • Leveraging supplier innovation...and much more!

Make the most of your outsourcing with this one-of-a-kind best practices guide!

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Foreword

Preface

Part One: A New Model for Purchasing

1. The Emergence of Balanced Sourcing

2. Transforming the Organization

Part Two: Building the Capabilities

3. Modeling Total Cost

4. Creating Sourcing Strategies

5. Building Sustainable Relationships

6. Integrating the Supply Web

7. Leveraging Supplier Innovation

8. Evolving a Global Supply Base

Part Three: Balanced Sourcing Case Studies

9. Florida Power and Light Company

10. SUPERVALU

11. Honda of America

12. Cisco Systems

Notes

The Author

Index

Booz-Allen and Hamilton

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TIMOTHY M. LASETER is a vice president at Booz**Allen & Hamilton and founder of the firm's global network of sourcing practitioners. He has helped a wide range of companies build the organizational capabilities for balanced sourcing and is a regular columnist for Purchasing magazine.
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"In an era when more foolishness than fact is burbled about managing the supply base, it's refreshing to read Balanced Sourcing. This book explores an average company's least-used resource: its supply base. In a step-by-step approach, the book explains how companies can develop a dynamic strategy based on the strengths and resources of their supply base." -James P. Morgan, editorial director and vice president, Purchasing magazine

"Traditional North American companies pay more than 20 percent premium for purchased goods and services compared to the new nontraditional competitors. Balanced Sourcing clearly shows the secret of 'Best in Class' cost management techniques. Do you know what 20 percent of your spending looks like added to your bottom line?" -R. David Nelson, vice president, Worldwide Supply Management, Deere & Company

"Too many 'best practice' guides present a one-size-fits-all solution, such as copying the so-called Japanese model of sole sourcing. In fact, the best Japanese companies do not treat all suppliers as sole-sourced partners and you should not either. Balanced Sourcing is full of practical tools and models that will help you think through appropriate strategies for each of your suppliers." -Dr. Jeffrey K. Liker, associate professor, industrial & operations engineering, and co-director, Japan Technology Management Program, University of Michigan

"This will be a super book to provide to new purchasing people and to reinvigorate experienced purchasing professionals. It was great to see many of the concepts with which we have experimented logically explained. I wholeheartedly endorse it." -Jean Mayer, executive director, manufacturing procurement operations, Ford Motor Company
See More
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