Your organization has crunched all the numbers and evaluated offers and signed the global outsourcing contract. You are rather pleased with your efforts including involving your internal users in the RFP, perhaps organizing a great global reverse auction and concluding some great win-win supplier negotiations. Your CFO and CEO are delighted with the projected savings that will come from executing the global outsourcing contract. In fact your CEO (followed by your HR) proudly mentioned that all displaced employees might be possibly absorbed in other parts of the US organization, avoiding layoffs. This would be possible as global outsourcing will reduce costs and many more new product development and innovation projects might be speeded up - substantially. More and speedily developed new products for global markets would actually mean more jobs in the US organization! You knew that global supply chains were the way to go.... Two years down the line you find that the envisaged contract volumes have not emerged. The suppliers are complaining, your internal organization had changed with the outsourcing contract, and it's difficult to find the people who knew what was going on in the first place. The global innovation engine is moving much slower than expected and savings are not showing up on the balance sheet. My presentation will help you understand some key steps and tools to help your organization capture the value from global outsourcing and enhance value in your downstream value chain.
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