Strategic Sourcing and Category Management: Lessons Learned at Ikea (Anglais) Broché – 3 août 2015
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Description du produit
Revue de presse
"IKEA's strategic sourcing methods might not work for every company, but they certainly have a broad reach that goes far beyond the furniture retail niche. This book can help you discover if a category management program is a profitable choice for your organization. And if it is, you'll gain valuable advice and examples of setup and implementation from a real-world practitioner...Connecting theory with practice, the book draws upon existing practices and new tools to explain category-based sourcing, and how to effectively implement it." --(Inbound Logistics)
"A procurement book that is both philosophically interesting but also as practical and grounded as any I have ever read; it is a hands-on guide...This is another highly recommend book from publishers Kogan Page, and essential reading for anyone who is serious about procurement" --(Peter Smith, Spend Matters)
Présentation de l'éditeur
Legendary for its purchasing strategies, IKEA revolutionised the thinking and execution of procurement departments across the world.
Strategic Sourcing and Category Management examines how category management works in practice, drawing insight from IKEA. With over twenty-five years' experience of purchasing at IKEA, Magnus Carlsson shares the wisdom gained from devising and executing IKEA's highly successful purchasing strategies. This unique text is not just a case study - it is supported by insightful interviews, case studies and practical examples, which are compared and contrasted with examples from other leading companies.
Strategic Sourcing and Category Management answers three critical questions:
-When is category management a profitable method and why?
-How do category teams create real results?
-How can category management be organized and implemented effectively?
In answering these three questions, Magnus Carlsson not only presents the guiding principles behind category based sourcing, he also demonstrates how category based sourcing can effectively be implemented in practice and provides guidance on how to realise the benefits of this approach. Cleverly connecting theory and practice, the book draws upon both existing and new tools, and applies them in a highly practical context. With application spanning far beyond IKEA, this book is an invaluable resource for procurement and purchasing professionals in any industry.
Strategic Sourcing and Category Management is the result of twenty five years' experience of Strategic Sourcing within IKEA and collaboration with several companies and the Stockholm School of Economics.
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Commentaires client les plus utiles sur Amazon.com
The book looks at ways of improving the entire procurement process and creating a mutually beneficial environment for both purchaser and supplier alike. Of course, the purchaser will always want a bit better deal, yet there are ways in improving efficiencies and structures that offer benefit to both parties. It is a lot more than just cutting waste.
The author manages to cram a lot into a relatively small book, the contents of which are engaging, informative and incredibly more-ish. Whilst the book is aimed at the larger organisation, something that might be quite established and mature (with all the problems that can come with it), there is no reason why much of this book’s knowledge cannot be utilised or transformed into the operations of a smaller company. Not everything may be relevant, at the moment, yet there are still sufficient takeaway points to provide value.
It is a demanding book due to the sheer quantity of information on offer, sharing the knowledge of an industry professional that has been at the sharp end with a clear global leader who has transformed its own operations over time. It is a highly worthwhile read.
This is a book for those who should be doing things, although the academic need not be left out in the cold: there is an extensive range of notes and bibliographic references for deeper, additional reading. Although the reader may be kept fairly engaged and active consuming and contemplating the advice dispensed within the book as it is!
Like any other book I review or event I attend, my focus in reading this book was to cull out the important ideas: what are the few take aways that really stand out as unique? There are quite a few in this book, any of which will improve the maturity and results of your procurement organization. I think this book is fantastic – full of great new ideas and ways to implement them.
The first question that might come to mind is ‘how does the author suggest we segment our spend or supply base to get the best results from category management?’ He advocates segmentation by manufacturing process – and yet he introduces the idea that the processes he is accustomed to are different than the ones most commonly seen. The steps in any process must be allowed to influence each other – not just downstream, but back and forth. This philosophy brings the entire process to life and pushes those managing it to emphasize agility and flexibility.
Several of the take-aways I detail below provide examples of where learning something or changing a requirement must be allowed to affect the trajectory of the project no matter how far through the process it is. That being said, Carlsson does not suggest that processes should be ‘loose’. In fact, he explains that the difference is in the details – the difference between mostly getting a process right and actually getting it right may be small in percentage of the total effort, but will be significant as a percentage of the results.
Influence v. Power
This is big – first of all, knowing the difference between the two and second of all being able to build and wield both.
Influence is like BATNA outside of a negotiation. You strengthen it by increasing your options. If a company (or individual) can create and define a reason for suppliers to give them something others can’t access, they have influence. Another way of looking at it is increasing control over one’s environment. It is important to note that volume of demand does not automatically create influence. This provides someone with the option to improve results without violating the popular collaboration paradigm.
While Influence incentivizes desired behavior by offering something of value in return, power makes it happen through leverage. There is more force to a power-based approach.
Another critical idea. As Carlsson says, “locate the money.” Market diagnosis should be conducted early enough in a project that the findings can be allowed to shape the resulting sourcing efforts. Always look at the difference between what high margin/cost suppliers provide and what lower cost suppliers provide. High price suppliers have found a way to deliver value added services, and low cost suppliers have found a way to be efficient. The right answer is likely somewhere between the two, and there is something important to be learned from both.
If there aren’t enough viable alternatives in your project, re-engineer the offering to make them viable. Maybe your requirements are more the issue than what is available in the market. Understand the role that different cost types (fixed/variable/unit-based/overhead) as well as material vs. process costs have on the value created for your consumers. Start with cost calculations and then move to a value analysis which combines costs and consumer benefits.
This is definitely more than just another book on purchase or sourcing process, it is a toolbox that will help me in my job, to move my scope of responsabilities, to organize my priorities and to set up another strategy on my sourcing activities.
This book's phylosophy opened me new ways of thinking.
I recommend it to all buyers, from small to big companies if you want to developp your thinking and for sure to improve the competitiveness of your company.