The Purchasing Chessboard

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The Purchasing Chessboard

It encourages greater rigor and creativity and the building of world class capabilities. The explosive growth in analytics and the rise in the number of specialists in procurement practice have taken the application of the Purchasing Chessboard to new levels. This third edition of the book includes a rich assortment of case examples to reflect the lessons learned across geographies and industries.

Six Steps To Create Strategic Sourcing Plan

Some of the chapters have also been updated to accurately reflect these trends. Currently out of stock Delivery Days. Just looking at how well a company — any company — did in the economic cycle should be a convincing enough argument. Christian Schuh, Joseph L.

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Raudabaugh, Robert Kromoser, Michael F. Strohmer, Alenka Triplat. To help procurement meet the challenges of an increasingly volatile world, A. This new edition represents the condensed experience and insights acquired by A.

64 Methods to Reduce Cost and Increase Value with Suppliers

The basic concept of the Purchasing Chessboard derives from the relationship between supply and demand. Its aim is to help buyers deal with every type of transaction with suppliers.

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The laws of supply and demand have influenced the rise and fall of preeminent civilizations and ruling bodies throughout history. There is no reason to believe that these laws are any less relevant today than they were in days gone by, or that they will be any less relevant in the foreseeable future.

The Purchasing Chessboard is used to assign strategies and methods for cutting costs and increasing the value of specific spend. The first step is to find an appropriate classification for a given spend. For example, if a steel producer is planning to invest in a new coking plant, there are roughly speaking three levels at which an order can be placed: Plant: The entire coking plant is contracted out to a single turnkey supplier.

Strategies - The Purchasing Chessboard - A.T. Kearney

Process plant: The coking plant is divided into the coking plant proper and the gas treatment section, with contracts drawn up for each part. Components: The coking plant is broken down into several parts — the coke-oven batteries, coal preparation and screening, oven machinery, chimneys, coal tower, and quenching towers, with separate contracts for each.

Note that there is no right or wrong in this scenario. The Purchasing ChessboardTM has been tested extensively. The relevant sectors included automotive manufacturing and supply, military equipment tanks , construction equipment, packaging, steel, transport, foodstuffs, pharmaceuticals, energy utilities, telecommunications and banking.

click In a recent purchasing survey accomplished by A. Kearney has developed the Purchasing ChessboardTM. This tool relies on the huge amount of experience and insights from over purchasing projects A.