Who's got strategic sourcing on the brain?
Staff -- Purchasing, 7/15/2004 2:00:00 AM
Japanese camera and copier giant Canon said recently it plans to cut its global supply base in half by 2006 and cut annual procurement costs by 10%, or about $1 billion. Canon plans to do this by establishing common standards to narrow down its parts and materials suppliers to reduce its suppliers to 3,000 by 2006 from about 6,000 now. That move is expected to reduce annual costs by about $983.5 million, or 10% of its total procurement costs. Canon is also aiming to raise the proportion of parts it produces in-house.
Video rental giant Blockbuster plans to centralize its procurement unit to allow the video rental company to consolidate purchasing and allow Blockbuster to take advantage of centralized purchasing and bulk pricing. The company is eyeing the Dallas suburb of McKinney for the site of the operation, where it currently operates a distribution center.
Energy firm TXU is implementing a strategic sourcing program to reduce spending on third-party supplies and services. Following a 90-day review of the company, TXU's president and CEO John Wilder named a new leadership team that includes Ric Federwisch as senior vice president, strategic sourcing and TXU operating system. Federwisch was promoted to the post from his position of vice president of procurement and administrative services at TXU. In his new position, he will lead a new group that will focus on strategic sourcing.
The Commonwealth of Pennsylvania continued on its strategic sourcing initiative to aggregate the buying power of all state agencies with an office products contract that will bring $7 million in savings to the state, a 39% savings from the previous contract. The total savings generated by strategic sourcing comes to $57.3 million.
What is Strategic Sourcing?
12/03/2007Get the most out of Strategic Sourcing
03/04/2003
Now Playing: 