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Supply Management and Procurement Best Practices


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Table of Contents

Preface ix CHAPTER 1 An Overview of Global Strategic Sourcing 1 The Strategic Sourcing Plan 2 Operational Sourcing Strategy 10 Summary 17 CHAPTER 2 Operational Alignment with Sourcing Strategy 21 Understanding Requirements 21 Opportunity Analysis 28 Category Segmentation 35 Summary 37 CHAPTER 3 Source to Settle (S2S) 39 Why Source to Settle? 39 Implementing an S2S Process 47 Managing the S2S Process 53 Outsourcing the S2S Process 54 Summary 54 CHAPTER 4 Cultural Considerations for Global Sourcing 57 Conducting Business in Other Nations 58 Cultural Values 58 Sourcing Challenges 66 Summary 70 CHAPTER 5 Supplier Research and Market Analysis 71 Conducting Supplier Research 71 Conducting Market Analysis 81 Summary 85 CHAPTER 6 Solicitation of Bids and Proposals 87 Solicitation Planning 87 Solicitation Methods 96 Summary 99 CHAPTER 7 Supplier Evaluation and Selection 101 Evaluation Criteria 101 Summary 123 CHAPTER 8 Negotiation Revisited 125 The Nature of Negotiation 125 Negotiation Strategy 126 Negotiation Planning 129 Developing a Negotiation Plan 130 Exception Conditions 135 Summary 138 CHAPTER 9 Supplier Diversity 139 Diversity Programs 139 The Business Case for Diversity 142 Supplier Diversity Best Practices 144 Global Supplier Diversity 147 Diversity Advocacy Organizations 148 Summary 151 CHAPTER 10 Sustainability 153 Issues in Sustainability 154 Guidelines 163 Criteria for Supplier Evaluation 167 Summary 169 CHAPTER 11 Risk 171 The Nature of Risk 171 Why Is Understanding Risk Important? 172 Risk Management Principles 172 Summary 181 CHAPTER 12 Global Sourcing 183 Developing a Global Sourcing Strategy 184 International Trade Requirements 188 Summary 195 Glossary 197 Suggested Reading 207 About the Authors 215 Index 217

About the Author

FRED SOLLISH, MS, is the Managing Director of eParagon, LLC, a consulting firm specializing in providing training and working tools for the supply management profession. Fred is former president and CEO of the Institute for Supply Management (ISM) Silicon Valley affiliate and is a longtime member of its Board of Directors. He is also an instructor for sourcing, supply management, and purchasing related courses. His online strategic sourcing program can be found at JOHN SEMANIK, MBA, is cofounder and Director of eParagon, LLC. He has served in senior corporate supply chain management positions at such leading-edge companies as Hewlett-Packard Company, Sun Microsystems (acquired by Oracle), and Xilinx, Inc.?John was founder, managing director, and instructor for San Jose State University's Professional Development curriculum in supply chain management and purchasing. He serves on the Board of Directors of the Institute for Supply Management (ISM) Silicon Valley affiliate.

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