What is the key focus of strategic sourcing?
— Strategic sourcing focuses on adding value to the value chain by leveraging globalization, technological innovation, and understanding supplier strengths and weaknesses.
How are companies shifting their approach to procurement?
— Companies are shifting from traditional cost-cutting methods to developing healthy relationships and leveraging supplier innovation and infrastructure for faster growth and flexibility in their value chains.
Why did companies move away from vertical integration?
— Companies realized that vertical integration was no longer effective and started adopting the chiritsu model of networked suppliers to improve market share and efficiency.
What is the kyoryoku model?
— The kyoryoku model is a Japanese business network where companies have ownership shares in each other, working together while maintaining operational independence.
What are the key steps in strategic sourcing?
— The key steps in strategic sourcing include conducting internal need analysis, assessing suppliers, and building supply relationships.
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