Many managers today struggle with how to turn their procurement organization around and reduce their maverick spend (spending outside the procurement process). Jon Stegner, a senior purchasing executive at Delphi Corporation, brings with him a long experience of working and deploying procurement policies at a number of companies, including TRW, Honda of America, and John Deere. We spoke recently about his views on how to establish purchasing policies and procedures and how to make them stick. "At many companies, existing sourcing policies are a bit heavy on the bureaucratic side-with more rules than are practical to follow," begins Stegner. "Some of these rules don't always drive value-added work, and don't always result in optimum strategies. In certain situations, procurement must deploy a strategy where there is a need for a lot of data and information, but there is also a need for speed. In this environment, the delegation of authority and full-time resources are critical to success."
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