The Purchasing Machine

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Every day, companies miss out on billions in unrealized savings due to ineffective supply chain management. Experts Dave Nelson, Patricia E. Moody, and Jonathan Stegner reveal how leading firms recover these savings through target costing, value engineering, and supplier development. They emphasize that supply chain management has become a crucial competitive advantage for manufacturing companies. Drawing from a survey of 247 purchasing managers and over 1,000 hours of interviews and site visits, the authors highlight ten top firms that excel in twenty "best practices." Through case studies, they illustrate how pioneering purchasing departments at companies like American Express, DaimlerChrysler, and Honda have implemented innovative processes that saved billions. Notable examples include Chrysler's SCORE program and Honda's strategic sourcing strategy. The book also addresses the future of supplier development, focusing on the sourcing and allocation of ideas alongside materials. With practical steps for improvement, it serves as an essential guide for supply chain managers seeking to adopt these best practices. This work is poised to be a vital resource for logistics, purchasing, and procurement professionals, establishing itself as a key reference on effective purchasing strategies for years to come.