Worldclass Purchasing

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Operations Management, Consumer Goods January 2010

Worldclass Purchasing

Central results from the "Purchasing Value Excellence" (PVE) study

The global financial and economic crisis appears to have pulled out of its low point. An economic turnaround is expected in 2010. Now is when the decision is made as to who will capitalise on the opportunities of the coming recovery phase and who can lay the foundation for the years of future success. What purchasing departments can learn from the very successful purchasing organisations, including which best practices they can purposefully adopt and how they can benefit from the implementation and regular utilisation of these best practices, was identified in detail by Arthur D. Little in cooperation with the University of St. Gallen and the German Federal Association of Materials Management, Purchasing and Logistics (BME) with the 2009 PVE study. [...]

No Stone Unturned?

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Operations Management January 2010

No Stone Unturned?

Purchasing alliances between portfolio companies in private equity context

The recession means that Private Equity Associations must face the challenge of supporting their investments. For many, a ruthless reconstruction of redundancies is necessary, which regularly leads to friction. [...]

Supply Chain Performance Excellence

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Operations Management, Consumer Goods January 2010

Supply Chain Performance Excellence

Realising potential within the supply chain to drive down costs and optimise service

A research study by Arthur D. Little shows that many companies are not currently taking advantage of supply chain excellence practices or are not doing so fully. Excellence practices can help companies to identify the precise service levels below which any further decrease causes changes in the consumer’s decision to purchase. The study also identified the pull principle, which can help to reduce cycle times and inventory. Arthur D. Little’s experience shows that the use of the pull principle can raise the rate of complete, qualitatively flawless and punctual deliveries to 98 per cent and also makes it possible to reduce supply chain costs by 20-30 per cent. [...]

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