“The initial global sourcing thrust was cost savings focused, but that was the 1980s-90s – that ‘story has been written’. Now the focus is on how we as a retailer – having cut out the middleman – can influence the manufacturing transaction for the benefit of the customers. We need to take customer data and insights to build better products.”
Gregg Forsberg, director, global sourcing international for Best Buy Asia Pacific (Limited) quoted in PriceWaterhouseCoopers recent Global Sourcing report.
Global sourcing has indeed come a long way, but as Gregg Forsberg points out – when everyone is sourcing globally, cost alone is no longer a competitive differentiator.
Purchasing Maturity Model
To continue to deliver value to the organization, purchasing needs to continue to transcend upwards, without losing the ability to capture margins and secure market prices. In some upcoming posts, we’re going to pin-point some strategies purchasing can use in order to secure this ascension.
