EARLY SUPPLIER INVOLVEMENT (ESI) WITHIN THE PROCUREMENT AND SOURCING MANAGEMENT PROCESS - AN OPPORTUNITY TO ACHIEVE WORLD CLASS STATUS IN OUTSOURCING

摘要

As supply chains compete against one another within the globalization processes, the function of procurement within each chain becomes a major area for examining applications for best practices and gaining efficiencies. Those whose responsibilities lie in the formation of strategies and tactics are often promoting the inclusion of the procurement and sourcing management departmental representative from the earliest planning stages of a project - rather than later - thereby setting up the best opportunities to achieve project savings. Those who support this early participative role for the procurement function may point to the department's knowledge of the supplier base and of which one may be best qualified for the project. To the extent that the early presence of the supplier during the planning period of the project when specifications are being drawn up, schedules for performance milestones are being charted, and cost budgets are being developed may contribute to the project's ultimate success, there is an indication that purchasing personnel can prepare themselves for this early involvement by spending time with suppliers to learn about products and services specifications and descriptions to help in the procurement decision. How these contributions are best achieved is the subject of this paper as the researchers performed primary surveys of various companies and also reviewed industry trade and media data by which to gain an understanding and appreciation of this role by the procurement and sourcing management organization.